Page 423 - Global Project Management Handbook

PARTNERING IN PROJECTS 20-11

But there are also benefits to the contractors through stability of their turnover, allow-
ing workforce stability and investment in improved working conditions for their staff.
With predictable workload, contractors also can make more investment for the future in
improved technology and staff training, delivering additional benefits to the client (win-
win). Thus the reasons for adopting long-term partnering are similar but not identical to
single-project partnering.
Note that long-term partnering is used both on routine work and on project work.
Routine work where it is used is plant operation under build-operate-transfer (BOT) types
of arrangements and online maintenance. Project work, where it is used, can be preferred
contractor arrangements for small design projects, retrofit and small works–based construc-
tion projects, and scheduled shutdown maintenance and turnaround. Indeed, with retrofit
projects, much of the construction will be done with the plant online, which is complex
enough. However, some of the work, especially break-ins to operating plant, must be done
during scheduled shutdown maintenance and turnaround, during very tight time windows,
increasing risk and complexity and increasing the need for cooperative working between
client and contractor. We are interested here in long-term partnering for project work.

Establishing and Managing the Partnership
There is a four-step process for establishing a long-term partnering arrangement:

Step 1: Process appraisal
Step 2: Partner selection
Step 3: Alignment
Step 4: Deployment
Process Appraisal. At this step, the client needs to understand that partnering is
right for his or her business. The client needs to consider if he or she understands
● The business objectives and potential benefits
● The opportunities and threats from the environment
● The leadership and commitment required

The client also needs to ensure there is sufficient future workload to maintain the partner-
ing arrangement.

Partner Selection. The process of partner selection is very similar to that described
earlier, following the same four-step process. Key risks in this process are
● People are not committed.
● They do not understand the process.
● Threats come from the environment.

Alignment. The main aim of this step is to achieve alignment between the client and
the contractors. This requires

● Alignment of objectives
● Reorganization of cultural and procedural differences
● Alignment of policy for risk management and problem solving