Partnering is a broad term used to describe a collaborative management approach that encourages openness and trust between parties to a contract. The parties become dependent on one another for success and this requires a change in culture, attitude and procedures throughout the supply chain. It is most commonly used on large, long-term or high-risk contracts.
Partnering in the Light Gauge Steel industry can be adopted for a one-off project or can be a long-term relationship over several projects (such as a framework agreement). The longer the contract, the greater the benefit of partnering as there is more opportunity for building working relationships, finding improvements and planning investment. Where a partnering relationship is for a specific project, it is known as ‘project partnering’. Where it is a multi-project relationship it is known as ‘strategic partnering’.
Successful LGSF partnering should enable the long-term integration of the entire project team for the mutual benefit of all, so the right partners must be selected.
WHAT ARE SOME ESSENTIAL ELEMENTS OF A PARTNERSHIP AGREEMENT?
- Commitment to partnering by the top management of every organization involved in the project.
- The trust between all parties through personal relationships and open communication with mutual sharing and understanding of each party’s risks and goals.
- A partnering charter developed jointly by all parties to the project identifies specific mutual goals and objectives of the partnering participants for continuous evaluation and review against the agreed-upon mutual goals.
- Timely resolution of any disputes at the lowest level possible during the project.
HOW DO YOU AS AN LGSF ENTITY BENEFIT BY PARTNERING WITH ANOTHER?
Benefits to a stakeholder
- Greater control of schedule and cost through close communication and regular evaluation of project progress.
- Higher quality through focusing on mutual goals by team members who are not sidetracked into adversarial relationships.
- The potential for a total claim-free project can be achieved through partnering. Lower administration costs can be achieved by the avoidance of case building and the use of outside counsel.
- Greater innovation through open communication and trust particularly in the area of value engineering and constructibility reviews.
- A higher profit potential for all participants resulting in a more efficient project delivery process.
Benefits to the construction manager and general contractor
- Reduced risk of delays and cost overruns by early and active involvement in issue resolution.
- Increased productivity by the elimination of adversarial relationships and case building. Reduced exposure to claims litigation through early low-level project resolution of problem issues.
- Greater profit potential.
Benefits to architect/engineering consultants
- Greatly reduced exposure to liability for document deficiencies through early review.
- Increased value optimization during conceptualization stages of both architectural and structural design phases.
- A cooperative effort to resolve problems early to reduce exposure to claims and litigation resulting in reduced administrative costs and increased profit potential.
- Increased technical & practical knowledge through close ties.
Benefits to subcontractors and suppliers
- Improved cash flow due to elimination of, or reduction in, disputes resulting in withheld payments.
- Greater involvement in the decision-making process as an active team member in the project.
- Reduced exposure to, or elimination of, claims and litigation through early project dispute resolution.
- An increased profit potential through a “win-win” attitude.
As stakeholders of the LGSF industry, we at Stratus Steel, invite LGSF entities to collaborate with us! Our expertise lies in the design, manufacturing and installation of LGS Frames & accessories. We look forward to working with some brilliant professionals as well grow with you!
You can find our partner form here – FILL THE FORM HERE
Or simply connect with us via work@stratus-steel.com or 9156551673 to get started!
