Alliances have become crucial strategic maneuvers in the construction business during this period of globalization and significant technological development. Partnering as a collaborative procurement approach has received a lot of attention in the construction industry and has been connected with several positive outcomes. Today, one of the primary outcomes of strategic partnerships with industries is sustainability and competitiveness. Executives have understood that in order to thrive, they must build some type of informal or formal collaboration with others, therefore affecting the company’s whole value chain.

We cannot ignore that a brighter future awaits organizations that embrace collaboration as a solution to many business challenges. Increased and effective collaboration leads to better-enhanced project outcomes; from more efficient delivery to improved company performance and increased client satisfaction. It fosters a culture of strong relationships, clear communication, creativity, innovation, skill development, and improved solutions to the unexpected challenges that come throughout every construction project.

While strategic partnerships have many advantages, they also have certain inherent risks. To prevent problems and difficulties, it’s necessary to grasp the fundamentals of the business agreement and what you’re getting into when forming a strategic partnership. And to gain the benefits of this strategy, the partnership must be well constructed through considerable time, effort, and dedication at all phases of a project. This article will discuss implementation stages or approaches to achieving exceptional results in the construction industry.

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Implementation of Partnering (

Partnering requires considerable time, effort, and commitment at all stages of a project. The use of a partnering strategy is the voluntary decision to which all team members agreed at the beginning of the project. Implementation steps for partnering could proceed in the following manner:

  1. All parties should express their desire to perform the project under a partnering agreement at the beginning of the project. The owner’s intention of utilizing the concept should be mentioned in the bid solicitation and specifications. Any prebid conference should include a presentation on partnering. 
  1. There should be a meeting of top management of all firms involved in the project in the early design stage. However, the executives at the CEO level should meet to discuss the partnering approach to managing the project. A commitment from the top of each organization is essential for partnering to work. 
  1. A partnering workshop/team building session should be held in the very early stages of the project. Each member team should designate a partnering leader who would intend to participate in the workshop. All of the participants of the partnering workshop would develop and agree to a partnering charter which is a written list of the goals and objectives for the project. The charter is a physical symbol of the project team members’ commitment to partnering. It is considered to be a road map for regular evaluation of the project process. Specific benchmarking measurement goals as well as general goals can be part of the partnering charter. The charter does not change the terms of the project participants’ contracts and is not a contract in itself. The charter is a guide for cooperation. Each party to the project should sign the charter to show their commitment to the partnering process. For periodic evaluation, a formal, regular evaluation of the progress of the project should occur normally as a formal monthly or bimonthly meeting. At this review meeting, there should be an open dialogue on any problem areas with the goal of maintaining all parties’ commitment to the partnering process and to make sure that an adversarial relationship has not started to build.
  1. The partnering charter should commit all of the team members to dispute resolution without claims or litigation. The goal is that any disagreement is resolved at the project level and that if a dispute is unable to be resolved at the project level, it should quickly move up to the next level of management for resolution. Resolutions should be sought in a “win-win” atmosphere of open communication and trust. The goal is to avoid claims and any involvement by outside lawyers that could result in litigation. Alternate dispute resolution (ADR) techniques can be an important part of the partnering process. If any dispute is unable to be resolved at the lower level, the parties should agree to mediation or some similar low cost dispute resolution technique. The goal is to avoid the time and expense of claims and litigation. Alternate dispute resolution techniques can help maintain team spirit and friendly working relationships at the project.


Bottom Line

The whole construction industry must completely commit to collaboration, adopting a growth mentality and shifting to more collaborative practices. Partnering requires a major commitment to change by all project parties in order to function effectively, which then results in a “win-win” relationship. In addition to that, it needs clear and consistent leadership from all parties involved.

Finally, the ultimate result is a stronger, more efficient, and more resilient industry that collaborates better to produce a greater performance for clients. Construction industries should leverage this approach in order to produce outstanding results for their companies.


HWA Alliance is here to Help!

An important factor in the construction industry is the decision-making required for development strategy. Executives must select a route to achieve sustainable growth and implement a well-planned business growth strategy.

Strategic alliances are a growing trend and a critical strategy in today’s construction industry. If you want to learn more about strategic alliances or dive into this approach, HWA Alliance of CPA Firms (HWAA) is here to help you. HWAA offers a wide variety of strategic financial advisory services to clients, with a focus on mergers and acquisitions (M&A) and strategic alliances. Our expert advisors will help determine the best type of inorganic growth for your company. We are dedicated to our client’s growth and success.


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