Construction partnering is an approach to commercial construction that seeks to build mutually beneficial working relationships between builders and developers. Construction partnering is a form of business partnership used in the construction, engineering and architecture industry. Partnering is designed to help project teams to resolve disputes, setting benchmarks for project success and enhancing project results. The process lays the foundation for long-term, sustainable relationship building.
There are many benefits for having a construction partner on your team. Most importantly, a construction partnering will share risk and leverage financial resources from multiple accredited lenders to make your construction project successful. In addition, construction partnering can help project teams to define and reach their construction goals and objectives. Finally, construction partnering can provide you and your team with common goals and objectives and provide a common understanding of your timeline, budget and scope.
When forming a construction partnership, your company should develop a written agreement describing the project specific terms including the scope of work, project management plan, schedule, cost estimates and other relevant details. In addition, the written agreement should contain the terms of any compensation to be provided to the borrower. In most states, a construction partnering agreement is not enforceable, but it serves as the basis for any dispute resolution between your company and the construction partner.
By utilizing construction partnering as a method for managing your commercial projects, your company will be able to eliminate unnecessary conflicts and save time and money in the long run. This eliminates costly delays and unnecessary expenses. By working with experienced construction partnering companies, your project teams can focus on completing the project quickly and efficiently.
In most construction partnering scenarios, the construction partnering company is made up of a group of contractors who bring value and experience to your project. A construction partnership allows for the contractors to bid on jobs on their own and in most instances, they will provide a level of service that is better than what you could get from hiring separate contractors or having them work "on spec". This cost savings for you translates directly into cash savings for your business.
By utilizing construction partnering, your commercial projects will have a smoother experience from start to finish. Because of this, there is less risk involved with your overall project. Additionally, your work will run much more smoothly when you are able to effectively communicate with your construction partnering team. With successful project management and communication comes great job satisfaction. Many happy clients note that the benefits of a construction partnering relationship lead to an increased sense of satisfaction from contractors and subcontractors alike.