Their partnering projects delivered proven cost

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: g for Procurement • Partnering as a procurement methodology was first used in construction in the USA with Arizona State Highways and the US Army Corps of Engineers in the 1950s. Their partnering projects delivered proven cost savings of 9% and improvements of 8% in project delivery time. • Partnering was introduced to the ____________ and the United Kingdom (UK) construction industries in the early 1990s. • Success with project partnering in the UK led several private sector organizations to enter into long-term strategic partnering involving consultants and contractors working on successive projects with the same clients. • The best examples produced 30% reductions in both cost and time over a five year period. Significant improvements were also achieved in one-off projects through partnering in infrastructure projects for airports, railways, highways and water systems. 14 4 History of Partnering for Procurement • The UK and Australian partnering experience was initially ‘transferred’ to Hong Kong to counter: – Visible deterioration in project delivery performance – Adversarial industry culture and conditions of contract – Competitive tendering with awards made on the basis of price rather than value – Fragmented system of multiple subcontracting – Low investment in training and construction management • The first use of partnering in Hong Kong led to some notable success on hospital projects in the mid 1990s – for example the Northern District Hospital project in 1994. • The subsequent success experienced by the MTRC with the Tseung Kwan O Extension. 15 • Partnering has since been used in various forms by the MTR Corporation Limited (MTRC), utility companies, the Hong Kong Housing Authority (HKHA), the Airport Authority (AA), the Development Bureau and a number of private sector projects. • The MTRC New Extension Projects (five new lines targeted for completion by 2015) will all be delivered using partnering. • The _____________________________(DSD) is implementing its first pilot project under the New Engineering Contract (NEC) form of contract using a suitable contractual partnering arrangement. • So far, results of partnering range from ‘exceptional’ to ‘no discernable improvement’. • ___________________ partnering is currently fairly common in Hong Kong. Non-contractual partnering is not legally binding. It does not change the terms of contract or the contractual relationships between the parties. 16...
View Full Document

Ask a homework question - tutors are online