Case Study
Creating Effective Client-Contractor Working Relationships
Situation
This complex $369MM project included significant budget contingency, due to a large number of unknowns. The contractor and client determined that huge construction cost and schedule overruns were likely to consume the contingency and more. An immediate mitigation plan was required.
Opportunity
Driving for a quick, cost-effective solution, both the contractor and client believed that close and continuous alignment between site contractor and client staff was imperative. Nothing less than a hand-in-glove contractor/client relationship was essential to address barriers and mitigate risks.
Proposed Solution
Align focus of the contractor and client staff on common goals. Assure that all embrace a similar accountability system (i.e., common metrics).
Action
Worked with contractor and client to assess attitudes, barriers and opportunities. Used outcomes of assessment to develop plan and processes to increase focus on common goals. Created common incentive structure for both the contractor and client project staffs, using common metrics that focused both groups on cost, quality, schedule and safety.
Results
Contractor and client staff were highly motivated to identify and quickly address barriers and resolve problems. Now tied at the hip, the members of this integrated team continuously identified ways to improve work processes in order to speed construction and reduce cost.
The project was delivered…
- well below budget
- on time
- with all quality requirements satisfied
- while generating client savings well above client senior management expectations