IPI has gathered research from ten sources that confirm the ROI (Return on Investment) of Partnering.  Highlighted in the May/June Partnering Magazine, the ROI of Partnering is perhaps the most important document you could share with your colleagues to demonstrate how effective Partnering is on your projects!

The ROI (Return on Investment) of Partnering Your Project

We often hear that project teams want to know what’s possible with Collaborative Partnering. What can your teams hope to achieve if they really focus on making partnering work on their projects?

Over the years evidence has grown on the benefits of Collaborative Partnering. The 1996 CII Benchmarking Study (identified in red below) identified the following areas where partnering provides significant improvements. Over the years several other studies and programs have continued to validate what the 1999 Construction Industry Institute’s (CII) The Partnering Process – Its Benefits, Implementation and Measurement (CII Benchmarking) study found.  We hope that this information will help you inspire your project teams to learn how to achieve similar or even better results.

Savings on the overall project cost and schedule are evident in the results shown below. A cost savings of 10% was the original CII benchmark. Others have achieved similar savings and some have achieved a significant amount more. Geoff Neumayr, Deputy Director of Design and Construction at San Francisco International Airport said that:

“SFO is able to realize a significant reduced cost per square foot in the range of 20%-30% as compared to other aviation projects around the country. This is possible because the dollars are utilized on scope rather than on expensive claims mitigation measures. In addition money is saved because projects are completed quickly realizing significant savings in overhead cost attributable to reduced time. This is the result of our Partnering!”

Fewer claims and improved safety are also benchmarks of Collaborative Partnering. The evidence below shows that partnered projects have fewer claims than non-partnered projects and when there is a claim, the amount of the claim is significantly lower. It used to be unheard of that mega projects could come in with zero claims, yet the evidence below shows that this is being achieved on projects where Collaborative Partnering has been implemented. Safety is improved when people communicate well, work together and look out for one another. This is another hallmark of Collaborative Partnering as the evidence below shows.

There is more to learn and more to study, but it does seem that Collaborative Partnering provides a great ROI!

To Download the Full Article, click here: ROI of Partnering.

Article By:
Sue Dyer
President, OrgMetrics, LLC
Founder & CEO, International Partnering Institute

 

 

 

STUDIES/PROGRAM DATA used in this Article
1.  CII: Partnering – Its Benefits, Implementation and Measurement, CII RR102-11, 1996 (CII Benchmarking/Partnering)
2.  Gransberg, D. et al., Quantitative Analysis of Partnered Project Performance, JCEPM, 1999 (TxDOT Partnering Study)
3.  Anderson, L. and Polkinghorn, B. Efficacy of Partnering on the Woodrow Wilson Bridge Project, ASCE, 2011 (Woodrow Wilson Partnering Study)
4.  SFO Results ($800M built – Total Program $5B), 2014 (SFO: Terminal Program)
5.  Caltrans Excellence in Partnering Award Winners stats (2012 – 2014) and Caltrans Partnering Program http://www.dot.ca.gov/hq/construc/partnering/ (Caltrans Partnered Projects)
6.  International Partnering Institute: Partnered Projects of the Year, 2013-2014
7.  Utah Transit Authority: 2015 Frontlines Program Results (UTA Frontlines 2015)
8.  Maryland State Highway Administration: Partnering Program, 2000-2010
9.  Grajeck, k. et. al., Partnered Project Performance in Texas DOT, Journal on Infrastructure Systems: 2000 (Grajek TxDOT study)
10. Ohio DOT Partnering Program Status Report, 2010 (Ohio DOT)