Ancillary Processes Such as Partnering and Framework Agreements
3.33 An overall assessment is likely to be based on whether the public interest benefits of the project obtained under a partnership agreement outweigh any potential harm. Australian governments have developed public interest tests that can be a useful reference.21 3.55 Affordability must be managed throughout the life of a partner project. Affordability issues should be reported regularly to senior management and the Board of Directors or elected members. Partnerships can be long-term for a period of time or project-specific, but trends show that strategic or long-term partnerships are more likely to offer greater opportunities for improvement. With regard to the overall approach, the parties could opt for “strategic” or “project” partnerships. 3.34 Other jurisdictions have set limits on the types of services that a partnership agreement can provide. In general, a partnership agreement is considered appropriate to provide ancillary services such as facilities management and services where the public organisation lacks expertise (a good New Zealand example is the management of entertainment events in the Auckland Indoor Arena, described in Annex 1). Public sector policy may dictate that the public sector should directly provide front-line services, often involving a high level of direct engagement with people, such as. B hospital care and teaching in schools. Successful partnerships must allow for long-term integration of the entire project team for the mutual benefit of all, and it is therefore crucial that the right partners are selected. The partner`s business objectives and culture should be aligned, the use of the parties` resources should be optimized, and risks should be attributed to those who are best placed to mitigate them. The traditional role of the architect was that of the client`s representative as well as the designer of the works.
From this starting point, the law on the duties of construction professionals developed. However, the role has evolved over time and is usually played in larger projects by other construction professionals such as engineers or project managers. Partnership can be sensitive to local corporate culture by taking into account the appreciation of regional strengths while emphasizing a holistic team approach. However, some cultural adaptation is certainly necessary for the partnership to work – a departure from a competitive or contradictory approach. Successful partnership outcomes usually involve the time spent working on the process, usually starting with workshops that incorporate desired behaviors in participating organizations. 3.35 To ensure a competitive process, the public sector body must decide whether there are enough independent private sector firms willing to participate, including, for example, construction and service firms and financial institutions that can make capital investments. This requires market exploration before deciding on a partnership approach. 3.43 The allocation of risks between the public and private sector parties is at the heart of partnership agreements and requires the parties to explicitly identify and calculate risks.
The distribution of risk depends on the characteristics of each project and the type of partnership agreement entered into. After the performance of the contract with the contractor, the duty of the employer`s representative is to supervise, in the broadest sense, the performance of the work by the contractor in order to ensure that the work is performed in accordance with the requirements of the contract. The role of the employer`s representative therefore includes tasks such as assessing payment entitlements, verifying the performance of the work in the light of the contractual programme, reviewing and monitoring the work to ensure compliance with contractual specifications and other quality requirements, identifying any failures in the work, examining and evaluating claims claimed by the contractor. such as.B. requests for modification and extension of the deadline and other events specified in the contract that give rise to a potential claim (such as.B. claims due to force majeure, adverse weather conditions and unpredictable ground conditions). Since the employer`s representative occupies such an important position as the employer`s representative, the employer`s representative therefore also owes the employer a contractual duty of care. While partnership offers obvious benefits in some circumstances, there may be risks that the partnership will become a paper-based exercise unless there is appropriate buy-in throughout the supply chain and “comfortable” inefficient relationships develop. There is also some criticism that large partnership agreements can exclude small businesses and thus hinder innovation. 3.20 The partnership agreement should be in line with the vision of the public institution and help make it a reality.
This is particularly important because most partnership agreements require significant investments, both financially and in terms of the time of employees, including executives. 3.22 In order to successfully implement a partnership agreement, politicians and leaders must commit to this path in the area of procurement. They must also provide the necessary direction and control throughout the life of the project, which can be very time-consuming. The business case should assess the cost of providing this commitment high during the project period.18 Traditional construction contracts are generally structured around the consequences of failure and the allocation of risk. Alliance agreements challenge this traditional approach and are relational contracts based on incentives. Under this contractual agreement, the parties agree to work together as an integrated team with a culture of collaborative decision-making, risk sharing, “no guilt and no litigation” and financial transparency. They must describe the contractual conditions used for the intermediate construction work (e.B design) and/or the terms of the contract used to perform the work. 3.5 The characteristics of the project will have a significant impact on whether it can be delivered under a partnership agreement and, if so, which partnership model is likely to achieve the desired outcomes for the project. 3.57 Compliance requirements (for example. B.b) ministerial authorities, consultations and consents under the Resource Management Act, 1991 should be described, including the likelihood of the likely duration of these processes. While the benefits of partnerships are manifold, the risks that agreements will be interpreted as binding or interpreted as partnerships should be considered before entering into a partnership agreement […].