ICE event – Reimagining delivery models: a panel discussion on the future of Project 13 and beyond

ICE event – Reimagining delivery models: a panel discussion on the future of Project 13 and beyond

Last month, a few of the ResoLex team attended the ICE’s Reimagining Delivery Models: a Panel Discussion on the Future of Project 13 and Beyond lecture. After a welcome from Julio Lacorzana, Manager in Infrastructure & Capital Projects Advisory at Deloitte, the evening presented an opportunity to hear thoughts from the panel of speakers:

  • Florence Julius, Director in the Infrastructure and Capital Projects Advisory Team at Deloitte;
  • Richard Lennard, Executive Commercial Director at New Hospital Programme;
  • Liz Baldwin, Director of the Southern Integrated Delivery Alliance at Southern Renewals Enterprise;
  • Andrew Page, Head of Commercial Services at Anglian Water Services.

Andrew and Richard were invited to give some reflections from their experiences of implementing Project 13 approaches at Anglian Water and on the New Hospital Programme, respectively, ahead of a panel discussion and Q&A with all four speakers. We have taken some time to capture a summary of our team’s key takeaways from the evening.

Andrew Page explained that Anglian Water is using an integrated framework approach and is part of an alliance that has heavily relied on Project 13 principles to deliver success. Andrew also stressed that the key focus for an integrated team is on outcomes, not outputs along the way. Andrew explained that after many years of learning through alliancing, Anglian Water understood that the commercial approach is key. Setting up the right commercial approach to incentivise the desired collaborative behaviours underpins the achievement of successful outcomes.   Andrew’s statement that  “what delivers outcomes is relationships” resonated deeply with our experience of working with project and programme delivery teams.

Richard Lennard began his talk by introducing the New Hospital Programme and its aims and objectives, and he recognised the tension between local and national challenges and requirements that needs to be managed through the programme. Richard explained how the programme is developing a new approach to delivering hospital infrastructure, bringing greater value by developing an ‘Enterprise of Enterprises’ mindset with a supplier and contract ecosystem. The mindset will focus on the following principles:

  • Longevity – building long-term relationships
  • Parity – no one has all the answers, everyone comes to this as an equal
  • Trust – hear everyone’s voices and solutions
  • Alignment of outcomes – patient first

The panel discussion and Q&A time posed many insightful thoughts into the future of delivery models, here are some of our key takeaways:

  • It is important to assign risk to the right owner whilst also insuring parties work together to develop risk solutions.
  • Project teams have a better chance of success when the mindset is ‘if one fails, we all fail’.
  • Having a purpose and aligned goals and objectives is crucial, particularly across multiple organisations. This shouldn’t be assumed, and time and effort need to be spent on getting it right.
  • Not everyone can work in a more ‘collaborative’ environment. Be mindful of who is asked to do so and whether they can fulfil what might be required of them.
  • We need to create a safe space for people to challenge behaviours.
  • The client has to own the outcome, acknowledging that you are the most invested party as a client, but also recognising that you can’t do it on your own. Partnering rather than contracting in a traditional manner can help build the right environment for this, where each partner wants to help the other to be successful.
  • Consistent, visible commitment is needed from the top of organisations to make any ethos work. Senior engagement cannot happen on a solely one-off basis – behaviour breeds behaviour.
  • It’s a symbiotic relationship. You rely on each other to get things done.
  • Test the relationships regularly, especially over a long period.
  • Be prepared and adaptable to change the way things work. As an example, a Capable Owner should be able to say, ‘I’ve got this wrong, we need to make a change’.
  • It is very important to map the governance. Collaborative models are successful when they get the balance right between governance and freedom.
Roundtable round-up: Team of Teams – Giving leaders more time to lead

Roundtable round-up: Team of Teams – Giving leaders more time to lead

On Tuesday 8th October, we hosted a roundtable discussion based on the Team of Teams (ToT) ethos, more commonly known from General Stanley McChrystal’s book Team of Teams: New Rules of Engagement for a Complex World. Published in 2015, the book refers to the concept ‘Team of Teams’, which aims to embed collaborative working across organisations through a web of interconnected teams, based on McChrystal’s experience as commander of the U.S. Joint Special Operations Command.

The purpose of the workshop was to explore the benefits of a Team of Teams approach within a commercial setting and some of the real lived experiences and challenges in managing its roll-out.

We were delighted to welcome two guest speakers:

  • Simon Higgens MBE, Business Development Director at STORY Contracting and former Royal Engineer with the British Army
  • Scott Murray, Performance and Integration Director at SCS Railways, delivering HS2 London Tunnels

Edward Moore, our Chief Executive, opened the session, providing background into our work and then into the book and its goals: principally around embedding an ethos of collaboration in organisations.

In addition, we shared a Slido poll to gauge the room’s experiences of cultural change in their projects and organisations before delving into the main content, this was later used as a comparison.

Roundtable round-up: Team of Teams – Giving leaders more time to lead

Simon opened with an example of his time in the military where he was given command and the goal of achieving a specific objective: Building a positive relationship with an ally.

He had freedom in the nature of the solution but a limited timeframe to design and implement his plan. Simon discussed how in his role he utilised a Team of Teams approach as a natural course of action to achieve results, despite at that point being unaware of the philosophy. He related the six key themes that underpinned his approach:

  1. Complex over complicated

When Simon first joined the military, it was focused on a hierarchical mindset: telling people what to do and how to do it. This meant that although tasks were complicated, there were clear plans. Over the years, growing complexity and asymmetrical warfare necessitated a shift to an output-based mindset: Focusing on embracing the complexity of a problem and how to achieve results with an adaptable approach over a fixed structure. This required a cultural change to collaboration being the norm – as it is the only way to achieve common aims.

  1. Unifying purpose

Every person involved in a project should be aware of what the ultimate goal is, understand why they are involved, and how their part relates to that purpose.

This enables teams and individuals to be empowered to make decisions that relate to their area, as they have a common and clear understanding of the ultimate goal.

  1. Effective delegation

Leaders need to step back and let teams ‘get on with it’. Teams should be built based on expertise, and therefore the team members are the ones who will know their work area and how best to approach tasks to deliver them successfully. Leaders need to be capable of driving strategy and longer-term thinking, managing high-level risks and scanning for upcoming issues.

Trust and communication are imperative for project success, and this must be modelled from the top.

  1. Adaptable over efficient

Every organisation needs to plan for change – it will happen regardless. Contingencies, mitigations and courses of action need to be thought through carefully as plans will inevitably change as a project progresses.

In addition, this adaptable approach should, again, be embedded as an active mindset in teams: people should be empowered to adapt and change things in the areas they have responsibility over, to serve the project goal.

  1. Leadership

Teams need to be allowed to grow, make mistakes and learn from them. A focus on ‘superhero leaders’ results in nobody else being taught how to lead, make decisions or develop to take on a responsibility. A spectrum of leadership skills is required, with a focus on understanding your team, their capabilities and skillsets.

Simon talked through how the military focuses on developing individuals’ skills for the next rank they’re aiming for, rather than putting underdeveloped people into roles they’re not yet ready for and hoping they succeed.

Throughout his talk, Simon stressed that the military, while sharing a lot of overlaps with commercial delivery, has a separate focus so not everything applicable in one area will be relevant to the other.

The project that he talked through in the session was ultimately successful, through a focus on the above themes enabling three key outcomes:

  • Teams and individuals were allowed to lead in their areas: if they needed assistance, it was there, but he, as the overall leader, didn’t interfere in their specific areas.
  • Building the environment for specialists to operate, taking away political interference and enabling them to focus on delivering.
  • Leaders could focus on the long-term, strategic view over and above the minutiae of each task, trusting the team to deliver while they ensured objectives would be met.

 

Following on from Simon, Scott then talked through embedding Team of Teams in a contractual environment. Scott’s focus was on Team of Teams as a set of leadership behaviours that underpin how things are done. Scott imparted that moving to a Team of Teams approach is not a traditional organisational transformation, where boxes are moved around on an organisational chart, but instead represents a cultural change in how people within the organisation are expected to operate.

Roundtable round-up: Team of Teams – Giving leaders more time to lead

It also requires a shift in how people think: in implementing Team of Teams in a project organisation, Scott found that many discussions would turn to peoples’ concerns with their specific areas: If one of their SMEs was needed to support a different or more critical area of the business, how would that be budgeted? Would they get reimbursed for the time lost in their area of the project? There was a significant challenge in trying to embed a holistic, ‘best for project’ view over ‘best for me’.

Scott identified a number of key takeaways in implementing Team of Teams:

  • Leadership needs to be bought in

Building a Team of Teams environment relies upon trusting people to deliver. This means that leaders need to get used to specifying outcomes over a list of tasks, which can be uncomfortable to those that like to maintain control.

Leaders need to support the embedding of new ways of working and not interfere. Importantly, they need to be focused on long-term thinking. Effective behavioural change across an organisation will not be done within 3 months, but more in the order of 2 years or more.

However, those two years will pass regardless: it is up to leaders whether at the end of it they have an effective, functioning environment or are still facing the same challenges.

  • Bad behaviour needs to be dealt with immediately

This must happen from top to bottom. Leaders role model the behaviours that others will follow, so they must visibly demonstrate calling out and challenging behaviours that do not match the agreed or intended ways of working.

  • Priority management

The environment you create to deliver your project is an important foundation for delivery. It underpins and supports every other part of the project. It should therefore be high on the agenda and consistently reinforced.

  • Test and reinforce communications

To truly build understanding, individuals and teams need to be engaged and reengaged regularly and consistently. It is dangerous to assume understanding from one or two presentations or workshops, you must work with people and test that they understand why the new way of working is the right approach.

Roundtable round-up: Team of Teams – Giving leaders more time to lead

The floor was then opened up for discussion. In the following conversations, some themes shone through:

How do we break the cycle of  making the same kinds of mistakes that we see so commonly across projects and programmes?

  • As humans, we have many biases that inform recruitment, including affinity bias, where we recruit in our image. This is an area where we need to break the cycle to be able to diversify our approaches to delivering the best outcome.
  • The right behaviours are just as important as technical competence and should be strongly considered in the hiring process, particularly for leadership roles – but following on from above, this needs to be properly designed so that “the right behaviours” are not simply “someone who thinks the same way as I do”!
  • We need to have a system in the industry of training, educating and developing people to lead effectively. Graduate/apprentice schemes with 6-month placements are a good start, but after those initial 2-3 years nobody is ever again provided with this cross-industry experience.
  • Change needs to be accepted and embedded as a constant over ‘business as usual’. We intrinsically know this to be true and many of us can resonate from experience: what was new 20 years ago is old and stale now. We need to set ourselves up to deliver in a changing environment rather than plan for change as an additional activity.

Is there a ‘critical mass’ of people required in a project organisation to embed the Team of Teams approach?

Team of Teams is more about a way of working, culture and behaviours, so should be applicable in any environment, from a small team to a whole army. However, the bigger the organisation, the more difficult it will be to embed. Leaders must be engaged: if they aren’t, it will fail. Scott suggested that if a proposal to utilise a Team of Teams approach doesn’t have active support from at least two-thirds of the leadership team, it may be better to scale back, focus on a smaller part of the organisation or project and make it work before attempting to go bigger.

The roundtable also highlighted some things that major projects and programmes in infrastructure can learn from other industries and areas, and the importance of considering behaviours and ways of working in project delivery.

A key theme that came out was the concept of “who is in your phone book?” – i.e., who do you contact when you need a problem resolved – and who do they contact? These are the people you want in your ‘team of teams’: the subject matter experts and problem solvers.

This needs to be tempered, however, by not just defaulting to the same people – this technique promotes using an existing network over either training new people or embracing diversity of thought.

The Slido poll also gave some positive results in that almost 75% of those present stated that their teams were enabled to make decisions and implement them, and the vast majority stating that they believed in long-term culture over short-term goals.

These are not new issues, extending back to the Latham Report in 1994 (and earlier!), however, the industry has historically struggled to come to terms with them. The collected experiences of the leaders and experienced professionals in the room show that perhaps there is a cultural change already underway that may support the long-term thinking and trusted, delegated decision-making that the industry needs to harness.

The roundtable posed some great insights into Team of Teams from the perspective of our speakers and guests, with great discussion had. We’d like to thank everyone who attended and encourage you to keep an eye out for next year’s programme of events. View our event calendar here.

Roundtable round-up: Negotiating with armed groups, game theory and the prisoners’ dilemma. What’s that got to do with the major projects industry?

Roundtable round-up: Negotiating with armed groups, game theory and the prisoners’ dilemma. What’s that got to do with the major projects industry?

On Tuesday 9th July, ResoLex hosted a roundtable discussion featuring Concordis International; a peacebuilding charity that uses dialogue to support the development of sustainable relationships among communities involved in or affected by armed conflict. The event was led by Peter Marsden, Chief Executive of Concordis International, and Edward Moore, Chief Executive of ResoLex and Chairman of Concordis International. The event allowed industry professionals to explore the complexities of building resilient and sustainable relationships in challenging environments. By drawing on lessons from the third sector, particularly in conflict negotiation, the session aimed to equip participants with strategies to enhance collaboration and resilience in the major projects industry.

Roundtable round-up: Negotiating with armed groups, game theory and the prisoners’ dilemma. What’s that got to do with the major projects industry?

The roundtable began with a thought-provoking question; if we can manage conflict and develop collaborative relationships between armed groups, then why do we struggle on major projects?

Peter opened by describing his work directly alongside those involved in, or affected by, armed conflict and how he helps to find collaborative, workable solutions that address the root cause. Similarly, in the major projects industry, there is an understanding of the need to develop collaborative working environments, yet we can often struggle to understand how to establish them. Providing an example, Peter shared his firsthand experience of meeting with a leader of an armed group. The leader arrived with 100 armed and angry individuals, creating an intense atmosphere, where Peter quickly needed to establish an escape route. Through the story, he came to the realisation that he was not in control, and emphasised the importance of meeting on the leader’s terms and relinquishing some of his power to establish trust and develop a relationship with the group.

Peter asked two people to join him for a demonstration. The two participants stood back-to-back and were given a scenario: denounce your partner and go free, stay loyal and receive one year in prison, but if both denounced, they got a five-year sentence. One participant denounced, while the other remained loyal, illustrating the complexities of trust and betrayal. The demonstration highlighted the impact of communication and on decision-making, as participants can learn from past experiences, understand each other’s behaviours, and build trust over time, creating expectations between the individuals involved.

Roundtable round-up: Negotiating with armed groups, game theory and the prisoners’ dilemma. What’s that got to do with the major projects industry?

Peter highlighted that each war comprises of a million decisions, influenced by incentives, constraints, opportunities, and threats. The goal is to convince people to adopt a long-term view of their relationships and move away from the instant gratification mindset prevalent in many projects. By understanding and influencing incentives, and addressing constraints, we can guide behaviours towards more collaborative and sustainable outcomes.

Peter’s stories underscored the importance of four key themes:

  • Trust-Building: Meeting on others’ terms and understanding their perspectives are essential in creating trust and not creating power struggles.
  • Communication and Repeated Transactions: Effective communication and repeated transactions can shift dynamics from adversarial to cooperative.
  • Decision-Making in Conflict: Every conflict involves numerous decisions, each influenced by various factors. Understanding these can help create positive incentives and discourage negative behaviours.
  • Long-Term View: Adopting and encouraging a long-term view is crucial for fostering trust and cooperation. The ability to communicate and anticipate future interactions can alter dynamics, promoting collaboration over conflict.

Relating Peter’s key themes to the major projects industry, Edward highlighted four key connections:

  • Timeframe Orientation: Emphasis was placed on understanding how timeframes influence operations and relationship development. Unrealistic timelines often lead to negative behaviours and culture. Setting up projects and programmes with realistic timeframes is essential for success.
  • Dispute Escalation Mechanisms: Effective systems allow for differences to be resolved in a positive manner before escalating into conflict. Upfront agreements and structured planning help navigate complex environments and prevent disputes.
  • Horizon Scanning: Quick recognition of issues through horizon scanning and a ‘sense-and-react’ model of action is vital for proactive problem-solving.
  • Collaborative Environment: Creating the right environment, where people feel safe and empowered, is crucial for effective collaboration.

Regardless of the industry, there were some key takeaways to enhance collaboration and resilience:

  • Creating Systems and Processes: Establishing systems and processes that enable a good culture and safe environment for key conversations enhances collaboration. Additionally, creating systems for dealing with conflicts, such as dispute resolution mechanisms, is essential. Trust in these systems and the people involved is crucial.
  • Trust and Culture: Building trust and a positive culture within projects and programme can change the perspective from short-term to long-term, altering incentives accordingly.
  • Safe Environment: Creating a safe environment for key conversations and proactive planning is essential for long-term success.

The development of strategies to enhance collaboration and resilience should consider some key questions, such as:

  • To what extent can the people we are working with take a long view rather than a short-term view?
  • How can we ensure effective communication to alter dynamics positively?
  • What mechanisms can we implement to foresee and address potential issues without falling into optimism bias?

The roundtable highlighted the relevance of game theory and the Prisoners’ Dilemma in the major projects industry, emphasising the need for a long-term perspective, effective communication, and systematic relationship management. The event highlighted the importance of trust, structured planning, and proactive issue identification in achieving sustainable outcomes, as well as creating a safe environment for key conversations and changing incentives to significantly enhance collaboration and resilience in complex environments. By integrating these lessons, industry professionals can build resilient, collaborative relationships and navigate complex environments more effectively.

View our event calendar for information on upcoming roundtables and other events.

Interactive workshop: A hero leader, Intelligent Client and Capable Owner walk into a bar…

Interactive workshop: A hero leader, Intelligent Client and Capable Owner walk into a bar…

On the 5th of June, we facilitated an interactive workshop in partnership with the Major Projects Association (MPA) and welcomed Manon Bradley, Development Director at the MPA and Emma-Jane Houghton, a commercial specialist with over 20 years of experience in the public and private sectors.

We had an exceptional turnout, with over 50 industry professionals, to explore the impact of leadership in delivering successful outcomes through major projects, specifically the role of clients and delivery team leaders. The interactivity of the session sought to interrogate our beliefs around project leadership and encouraged us to challenge the assumption that clients always know best.

Interactive workshop: A hero leader, Intelligent Client and Capable Owner walk into a bar...

Edward Moore, our Chief Executive, began the session by taking ideas for the punch line to the workshop title.  Some of the more coherent responses included “…and created a RACI”, “…and asked one another what was happening”, or “…and appointed a delivery partner”.

Manon then spent a few minutes highlighting the key themes from the MPA report ‘No More Heroes’ which was published last year. The report focuses on leadership capability and the need to address how major projects and programmes are led. Emma-Jane then followed, with her views on the concept of the ‘Incomplete Client’. Her intention was to challenge our existing notions around the role of the client in a major project, and encourage an alternative way of thinking about how we can work together to drive improvements in the way projects are delivered.

Emma-Jane’s observations are based on the recognition that project delivery in the modern world is immensely complex and requires us to step back and rethink the approach to being an effective client:

It is my view that our current understanding and approach to clienting is 2D in a very much 5D world. Clienting has become outdated and is not well matched to today’s spectacularly complex environment and all its rich possibilities – especially the pace of change, challenges, and ambiguity. We spend too much of our industry’s energies stuck in the problems of today pointing at poor performance and lamenting the lack of supply chain investment rather than upping our clienting game.

There were two group activities undertaken during the workshop with the first being to identify activities within the project lifecycle that require leadership. The group  were then asked to assign which organisation might be best placed to lead these elements. For example, defining the commercial strategy might be best placed with the Client, but resource management would be led by the Delivery Partner. They then provided explanations as to why these were the best organisations to lead and possible barriers to the identified organisation leading the element. This gave the delegates the opportunity to explore whether the client (or more commonly expected leader) is the right leader for the job or whether the responsibility could be best placed elsewhere. This exercise also allows room for discussion on the types of qualities needed for each leadership role.

Interactive workshop: A hero leader, Intelligent Client and Capable Owner walk into a bar...

The second activity was to take the activities identified in the first exercise and map them across to the project lifecycle. Delegates were then asked to use the Cynefin Framework (pronounced kuh-nev-in) which was developed to help leaders understand their challenges and to make decisions in context. By distinguishing different domains (the subsystems in which we operate), the framework helps recognise that our actions need to match the reality we find ourselves in different phases, through a process of sense-making. The outcome of the exercise was to reevaluate the leadership role and showed that during the life of a project the leader’s ‘baton’ changes hands depending on the phase the project is in and the capabilities required.

During the workshop, the participants were asked to respond to a number of questions to gather their thoughts before and after the exercises.  Having analysed the outputs produced by each of the groups and the poll responses, we have been able to pull some interesting insights:

1) There was a highly diverse split of who the Client was perceived to be, supporting the notion that the term ‘Client’ is not fully understood and requires work to clarify and cohere

2) 52% of respondents believed that project decisions were controlled by the project leadership team which demonstrated that the majority see decisions are being governed and driven by the client’s appointed SLT

Interactive workshop: A hero leader, Intelligent Client and Capable Owner walk into a bar...

3) Over 80% of respondents associated the term ‘Client’ with positive qualities, with a strong correlation towards EQ (emotional quotient) centric skills which indicated a preference for softer, less autocratic methods of project delivery

4) Clients were assigned the most leadership responsibilities in a project or programme, highlighting limited leadership from the supply chain. However, there were some responsibilities were across multiple owners such as Funding (Sponsor and Client) and Delivery Model (Client and Delivery Organisation).

Interactive workshop: A hero leader, Intelligent Client and Capable Owner walk into a bar...

The purpose of the workshop was to explore how clienting is done today and whether there needs to be a change in approach, the insights gathered from the workshop strongly allude to the disjointed practices and misconceptions of client responsibilities. There is more that the supply chain can do to support clients achieve their outcomes through effective project and programme leadership.

Emma-Jane’s work developing the concept of the ‘Incomplete Client’ is still ongoing and she would welcome anybody who had anything to share, such as example projects where they have experienced successful clients or have been a successful client themselves. Please reach out to [email protected] to get in touch.

 

Rethinking boundaries in Complex Projects – Navigating the intersections and interplay of functions and stakeholders across the project lifecycle

Rethinking boundaries in Complex Projects – Navigating the intersections and interplay of functions and stakeholders across the project lifecycle

Last month, ResoLex was invited to join the International Centre for Complex Project Management (ICCPM) roundtable series, in London. The ICCPM is a not-for-profit organisation, established in 2007 by the Australian government to gather knowledge and best practice from around the world to help improve the performance of complex projects. The global roundtable series is a thought leadership activity, harnessing the collective wisdom of complex project leaders from around the world to produce new insights and practical steps that organisations can take to improve project outcomes. The sessions also provide an opportunity to exchange knowledge and experience, and discover new insights from others across sectors, industries and countries.

The keynote was given by Murray Rowden, Global Head of Infrastructure at Turner & Townsend. As someone with over 30 years of experience in infrastructure delivery around the world, Murray shared his reflections on whether today’s approaches are fit for today’s challenges. His reflections called attention to the artificial nature of the boundaries between disciplines, teams, and organisations, and the impact that these boundaries can have on the delivery of complex projects and programmes. From his perspective, asset owners and operators have recognised that relationships are not where they need to be, and there is a move towards increasingly value-based, long-term relationships with the industry to be able to effectively manage and deliver complex projects.

During the day, we had the opportunity to explore the perspective of complex projects as open systems, interacting with both the internal and external environments, against the more traditional view of projects as closed systems with predefined boundaries. This description provides a shift in focus towards identifying the roles of varied stakeholders and their context or environment in shaping the project’s outcomes.
A number of central themes were explored during the day, with a rich conversation from a broad group of project professionals, clients and the supply chain. Discussion focused on four core areas:

  • What is the correct level of collaboration and co-design between the different related functions in a complex project?
  • What is the role of project leaders in orchestrating the integration of this intricate web of related, but traditionally distinct disciplines within complex projects?
  • How can we/should we best reconfigure project boundaries to align with the full life cycle of assets
  • By re-imagining boundaries, can organisations enhance project success rates, optimise resource allocation, and ensure long-term value creation?

Throughout the event, it became increasingly evident that there is a critical requirement to engage stakeholders early from across the project life cycle to define project boundaries and negotiate expectations and desired outcomes. The importance of the client in leading this stakeholder management was highlighted by many, and across the discussions, there was also a strong acknowledgement that the complexity inherent within open systems requires a less hubristic client model. The idea that clients can instead adopt a more collaborative approach with the supply chain, in which we co-design shared outcomes and set up a collaborative culture and behaviours, may allow the client to better support the broad stakeholder requirements and lead to better project outcomes.

The workshop outcomes will be integrated into the wider insights collected from the full roundtable series and will contribute to a better understanding of how we can manage open project boundaries and the relationship with key stakeholders. We look forward to seeing the final outputs of the research and continuing to contribute to the thought leadership in this important area of research.

Led and facilitated by: Collin Smith (ICCPM CEO), and Dr Naomi Mather, (ICCPM Director for Industry Liaison & Member Services)

ResoLex Roundtable round-up: The role of contracts in supporting collaborative environments on complex projects

ResoLex Roundtable round-up: The role of contracts in supporting collaborative environments on complex projects

On the 23rd of April, we welcomed Roseanne Serrelli, Partner at Sharpe Pritchard for a discussion on how contracts can be used to help embed collaborative behaviours on complex projects.

The session was opened by our Chief Executive, Edward Moore, who gave the attendees an overview of the evening and an introduction to the topic.

Ros began her presentation by explaining that the terms used in these ‘collaborative contracts’, e.g. alliances, enterprises, partnerships – have no specific legal definition. Any individual party involved with the contract is likely to interpret these terms differently. The key when looking to develop a contract which supports a collaborative endeavour is to focus on attention on the purpose of the relationship, rather than the term used. This approach has the benefit of shifting the focus away from risk transfer and instead puts the focus on risk avoidance and resolution.

The level of collaboration built into a contract can therefore be bespoke based upon the need, rather than starting with a pre-populated document.  Options exist along on a spectrum from a light-touch arrangement to full alliances with shared legal risk, reward and finances. When developing a contract, it is worth thinking of the options as a menu from which the appropriate provisions can be selected based upon what the client intends to achieve.

Ros talked through several examples of different collaboration systems in existence, some of which have been discussed at previous ResoLex roundtables:

  • Project 13 – not a contract itself, but an ecosystem and ethos for delivery that focuses on achieving outcomes rather than on the inputs.
  • NEC Alliance – a single contract to which all are parties, including the client. This often works better on an ongoing programme with repeatable work, where the goal is to incentivise shared responsibility. This is more difficult on single projects where there may be more single points of failure that cannot be shared easily between participants.
  • X12 – An option within NEC contracts that seeks to support multi-party collaboration, including containing a common set of objectives for all parties.
  • FAC1 – An overarching framework that sits above individual contracts and contains items that need to be supported by those contracts, such as early warning systems.

Regardless of the form of the contract, there were some key takeaways about what is needed to ensure collaboration can be effectively supported:

  • A defined governance structure with clear roles and accountabilities (often in a RACI matrix) – make it straightforward for people to understand who is doing what in the contract environment (and be clear that accountability is not the same as liability!)
  • A clear decision-making process – the process may evolve over the lifetime of a project or differ in different parts of a programme, but it needs to be set out clearly and communicated to everyone involved.
  • Set up Core Groups and Boards – these do not need to be over-engineered. They should have clearly defined objectives and discussion/decision points.

These structures provide a foundation for a successful collaboration. Having a contract that does not enable the environment you want will undermine your project from the start, though equally, having the perfect contract is meaningless if people do not engage in the right ways of working.

The contract underpins the practical side of collaboration; namely regarding people and their behaviours. When setting up for success, the behaviour of the joint team will be a key factor in how the benefits of these structures and processes are maximised in the project or programme environment.

The development of appropriate ways of working should consider  some key questions, including but not limited to:

  • Will the arrangement require co-location or jointly employed resources?
  • What is the communications strategy? Will there be joint messaging from all parties? Will there be common branding and a ‘united front’ when facing the public?
  • What are the processes for change or bringing in new people?
  • What is the process for sub-contracting? Does the client need to approve any additions?
  • How is the project insulated from outside noise (e.g. political pressures) to enable the team to focus on delivering the outcome?
  • What do you do when things go wrong? It cannot be assumed, even with the perfect contract and the best people for the job, that there will never be an issue or point of contention between the parties.  Provisions should be included in the agreement to enable parties to exit as necessary.  Though counterintuitive, Ros shared that her experience is that providing clarity about the exit process provides comfort to the parties and in fact, often encourages parties to stay in contract and work through the challenges.

The session closed with a stimulating discussion on what needs to be done to try to build more collaborative environments in projects and programmes and how contracts can facilitate that, recognising that they are usually the starting point for the relationship. Points were raised in the room on the importance of ‘selling’ the benefits of this approach, particularly to clients when setting up a project and to politicians who may be overseeing major schemes. The conversation was a good reminder of the need to take the time to clearly define the required outputs and outcomes of a scheme before diving in, in order to set up the contract and environment that best facilitates these outcomes.