Collaboration & Energy Transition

I fully subscribe to the consensus of opinion at the AWP conference in London on 4/5 April this year that collaborative working and contracting should be the methodology of choice for delivering energy transition / net zero projects. However, I wonder if the engineering construction industry in the UK, mainland Europe and globally has the will to abandon traditional adversarial contracting and hierarchical delivery methodologies that have for around 20 years demonstrably failed to provide an effective means for delivering mega projects, let alone complex mega projects which are bound to feature prominently in energy transition / net zero developments.

Mainstream adoption

Collaborative working and contracting is nothing new. What is more, where such delivery methodologies have been utilised, there is a body of evidence demonstrating the significant benefits that verify the recommendations of Sir Michael Latham in his report published in 1994 that addressed the dire state of the UK construction industry in the 1990s. In his “Constructing The Team” report, Sir Michael advocated cutting out the adversarial culture and learn to collaborate for the common good of the project.

So why has collaborative contracting not become main-stream? My view – insufficient imperative for change and the preference for the status quo that serves self-interest. However, the perfect storm of climate change driving net zero / energy transition, a shift away from energy dependency on hitherto traditional producers and providers and the need for affordable and stable pricing levels may be sufficient to bring about change in contracting and delivery methods in order to roll out projects economically at the required pace and scale.

Positive signs

Collaboration is emerging as a serious topic for discussion and there are positive signs of organisations willing to consider collaborative working and contracting. However, two questions arise – is collaboration well understood, and are people using this expression just because it is ‘fashionable’ without actually committing to implementation? Many contracts contain provisions obliging the contracting parties to collaborate in the delivery of the project. However, such language does not necessarily mean the contract is a ‘collaborative contract’, or that the parties understand what collaboration actually means, or that they will engage in a collaborative working arrangement.

In this context, Sir Michael Latham advised,

“…clients and contractors cannot go to bed on Friday night as an adversarial client or contractor and wake up on Monday morning as a partnering convert…”.

Genuine collaboration requires commitment and effort in creating and sustaining a collaborative project culture and for which project team members need guidance in order to establish a clear and balanced understanding of what a collaborative culture means in practical terms.

In this context, David Mosey – in his book ‘Collaborative Construction Procurement and Improved Value’ – refers to the ISO 44001 Collaborative Business Relationship Management Standard, which advises

“…organisations need to ensure that all people doing work under the organisation’s control are aware of the collaborative relationship policy, how their work may impact this and the implications of not conforming with the collaborative business relationship management system…”

David Mosey also advises,

“…Coaching and facilitation in relation to behavioural change can be combined with practical training and guidance on the agreed contractual systems of collaborative procurement…”

Clearly, before entering into a collaborative contract and delivery system, all parties must understand what collaboration means for each of them and what needs to be done to establish and sustain a collaborative project culture throughout the project life. Collaborative contracting and working is not an easy option, but it is an effective one for any project, and in terms of complex net zero / energy transitions projects, it is, I would suggest, mandatory.

Indeed, the ICCPM& IACCM, in their publication Contracting For Success In Complex Projects, advise that,

“…Executives must recognise the need to implement adaptable and dynamic contracting approaches supported by education programs for everyone expected to execute including project and commercial (contract and legal) practitioners…”

Implementing effective collaborative contracting and working on engineering construction projects requires organisational change in owner/investors, contractors and the supply chain that is led and continuously supported by their senior executives.

Get involved and join us

The Collaborative Contracting Community of Practice, supported by Kingsfield Academy and the ECITB, will host a free webinar Implementing Project Collaboration for Net Zero, on 28 September 2022, addressing these and related issues.

Download the Event Flyer here

To reserve a place on this free webinar, email us at events@kingsfieldacademy.com