Collaborative Alliancing;

the Modern Way of Working

Collaboratively

A Collaborative Working Mentors Guide

June 2023
Introduction- Why Do We Need a New Model?
In 2003 the Strategic Forum for Construction Integration Toolkit was
published. The team who contributed to its creation and validated
its content went on to become the Collaborative Working Mentors of
Construction Excellence.

The toolkit acknowledged the prevailing separation of the design and

constructing communities, typified by sequential appointments and
fragmentation through specialisation which, having evolved over time, had
been and remained a continuing problem for construction. This process
leading to misunderstandings and confusion on projects and to different
objectives being adopted by different players often at the expense of
others and frequently at detriment to the objectives of the project and the
wellbeing of those who participated.

The toolkit presented this traditional sequential process, the primary route
for construction projects for decades, as follows;

Traditional Process

And suggested, in line with the change agenda of the time, that industry
would benefit greatly from adopting the following more integrated
collaborative platform;

Aspirational Process

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With plenty of organisations seeking redress, partnering and collaborative
working initiatives have helped to nurture improvement. The last two
decades have probably seen more innovation, process and cultural change
in relation to integration and collaborative working, including the growth of
alliancing in both the public and private sectors, than at any other time in
the history of construction.

But the contractual and insurance framework which has tracked the
evolution of construction, now reinforces this separation and fragmentation.
This acts not only as a barrier to effective collaboration, but also to the
adoption of Modern Methods of Construction including fully integrated
digital design, pre-manufacturing, off site assembly and Modular solutions.
It is increasingly clear that adaptive change which slowly improves things
isn’t delivering the desired level of progress, instead it is time for disruptive
change, time for a new delivery model.

The Collaborative Working Mentors of Constructing Excellence are aware

of early adoption and promotion by both public and private sector clients of
new procurement and delivery models but believe that much of the industry
is missing out on the opportunities presented by these advances. Perhaps
this is because the process is ill defined, the appropriate behaviours are
misunderstood and the benefits are poorly communicated?

This report, 20 years after the launch of the Integration Toolkit, looks at how
superior engagement, support and performance is available to those who
seek to procure design and delivery partners together to collectively work
with the client and their operators/end users, in what is becoming known as
Collaborative Alliancing.

Collaborative Working Mentors

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What is Collaborative Alliancing?
Collaborative Alliancing is a method of ensuring the best possible
alignment of all the interested parties with the client’s objectives. It is a
more sustainable, inclusive and rewarding way of working that leads to
superior outcomes for client’s, their suppliers and customers, and society.

The high-level process of Collaborative Alliancing is shown below;

The steps for Collaborative Alliancing are;

Business Case – This is the starting point for a project. It is

where a client’s business drivers such as service performance
or product development and changes in regulation, legislation,
profitability or funding, are taken together with the operational
experience of their own and other’s buildings, facilities and
infrastructure. This creates new investment objectives for the
organisation. It is here that the first screening of investments
takes place to determine which should be pursued as
construction projects, and whether they can be addressed with
simple contracts, or are sufficiently complex or multifaceted
enough to warrant the adoption of Collaborative Alliancing and,
for public sector clients, how this will be achieved under the
procurement regulations.
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Need – This is the primary gateway for Collaborative Alliancing.
Where a traditional sequential process is adopted, a simple
statement of requirement is generally used to progressively
procure first a design team to develop the solution, which is initially
used to procure the constructor / MMC delivery team and primary
subcontractors and subsequently, as the solution develops, the
remaining supply chain. This is a different process to that shown
above. Under Collaborative Alliancing, a Strategic Brief is created
to procure a core team from all parts of the industry, whose
members will collectively develop and deliver the solution. The
Strategic Brief will explain the purpose for the investment, define
the outcome objectives, describe the cost and time parameters
and identify associated criticalities and constraints.

Procure Core Team – The Core Team will be representative

of the skills and capabilities anticipated as required to deliver
the investment needs, and procured using a process which will
include behavioural assessment but no solution to price. It is an
‘80/20’ style approach appointing the key members covering
design, manufacturing, on and off site assembly and construction,
who will be collectively responsible for making and implementing
design and delivery decisions including MMC options. The Core
Team form the Collaborative Alliance with the Client and their
operational representatives whether internal or external.

Develop – Having validated any decisions necessarily made before

the team where appointed, the alliance will develop and evaluate
potential solutions to meet the identified need, using the strategic
brief to screen options and confirm the preferred solution.

Procure Full Team – As the solution develops, the understanding

of who should be involved will develop leading to the identification
of the full team; who will also be appointed on the same skills,
capabilities and behaviours basis.

Verify Need – This is the “go” / “no go” gate for committing to full
funding and development and implementation of the preferred
solution, including the insurance of the project team and the
outcomes, if this is part of the delivery model (e.g. Insurance
Backed Alliancing). In the event that the solution is not accepted
or more rarely, that a full understanding of the need has identified
a change in the purpose or delivery objectives, the process will
reiterate to fine tune the solution and/or delivery team. Once
the ‘go’ decision is made the alliance moves on the detailed
development and implementation.
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Finalise – Importantly, Verify Need is not a ‘design to construct’
decision gate. The project should proceed as soon as the solution
has been sufficiently developed to be confirmed in principle,
provided it is supported by a robust target cost model. This will
show that the proposals are realistic, affordable and achievable,
whilst containing sufficient allowances and mitigation measures
to address shared project risks going forward. The design will
be finalised in parallel and in accordance with the execution plan
to ensure seamless design to implementation performance (and
where appropriate be transportable for future application).

Implement – The alliance take responsibility for achieving the

outcome which satisfies the need, blending efficient design
development with effective implementational detailing and
delivering outcomes that can be proven to function as intended. All
parties work collaboratively adopting ethical principles for inclusive
non-discriminatory engagement and support. Any issues that arise
are collectively resolved and any changes necessary validated
against the strategic brief. Ownership for all activities is shared,
with the alliance incentivised through sharing in the financial
success of the project or otherwise on a collective basis.

Operate – All projects whether alliancing or not, should have an

effective process of soft landings (or government soft landings)
involvement and management that extends from commencement
to the transition into operation. This includes defects resolution
and seasonal commissioning in the first phase of occupation and
can extend to full operational support for an extended period if
this is the selected route. Post Occupancy Evaluations being
implemented to evidence and validate that carbon and energy
use outcomes match design intent. Whatever the period adopted,
ensuring the asset performs as required is essential in achieving
sustainability from construction.

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What benefits does Collaborative Alliancing provide?

Practitioners from clients and their funders to contractors and their

suppliers identify the following benefits when comparing with methods not
optimised for collaboration.

Better risk sharing

Risks are more openly understood and can be allocated to the best people
to resolve whilst remaining owned by the whole alliance.

Better due diligence

Collective interrogation of options and solutions by all the interested
parties means issues and problems are identified earlier, better evaluated
and inappropriate proposals screened out.

Less adversarial environments

‘Open book working’ leads to fewer surprises and being party to decision
making leads to improved ownership. Sharing incentives means everyone
seeks resolution instead of recrimination.

Earlier involvement
Knowing you will be appointed to participate in design and solution
development means your experience and expertise can be optimised for
you and your partner’s benefit.

Faster
More inclusive evaluation leads to better decision making in relation
to the elements and methods to be adopted, and to ‘right first time’
implementation. Shared ownership leads to faster identification and
resolution of issues and problems without procrastination.

Cheaper
Selecting affordable solutions, eliminating waste and inefficiency,
minimising redesign and rework, optimising all the skill on offer, replacing
‘bespoke’ with repeatable standardisation and duplication with trust, leads
to funds being optimised for the intended purpose as cost effectively as
possible and cheaper than traditional methods.

More repeatable
Alliancing binds organisations together building relationships and creating
solutions that can be drawn from manufacturing-based standardisation
and assembly cycles. Solutions can subsequently be delivered through
programmes and frameworks, or adapted for delivery for different clients/
problems.

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Value focussed
Collaborative Alliancing focusses on the needs defined and therefore
the value sought from the investment, and the outcome-based incentives
maintain this focus throughout.

Better outcomes
Utilising all the expertise and experience of all the contributors to a project
helps to identify solutions which better meet the needs, faster and at a
lower cost than traditional sequential methods.

Removes duplication
Working ‘open book’ with one version of the truth made available to all,
leads to best for project resourcing without the need for duplication of
roles or activities.

Fewer defects
With the whole alliance incentivised to deliver best for project outcomes
as fast and as cost effectively as possible, defective works due to poor
detailing are eliminated at source and installation defects, which delay
follow on activities, are quickly flagged up and managed out by the whole
team.

More predictable
All projects can experience problems and challenges. The visibility of
these that leads to faster resolution under Collaborative Alliancing, also
means the impacts on the timeline, cost and quality plan are similarly
visible. This greatly reduces the likelihood of surprises late on in the
project. For alliance members and their supply chains cash flow is
more open and secure (particularly where trust accounts are utilised for
payments) and profit more certain.

Less stressful
Practitioners report working in a fully collaborative alliance to be more
rewarding and enjoyable. They feel better supported and less stressed in
an environment they deem fundamentally better for their mental health.
They also report separating at the end of a project as friends instead of
the more traditional adversaries.

Life cycle geared

Understanding the purpose of the investment, facilitates designing
with tomorrow in mind, enabling future removal, re-purposing and even
relocation strategies to be adopted. Embedding end user and ongoing
estate considerations empowers the alliance to design for strategic
change, saving time, money and carbon whilst reducing waste in all its
forms.
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How does it work for my part of the industry?
Clients – benefit from a team that is aligned with their investment needs
and is committed to deliver the best it can for the available funds. As part
of the alliance, the solution is developed and delivered with them, and with
the ongoing focus on the required outcomes throughout there are fewer
surprises and more opportunity to proving guidance on the implications of
potential options and changes.

Contractors (including MMC contractors) – are involved much earlier

than usual enabling them to bring their buildability, logistical expertise and
delivery platforms to the table early enough to improve both the solution
and the execution planning.

Distributors – have the chance to influence the components and the

logistics not usually offered to them. They are also able to take a wider
project perspective including working with other distributors to streamline
buying and distribution.

Designers – know they will remain a key resource throughout the entire
project duration without any change to their contractual position or
objectives. They benefit from working alongside delivery experts to
identify which concepts best translate to delivered installations and are
able to adjust the time of transfer to optimise skills rather than to suit a
rigid staged process.

Funders – know that the alliance is focussed on achieving the needs

within the funding level agreed and that progress is more visible with
outcomes being more predictable.

Operators – are consulted early enough to be able to influence the

outcomes to ensure they will meet their performance needs.

Manufacturers – are consulted and committed to early enough to

influence options and solutions, including the suitability of Modular or other
MMC approaches. They are more able to optimise product installation and
implement adaptations that will enhance the project and provide time and/
or cost savings in production and installation.

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Practitioners and Operatives – enjoy a more supportive and collaborative
environment in which their input and expertise is both sought and valued.

Specialists – are consulted as equal partners and committed to early

enough to influence solution development and propose alternatives that
will enhance performance, all in the knowledge that they will go on to
deliver what has been agreed.

Suppliers - are consulted as equal partners and committed to early

enough to influence solution development and propose alternatives that
will enhance performance, all in the knowledge that they will go on to
deliver what has been agreed.

Underwriters – know the alliance is focussed on de-risking the project to

improve the likelihood of success and reduce the likelihood of claims.

Note for all parties; ‘open book’ payments mean cash flow is more
predictable and incentives provide the opportunity to benefit from
successful outcomes.

How well does it satisfy the playbook objectives?

The adoption of Collaborative Alliancing satisfies the objectives of the

Construction Playbook developed with cross sector support to cover
leading industry commercial practices.

First published in December 2020 and updated in September 2022,

the Playbook outlines government’s expectations for how contracting
authorities (including all central government departments and their arm’s
length bodies) and suppliers, including supply chains, should engage with
each other.

Of the 14 key policies to assess, procure and deliver public works projects
and programmes the following 8 are directly addressed by adopting a
Collaborative Alliancing approach;
2. Market Health and Capability Assessments – Need
3. Portfolios and Longer Term Contracting – long term alliancing
4. Harmonise, digitise and rationalise demand - long term repeatability

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 6. Early Supply Chain Involvement - Involving the supply chain early in
the project
7. Outcome-based approach – clear and measurable outcomes
focused on whole life value
8. Benchmarking – benchmarking key project deliverables for long
term value
9. Delivery Model Assessments - using the most appropriate delivery
model to achieve the desired outcomes
11. Risk Allocation – Cross alliance risk allocation and management

Embodying much of the above and published in November 2022 under the
heading “Trust and Productivity”, the private sector construction playbook
is similarly satisfied through the adoption of Collaborative Alliancing.

What challenges does Collaborative Alliancing bring?

Collaborative Alliancing is a different way of working. Not everyone is

ready for the genuinely open and honest environment required to enable
success.

Adopting collaborative behaviours that include a readiness to be

challenged and to challenge in a supportive manner, and being prepared
to be open about failings and weaknesses, is contrary to the usual
behaviours that prevail in contractual relationships which have an
underlying potential to become adversarial.

As a disruptive method, it challenges custom and practice and often flies in

the face of organisations established procedures which, even for staunch
supporters, can be a challenge to address.

However, experience shows that with a modest amount of training

and coaching, most people and organisations are ready and willing to
participate in a collaborative alliance, especially if it is clear the process is
sufficiently well facilitated to ensure appropriate behaviours are maintained
by all.

Finally, the feedback from those who have completed a collaborative

alliancing project is overwhelmingly clear that they would prefer their next
project to be on the same basis.

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How do I find out more about Collaborative Alliancing?
If you want to know more…

Get in touch with Constructing Excellence via Helpdesk@

constructingexcellence.org.uk

Join the Collaborative Working Mentors! See the Constructing Excellence

events page to find out about the next meeting.

Look out for the Collaborative Alliancing Conference in the Spring.

Constructing Excellence will be hosting a conference to further explore
Collaborative Alliancing and the steps to adoption. More information will be
shared on the website once confirmed.

Prepare your organisation – don’t get left behind!

Collaborative Working Mentors

This report was assembled with the input and contribution of the following
Mentors and interested parties

Collaborate Working Mentors Chair: Kevin Thomas, IPInitiatives Ltd

Alison Nicholl, Head of Constructing Excellence

Keith Hayes, Graham
Paul Greenwood, Greenwood Consultants Ltd
Paul Wilkinson, PWCom
Andrew Thomas, Diligentia
Kevin Murray, Metre Sq Limited
Odilon Serrano, Mott MacDonald
Madeline Cranfield, Madeline Cranfield Consulting Ltd
Ron Edmondson, Retired Manufacturer
Philip Isgar, Sunbeam Management Solutions
Louise Jones, WSP UK Ltd
Julia Loach-Martin, Boxx Solutions
Howard Betts, LeadersMeets Ltd
Tom Oulton, RLB
Alan MacLean, Croftstone Management Ltd

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