Peter Molin, Harri Spoof
Utveckling av entreprenadformer och alternativa
samarbetsformer
Draft 1.9.2008
GNA - Gemensam Nordisk Anläggningsmarknad
Developing of Project Delivery
(Contracting) Methods
and
Modes of Co-operation –
Closer Co-operation
Summary Report
Markku Teppo
Delivery
(Contracting) Methods and
Developing of Project Delivery
(Contracting) Methods
and
Modes of Co-operation –
Closer Co-operation
Summary Report
GNA - Gemensam Nordisk Anläggningsmarknad
PREFACE
This GNA – sub project (Gemensam Nordisk Anläggningsmarknad) is continuation project of the previous GNA's project "Develop modes for contracting and alternative cooperation modes". That completed project established
a base for further development of contracting and co-operation through an
analysis of different models. In following phase in 2007-2008 the project was
continued and divided into two sub projects:
 Developing of Project Delivery (Contracting) Methods
 Modes of Co-operation – Closer Co-operation
Finland was selected to be owner of the first sub project and Sweden of the
other sub project. The project has been co-ordinated by the Finnish and
Swedish Road Administrations and has been carried out in co-operation with
Nordic road and railway administrations. Both sub projects have quite a lot in
common and, when planning, their development work was co-ordinated by
the same project group. The Nordic project group has consisted of following
members:
Markku Teppo, Finnish Road Administration (Vägförvaltningen), (FI)
(chairman until 31.1.2008)
Jukka Karjalainen, Finnish Road Administration (Vägförvaltningen), (FI)
(chairman from 1.2.2008)
Magnus Nygård, Finnish Road Administration (Vägförvaltningen), (FI),
secretary
Jussi Ala-Fossi, Finnish Road Administration (Vägförvaltningen), (FI)
Björn Karlsson, Vägverket, (SE)
Lars Redtzer, Banverket, (SE)
Jan Eirik Henning, Statens Vegvesen, (NO)
Frode Rosenkilde, Norsk Jernbaneverket, (NO)
Claus Nödgaard Hansen, Vejdirektoratet, (DK)
Contacts with the members of the group have been maintained by project
group meetings in Finland and in Sweden, via telephone and E-mail. In addition, the project group arranged during the development phase two seminars
in Stockholm.
Many thanks to the Finnish consultant and contracting companies, who have
been involved in the development of the Alliance Contract Model. They have
given to the process their competence and experience and also been financing the consultant work carried out by the Finnish VTT. Finally many thanks
to the project group for the extensive and fruitful co-operation in the actual
development work.
Helsinki, August 2008
4
Developing of Project Delivery (Contracting) Methods and Modes of Co-operation
– Closer Co-operation
Table of Content
PREFACE
3
1
BACKGROUND
5
2
PROJECT DIRECTIVES
6
2.1
Developing of Project Delivery (Contracting) Methods
2.1.1 Project Goals
6
6
2.2
Modes of Co-operation - Closer Co-operation
7
2.2.1
7
3
PROJECT RESULTS
7
3.1
Current Strategy Situation of Each Nordic Country
7
3.1.1
Denmark
8
3.1.2
Finland
8
3.1.3
Norway
8
3.1.4
Sweden
9
3.2
Recommended Co-operation Form
3.2.1 Closer Co-operation as a Method
9
11
3.3
Recommended Criteria for Choice of Contracting Form
12
3.4
Development of the Alliance Contract Model
13
3.4.1
3.4.2
3.5
3.6
3.7
4
Project Goals
Project Goal
13
Alliance Contract Model - a Promising New Project Delivery
Method
14
3.4.3 Development of Nordic Application
Proposal for a Continued Bench-marking of Pilot Projects
15
15
Seminars and Education Opportunities for More Unified and Faster
Development
15
Strategies for a Faster Development within the Market
16
3.7.1
Finland
16
3.7.2
Sweden
16
PROPOSAL FOR CONTINUED CO-OPERATION BETWEEN THE
ORGANISATIONS AFTER THE PROJECT
17
4.1
17
Practical Recommendations
4.1.1
4.1.2
Project Delivery Methods with a Greater Degree of
Freedom
Closer co-operation
17
18
4.1.3
Benchmarking
18
4.1.4
Collaboration between the Nordic Countries
18
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
5
BACKGROUND
1
BACKGROUND
During 2003 and in the beginning of 2004, on behalf of the Council of Nordic
Ministers, a cooperation project between the Nordic traffic administrations
was accomplished. The overall aim was to contribute to an improved longterm market within the Nordic countries by means of a developed cooperation culture between the client and producer and by the means of developed
and unified contracting practices. The intention was to ensure a long-term
well functioning construction market, enabling to comply with clients' requirements on the transport system.
The project was limited to focus on investments as well as management and
maintenance of roads and railways.
The report which was given to the Council of Ministers in the autumn of 2004
described the present situation of the Nordic construction activity in the following way:

The construction sector has to find ways of work so that all involved
parties have access to co-operation modes, which provide prerequisites for more long-term action. This may be achieved, e.g. by developing the co-operation modes for the sector.

Low development in productivity, technique and production, small research efforts, low profitability and poor feedback of experience are
typical for today's sector structure. This in turn results in short-term
acting and a decreasing confidence between client and supplier.

The average age of staff in the sector is high, which threatens the
provision of competence to the sector. In the years to come there will
be a great need for recruitment of staff. In order to realize this need
the sector must find ways which attract young people - irrespective of
being client or supplier.
In the first development phase also a Nordic vision was developed. In order
to achieve the required market development, 10 important development projects were proposed in the report. The development projects "Review of taxation rules" and "Review of competition-reducing agreements" were handed
over to the Council of Nordic Ministers for their further handling. 8 other development projects were handed to be carried out by individual Nordic Countries. In that phase Finland took the responsibility for two development projects:
 “Development of Contracting and Alternative Co-operation Forms”
 “Joint Data Base for Vocabulary”
The project: “Development of Contracting and Alternative Co-operation
forms” was completed in June 2006 and the report was published in autumn
2006 in Swedish by the name: “Utveckling av entreprenadformer och alternativa samarbetsformer”
That completed project established a base for further development of contracting and co-operation through an analysis of different models. Recommendations concerning the continuation of the project were:
 Each traffic authority should take the responsibility in national devel-
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
6
PROJECT DIRECTIVES



opment and implementation of new methods and models
There is a need for further development towards extended systematic
co-operation between client and producer (partnering)
There is a need for increasing use of contract types with more freedom for solutions such as Design Build and Performance Based Contracts.
Every Nordic country should test new contract types in pilot projects
with a common Nordic evaluation and exchange of experiences.
In following phase 2007-2008 the project: “Development of Contracting and
Alternative Co-operation Forms” was continued and divided into two sub projects:
 Developing of Project Delivery (Contracting) Methods
 Modes of Co-operation – Closer Co-operation
Finland was selected to be owner of the first sub project and Sweden of the
other sub project. The both sub projects were under the guidance of the
same project group.
2
PROJECT DIRECTIVES
2.1
Developing of Project Delivery (Contracting) Methods
The key goals of the development work of contracting models were to create
conditions for improving the productivity of service providers in the infra sector and Client Organization’s own procurement operations, as well as to ensure the desired level and quality of service.
2.1.1
Project Goals
Within this sub project the plan was to create in co-operation with the Nordic
countries new Project Delivery methods that provide degrees of freedom in
the development and use of innovations by service providers and new technical solutions and products.
The long term goal could be to have a spectrum of different kind of new Project Delivery Methods in practical use in individual Nordic countries depending on the local conditions and local decision making processes.
According to the international studies new promising methods to be taken
into account in the development were found as follows:
 Design – Build, Design - Build + (long warranty time) agreements
 Service Life Agreements, Life Cycle Agreements (Service Agreements)
 Alliance Contract Model
Because of the limited time and resources for the development work, the focus in this project was in developing of Alliance Contract Model taking into
account the experiences gained in New Zealand, Australia and England. To
the development work were invited also Finnish service providers to take
part and also to finance the theoretical study. Finnish Road Administration
and Finnish Tekes (Finnish Funding Agency for Technology and Innovation)
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
7
PROJECT RESULTS
were the biggest sponsor organizations of the study. The Finnish VTT
(Technical Research Centre of Finland) was involved in the actual development work.
2.2
Modes of Co-operation - Closer Co-operation
In co-operation modes the participants are involved in the project from the
beginning and they work for the project’s best together. The aim of closer cooperation is to create an increase in value for money by increasing the capacity of the processes, improve co-operation and thereby reduce the costs
and/or improve the end result.
In the partnership contract the responsibilities of each participant are established and this mode does not essentially deviate from other co-operation
modes. The only difference would be that all who have entered the partnership contract are obliged to solve arising problems in a supportive way.
There is also an option of having a common financial commitment by applying a target price for the project upon which the parties have agreed. When
deviations arise, profits or overruns in costs are shared between the parties
according to proportions agreed in the contract.
2.2.1
Project Goals
The goal of this sub project was to support the implementation, follow up and
evaluation of the experiences in the implementation of an closer cooperation in the Nordic countries according to the methods which were described in the report to the Council of Nordic Ministries. The main focuses in
the development were:
 Work for a similar implementation of an closer co-operation between
client and producer within the Nordic countries
 Inform about the know-how and experiences which are documented
from projects earlier performed within the Nordic countries
 Study and distribute information about on-going projects related to
closer co-operation, concerning investments, rehabilitation and
maintenance
 Follow up and documentation of the effects on selected projects
compared with the traditional model
 Continuously information about experiences of selected projects in
the Nordic countries
 Proposed activities for development and training
3
3.1
PROJECT RESULTS
Current Strategy Situation of Each Nordic Country
Procurement strategies in Nordic countries are generally in the same direction. There are still important things to be discussed and developed to harmonize the strategies. Some of them concerns what kind of project delivery
methods will be used in the future, how the risks and benefits will be shared
between the actors, and how complicated functional and technical requirements will be used in contract agreements. In most strategies there is also
the idea to take more into account the long term benefits and long term price
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
8
PROJECT RESULTS
level of the whole infra sector than only the costs of individual project. There
also is a clear tendency especially in Finland and Sweden to combine different infra client organizations into one client organization with a separate infra
traffic safety organization. This is an on-going process in both countries.
3.1.1
Denmark
Road Administrations (Vejdirektorat) procurement strategy is promoting value adding development with the private sector. Innovation benefit is shared
equitably between the parties. Road Administration uses both lowest price
and most economically advantageous tender as selection criteria of service
providers.
New collaboration models will be tested, e.g. partnering in maintenance contracts besides the traditional contracting methods already in use. Even Design-Build-Finance-Operate model will be tested.
3.1.2
Finland
Finnra completed its procurement strategy “Procurement 2010” in 2006. The
compiled procurement strategy followed the developmental principles of the
previous strategy: “Procurement 2007”. The primary goal of the Procurement
2010 strategy was to create prerequisites for the improvement of the productivity of the infra sector service providers and the Road Administration’s own
procurement operations, as well as to ensure the desired level service and
quality. The infra industry has been tightly involved in the development of the
new model and has accepted the new approach
The compiled strategy also included an implementation plan and timetable in
which the developed methods will be tested and implemented by 2010.
The main contract forms in the Road Administration’s capital investments will
be Design-Build (DB) contracts and service life (SLC) contracts. In addition,
these models can be varied as needed. The life cycle model is the most sophisticated variation of the service life model. The traditional Design-Bid Build (DBB) model is used in small contracts in which the final design combined to the bidding process cannot create sufficient benefits. The DBB contract model will be used as "training"contract to the new contractors for learning the implementation of service agreements and construction projects with
a responsibility for quality.
Regional maintenance contracts will be developed into multi-faceted service
agreements. In rehabilitation there will be a development toward service
agreements. Service agreements will be developed step by step based on
experience from pilot projects.
3.1.3
Norway
Norwegian Road Administration (Statens vegvesen) has as a goal to provide
the best possible service for their customer and for the whole society. They
aim to be a professional, unified and predictable client organization with the
same procurement methods in use within the whole country.
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
9
PROJECT RESULTS
For each procurement case it is defined separately what kind of selection
criteria will be used. Both lowest price and most economically advantageous
tender as selection criteria will be used. In the strategy it is stated that the
projects and project delivery methods to be used should also provide to
small and mid size contractors opportunity to participate in the competition of
capital investment and maintenance projects to ensure a genuine competition.
Road Administration will in the future utilize different contracting methods
and new innovative collaboration forms.
3.1.4
Sweden
According to the new procurement strategy (Kund- och leverantörsstrategi)
Swedish Road Administration has as goal to improve efficiency, better customer orientation and create prerequisites for wider professional skills. Road
Administration wants that the development of procurement methods should
enable also small and mid size service providers to enter the infra market.
In the future during the tendering phase detailed technical specifications will
be guide less service providers. Alternatives that will provide the lowest long
term cost for the client will be awarded. Risk and responsibility sharing shall
be paramount.
In the selection of contracting methods Road Administration will use both
Design-Bid-Build and Design-Build contracts, but even increase the share of
Design-Build contracts with functional specifications. There are also plans to
test Life Cycle Contract model.
3.2
Recommended Co-operation Form
Interaction between different cultures does not necessarily have to be interaction between different nationalities. It can as well concern different company cultures or different contractors, consultants and clients. It is important
that the co-operation in this interaction contains involvement and a conviction of a need for systematic way of working.
The situation, where all persons wants to do a good work gives the view that
the personnel is going to produce a project, a job resulting in something useful and something to be proud of. This is far from fast and quick solutions resulting in a questionable quality. That is why it is more of a professional job
resulting in a product that is functional and of high quality. And of course
emphasis is put to the service and the maintenance aspects when design
the product is done– the railway, the road or the bridge.
Where can be profits be gained without anyone loosing? By co-operation
and development! In most projects with “closer co-operation” constructive
and creative solutions have been created. Behind this is often found the
truth: The consultants or the contractors problem is also the clients problem.
10
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
PROJECT RESULTS
Both from the client side and from the consultant side or from the contractor
side experts are coming with different backgrounds and different habits of
working. In order to achieve a functional team common values and methods
of working are required. Everybody must give priority to common goals and
relations to gain a win-win situation (see figure 1). In fact it is not too peculiar. What is new procedure is perhaps that you co-operate in a systematic
way and that you focus your work on the most important common goals of
the project.
Consideration
for goal
achievement
Fight
(win on someone
else’s expense)
Win-Win
COMPROMISE
Revenge
(delaying)
Concession
(one-sided)
Consideration for
good relations
Figure 1: Negotiation strategy and values
It can be seen that it is possible to create a culture with a high degree of
confidence. How you succeed is all based on the degree of respect for the
other participant(s) and which consideration you show (see figure 2). It is also very much depending on the prevailing leadership, which has to sell and
spread the advantages of co-operation, matters that takes time. And the
leadership must emphasize and give a higher priority to the starting phase
rather than to the final phase of the project.
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
11
PROJECT RESULTS
Co-operation
Confidence
Consideration
Respect
Figure 2: The process and the positive energy it creates
3.2.1
Closer Co-operation as a Method
The Nordic countries have somewhat different methods in systematic way of
co-operation. Denmark is using so called “Partnering” within routine and periodic maintenance. Norway is using so called “Target-price contract” in construction works.
Sweden has used the FIA method of “Closer co-operation” within all kinds of
works – design construction, asphalt works, service agreements etc. This
has been very successful during the last couple of years and the procedure
is spreading rather fast. The co-operation contains different levels and an
overview of it is shown below in figure 3.
In Sweden the experience is also that there has to be a catalyser person for
this extended co-operation. This person is involved especially in the beginning phase of the project. In that described form of systematic co-operation
there is of course an opportunity to arrange a bonus system related to the
project you are working for.
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
12
PROJECT RESULTS
FIA model for closer cooperation
Strategic cooperation
Level 3
Industry Development
Social communication
Active design
Greater involvement of other actors
Level 2
Moments
of choise
Benchmarking
Deeper management by objectives
Deepening efforts for the development group
Transparency on issues of common nature
Continuous monitoring and improvement
Level 1
Compulsory
moments
Conflict resolution methods
Common risk management
Common management by objectives
Common organization with process management
Traditional cooperation
start meeting, design meeting and meetings in the works
Figure 3: FIA model for closer co-operation
3.3
Recommended Criteria for Choice of Contracting Form
One of the starting points of the GNA-sub project ”Development of contracting methods and co-operation forms” (”Utveckling av entreprenadformer och
alternativa samarbetsformer”) was to develop a selection of procurement
methods to be used in Nordic countries. This selection could be utilized for
big/mid size/ small or complicated and demanding/simple contracts.
A very important result of the seminars during the progress of the sub project
and the SWOT analysis prepared was that the majority of both client and
service provider organizations had the same wish to develop and implement
contracting methods with more room for innovations. During the following
two years after publishing the previous sub project report, in all Nordic countries can be seen a clear intention to use or to test contracting methods with
more room for innovations. There has been a clear development step towards that kind of methods both in projects already started or in preliminary
phase.
The applicability of different contracting methods have been evaluated and
studied in the Finnish VTT study: ”The current and future performance of
road project delivery methods”. One result of the study was a basic guide to
the areas in which different contracting methods (procurement models) could
be utilized. The figure below provides a more detailed description of the
best areas in which to use different contract types for capital investments.
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
13
PROJECT RESULTS
Figure 4: Basic guide to the areas in which procurement models are used
(INKA project, VTT Technical Research Centre of Finland , Tiina
Koppinen, Pertti Lahdenperä)
In choosing the contract method, the characteristics and circumstances of
the project and the market situation should be taken into consideration. In
addition, the opportunity of packaging several projects together should be
considered. More precise factors determining the choice of procurement
model could be:
 Size of the planned project
 Complexity of the project
 Opportunities for innovations, degrees of freedom, leeways and constraints of the project
 Market situation, stable markets or overheated marketplace
 Implementation timetable, urgency of start of the work, the needed
speed of implementation
 Risk management, risk profile of the project, sharing the risks
 Flexibility and management of changes during the contract period the
3.4
3.4.1
Development of the Alliance Contract Model
Project Goal
In this GNA sub project: “Developing of Project Delivery (Contracting) Methods” the focus was in developing a Nordic application of Alliance Contract
Model taking into account the experiences gained in New Zealand, Australia
and England. To the development work were invited also service providers
14
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
PROJECT RESULTS
to take part and also to finance the theoretical study. Finnish Road Administration and Finnish Tekes (Finnish Funding Agency for Technology and Innovation) were the biggest sponsor organizations of the study. The Finnish
VTT (Technical Research Centre of Finland) was involved in the actual development work.
3.4.2
Alliance Contract Model - a Promising New Project Delivery
Method
In New Zealand and Australia, where Alliance Contract Model applications
for Infra projects have been developed and tested, project alliancing refers to
a form of procurement where the client organization collaborates with one or
more service providers to share the risks and responsibilities in delivering a
capital investment project. There are a number of business and contractual
relationships involving partnership-type models that are referred to as “alliances”.
By the definition a project alliance is a commercial/legal framework between
client organization as “owner”-participant and one or more private sector
service providers as “non-owner participants” for delivering one or more capital investment projects, characterised by:
 collective sharing of (nearly) all project risks
 no fault, no blame and no dispute between the alliance participants
 payment of service providers for their services is under a 3 stage
compensation model comprising:
- reimbursement of service providers’ project costs on 100 per
cent open book basis
- a fee to cover corporate overheads and normal profit, and
- a gainshare/painshare regime where the rewards of outstanding performance and the pain of poor performance are shared
equitably among all alliance participants;
 unanimous principle-based decision-making on all key project issues;
 an integrated project team selected on the basis of best person for
each position.
Alliancing reflects a shift from more traditional procurement methods which
focus on strict risk allocations, to a collaborative approach. Project Alliances
operate as “virtual organizations” performing all of the functions required to
deliver a project. The Project Alliancing Model aims to create an alliance of
high skilled resources working “as if they own the company”. In daily leadership should be used modern and open leadership manners – leadership
skills of the project manager are in the key role
According to the international experiences Alliance Contract Model is best
applicable for capital investments:
 When the project size is >30 million €
 When the complexity of project is high
 When it is imperative to achieve project completion in the shortest
possible timeframe in order to deliver community travel time and
safety benefits as soon as possible.
 When It will be important to carefully manage a number of important
stakeholder relationships during the construction of the project
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
15
PROJECT RESULTS
3.4.3
Development of Nordic Application
In this project the focus has been on development of an application of Alliance Contract Model that could be utilized in Nordic Countries. Finland has
been responsible for leading the project. For the practical development work
three working groups were established. The first of them was chaired by
Finnra, the second by the Finnish contracting industry and the third by the
Finnish consulting industry. The working groups arranged several workshops
to collect for the development work ideas and expertise from the whole infra
sector.
Individual Nordic countries choose their own pilot projects to test the developed application of Alliance Contract Model and timetables for the pilots depending on the local situations and decision making processes. Also a sharing and reporting procedure of the experiences of those pilots will be arranged.
The EU procurement legislation and the prevailing Nordic infra sector culture
has given some restrictions and special requirements for the Nordic application. However, the main idea of the developed application is the same as in
original model, and probably all the benefits described earlier can be
achieved also with the Nordic applications.
3.5
Proposal for a Continued Bench-marking of Pilot Projects
During the progress of this project a template for collecting data of pilot project was created. The template was also tested by collecting data from individual pilot projects from Nordic countries. In those pilot projects new contracting methods and also new co-operation forms were tested. Also some
benchmarking of on-going developments in both contracting and cooperation forms have been successfully carried out in seminars.
Therefore it is recommended to continue to collect data from pilot projects
that will be carried out in Nordic countries, to analyze the results and to distribute them to Nordic countries and to benchmark them between different
Nordic countries depending on their interests. It is also recommended to organize seminars to present the results of the pilot projects in the future.
3.6
Seminars and Education Opportunities for More Unified and
Faster Development
A Nordic seminar on the Alliance Contract Model could be held in the autumn 2008. Results from the Finnish development project and recommendations for further development and pilot projects could be presented in the
seminar.
National co-operation forms can be developed through a series of seminars
or discussion opportunities for the whole construction market and for contact
persons in the different companies. The following themes could be discussed:
 Contracting forms in the countries: differences – similarities, ensuring
an identical terminology
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
16
PROJECT RESULTS


3.7
3.7.1
Rules for tendering and procurement process: basis for tender documents, cultural differences in the process and the documents, possibilities for changes,
Best practices in the Nordic countries: concrete examples, what has
brought about or can bring about an increase in innovations.
Strategies for a Faster Development within the Market
Finland
Finnra completed its procurement strategy in 2006. The primary goal of the
Procurement 2010 strategy was to create prerequisites for the improvement
of the productivity of the infra sector service providers. The infra industry has
been tightly involved in the development of new models and has accepted
the new approach. The Finnish consultant and contracting companies have
been involved in the development of the contract methods and in this GNA
sub project also the development of Alliance Contract Model. They have given to the development work and their competence and experience and also
been financing the consultant work carried out by the research institutes.
The Procurement 2010 also emphasizes the development of contracting
methods and their content in tight co-operation with different actors in the
infra sector. It is also stated in the strategy that the partnering model used in
Sweden and Denmark is suitable also in Finland for different contract methods.
Procurement 2010 is approved by the Finnra board and responsible Finnra
directors are committed to implement the strategy in practice. The results
and findings of this GNA sub project and the proposals in the Procurement
2010 are in harmony.
3.7.2
Sweden
In Sweden there has been since 2003 a forum, FIA, (förnyelse i
anläggningsbranschen ) that works with renewal of the construction sector.
The goal of the FIA work is:
- Higher efficiency and productivity
- Better co-operation between the actors involved
- Better incitement for research and development
- More effective way of spreading knowledge of existing competence
- Better attraction for recruiting of new personnel to the sector
A number of projects for this purpose have so far been carried out and their
use has been spread. Few examples of them are:
- Effective constructions
- Effective consultant projects
- Closer co-operation between client, consultant and contractor
The projects and other activities within the FIA forum have been successful
and the results of the development work can already be seen.
In this GNA-sub project there have been discussions and attempts to find
answers why certain development works succeed faster in one country than
in others. The findings have been that changes in working culture need a
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
17
PROPOSAL FOR CONTINUED CO-OPERATION BETWEEN THE
ORGANISATIONS AFTER THE PROJECT
tight involvement and will of the top management for change and for long
term strategic planning and implementation to meet the challenges. For example the way that has been chosen in Sweden with FIA. That is why it is
highly recommend to fully utilize a strategic co-operation with the other Nordic countries for a faster development of the whole construction sector.
A video about the Swedish way of “closer co-operation” – the FIA-model –
has been developed. It is an interactive introduction for spreading the ideas
with closer co-operation, the systematic approach and examples of what you
have gained in a number of examples. It can be found on the home-pages
for the Road Administration (www.vv.se) and the Railway Administration
(www.banverket.se) and it takes about 1 hour to study the whole program.
4
PROPOSAL FOR CONTINUED CO-OPERATION BETWEEN
THE ORGANISATIONS AFTER THE PROJECT
In the phase three of the GNA-project, “Creating a Common Nordic Construction Market”, the sub-project “Development of Project Delivery Methods
and Co-operation Forms” (“Utveckling av enterprenadformer och alternativa
samarbetsformer”) has been focusing on further development of especially
the Alliance Contract Model method and on Mode of Closer Co-operation.
To make sure that this report will not just be “a paper among others” on the
bookshelf the development actions and plan of actions that are presented in
the report should get a dynamic status. The different authorities in the respective Nordic countries should take responsibility to ensure a further development of the contracting and co-operation forms in consensus with the
construction market. Any concrete results of development that enhances the
activities of both the client and the service provider will not be achieved
without the involvement of the construction market. The different development actions and experiences and pilot projects should be presented and
discussed together with the construction market on the Nordic level, preferably within the framework of GNA.
4.1
Practical Recommendations
Long term co-operation within the whole professional field, as FIA in Sweden, has been evaluated to enhance the development of new project delivery methods as well as new co-operation forms and it is therefore a recommended factor for success.
4.1.1
Project Delivery Methods with a Greater Degree of Freedom
In all Nordic countries the administration organizations should use more project delivery methods giving greater degree of freedom, such as DesignBuild, Design-Build-Maintain and Design-Build-Finance-Operate. These project delivery methods provide innovation and increase productivity in the
market according to the vision of GNA. The deciding factor in the selection of
a contracting method are the contract’s specific characteristics and the current situation in the construction market.
Regardless of the contracting form or product the recommendations for the
further development are as follows:
Developing of Project Delivery (Contracting) Methods and Modes of
Co-operation – Closer Co-operation
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PROPOSAL FOR CONTINUED CO-OPERATION BETWEEN THE
ORGANISATIONS AFTER THE PROJECT
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4.1.2
All new contracting methods should be tested further developed for
local use before normal use in all Nordic countries
Pilot projects for testing and further development of the Alliance Contracting Method – same basic rules in all Nordic countries.
Strategic co-operation: an open discussion between the clients and
the other actors in the field to develop the entire construction market.
Selection of project delivery method and its selection criteria should
be further developed.
Closer co-operation
Closer systematic co-operation among the different actors within a project –
from the design process to construction, operation and maintenance – is important with regard to the achievement of an optimized comprehensive solution. This co-operation may be achieved:
- By implementation and development of closer co-operation in all Nordic
countries
- Through free form co-operation regardless of the project delivery method as in the partnering model described by FIA in Sweden (called “partnering” in Denmark and “target price model” in Norway) or
- By including legal forms of collaboration to the contract agreement as in
the Alliance Contract Model, that is under development in Finland
- Exchange of information between the Nordic countries and follow-up of
the experience from closer co-operation in different project delivery
methods.
4.1.3
Benchmarking
Benchmarking the on-going development in both contracting and cooperation forms has been successfully carried out in seminars. Therefore it
is recommended to continue to organize that kind of seminars also in the future.
4.1.4
Collaboration between the Nordic Countries
The following concrete actions regarding further co-operation are suggested:
 Collaboration between the Nordic countries should be organized by
the Nordic Road Association.
 Involving the railway and road administration directors responsible for
the contracting and co-operation forms to continue Nordic cooperation in development of contracting methods and co-operation
forms.
 Arranging national co-operation forms through a series of seminars
or discussion opportunities for the whole construction market and for
contact persons from different companies.