Alignment Partnering: A “Re-organizational” Approach To Manage Conflict on Construction Projects “Outside the Box” Conference Straus Institute for Dispute Resolution Pepperdine University April 7, 2011 Kurt Dettman Bill Baker

Thinking Outside the Box on Construction ADR Are we spending too much time on resolution vs. prevention? Are we using “boiler plate” approaches vs. “Fitting the Form to the Fuss” ? Are we treating the symptoms, but not the disease?

Construction Projects: A Crucible of Conflict Conflict management “root cause analysis” Typical Sources of Conflict: Delivery Methods Allocation of Risk “Silos” Management Structures Inherently Risky Projects Risk Shedding

ADR Continuum Partnering Low Cost Resolution High Cost Resolution Unassisted Negotiations Structured Negotiations Partnering Facilitation Conciliation Early Neutral Evaluation Joint Experts Expert Determination Less Control More Control Dispute Review Board Mediation Mini-Trial Arbitration Litigation Court Special Master Court Settlement Conference Bench Trial Jury Trial ADR Continuum

Traditional Partnering vs. Alignment Partnering Behavior focused (“can’t we just be friends?”) Often one-time (“ok, we’re done, let’s get back to real work”) Candle lighting ceremony vs. true changes in thinking and approach

Traditional Partnering vs. Alignment Partnering Collaborative definition of goals Specific steps/metrics to get there Re-organizational approach Project duration w/ feedback loops

Typical Organization: Silo to Silo Interaction Communication PM/CM

Organizational Re-Alignment

Specific Tools to Manage Conflict Collaboration as a key team goal Open communication lines Timely raising of issues Structured negotiation process “Real Time” issue resolution ladders Senior management involvement “Partnering Coach”

Construction Industry Changes Are “Forcing” Collaboration Loss of Productivity/Economic Necessity New Delivery Approaches—Alliancing Model New Technology—Building Information Modeling New Construction Management Tools—”Lean” Principles

Holistic Approach to Manage Conflict Conflict Management Systems Contract Terms Delivery Approaches

Thinking Outside The Box Take Aways Define trust and collaboration as the bedrock of the relationship, not legal rights and responsibilities Plan for the best, not the worst Re-align management responsibilities across contractual silos Implement “Project First” thinking

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