Trust: a tale of two constructions

Trust: a tale of two constructions [P124]

Building and maintaining trust through understanding stakeholder relationships: A tale of two constructions. The construction industry has a reputation for aggressive contractual arrangements, disputes and even loss of life. This presentation contrasts two projects and the effect of different contractual arrangements on their respective supply chains, to show how an attitude of sharing risk and a focus on building and maintaining robust relationships can lead to more efficient project delivery.

Wembley Stadium illustrates how a lack of trust and ‘hard dollar’ contracts impacted relationships between the delivery partners, caused massive losses to the main contractor and extensive litigation. Contrast Wembley Stadium to the construction of Heathrow Terminal 5 where collaborative contractual arrangements lead to an on time, on budget construction outcome that is unprecedented for a £4 billion airport terminal.

Building and maintaining effective relationships is not easy. It requires both parties to recognise that there will be differing expectations and definitions of success and requires work to develop the necessary trust through understanding the expectations of important stakeholders. However, as Terminal 5 proves, the benefits are well worth the effort.

The presentation briefly covers:
•    Understanding the value of trust (see also WP1030: The Value of Trust)
•    A focus on understanding who matters
•    Building relationships through targeted, appropriate and purposeful communication.
•    Description of Wembley Stadium construction and supply chain
•    Description of Heathrow Terminal 5 construction and the integrated delivery teams
•    Comparisons and lessons from these projects
.

Home - Contact Us - Site Map - Company - Training - Consulting - Resources - Legals

Tel: (03) 9696 8684
.Intl: +613 9696 8684

	Download paper
More [Stakeholder Management] papers Visit the Stakeholder Relationship Management website