Reducing costs is a necessary goal, but the trick is to do it without destroying the project’s quality, bankrupting anyone or brutalizing the workers. Unfortunately, awarding contracts based on low price does exactly that. Even worse, it usually increases the project cost—the perfect lose-lose scenario!

A better solution is called teamwork! I realize partnering and strategic alliances have been employed for years with a mixed degree of success. The problem is that often people cherry pick the aspects that benefit them – instead of using what works for the entire team. In contrast, teamwork, whether called partnering or strategic alliances, is about working together for the mutual good of all team members and the project’s success.

For example, if an owner believes partnering means getting the contractor’s lowest price without addressing the other issues or if contractors or designers believe partnering is getting all of an owner’s work without earning it, the process simply doesn’t work and the results are disappointing.

In sports, we have all seen teams with the best individual talent that failed to win the championship because of a lack of teamwork. It’s no different in construction. Unless there is a true spirit of teamwork between the designers, the contractors and the owner; the group will not obtain the lowest project cost.

So what’s teamwork? True teamwork is when the owner, contractors and designers work together to determine the project’s strategic goal. The strategic goal is a project outcome that is mutually agreed upon that creates a win-win environment for the entire team.

Deciding upon a strategic goal that is the right one for the project is critical. For example, when the project goal isn’t fair to everyone it causes problems that increase costs. Because developing a strategic goal is so challenging, many people quickly give up and return to just maximizing their own position. A sound strategic goal is worth the effort because it delivers a better overall project and lowers overall project costs. It’s worth the effort!

Teamwork doesn’t mean everyone gets everything they would like. Instead everyone is forced to focus on issues of highest important to the project and proceed down the list. However, teamwork does mean sharing “realistic” expectations. Owners can’t expect to get a Cadillac for a Chevy price nor should contractors or designers expect to receive top compensation for anything but the best product for the budget.

Why is teamwork so important? Because it causes the team to focus on everything, including the actions between the players. When each entity is only concerned about their own turf, no one is worried about the interactions between the parties. However, this is where the balls get dropped, resulting in mistakes and expensive change orders. Teamwork makes sure everything is covered. In football a missed coverage results in a touchdown; in construction a dropped ball results in a change order.

So what turns an owner, a contractor and an architect into a successful team? There are two essential elements: communication and trust. Trusting one another might be uncomfortable at first, but it’s essential. The best way to earn trust is to give it. We all know the uncomfortable feeling when someone says, “Just trust me.” Many owners prefer to keep their budget close to their vest, but if they can’t trust their contractor, they have the wrong contractor. Similarly, if the contractor and designer don’t know the owner’s true budget, how can they design and build the best project for that budget?

If trust is the foundation of a successful team, communication is the lifeblood. Cut off the blood and the team dies. Better communication is not about better technology – it’s about face-to-face interaction so that everyone understands and buys into the strategic goal including the necessary refinements throughout the project. A lack or misunderstanding of the desired project outcomes is the number reason for project failure. Therefore, owners need to explain what they need, when they need it, and provide their budget. When you try to buy anything, usually one of the first questions the salesperson asks is “About how much do you have to spend?” Answering this question saves both the buyer and salesperson time. It’s no different in construction where time is money!

Communication is about listening to understand what the other party means. For example, when an owner insists upon basing the architect’s fee upon construction costs instead of listening to legitimate reasons for rising architectural fees, it puts the project’s success at risk. After all, when designers aren’t allowed to pass on their increased costs, the drawing quality often suffers, resulting in change orders and higher project costs. Likewise, when project members don’t listen to the owner or the contractor similar results occur.

The only answer is greater teamwork! The next article will explore how contractors, architects and owners can create a more effective team!