As outlined in the Supplier Code of Conduct, acting together with suppliers drives mutual understanding, improves delivery and helps to solve problems more effectively.
A good approach is to consider the following questions:
• What type of relationship have you had previously with suppliers for similar projects and programmes? Did it drive the intended outcomes?
• Have you engaged with the market and senior internal stakeholders to understand what type of relationship may be most appropriate for your project or programme?
• Does your evaluation strategy align with the intended supplier relationship?
• Do your contract terms, including risk allocation, liabilities, payment and incentive structure, and contract management processes align with the relationship you want to achieve?
• Is there flexibility within the contract to enable the type of relationship to change if required?
For all types of relationships, clear and agreed reporting change management and dispute resolution mechanisms are a critical success factor, including, where appropriate, how allowable costs will be managed. These are included in standard forms of contracts (see chapter 6).
Relationships are often not only between a contracting authority and their supply chain. A wide range of supporting parties including consultants may play key roles in successful project delivery and should be considered in the overall approach.
For more complex projects and programmes, experience has demonstrated that a partnership model with the principles of collaboration, openness, transparency and flexibility based on contractual delivery can be beneficial in driving successful outcomes and innovation. Critical success factors of a partnership model include a focus on delivery by both partners, clear roles and responsibilities, a shared understanding of how to resolve disputes and a collaborative culture. This includes:
• the co-location of employees
• shared common reporting to aid transparency
• developing joint-partnership principles and adopting a one-team 'win-together, fail-together' approach
• executive sponsorship by both parties, with a senior single point of contact who oversees the holistic relationship
• ensuring that the individuals have the necessary knowledge and training to undertake their responsibilities for the project or programme
Projects and programmes should start with an initial workshop, bringing together the delivery team, leadership, and key stakeholders to set expectations on standards, behaviours and ways of working, align success measures and objectives, and outline how the individual project is supporting an organisation's goals. These workshops should be proportional in length and complexity to the size of the project and existing relationships, and should be followed up with regular engagement throughout the delivery phase.