ABSTRACT
This chapter discusses how the construction industry uses partnering, benchmarking and incentive contracts to improve its efficiency and provides customer satisfaction. Partnering is an approach to conducting business in an environment where attitudes are changing rapidly. Partnering as a construction method aims to remove the traditional barriers between client and contractor and provide the framework which will ensure that all who is involved in the project understand their objectives and are working towards the same end. Benchmarking can assist performance improvement in partnering arrangements and thereby deliver additional benefits. The chapter identifies the importance of motivation through the application of incentive schemes as a tool to stretch the standards in the construction industry. Incentives are a key element of achieving commonality in partnering. Incentives in the form of target costs with shared savings between client and contractor are an attractive aspect of partnering arrangements.
