| Partnering Case Study |
| Wednesday, 18 October 2006 11:15 |
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Cranegates have been awarded a 4 year framework partnering agreement to supply Asbestos Removal services to Yorkshire Water, contract value is worth approximately £4 Million.
One of the key aims of Yorkshire Water was to develop an open book cost arrangement in a collaborative partnership, not only with ourselves but also with the four Asbestos Consultants and three other Asbestos Removal Contractors. The concept was developed from a given scenario set out by the Client where a defined job would require certain fixed costs, i.e a Supervisor, Operatives and any preliminary costs that might be associated to that given scenario. Each Contractor completed and returned the scenario or "gang rate" cost model. The partnership then met to discuss and agree a "swings & roundabouts" unit price that would be agreeable to all parties. The objective clearly in this instance was to develop a unit price, which simplified cost methodology and reduced administration associated with reconciling and agreeing variations and price discrepancies. And the ultimate reward, speeding up the process of payment to Contractors. |