On March 6, 2009, Summit magazine launched its new series of workshops, “You Asked for It!” This first workshop was sponsored by the Purchasing Management Association of Canada (PMAC) and Linda Craig, Vice President of Learning and Standards joined us for the day.
The topic requested by participants was Challenges in Infrastructure Procurement. Given the large amounts of money being invested in infrastructure projects by both federal and provincial governments, the topic was timely and the questions posed by both the workshop participants, and the case studies and opportunities provided by the speakers offered ample opportunity to discuss the procurement challenges being faced.
Following an introduction to the subject by noted author and procurement professional, Steve Bauld, Kevin McGuinness, also a noted author and a lawyer with the Ontario Attorney General’s Office, got down to business.
His message, delivered with humour, was that you must do your homework up front. It is certainly time consuming to pay attention to the requirements and the development of the RFP and contract, but if you do not do this part well, you will likely find yourself in the middle of a dispute which will be even more time consuming … and probably expensive.
As participants brainstormed their way through the case studies and shared experiences and questions, both Bauld and McGuinness moved from group to group facilitating the discussions.
According to McGuinness, lawyers do not study how to avoid disputes, so you must do that part by thinking about all the things in your contract that might be cause for dispute. He suggests that you be clear in your instructions to the lawyers about what you and your client need, be realistic and be fair in risk assignment. Make sure you understand all parts of the contract and if you don’t, ask. He also suggests that you consider using industry standard contracts, as these contracts are well accepted by the construction industry and have been developed as templates with all stakeholders at the table.
It is important that the contract is written in clear language, provides for adequate review of the process and, a means to resolve issues that arise, particularly those around change orders. It is also very important to not make disputes “personal.” McGuinness also recommended that you communicate often and in a well-defined effective manner and with all stakeholders. There needs to be a person in charge who supervises the contract and is able and empowered to make decisions.
To paraphrase a famous saying, “If you do not learn from history, you are bound to repeat it.” This certainly applies to contracting and negotiations.
Another important thing to consider in creating a successful procurement is your own personal style, that of the people you work with and your contractors. Serious communication issues that can make the contract period unpleasant, or even fail, can arise simply from a lack of knowledge in this area.
Dr. Linda Pickard, who specializes in the soft tools of communication, collaboration and leadership, provided workshop participants with some hands on experience in learning about themselves and the different modes/styles/approaches to communication that each might experience when working with colleagues, clients and contractors. What you say is important; what is heard by the person you are speaking to is just as important and may be quite different from what you thought you said. Awareness of these differences is immensely valuable in negotiations, dispute resolution and workplace functionality. Developing approaches to improve your communication with all the stakeholders will likely improve the performance of the contract and help to provide a successful outcome for all.
As we move forward with the series, we thank PMAC for their support of the first event, and welcome the Ontario Institute of PMAC as a regional sponsor for the Ontario workshops for this year.
To find out more about upcoming dates and how to host your own “You Asked For It” workshop with experts Steve Bauld and Kevin McGuinness, contact McE Galbreath, publisher of Summit magazine directly at (613) 688-0763 or via email at mcegalbreath@summitconnects.com.
To be a corporate sponsor of the workshop series, please get in touch with McE Galbreath at (613) 688-0763 or mcegalbreath@summitconnects.com.
