Charter a Boat Yes, Never Charter a Project.

“Project bank accounts are the most effective mechanism for ensuring that supply chain SME’s are in regular and timely receipt of their cash. Other initiatives such as fair payment charters have proved to be a waste of time and effort.” Professor Rudi Klein, CEO of the Specialist Engineering Contractors’ Group in this Construction Enquirer article.
Amen Rudi.
This commentary is not about about Project bank Accounts Per Se – it’s about the difference between Charters and Result Based Objectives.
My eyes roll (respectfully…) when clients mention creating Team Charters as a significant and go to factor in bringing about Team performance hikes.
I’ll then demonstrate restraint and respect by not asking where the Commercial Charter is or, where the Engineering or Design Charter is… Because they won’t have one, or, dream of having one – because those key areas are subject to definitive objective setting.

“We the undersigned promise to do good engineering type stuff, to handle money in a mutually thoughtful and caring manner and manage design within a civilised, beautiful and torrid affair”. Nope – can’t see that working out.

No, its only in Behavioural and Team domains do we go all flaky and craft beautiful statements of intent instead of sitting down and getting robust with our commitments. Maxxus Bullsh@tus.

To really come together as a unit, a project Team needs a joint performance challenge and SMART Objectives.

If teams’ performance targets are not aligned with the strategic team purpose, or the targets are confusing or unclear, team members usually revert to lackluster performances.

The most effective teams are able to align overall purpose with measurable team performance targets. When the purpose and targets are clear, it enables teams to focus and communicate effectively towards the overall goal and orientate decisions around tangible criteria.

On longer term projects, smaller performance targets, not Charters, help teams to stay motivated and purpose-full, by looking towards incremental goals rather than a distant prize. (No surprise to those who know how I rave about setting and measuring 90 day Project Team performance goals).

For example:
• Subcontractors and sub-subcontractors, are paid within 19 days of the main contractor assessment day.
• Compensation events are closed out within 7 days or elevated for resolution.
• Inspections of the works are carried out as a joint exercise and signed off 1st time 90% of the time.

If what get measure, gets done its no wonder Charters as a performance tool produce so little – how can you measure that which is non measurable?
Image Dave Forbes