As a result of increased globalization, construction industry organizations are being forced to apply new and innovative approaches to win the battle of competitive productivity in a changing business environment. Partnering is one approach to conduct business in this new environment. This paper deals with the concept of partnering as a contracting strategy to gain competitive advantage in the construction industry. First, partnering is defined and key elements and benefits of partnering are addressed. International applications of partnering are discussed, and the paper stresses the importance of alliance success in the future developments within the construction industry.