As a result of companies being constantly in need of outsourcing or contracting significant segments of project work to other companies, there arises a need to establish mutually beneficial relationships with people from different organizations as conflicts in such situations become inevitable. Conflicts like this create costly delays, impacting the project negatively. One approach to resolving conflict is to use project partnering as an effective way to engage both the project owner and contractors. Examine how partnering can be used strategically to facilitate the relationship between the parties.