Abstract
Project and program alliances have been an accepted form of project procurement for public infrastructure engineering projects in Australia and New Zealand (Australasia). Alliancing often provides best value and superior value for money when compared to traditional approaches such as Design and Construct, however considerable debate continues about its success and applicability. This paper reports on three studies of completed construction project alliance performance in 2008, 2010 and 2012. Consolidated findings are presented on 61 project alliances, data is analysed and emerging trends discussed. Recent government policy changes in Australia at Federal and State level have led to a decline in the number of project alliances, however, while the volume of alliance activity is declining it still represents billions of dollars of infrastructure construction work being undertaken. Results also revealed that communication and trust between the executive leadership and operational management teams was a major factor contributing to the functioning of the alliance. Furthermore, the research identifies several key factors that were necessary preconditions for successful alliances.Paper Type: Research article
Highlights
Performance data from three surveys of construction alliance projects in Australia and New Zealand undertaken in 2008, 2010 and 2012, were analysed
The construction industry has had a poor reputation in most countries: for project cost and time over runs; a litigious culture; poor stakeholder management; and scant regard for environmental issues through waste and pollution
Most project owner (PO) take a keen interest in the Actual Outturn Cost (AOC) of a project and how that compares to their expectations and authorisation of the initial target outturn cost (TOC)
Summary
Performance data from three surveys of construction alliance projects in Australia and New Zealand undertaken in 2008, 2010 and 2012, were analysed. Australian state, territory and federal governments have used Alliance Contracting from the late 1990s as a project delivery structure for complex public infrastructure projects. This approach has been significantly employed to overcome a range of negative impacts associated with traditional adversarial delivery approaches. Alliances embody a cooperative and collaborative mode of project delivery that relies on developing trust and aligning goals between project partners. [where] All parties are required to work together in good faith, acting with integrity and making best-for-project decisions. Collaborative team, they make unanimous decisions on all key project delivery issues. Alliance agreements are premised on joint management of risk for project delivery. All parties jointly manage that risk within the terms of an ‘alliance agreement’, and share the outcomes of the project” (2010, p.9)
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