Alliancing is a method of procuring major capital assets, where a state agency (the owner participant) works collaboratively with private sector parties (non-owner participants).
The participants work together in good faith, acting with integrity and making best-for-project decisions. Working as an integrated, collaborative team, they make unanimous, principle-based decisions on all key project issues.
The concept of collective assumption of risk applies in alliance contracts where the alliance participants bear all risks equitably (although not equally regarding financial consequences).
When to use project alliancing
Project alliancing should generally only be considered after a careful and knowledgeable analysis of project characteristics, costs, risks and benefits and market conditions.
It is normally used for delivering the larger, complex and high-risk infrastructure projects, where risks cannot be appropriately dimensioned in the business case (or soon afterwards) and are best managed collectively.
The Inter-Jurisdictional Alliancing Steering Committee
To effectively address the emerging opportunities and issues in Alliance contracting, a collaborative inter-jurisdictional approach is being undertaken.
The Inter-Jurisdictional Alliancing Steering Committee has been established to pursue a number of joint initiatives, including the development of new policies, guidelines and training programs. The Committee has representatives from the Treasury departments of Western Australia, Queensland, New South Wales and Victoria (the Chair).
Available resources
The following resources are currently available for practitioners:
In Pursuit of Additional Value - A benchmarking study into alliancing in the Australian public sector (4,457kb PDF)
The treasuries of New South Wales, Queensland, Western Australia and Victoria (the Chair) collaborated and sponsored this national benchmarking study that investigated the Value for Money (VfM) proposition provided to government through alliancing and how can VfM be enhanced in the alliance delivery method. Evans & Peck and Melbourne University conducted the study.
The presentation of the benchmarking study was first made at the Alliancing Association of Australasia's (AAA) 2009 convention in Melbourne on 22 October 2009.
AAA National Conference 2009 Benchmarking Report presentation (955kb PDF)
Guidance notes
The two Guidance Notes below were released as exposure drafts and the deadline for comments closed on 30 October 2009. Updated versions of the Guidance Notes will be released in November 2009.
Guidance Note 1. Language in Alliance Contracting: A Short Analysis of Common Terminology (95 kb PDF)
Guidance Note 2. Insurance in Alliance Contracting: Selling Insurable Risks (430kb PDF)
Guidance Note 3 below has been released as an exposure draft for comment. Comments will be considered until 9.00am on 14 December 2009.
Guidance Note No. 3 Key Risk Areas and Trade Offs (191kb PDF)
Additional resources being developed
This page will be progressively updated and expanded as the Inter-Jurisdictional Alliancing Steering Committee works together with agencies and industry to develop drafts for comment and publication, including:
