Content
Alliancing
This page is an extract from the full topic guidance on Alliancing [51KB PDF]. It details any Constraints associated with Alliancing, provides a summary of the Authoritative Guidance and lists any essential reading, further reading or associated documents.
If you have any queries on this topic, please contact the Sponsor: DGDC CS-2B-Asst-Hd.
The EC Public Procurement Regulations apply to
Alliancing contracts unless the nature of the work qualifies for an exemption.
Reference must be made to the detailed guidance on the mandatory procedures to be followed.
In its purest form, Alliancing is best described as a relationship entered into by two or more parties in which their interests are aligned on a legally enforceable basis of shared gain/pain and 'no blame' to deliver outstanding project performance.
Alliancing can be applied to an entire procurement or to specific phases. The benefits need to be evaluated carefully and confirmed for each phase. The selection of Alliance members is usually by competition.
Alliancing may be capable of offering benefits over conventional procurements for 'complex' projects but only where the risks are such that core integration and project management activity cannot be priced on a FIRM or FIXED basis.
The volume and complexity of Alliancing contract documentation will be similar to a Private Finance Initiative (PFI) programme. This suggests the capital value of the project should exceed £20M before Alliancing is considered as a possible procurement approach.
An Alliance demands the right behavioural attitudes from all parties; an appropriate commercial framework; appropriate payment/incentives to perform and individuals with the right competency and empowerment to deliver the project. These issues are addressed under Authoritative Guidance together with the potential advantages and issues associated with the two main types of Alliancing model.
A series of Frequently Asked Questions are addressed under Authoritative Guidance.
Essential Reading
Further Reading
