Alliance Concepts
New Program, New Approach
Alliance Partnership
A Strategic Alliance methodology has been selected by the Northern Territory Government (NTG) and the Australian Government (AG) to deliver the program. A detailed report was completed which considered a wide range of contracting methodologies. Alliance contracting was highlighted as the preferred contracting approach for the program, to allow for the successful delivery of all 7 Program Objectives.
How are the Alliance Partners Selected?
Alliance partners will be selected through a single procurement process, driven by the NTG. A national open tender Expression of Interest was issued on 1 May 2008, and closed on 18 June 2008. 24 submisisons were recieved, and 5 were invited to the Request for Proposal (RFP) stage. The RFP will close on July 23 2008, and a shortlist of 3 preferred Alliance Partners will be approved by October 2008.
How is Alliancing DIfferent?
The Alliance model differs from conventional contracting in six key areas:
- Parties establish an integrated team for the delivery of the project which includes owner representatives;
- The owner (NTG) and the non-owner (contractor/s) jointly govern and manage the activities and performance of the integrated team through joint leadership and management teams;
- Alliance partners actively share project risk and jointly fund the cost of dealing with risks that may eventuate;
- These principles are underpinned by a ‘no blame’ framework which requires each alliance partner to agree not to hold the other partners liable for negligence, mistakes or poor performance unless there is wilful default or fraud;
- The compensation payable to the non-owners includes a performance incentive component which provides pain or gain depending on the performance of the alliance in nominated cost and non-cost key result areas.
A detailed outline on Alliance Contracting can be found on the Victorian Government website by searching "Project Alliancing".