Meaning

Under the no fault - no blame principle, each alliance Participant agrees that that it has no right to bring any legal claim against any other Participant in the alliance (usually, except in limited circumstances of fraud or wilful default).

The aspiration behind the no fault - no blame approach in alliance contracting is that it:

• encourages the Participants to take calculated and agreed risks in pursuing cost savings and enhancing project performance, without fear of legal liability if they fail;

• results in increased innovation and, consequently, in cost savings and increased Value-for-Money that could not be achieved in a traditional contracting environment;

• focuses the parties on solutions rather than who is to blame; and

• means that resources are not diverted away from the project itself.