Project alliancing should generally only be considered in the delivery of complex and high-risk infrastructure projects, where risks are unpredictable and best managed collectively. The decision to use project alliancing must be based on a robust understanding of the project risk, including risks that cannot yet be determined or scoped. Organisations must also ensure they have the understanding and resources required to deliver projects through project alliancing.
A comprehensive risk assessment must take place before a procurement decision is made. Once the procurement decision is finalised and approved, this risk assessment should be re-visited in light of potential implications given the risk positions taken by respective procurement methodologies.
This appendix provides guidance once the risk assessment is confirmed for delivery of the project by alliancing. The many unique characteristics of an alliance create distinct challenges for risk assessment and insurance procurement. The notion of 'no blame' is fundamental to the concept of a project alliance and this must be properly reflected in the risk assessment.
This appendix proposes that the insurance advisor leads a review of the confirmed risk assessment for an identification of insurable and non-insurable risks.