5.3 Procurement strategy
One of the purposes of the procurement strategy is to identify the optimal delivery method to achieve the VfM proposition defined in the business case. It is generally expected that the assessment of the delivery method is commenced as part of the business case and reviewed and refined as necessary at this stage.52
As discussed in Chapter 2, there are various state guidelines outlining when to use the alliance delivery method. Common project characteristics most suited to alliancing are those listed in the Victorian DTF Project Alliancing Practitioners' Guide51:
• Numerous complex and/or unpredictable risks with complex interfaces.
• Complex stakeholder issues.
• Complex external threats or opportunities that can only effectively be managed collectively.
• Very tight timeframes (driven by project risk rather than organisational capacity).
• Output specifications which cannot be clearly defined upfront, and/or a high likelihood of scope changes during design and construction (e.g. due to technological change, political influence etc).
• A need for Owner involvement or significant value adding during delivery.
Key finding 2: Procurement strategy - Owner's rationale for selecting the alliance delivery method Having considered project specific requirements, the primary reasons for selecting the alliance delivery method, in addition to those contained in the DTF Project Alliancing Practitioners' Guide were: • To achieve early project commencement through early involvement of the NOPs. • To progress the project development in parallel with the project approvals. In general, Owner's specifically used alliancing and the non-price competitive selection approach to attract key resources and capabilities to a project in a buoyant construction market. |