Alliance governance arrangements and Study findings

The alliance governance arrangement is described in the DTF Project Alliancing Practitioners' Guide as a 'virtual organisation' comprising:

•  Alliance Leadership Team (ALT). The most senior body within the alliance comprising senior executives of the participants.

•  Alliance Management Team (AMT). The AMT is headed by the Alliance Manager and reports to the ALT. Ideally it consists of a participant from each alliance party.

Other terms used interchangeably with ALT are PAB (Project Alliance Board) and PLT (Project Leadership Team).

The ALT's decision making processes operate under the aspirational and well known alliance principles which are captured in the alliance legal agreement. In reality there is a significant variation in ALT practice.

Some of the differences include:

•  Focus on 'governance' or 'operational management'.

•  Levels of formality and protocols.

•  Levels of authority delegated to Owner representatives and NOP representatives on the ALT.

•  Seniority, authority and experience of both Owner and NOP representatives on the ALT.

•  Rigour and effectiveness of the ALT in achieving best for project outcomes.

•  Ability of ALT members to enhance VfM outcomes.

It has been noted earlier that there needs to be a clear understanding of the various decision rights and a delineation of the role of the Owner (accountable to government for delivery and service) and the Owner representative (responsible for delivery as part of the alliance). It is the Owner representative who should sit on the ALT. Decisions that relate to changing the business case VfM proposition are not the responsibility of the alliance or the Owner representative.