Agreeing the commercial arrangements

The range of the PAAs in use in Australia is neither efficient nor effective for government or industry. An alliance is a complex commercial transaction. Now that alliancing is a mature delivery method, there is a need for government to establish a standard form of contract that is robust, tested and clearly understood by all parties. This would improve legal certainty and transaction efficiency for government and NOPs.

Government would benefit by taking a portfolio management approach to procuring and delivering projects. This would enable the whole of government risk (and associated insurances) to be managed more effectively. This approach would also enable government to achieve synergies across multiple projects through leveraging buying power, smoothing resource demands, and possible consolidation of some activities to achieve economies of scale.