Project delivery

Effective alliance governance is critical to project success. The alliance delivery method is mature and an optimum governance structure needs to be researched, defined and applied. In particular it is important in an alliance that decision rights are clearly articulated, particularly the role of the government vis a vis the Owner and the Owner's Representative.

Through project delivery, the Owner may be exposed to continued commercial asymmetry.

It is important that the Owner establishes capability to represent their interests in the alliance at a level commensurate with the commercial capability of the NOPs.

Outstanding outcomes ('paradigm shift', 'not been done before') are often sought by Owners when selecting the alliance delivery method and they are generally a requirement in the PAA. However, there was little evidence that outstanding outcomes are being achieved despite significant investment in 'high performance teams'. There is little point in pursuing outstanding outcomes if they are not required to satisfy business case objectives.