Supplementary policy statement

This supplementary policy statement applies to all state and territory governments as well as the Australian Government in relation to the procurement of capital projects and/or related services through forms of relationship and collaborative contracting that do not fall into the definition of alliance contracting.13

The planning and procurement strategy of all forms of relationship and collaborative contracting showing characteristics of alliances, including early contractor involvement (ECI) and managing contractor (MC) models, by all departments and public sector agencies must be consistent with the final form of the foregoing policy principles applying to alliancing as approved by their jurisdiction.14

To clarify, this supplementary policy statement does not apply to public private partnerships or to traditional forms of contracting like construct only, design and construct etc.

Where a public sector agency believes that application of an alliance policy principle(s) will not lead to the best public sector outcome for a specific project being undertaken through a procurement process involving relationship and collaborative contracting, then a formal exemption is to be sought as part of the Business Case approval. Similarly, any departure from using competition on the outturn price as a key tender selection criterion for a proposed ECI or other collaborative contracting requires a formal exemption to be sought as part of the Business Case approval.

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13  Whilst there are many models, and variants for each main model, that are described as examples of relationship and/or collaborative contracting, the underlying theme is embedding in the procurement process principles of working together efficiently and focussing on project outcomes, with each Participant contributing its best resources and applying a Risk or Reward balance that aligns the commercial interests of the par ties leading to contract execution. There is an emphasis on openness and communication between Participants with the success of the project measured against key performance indicators. For the purpose of this supplementary policy statement, if there is any doubt as to whether a particular model being considered by an agency is a form of relationship and/or collaborative contracting, then the agency should proceed on the basis that this supplementary policy statement applies.

14  The application of this supplementary policy statement to the contracting activities of a Government Business Enterprise (or its equivalent) will be clarified by individual jurisdictions.