South Australia uses a range of procurement methods for delivery of capital projects, not limited to alliances. The use of alliancing is appropriate for major complex infrastructure projects when it can be demonstrated that an alliance approach will deliver incremental value for money over other alternatives.
The use of alliance contracting for the procurement of infrastructure in South Australia is subject to normal approval processes for infrastructure procurement as described in the Department of the Premier and Cabinet Circular 28 (PC028), Construction Procurement Policy: Project Implementation Process and Treasurer's Instruction 17 Evaluation and Approvals to Proceed with Public Sector Initiatives.
Where possible under these policies and in the context of achieving overall value for money, preference is given to infrastructure procurement methods that encourage early definition of client requirements early input of building industry skills, where they can enhance constructability and minimise exposure to construction risk allocated between parties once project parameters have been sufficiently defined.
The principles and practices described in the National Alliance Contracting Guidelines are adaptable for use in South Australia in alliance contracting and other forms of relationship contracting showing characteristics of alliances for the procurement of major infrastructure and related services. However, in all cases use of the guidelines should be subject to evaluation against contracting principles jointly agreed by the Department of Treasury and Finance (DTF) and the Department for Transport, Energy and Infrastructure (DTEI).
As with all South Australian Government contracting arrangements, where transfer of risk and legal liability is involved, agencies need to liaise with SAICORP, the insurance division of the South Australian Government Financing Authority and the Crown Solicitors Office in the development of any contracts prior to State Procurement Board and/or Cabinet approval. Agencies must also have regard to the DTF Guidelines for the Limitation of Liability of Suppliers, Consultants and Contractors.