| Key alliancing features An alliance is characterised by several key features that operate collectively as part of the alliance framework to ensure that the alliance is a success. It is the collective dynamic of these features that is unique to alliancing-generally, other delivery methods will only selectively apply one or more of the features to a more traditional contracting structure. |
Although alliancing has a number of principles in common with other procurement options, including achieving VfM and protecting the public interest, it is underpinned by several key features which must operate collectively to create a framework for successful alliance project delivery.
The key features are:
• risk and opportunity sharing;
• commitment to 'no disputes';
• best-for-project unanimous decision-making processes;
• no fault - no blame culture;
• good faith;
• transparency expressed as open book documentation and reporting; and
• a joint management structure.
These features are described in more detail below.
Risk and opportunity sharing
The alliancing principle of 'collective assumption of risks' and the approach to remunerating the NOPs arising from risk and opportunity sharing is fundamental to understanding the alliancing culture.