2.6 Project alliancing and program alliancing

Broadly speaking, alliances may be categorised as a project, program or strategic alliance:

A 'project alliance' is generally formed for a single project, after which the team is disbanded.

A 'program alliance' incorporates multiple projects under an alliance framework, where the specific number, scope, duration and budgets of projects may be unknown and the same Participants are potentially delivering all projects. These are usually longer-term arrangements, in the order of 5-10 years. A program alliance can be effectively a pre-qualified panel of potential alliancing parties that an Owner establishes so it can expeditiously and conveniently select and form an alliance for a specific project or for a package of related works. Where an Owner intends to establish a program alliance, there should still be a demonstration of the superior case for alliance contracting for the program, on a project-by-project basis, in the Business Case.26

'Strategic alliances' relate to longer-term business relationships that involve incomplete commercial contracts between organisations (generally private) that generally do not include the principles referred to above. They are not the subject of this Guide.

Sometimes alliances are developed for the performance of operations and maintenance (O&M) services. This Guide has been prepared to assist Owners with project (asset) alliances but the same principles apply to O&M alliances.




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26 The subject of program alliances will be discussed in greater detail in a future Guidance Note.