Chapter 3 Choosing alliancing as a delivery method

This chapter discusses when alliancing is an appropriate delivery method to use for a project.

As discussed in Chapter 1, alliancing is now a mature and robust delivery method; it is no longer a unique or novel approach to contracting. Chapter 2 also highlighted that alliancing is a complex commercial transaction, and there is a need to understand the risks and benefits associated with alliance contracting.

The Owner's decision to use alliance contracting for a particular project will require strategic thinking, a good understanding of the approach likely to best deliver the Owner's VfM Statement, and ensuring the Owner has sufficient capability to deliver the project.

Alliancing should be used where it is the most appropriate delivery method

Owners should ensure that alliancing is not being used simply because the Business Case has been inadequately planned or where the project's scope is poorly defined. Instead alliancing should only be used where it is the best procurement strategy for achieving the approved Business Case objectives

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