| The Owner must provide the right capability and capacity Even if a project is well suited for alliancing, it should only be recommended as the preferred procurement strategy if the Owner can bring the right capacity and capability to the project. This is critical as the Owner shares in the project risks and must participate actively in the decision-making process and project management. |
A key VfM driver and critical requirement for effective procurement is the Owner effectively negotiating and managing commercial issues with the private sector. To protect the public interest and realise optimal VfM outcomes, Owners should make sure that they have, and are able to apply, sufficient capacity and capability to alliance contracting.
The Owner requires a number of key resources to effectively engage with the market and NOPs throughout the planning, evaluation, implementation and post-delivery phases of the project. Appropriate mechanisms should be put in place upfront to ensure the Owner is able to fully benefit from a collaborative approach, and also does not suffer any disadvantage from a mismatch with the capacity and capability of NOPs.
The Owner should provide staff with sufficient seniority and expertise to provide active leadership in the alliance. By involving people with the requisite experience and authority in managing the project, the Owner is likely to achieve better alignment between the Participants, and therefore more robust decision-making processes within the alliance. The application of adequate resources to the project will place the Owner in a better position to achieve the benefits of alliancing.
Although it is preferable for the Owner to use internal resources as far as possible, these should be supplemented with specialist advisers as required.
The Owner should also provide physical resources that are required for the delivery of the project whenever it is more efficient and economical for the Owner to do so. These resources could include storage facilities, meeting venues and equipment.