Each jurisdiction provides guidance on governance for major infrastructure projects. The following general principles of project governance have been adapted from the Victorian Investment Lifecycle Guidelines to suit alliancing.
Project reporting requirements should be established for progress reports on previously agreed key success factors, including relevant deadlines. Key Government stakeholders should be kept informed of progress, starting with the development of a Business Case.
Government investments need strong, direct, unambiguous lines of accountability and management. Where multiple agencies are involved, the responsibilities of the Participants should be clearly identified and understood. Issues should be identified (including emerging risks and opportunities) and management of them assigned according to each agency's contribution and level of responsibility. Cross-agency development or operational arrangements should be structured to avoid gaps in accountability, and have clear, unambiguous responsibilities for outcomes, without unnecessary duplication.
Some general principles guide the establishment of the alliance governance structure:
Engagement of an external party to manage a project does not divest the agency of accountability for the project outcomes.
'Contractual' agreements for project management and decision making within the joint management structure of the alliance need to be respected by governance outside the alliance, and clear separation of responsibilities and accountabilities, including identifying those decisions which are reserved for unilateral determination by the Owner.
The Owner needs to focus on the risks it bears throughout the project and the core services it needs to deliver in the long term.
Elements of a governance plan outside of the alliance are provided in Appendix B.