6.1.2  Governance internal to the alliance

The legal structure of an alliance, which involves multiple parties with collective responsibilities and a collaborative decision-making process, presents a number of complexities for governance within the alliance.

The starting point in an alliance is joint, self-management of those matters pertaining to delivery of the Owner's VfM Statement within the bounds of responsibility set out by the PAA.

Governance within the alliance should ideally be addressed by incorporating a formal and detailed governance plan in the PAA. However, it is recognised that some non-material matters may need to be decided following execution of the PAA (e.g. meeting location and format of ALT minutes).

The internal governance structure (and associated plan) should be developed and tailored to fit the complex requirements of the specific alliance project-one size does not fit all. It is also recognised that a convoluted and overly complex governance plan may fail to achieve the Owner's governance objectives.

An example of an Alliance Governance Plan is included in Appendix A. This has been adapted from the Water Corporation of Western Australia.