7.2 Procurement Strategy - Insights

It is generally expected that the suitability of the alliance delivery method is assessed (along with alternative methods) during the preparation of the Business Case and also that its proposed use is expressly recommended in the Business Case.

After approval of the Business Case, it is expected that the procurement strategy will be detailed and tailored to the particular project. This will encompass a range of matters, some of which have been discussed in Chapters 3, 4 and 5. Various insights include:

'If a project is going to be an alliance, be clear that alliancing behaviours do have a starting point, there are negotiations before we get to the collaborative behaviours. The alliance does not start as soon as you announce it.'

[a construction contractor]

'Know why you are doing an alliance-this is critical in understanding what you are seeking from the alliance that you can't get elsewhere and hence how to structure the alliance; and it also means you know why you are not doing a D&C, PPP, Managing Contractor, etc.'

[an Owner's Representative/Participant]

Alliancing should be seen as the exception not the norm to the project delivery profile of an organisation. Do not select Alliancing as the default mechanism.

[from various sources]

'The management effort by all the ALT parties in an alliance is much greater than in a D&C - by a factor of 2.'

[an Owner's Representative/Participant]

'If the client can't muster the right people then they should discount using an alliance.'

[an Owner's Representative/Participant]