The objective of the comparative table set out in section Error! Reference source not found. of this guidance note is to identify the differences between traditional contracting and alliance contracting.
The comparative table sets out the standard position under each of:
• a traditional contract (using the Australian Standard 4300 'General conditions of contract for design and construct contracts' as a reference document); and
• a representative sample of alliance contracts used by various public sector agencies,
in the key areas of those contracts where there is a difference in risk allocation/treatment under alliance and traditional contracting. The comparative table also summarises the implications of those differences in risk allocation/treatment and related 'trade-off' considerations for the client or Owner of the project.
The following questions have been considered as part of the preparation of the comparative table:
• Is there a material difference between the position under an alliance contract and a traditional contract? If so, what is the difference?
• Is the difference in the nature of a trade-off between alliance contracting and traditional contracting? If yes, what is the alliance behaviour or principle that is appropriate to counter the foregone traditional 'right' and vice versa?
• What should the client or Owner of the project be aware of, and plan for, to ensure that the trade-off is effective?
The comparative table can be used as a reference document by agencies as part of making a decision as to whether or not to deliver a project by way of alliance contracting (as opposed to other project delivery models). Agencies should be aware that, whilst the comparative table sets out the standard positions in each of the key areas of an alliance contract, there may be project specific circumstances which justify a departure from any of these standard positions when entering into an alliance contract for a project. Agencies should have regard to project specific issues when finalising the risk positions adopted under an alliance contract.
Section 4 of this guidance note sets out a template form of a standard or generic alliance charter.
The template form of alliance charter contains sample provisions which may be included in, or attached to, an alliance contract and which detail:
• the commitments which the Participants make to each other in entering into the alliance contract, including commitments to:
o act in good faith*;
o establish and maintain a best-for-project approach to decision making;
o promote and maintain a 'no-blame' culture;
o maintain transparency (expressed as open book reporting) under the alliance contract; and
o achieve an outcome consistent with the Owner's VfM Statement in respect of the works performed under the alliance contract (i.e. a commitment to achieve the Owner's Value-for-Money proposition at a fair cost); and
• the alliance principles, alliance objectives and alliance purpose for the alliance contract.
The template form of alliance charter can be used by agencies as a starting benchmark when developing an alliance charter to apply to a specific project to be delivered by way of an alliance.