Project Alliancing

Alliancing is a method of procuring major capital assets, where a state agency and private sector parties work collaboratively to share the risks and responsibilities in an integrated approach.

When to use project alliancing

Project alliancing should generally only be considered after a careful and knowledgeable analysis of project characteristics, costs, risks and benefits and market conditions.  It is normally used for delivering complex and high-risk infrastructure projects, where risks are unpredictable and are best managed collectively.

In other cases the traditional approaches to procurement should be used.
 

The Inter-Jurisdictional Alliancing Steering Committee

To effectively address the emerging opportunities and issues in alliance contracting, a collaborative inter-jurisdictional approach is being undertaken.

The Inter-Jursidictional Alliancing Steering Committee has been established to pursue a number of joint initiatives, including the development of policies, guidelines and training programs. The Committee has representatives from treasury departments of New South wales, Western Australia, Queensland and Victoria (the Chair). The Commonwealth joined the Committee through the national COAG process.

The practitioners' guide to alliance contracting

The draft guide has been prepared to provide consistent guidance on alliance contracting to departments and agencies that develop and own infrastructure projects. It sets out current leading practices for delivering infrastructure projects using alliance contracting.

The guide is being finalised through the national COAG process.

Practitioners guide to alliance contracting - exposure draft

The following appendices of the guide are provided here as a separate file to assist with document management:

Appendix A: The exposure draft of the model project alliancing agreement (PAA)
Appendix D: Case study of a selection process using full price competition

Guidance Notes and Model Templates

Guidance Notes

1. Language in Alliance Contracting: A Short Analysis of Common Terminology, 2009
2. Insurance in Alliance Contracting: Selling Insurable Risks, 2009
3. Key Risk Areas and Trade Offs, 2010
4. Reporting VFM Outcomes in Alliance Contracting, 2010  
5. Developing the TOC in alliance contracting, 2011  

Templates

1. Model alliance development agreement
2. Model invitation for expressions of interest template
3. Model request for proposal template  

Resources

The Steering Committee sponsored and collaborated on a national benchmarking study that measures alliancing's value for money proposition for government.

In Pursuit of Additional Value: A Benchmarking Study Into Alliancing, 2009

Current NSW Procurement Methodology Guides

1. Procurement Methodology Guidelines for Construction, 2005
2. Contracts Used for Construction Projects, 2008  

Contact

For enquiries please contact:

Peter Regan
Director, Private Financed Projects
Commercial Management
NSW Treasury
1 Farrer Place
Sydney  NSW  2000

Phone: (02) 9228 3254