Project Alliancing is a relatively new and unproven method of procurement in the Australian Construction Industry. It has primarily developed in order to counteract the affects of globalisation and rising disputation and because of its ability to reduce risk and increase overall project success. Alliancing is a relationship-based procurement method, selecting alliance participants based on a soft dollar evaluation rather than traditional tender price evaluation. Performance is motivated by commercial incentives based on key performance indicators (KPI’s) that aim to go beyond ‘business as usual’ targets. An important element of Alliancing is the team culture that focuses on an open book and no blame relationship. This paper presents a framework of project success factors and discusses a case study of a recent Australian Project Alliance. A semi-structured interview process involving senior project participants and a review of project documentation identified a number of project specific success factors: establishing an integrated alliance office; staging of project and stretch targets; setting project specific KPI’s; facilitating ongoing workshops that include site personnel; and the use of a web-based management program.
Symposium on Sustainability and Value through Construction Procurement. Symposium on Sustainability and Value through Construction Procurement - CIB Working Commission 92 Procurement Systems (Salford, UK 29 November - 2 December, 2006) p. 274-285