Performance of project alliancing in Australasia: A digest of infrastructure development from 2008 to 2013

Abstract

Project and program alliances have been an accepted form of project procurement for public infrastructure engineering projects in Australia and New Zealand (Australasia). Alliancing often provides best value and superior value for money when compared to traditional approaches such as Design and Construct, however considerable debate continues about its success and applicability. This paper reports on three studies of completed construction project alliance performance in 2008, 2010 and 2012. Consolidated findings are presented on 61 project alliances, data is analysed and emerging trends discussed. Recent government policy changes in Australia at Federal and State level have led to a decline in the number of project alliances, however, while the volume of alliance activity is declining it still represents billions of dollars of infrastructure construction work being undertaken. Results also revealed that communication and trust between the executive leadership and operational management teams was a major factor contributing to the functioning of the alliance. Furthermore, the research identifies several key factors that were necessary preconditions for successful alliances.