Alliance Model

Projects implemented according to the alliance contracting model consist of smooth cooperation between the alliance parties. The cooperation keeps the focus on the resolution of problems instead of creating new ones. When the risks and benefits are shared, all win or lose together and work becomes more efficient.

Operating methods supporting cooperation must be utilised. An example of such methods is the innovation process in which the parties are encouraged to share ideas and the ideas are discussed systematically. Innovations may, for example, lead to improved quality and safety and have an effect on the environment and cooperation. Continuous management and generation of ideas may also improve the cost-efficiency of construction. It is often possible to achieve substantial schedule benefits and take the investment into use more quickly than when traditional operating models are used.

A model of working together:
  • Joint organisation: The parties are the customer and the service providers relevant for the project’s success​
  • Joint contract: All parties are included​
  • Joint objectives: The parties use their best possible competence for the benefit of the project​
  • Operating methods supporting cooperation:
    • Big Room​
    • Open Book​
    • Target Value Design​
    • Last Planner System​
    • Innovation process​
  • Central elements of management:
      • Jointly agreed target cost
      • Key result areas = incentive scheme​
  • Shared distribution of risks and benefits: “Everyone wins or everyone loses”​

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References

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