Alliance Contracting

This subject is not offered in 2013.

120 hours

This course is considered suitable for any government or private sector staff who have, or may have involvement in alliancing as a method for delivering projects. This could include project managers, engineers and commercial managers.

Places are strictly limited to a maximum of 25 to reflect the executive style of delivery and the interactive and practical approach to course activities.

Alliance contracting is a common procurement and delivery method that has been used to successfully deliver complex, costly projects in the public and private sectors. Governments across Australia support alliance contracting, which now represents one third of the total value of public sector infrastructure projects delivered in Australia.

In 2009, the Inter-Jurisdictional Alliancing Steering Committee (consisting of the Treasuries of Victoria, Queensland, Western Australia and New South Wales, and, from June 2010, the Commonwealth Department of Infrastructure and Transport) commissioned a study titled, In Pursuit of Additional Value: A benchmarking study into Alliancing in the Australian Public Sector. The study identified the need to increase the capacity and capability of the public sector to successfully manage the rising number and cost of government projects delivered using Alliance Contracting whilst ensuring transparency of the public interest.

The Steering Committee is implementing the study’s key recommendations, which are reflected in The National Alliance Contracting Policy and Guidelines and has policy responsibility for the whole of government approach to alliance contracting.

This course has been developed on behalf of the Inter-Jurisdictional Alliancing Steering Committee and with input and funding from the Commonwealth Department of Infrastructure and Transport (DOIT) to build skills in the management of alliances in a commercially sensitive manner. The course is designed to promote best-practice, and to drive greater value for money from Alliance Contract projects in line with the public interest.

During a five day intensive program the course will cover the philosophy, management and practice of delivering commercially astute alliance contracts in the context of the Australian construction industry.

It aims to improve participants’ understanding of the techniques, mindsets and attitudes required to successfully deliver projects using the alliance approach and subsequently ask the right questions for the selection, development, procurement and implementation of alliance contracts and understand the boundaries of commercial reality, how to preserve the public interest, and enhance the ability to negotiate and manage these agreements with an improved ability to withstand public scrutiny.

Course participants will leave with the ability to:

• Discuss the importance of sound commercial practice in the application of alliance contracting as a procurement strategy for public projects,
• Describe the details of a Target Outturn Cost in both price competition and non-price competition alliances, considering prevailing market conditions,
• Identify issues, risks and opportunities in the lifecycle of a successful alliance project,
• Discuss the establishment, delivery and management of alliancing projects to preserve the public interest; and
• Conduct standard reporting processes for alliance contracts such as a Value for Money review.

• 15% Pre-course submission
• 10% Daily learning reflection (500 words) - due at the end of each of the 5 days
• 15% Consolidation of subject workshop activities (1000 words) - due one week after the intensive delivery
• 60% Major paper on alliance issue - 10% on group discussion and 50% on 2500 words written submission

All class materials will be provided.

This subject is not available as a breadth subject.