Alliance model of collaboration

Introduction

The Alliance model refers to a form of implementation in which the project’s various parties enter into a joint agreement to form an Alliance. It is based on a model in which the risks and benefits of a project are shared in a pre-agreed manner. The basic principles of the Alliance model are transparency, trust, jointly agreed risk-sharing, solidarity – not accusation – and joint decision making.

The strategic goals of the Alliance model are:
• improved construction productivity;
• a change in the operating culture of construction to an open and trust-based way of operating;
• to manufacture the final product faster, of higher quality and more cheaply;
• increased innovation and know-how.

Description of practice

The project uses a negotiation procedure in which the number of bidders is reduced step by step. Procurement is divided into four main stages:

The development phase creates a project plan for the implementation phase. The plan describes the technical and financial objectives of the implementation phase. The development phase ends once the client has approved the project plan for the implementation phase.

The implementation phase comprises the planning and construction required by the project as specified in the project plan in accordance with the objectives set. The implementation phase begins with the signing of the Alliance Agreement and ends with the completion of the works and approval or sign-off, at which point the warranty period of about 5 years begins.

Who is involved

Different parties are involved in the same project.
The Tramway Alliance was formed by the client, the City of Tampere, and the service providers – YIT Finland Ltd, NRC Group Finland, Afry and Sweco – which will be in charge of designing and constructing the tramway infrastructure and the depot area. The city will acquire the tram cars in a parallel procurement.

Requirements

The Alliance model strives to achieve or exceed all the goals set. This requires:

• Continuous innovation in building design and production control
• Leadership throughout the organization
• Customer orientation
• An ethos of continuous improvement
• High quality and uncompromising commitment to safety
• Good problem-solving capabilities

Level of participation

No participation (stakeholders/citizens were not included)
Informing (informing citizens about what is planned)
Consultation (offering options and listening to the feedback)
Co-production in some of the aspects
Co-production from start to finish

Urban planning challenge(s) tackled

Governance and institutional factors

Working collaboratively
Standards and regulatory processes
Finance

Stakeholder engagement

Public acceptance
Shared decision-making
Social inclusion

Knowledge and skills

Awareness and communication
Expertise
Technical integration

Lessons learned

● It is important for the success of the development phase of the project that the Alliance has the will to achieve significant results and a strong desire to create value for money.

● Success requires open communication and trust between the parties, a commitment to the key outcomes and goals of the project and a willingness to work for the best of the project.

● Alliance model projects are large, involve risk and can be best managed through cooperation, which leads to significant results.

● Project lead time is important. The project is demanding because it is being implemented in the midst of population and in heavy traffic, and involves many different types of technology.

Outcomes

The project alliance method is frequently used in complex, large-scale projects because it optimises risk control, enables flexible resourcing and utilises the know-how and experience of all the parties involved. Project delivery by means of two alliances provides huge innovation potential and a strong basis for implementation.

Raitiotie Allianssi (n.a). Tampere Tramway https://raitiotieallianssi.fi/in-english/