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Project Alliancing
Innovative collaborative contracting for major projects
Traditional contracting models often create an illusion of cost and time certainty through risk transfer, but frequently fail to deliver. Projects with many stakeholders, working to tight timeframes and dealing with a host of complex problems, require innovative solutions. GMG Associates are expert advisers on collaborative contracting alternatives for major projects.
Project alliance facilitation
GMG Associates has unparalleled international project alliance experience in forming project alliances between project owner(s) and each key service provider (designer, constructor, supplier, etc.). The result is the establishment of high-performance, integrated teams, cherry picked from the organisations of all the parties. These teams are empowered to deliver outstanding results under a no-blame contractual framework which aligns their commercial interests to the success of the project. Project alliances dramatically reduce the risk of litigation and dramatically increase the probability of outstanding results, creating the foundation for anwith optimal design, focused on buildability’, innovation, minimised outturn costssafety, quality, minimised outturn costs and speed oftimely delivery.
Traditional contracts
- Master – Servant Short term
- Essentially adversarial
- Win-Lose outcomes
- Objectives and drivers not aligned. Motivated by individual performance not project outcome
- Defensive accounting
- Risks often placed on those unable to influence them
- Competition (between client and contractor) rather than cooperation
Project alliances contracts
- Single integrated team - including Client
- Focused on full project life
- Commitment to trust, collaboration, innovation and mutual support
- Collective ownership & equitable sharing of risks and reward
- Incentivised and all energy focussed on achieving outstanding project performance
- Full “Open Book” accounting
- Culture of No Fault, No Blame and No Dispute
- Decisions taken on “Best for Project” basis
Project alliance expertise
Graham Thomson, founder of GMG Associates, has had extensive involvement in project alliances since their introduction into Australia in the early 1990’s. Graham acted on the East Spar Alliance, which was one of the first two alliances in Australia.
Alliancing requires a unique combination of people skills, legal skills and commercial acumen, and Graham has all three.
Graham developed the ‘single contract’ model which is widely adopted today and advised on the first government alliances in Australia. On those alliances, Graham developed, with Steve Knisely of JMJ Associates, the alliance selection process which is now used internationally.
Since then, Graham has been keenly involved as an adviser on numerous project alliances in Australia, Canada, Germany, the Philippines, England and the North Sea.
Graham was involved in these projects:
- AGL Compressor Upgrade (Victoria)
- Acton Peninsula Development (includes the National Museum (Australian Capital Territory)
- AGL Mid-West Pipeline (Western Australia)
- Alstom Power Project Grain Alliance (UK)
- Amerada Hess’ Perth Field Development (North Sea)
- Awoonga Alliance (Queensland Australia)
- BHP’s Direct Reduced Iron Project, Port Hedland (Western Australia)
- BHP’s Gas Modularisation Alliance (Philippines)
- BHP’s Structural Steel Alliance (Western Australia)
- Cobar Mine (NSW)
- Department of Defence Lightweight Torpedo Project (Australian Capital Territory)
- Channel Deepening Alliance (Victoria)
- Craigieburn Rail Alliance (Victoria)
- Electranet SA Alliance (South Australia)
- Hazelwood Power Precipitator Refurbishment Project (Victoria)
- HS2 Rail Systems Alliance
- Meridien Energy Limited’s Project Aqua (New Zealand)
- Metronet Rail Alliance (UK)
- Network Rail – Stafford Area Improvement Alliance (UK)
- Network Rail – Northern Alliance (UK)
- Queensland Rail Tilt Train Project: (Queensland)
- Sizewell C Nuclear Power Station – Civils Alliance (UK)
- Suncor’s Project Millennium (Canada)
- Sydney Water’s Northside Tunnel Project (NSW)
- Tenix’s bid for AWD Project (South Australia)
- Union Station Enhancement Project (Canada)
- Veba Auto Eol Project (Germany)
- WMC’s East Spar Project (Western Australia)
Strategic advisors on project alliances
Harness this unique experience for your major project. Contact GMG Associates for a confidential discussion and strategic advice about your project alliancing needs.
