Live Chat ×
Skip to main content

(OWN-1200) Critical Factors to the Success of Alliances in Australia

Primary Author: Dr Anthony J Mills
Co-author(s): Mr Mario Mendez; Dr Alexia A Nalewaik CCE

Audience Focus: Intermediate
Application Type: Research
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA

Abstract: Governments in Australia face the challenge of meeting the growing demand for new infrastructure, which can be delivered more quickly in an increasingly complex environment. Alliance Contracting has been introduced to overcome some of the challenges by; aligning the incentives of the partners, clearly defining their rights and responsibilities, and providing the means for resolving disputes when they arise.
The purpose of this research was to explore the critical success factors of Alliance Contracting in order to understand the roles of the various terms and conditions and how they fit together to create a relationship-based contract. A qualitative technique of semi-structured in-depth interviews was used to gather primary data in response to the research questions.
The research aimed to develop an in-depth understanding of Alliance Contracting. The results show that the key contributor to the success or failure of Alliances is whether all the partners benefit equitably from the venture. Analysis of the data indicates that, in general, trusting attitudes/behaviour is perceived to be the most important critical success factor for Alliance Contracting in the broader construction industry. The second most popular critical success factor was shared and aligned goals. The third issue was the evidence of open behaviour, and the final issue was the presence of shared knowledge.
The implication of this research is that there are several key factors that were necessary preconditions for successful Alliances.