It is important to identify in the contract all the risks to be expected in the project that require management. After identification, the project team determines risk management strategies, including the attribution of liability and eventual liability and compensation. For example, if we have an alliance with an agreed budget at a direct cost of 90 million euros, the actual overhead costs for each project of 10 million euros and a profit – corporate overhead costs of 20 million euros, and finally, the direct costs at the end of the project are only 80 million euros, the 10 million euros of savings (profits) will be distributed between the contractor and the owner (for example. B 50/50). In this case, the contractor will receive 80 million euros – 10 million euros (specific overhead costs) – 20 million euros (profit – overhead) – 5 million euros (savings) for a total of 115 million euros (21% margin). Although alliancing has been in operation in Australia and New Zealand since the 1990s, this method of sourcing and managing key investments and services has become increasingly popular in Europe in recent years. Under an alliance contract, a public or private body works contractually with the contractor to provide the project on the “open books” principle, i.e. to share the benefits and painful sharing. This chapter analyzes the Alliance`s contractual model, which is characterized by three main characteristics: it requires parties to work together, act with integrity and make the most decisions possible. The project team, made up of proponent members and contractors, works as an integrated collaborative team to address all project-related issues. In alliance contracts, risks are managed jointly by the parties, with the exception of the financial commitment that is primarily the responsibility of the owner/promoter.
The examples presented in the chapter, including the desalination plants of the water supply system in Perth or Adelaide in Australia, allow us to conclude which types of projects are better suited to a possible delivery as alliances. This common goal encourages the parties to act in the best interests of the project as a whole, which should reduce the total costs and duration of the project and improve the quality of the results. In the opinion of the collaborators who work on such projects, it is easier than it could appear at the beginning, because the “Open Book” policy that governs this type of project promotes this change of attitude: both parties working together, they can easily detect any mistakes or tricks attempted by the other party. The project team, made up of the contractor`s owner and staff, will select subcontractors and suppliers to achieve the best results without compromising safety, quality and environmental impact. The first project, managed as an alliance, was promoted by Ampolex, an Australian oil company acquired by the Mobil Group. Ampolex opted for this model to build a crude oil and gas storage tank from the Wandoo oil field in 1996.
