Alliancing is a contractual relationship in which organisations with an interest in a project are brought together in an atmosphere of co-operation to produce superior results to benefit all of the participants. Fundamental to the concept is the management of the risks associated with the project. The traditional risk management strategy adopted by clients has been to transfer this risk to others in the belief that this will result in the lowest overall project cost. It is assumed that competition in the market place will allow these risks to be transferred without paying a premium. However, this approach often results in the development of an adversarial climate, a high level of litigation, time and cost overruns and an overall poor project outcome. Under an alliancing arrangement the parties (client, designer and contractor) are aligned through shared interests in the project's success by linking profitability to performance. Under such an arrangement, an atmosphere is created whereby the participants are motivated to focus on cost-savings, pursue best value and to innovate. Successful alliancing can result in highly motivated project teams and realisation of extraordinary productivity and cost-savings flowing from increased efficiencies. The situations in which alliancing can be successful are discussed with particular reference to the Wandoo Alliance which successfully completed the
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