Alliance contracting

Alliance contracting is a form of infrastructure procurement where the Government works collaboratively with private sector parties to procure major capital assets, and agrees to share opportunities and work through risks together as a project progresses.

The National Alliance Contracting Policy and Guidelines developed by the Infrastucture Working Group of the Council of Australian Governments to provide a consistent national standard and is underpinned by three main principles:

  • governments should ensure public accountability and transparency and protect the public interest
  • each project should achieve value for money in line with business case commitments
  • an efficient and effective market engagement should be undertaken for each project.

The guidelines have been prepared to:

  • provide the minimum conditions for compliance with the policy principles
  • guide the planning and delivery of alliance projects to ensure better value for money
  • improve the quality, consistency and commercial outcomes of alliance projects.

The NSW Commission of Audit’s Interim Report into Public Sector Management recommended that the Government consider implementing the National Alliance Contracting Policy and Guidelines. A set of draft NSW jurisdictional requirements is being developed and adoption of the National Policy and Guidelines is being considered.

Current arrangements

Any agency, including state owned corporations, considering the use of alliance contracting should contact NSW Treasury before any engagement with the market.