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 [2] 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.

Current arrangements

Any agency, including state owned corporations, considering the use of alliance contracting should contact NSW Treasury [3] before any engagement with the market.