Alliance contracting [1]
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.