Governments Under Pressure As Alliance Contracting Put Under The Microscope

Governments Under Pressure As Alliance Contracting Put Under the Microscope

Do Governments need to select their project models with more care?

Last week, the Australian Financial Review reported on the state of government expenditure when "alliance contacting" is selected as the preferred method of delivery.

"Business has urged governments to improve the selection of models for delivering multibillion-dollar infrastructure projects", it reported.

The article stems from a recent Evans & Peck study which revealed alliance projects tend to exceed initial cost estimates by between 45 and 55 per cent. "Nevertheless, projects were completed earlier and disputes were avoided when the alliance model was used", the article also stated.

Alliance contracting allows risky, complex and ground-breaking projects to be accelerated due to the nature of the model; which constitutes a closer alliance between owners and non-owners of those projects.

Infrastructure Partnerships Australia Executive Director, Brendan Lyon, said "the guiding principle for governments must be delivering the best projects at the best value for money, irrespective of the type of contract'

IQPC's Bi-Annual Alliance Contracting Summit, which enables industry professionals to fast track their own experience, has already engaged industry on these compelling topics and developed a program that mirrors these specific concerns and challenges.

The Summit focuses in some depth on delivering greater value and avoiding the cost blow-outs and unforeseen issues often common to more traditional project delivery methods.

For more information on this event at a critical time for this industry visit: www.alliancecontractingsummit.com or call Chris Archer, Online Communications Manager. Details below.

For media enquiries, interview requests or further information contact:

Chris Archer
IQPC Australia
Ph: (02) 9229 1045
Email: [email protected]


Source:
Financial Review: January 26th 2010 `Governments urged to pick project models with care'


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SOURCE: IQPC Australia