“Alliance agreements are characterized by a number of key features that typically require the parties to work together in good faith, act with integrity, and make the best decisions for the project. Alliance participants work as an integrated and collaborative team to solve key problems related to project delivery” (Department of Treasury and Finance, State of Victoria) [5]. On the other hand, it turned out that the alliance model works well in the planning phase of the project, as the different contractors can have their say alongside the client and the prime contractor before the start of the implementation phase. The best features of the alliance model shine in complex and challenging projects involving many parties. When used correctly, more traditional models such as global and key contracts are better suited for the construction or construction of typical housing than the alliance model. The benefits of the model are wasted even if the design phase of the alliance formation is already in full swing or the project does not require extensive cooperation. It`s important to keep in mind an old wisdom: choosing the right implementation model for a project between and with the help of developers and consultants from the start promotes good construction – and it`s the best for any construction project. The amount of attention that construction issues receive in the media can easily lead the conversation to use alliance contracts in projects for which the model is not well suited. The alliance model is very preferable in terms of resources and costs. The Covenant Treaty must clearly define the governance framework through which money can flow and decisions can be made. This single agreement, under which all parties share benefits and risks, should help create an integrated structure in which several suppliers and the owner work together to carry out the project as a whole. In an alliance, any “gain” or “pain” is associated with good or poor overall performance, not the performance of individual games.
The idea is to create an integrated structure where several suppliers work together as part of a central alliance to deliver the project as a whole. At the end of the project, when the direct costs are ultimately over budget, the gap is divided between the owner and the contractor based on the specific agreement of the project. In the same way, if the costs are lower than expected, the benefits are shared. As parties are encouraged to act in the best interest of the project as a whole, Alliancing has the potential to reduce project costs and duration and improve the quality of results. On the other hand, it is generally accepted that fixed-price contracts have the disadvantage of requiring suppliers to include a “risk value” in their contracts, which can lead to higher initial prices. Alliance contracts address this problem by incentivizing collaboration through a joint pain-sharing and earnings program that rewards the value of the alliance`s performance. Of course, there is a risk of higher initial investments, for example in terms of developing new processes, training and team building. For simple projects where management is unlikely to change, initial costs may never be offset. After prequalification, owners should provide for appropriate procedures to ensure that each tenderer in charge of intellectual property or innovation remains a confidential matter during the tendering process between the tenderer concerned and the owner and that it is protected by confidentiality agreements.
Moving away from the methods of error attribution and adversarial dispute resolution in the alliance model is seen as promoting a forum for effective consensual and cost-effective resolution of disagreements, although sometimes an ultimate unblocking is named. In Europe, it is in the United Kingdom, with the Nordic countries, that these agreements are implemented more strongly. The most recent is the one that took place on the 13th. July 2016 between Network Rail and Northern Rail Operator was announced to improve the rail system in the north of England, which serves 15 million people and operates around 2500 trains per day. Network rail started in 2012 to use alliances with the different rail operators, which currently count on seven alliances with different rail operators. .