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In the early nineties, when the construction industry was weathering similar economic conditions as today, a new procurement method was pioneered by BP on its North Sea Andrew and Hyde Project. Called 鈥渁lliancing鈥�, it was described by BP as being not a 鈥渘ice-to-have鈥�, but a 鈥渕atter of survival鈥�. In the event about 20-30% of the project cost was saved and it was delivered six months ahead of schedule.

Alliancing was a response to the tough conditions and the reality of BP鈥檚 experience with its contractors 鈥� short termism, adversarial relationships and skills ineffectively used on both sides.

Sound familiar? Despite BAA adopting alliancing with success for Heathrow Terminal 5, it has failed to take off in the UK as a mainstream procurement method. It was used overseas, however and has shown itself to be an ideal approach for energy, infrastructure and transport projects involving complex technologies that require innovative and flexible approach to design and delivery. One good example is Australia, where project alliancing is widely implemented. Alliancing could be just what is needed to deliver the complex energyand infrastructure projects that will need to be procured in the UK in the next decade.

Alliancing, for the purposes of engineering, procurement and construction projects, involves an owner forming a collaborative arrangement with one or more 鈥渟ervice provider鈥� for the purpose of delivering a specific project. The fundamental purpose of this arrangement is to create an alignment between all the core participants to achieve outstanding results for the project, as opposed to the traditional model of merely delivering a project on time and on budget.

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