Alliance contracting

Alliance contracting in construction projects

Alliance contracting is becoming more and more commonplace in building construction. In this contract model, the alliance is based on a partnership in which all parties make decisions together, with the potential risks and benefits shared between them. The alliance is always made up of the client, the user and the service providers. The alliance contract model is best suited for large, complicated projects.

In an alliance contract, the designers, contractors and the customer work on the same side of the table, meaning they are part of the same organisation. The know-how of all parties can be utilised in the best possible way in order to achieve common objectives. This operating model encourages open cooperation and the development of new solutions. Compared to traditional contracting, the parties in an alliance contract all have common goals, which ensures that the best possible result will be achieved within the agreed schedule.

The alliance model can be used for the development or implementation stage alone, or for both of these stages combined.

The Open Book principle is an important part of the alliance contract model

An integral part of the alliance contracting model is the transparency of operations. Planning, implementation and reporting are all carried out in an open manner. Trust and cooperation between the parties are requirements for an alliance contract. The parties can work effectively and flexibly if all project information is available to everyone at all times.

With the alliance model, the planning stage takes more time than normal. During the planning stage, the parties go through the project together from stage to stage, resulting in a precise, common perspective and implementation plan for carrying out the project. The innovations developed during this stage can be used to shorten the construction time, mitigate risks and save costs.

Examples of our alliance projects

We have experience using the alliance contracting model in construction projects. According to our experience, the alliance contract is a positive way of working. The Hiukkavaara community centre in Oulu and the expansion and renovation of the Kempele health centre are examples of projects where we are building according to the alliance contract model. In the development stage, we already invested in user orientation so that the end users will receive modern, functional premises once the project is completed. Our goal is to implement the projects cost-effectively, taking the buildings’ full life cycles into consideration.