The Justification and Implementation of Project Alliances - Reflections on the Wandoo B Development

Abstract

The last decades have seen notable changes in the structure of organisations as well as in the management methods used in leading and directing these evolving organisational bodies. Unpredictable social, economical, technical and political aspects of a globalising society have encouraged organisations to consider forming business alliances as a risk management strategy. This has created a need for organisations to find new ways in which to compete in the continually evolving construction industry. Project alliances have been identified as a successful management strategy that is used to change current construction culture to one that promotes a win-win situation. Project alliances are a relatively new experience within the Australian construction industry with the Wandoo B Development project one of the first major projects to experience alliancing completed in 1997. This paper case studies the Wandoo Alliance by identifying and exploring the elements that influence the implementation of project alliances and justifying the reasons for its formation.