Melbourne Consulting and Custom Programs

Alliance Contracting

MGMT90139

Course Introduction

Alliance contracting is a common procurement and delivery method that has been used to successfully deliver complex, costly projects in the public and private sectors. Governments across Australia support alliance contracting, which now represents one third of the total value of public sector infrastructure projects delivered in Australia.

In 2009, the Inter-Jurisdictional Alliancing Steering Committee (consisting of the Treasuries of Victoria, Queensland, Western Australia and New South Wales, and, from June 2010, the Commonwealth Department of Infrastructure and Transport) commissioned a study titled, In Pursuit of Additional Value: A benchmarking study into Alliancing in the Australian Public Sector.  The study identified the need to increase the capacity and capability of the public sector to successfully manage the rising number and cost of government projects delivered using Alliance Contracting whilst ensuring transparency of the public interest.

The Steering Committee is implementing the study’s key recommendations, which are reflected in The National Alliance Contracting Policy and Guidelines and has policy responsibility for the whole of government approach to alliance contracting.

This course has been developed on behalf of the Inter-Jurisdictional Alliancing Steering Committee and with input and funding from the Commonwealth Department of Infrastructure and Transport (DOIT) to build skills in the management of alliances in a commercially sensitive manner.  The course is designed to promote best-practice, and to drive greater value for money from Alliance Contract projects in line with the public interest.

 

 

Course Objectives

During a five day intensive program the course will cover the philosophy, management and practice of delivering commercially astute alliance contracts in the context of the Australian construction industry.

It aims to improve participants’ understanding of the techniques, mindsets and attitudes required to successfully deliver projects using the alliance approach and subsequently ask the right questions for the selection, development, procurement and implementation of alliance contracts and understand the boundaries of commercial reality, how to preserve the public interest, and enhance the ability to negotiate and manage these agreements with an improved ability to withstand public scrutiny.

Course participants will leave with the ability to:

 

 

Who Should Attend?

This course is considered suitable for any government or private sector staff who have, or may have involvement in alliancing as a method for delivering projects. This could include project managers, engineers and commercial managers.

Places are strictly limited to a maximum of 25 to reflect the executive style of delivery and the interactive and practical approach to course activities.

 

 

Delivery Options

This course is available through the following options:

 

 

Course Structure

Day 1: Government procurement of major projects and how alliance contracts differ in their operation from PPPs and traditional contracts

Day one begins with a general orientation to the course and sharing of participants’ experience, including a panel session to highlight critical issues and focus discussion. The afternoon uses case studies to examine the role of alliances within procurement to identify projects where the method is best suited.

 

Day 2: Framing the solution: Characteristics of an Alliance

Day two examines alliances in more detail: What is an alliance and what is not an alliance; history and development; roles and responsibilities; terminology and use of language; legal and commercial structures; benefits and constraints; serving the public interest – what is the public interest? How do you measure it? The day will leave participants with a detailed understanding of the practical realities of alliances and how to influence a project to achieve sound outcomes. Numerous case studies will enliven the principles underpinning the new alliance policy.

 

Day 3: Costing and Risk: Developing the Commercial Framework plus Contract negotiation

Day three covers utilisation and appropriate structuring of market engagement strategies to arrive at a competitive alliance agreement. Participants will learn the importance of developing a strategy for the engagement process; having a detailed understanding of market conditions; being competent in first principle estimating; and how to drive a project to success through risk and reward regimes within the boundaries of commercial reality. Case studies will be used to explore the details of Target Outturn Costs and commercial decisions on projects insurances and incentives will also be explored.

 

Day 4: Team and Governance

Day four investigates how to build an effective alliance team; what is exceptional performance? How can this be achieved? Do you need it? What are the key roles need to achieve this? Participants will  understand their respective team role preferences and styles to help them best assign project roles according to team member strengths. Case studies will demonstrate key principles and their importance to projects and will provide frameworks to assess project proposals.

 

Day 5: Reporting and Review

Day five provides theoretical and practical frameworks for good project governance through effective management and reporting. Numerous reporting mechanisms are expected through the life of the alliance, as well as the VfM Report post project completion. These will be specifically addressed.

 

 

Presenter Details

A team of people have been involved in the design and will be involved in the delivery of the program, along with invited guest presenters from leading industry participants in alliances and senior government officials to provide practical and relevant examples.

 

Associate Professor Colin Duffield

Colin is the academic co-ordinator for postgraduate Engineering Project Management courses within the Department of Infrastructure Engineering at The University of Melbourne. He brings a blend of industry experience to his current academic roles and consistently builds on his twenty-five years experience in the procurement and management of building and infrastructure assets through his active involvement in industry sponsored research and consultancies.

 

Professor David Young

David is a former Sir John Holland Professorial Fellow in Engineering Construction Management and current Senior Fellow of the Department of Infrastructure Engineering, University of Melbourne. David has a long civil engineering career working for both government and industry including 17 years with the John Holland Construction Group and 4 years with Baulderstone Hornibrook Engineering working on a diversity of major civil construction projects. Since 1992 David has provided specialist consultancy services to both government and private industry in areas such as project management advice for engineering and building works, construction management advice, including tendering and contract management.

 

Associate Professor Roger Hadgraft

Roger is an Australian Learning and Teaching Council Discipline Scholar in Engineering and ICT and Director of the Melbourne School of Engineering's Engineering Learning Unit. A civil engineer with more than 15 years involvement in improving engineering education, he has a particular focus on problem/project-based learning (PBL) and the use of online learning technology to support student-directed learning and improving team skills, communication and explicit problem solving skills.

 

Richard Foster, Director of Foster Infrastructure.

Richard is a former senior executive with Partnerships Victoria and played a key role in many of Partnerships Victoria’s policy development activities, as well as contributing to the development of the Infrastructure Australia National PPP Guidance. He was involved in the formulation and delivery of a range of broader infrastructure and procurement policy initiatives, such as the Victorian Government’s Investment Lifecycle Guidance and Conduct for Commercial Engagements Policy.

Richard led the Projects and Contract Management Team within the Partnerships Victoria Unit and spent extended periods (in excess of 24 months in total) as Acting Head / Director of the Partnerships Victoria Unit. As Director of Foster Infrastructure, which was formed in early 2011, Richard provides commercial and risk management advisory services, and related training services, for project teams and policy makers in the infrastructure and PPP sectors.

 

 

Delivery Dates

Monday 14 - Friday 18 May 2012 (inclusive)

 

 

Course Venue

University College, University of Melbourne, 40 College Crescent, Parkville VIC 3052

Due to the limited number of places available, early registration for both award and non-award participants to secure a place is encouraged.

 

 

Course Fee

$3,250 (+GST) per person

Fees include all tuition, course materials, on-line access to course and additional resources. Lunch, morning and afternoon tea are provided on each day of the program.

 

 

Course Brochure

Course Brochure 2012

 

 

Application Process

Alliance Contracting Application Form

Email completed application forms to Kathy Griffiths kg@unimelb.edu.au

 

 

Confirmation of Course Enrolment

Places will be offered subject to the submission of the Alliance Contracting Application Form and confirmed when fees are paid.

 

 

Course Enquiries

Kathy Griffiths
Project Manager
Tel: +61 3 9810 3174
Fax: +61 3 9810 3149
Email: kg@unimelb.edu.au

 

 

Additional Requirements for Award Students

 

Entry Requirements

 

ANZSOG Students

 

Course Fee

$3,250 per person (GST exempt)

Fees include all tuition, course materials, on-line access to course and additional resources. Lunch, morning and afternoon tea are provided on each day of the program.


 

Confirmation of Course Enrolment

Places will be offered subject to the entry criteria being met and confirmed when fees are paid.


 

Assessment

To be advised.

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