Alliancing for capital projects: one way for the future. I

With large capital projects, involving a group of contractors, the ´alliance´ is proving a popular way of creating a committed project team that is displacing the older forms of contracting in some industries. Spectacular successes have been achieved with projects that initially looked unattractive, but it may not be an arrangement that will suit all situations. This two-part article looks at the concept and practicalities of alliances, beginning with the risk and reward principle.