Towards a Coherent Theory of Project Alliancing: Discovering the System’s Complex Mechanisms Yielding Value for Money

Abstract

Alliancing is a relatively new construction project delivery method receiving increasing interest globally while also eliciting many questions about its effectiveness. That is why its operating logic should be clarified beyond the currently existing general views. Correspondingly, this paper aims to define the means and mechanisms which influence the capacity of alliancing to produce value for money. The work establishes the interlaced impact chains between formal basic solutions of alliancing and the key result areas defining the value-for-money ratio. This is made by focussing on a single alliance project and its procedural solutions and experiences. The case project of the study was an urban road tunnel under a city structure and the impact chains were explored by interviewing all eight members of the alliance leadership team covering all contracting parties. The two-stage personal interviews were conducted in accordance with the systematic modelling procedure resulting in eight cognitive maps which were then combined into a group map. The resulting model included around one hundred interlinked concepts initially, but was streamlined for the paper. Accordingly, alliancing offers a concrete framework which gives better than normal chances of success in the case of complex, challenging projects fraught with much uncertainty. Many diverse basic alliance solutions/features contribute to success, while each feature also seems to strengthen the impact of the others. This suggests that, at its best, pure project alliance is not only a coherent but also a holistic solution to challenging projects.

Collaborative Project Delivery Methods: A Scoping Review

“…While not primarily being about project alliancing, Vilasini et al (2014) developed and evaluated a framework for process improvement in alliance projects. Lahdenperä (2017) aimed to define the means and mechanisms which influence the capacity of alliancing to produce value for money. Sakal (2005) discusses project alliancing as a relational contracting mechanism for dynamic projects.…”

Value creation dynamics in a project alliance

“…One of the key features of project alliances is a focus on collaboration and knowledge integration arrangements among the partners that supports innovative outcomes and behaviors (Manley et al, 2009). By involving the contractor at an early stage of the design process, the alliance will be able to deliver complex product systems with innovative solutions under uncertain conditions (Lahdenperä, 2017). In some projects, only a small percentage of the ideas discovered during the development phase are further prioritized and put into practice due to the fact that some ideas are aimed at unrealistic savings (Alliance executive team, 2018).…”

“…Recent evidence has suggested that project alliances are an effective way to manage and deliver complex projects and to create value in uncertain project contexts (Lahdenperä, 2017;Suprapto et al, 2016). However, the majority of studies have focused on static assessments of the characteristics, practices, outcomes, and benefits of project alliances (Walker and Lloyd-Walker, 2015).…”

“…A project alliance is a collaborative project delivery form that relies on value for money thinking (MacDonald et al, 2013;Manley et al, 2009). In a project alliance, the key actors of a project (owner, designer, and contractor) bear both positive and negative risks related to the project jointly and follow principles of information accessibility and unanimous decision-making (Jefferies and Rowlinson, 2016;Lahdenperä, 2017). Much of the extant literature on project alliancing is positive in terms of the value-creating results that can be achieved (e.g., Hietajärvi et al, 2017a;Love et al, 2016).…”

“…Arguments and causal relationships often remain independent general principles, although influential factors and impact chains are very diverse. Many alliance features and characteristics contribute to success, while each feature also seems to strengthen the impact of the others (Lahdenperä, 2017). Therefore, the functional connection between the various alliance principles and results should be assessed and clarified, as prior research has not provided systematic and comprehensive descriptions of valuecreation mechanisms and processes of project alliancing.…”