Using a case study approach to identify critical success factors for alliance contracting

Abstract

Purpose – There has been a significant increase in the use of relationship contracting in the global construction industry, with strategies such as Partnering, Alliancing and Public-Private Partnerships all used. These approaches were introduced to the Australian construction industry in the 1990s in an attempt to overcome the adversarial nature of traditional contracting methods. The purpose of this paper is to investigate factors that influence the successful implementation of Project Alliancing by means of a case study approach focusing on the procurement of a large water treatment plant. The research findings identify critical success factors (CSFs) both from literature and the case study project. Design/methodology/approach – The research traces the origins of Alliancing and identifies CSFs by reviewing literature and analysing a current case study project. The paper first identifies CSFs on a global scale by establishing a theoretical framework of CSFs and then compares this to the case study project. A case study of an Australian Alliance project is investigated whereby a semi-structured interview process, involving senior managers from the six partners from the Alliance, was used in conjunction with a review of project documentation. The findings of the case study project are compared to the literature and any new CSFs are identified. Findings – Alliancing helps to establish and manage the relationships between all parties, remove barriers and encourage maximum contribution to achieve success. Alliancing provides a project delivery method that promotes open communication, equality and a systematic problem resolution process. Team culture focusing on an “open book/no blame” approach is vital to the success of an Alliance. Five CSFs were identified as specifically influencing the success of the case study project: the use of an integrated Alliance office; the staging of project and stretch targets; establishing project specific key performance indicators; facilitating on-going workshops; and the integration of a web-based management programme. Originality/value – The research findings assist both public and private sectors by identifying factors that are critical for success in Alliancing. Five additional factors were identified as specifically influencing the success of the case study project. Since this research was conducted, Australia has seen a further increase in relationship contracting where the likes of Alliancing is often used as the default approach for certain Public Sector projects. Ongoing research into Alliancing is vital to ensure the development of sustainable procurement models, successful operational viability, fair risk distribution and value for money.

The birth of an ICT project alliance

“…A project alliance model can be perceived through three main dimensions: 1) management and support, 2) collaboration, and 3) knowledge and sharing (Love et al, 2010), or five key features: 1) joint liability and organization, 2) joint decision-making and problem-solving, 3) open-book communication, 4) teambuilding, meeting, and workshops, and 5) monitoring performance and job satisfaction (Fernandes et al, 2017). However, to illustrate the operational aspect of the project alliance model, more descriptive mechanisms-referred to either as principles (Ross, 2003), characteristics (Lahdenperä, 2012), indicators (Ibrahim et al, 2013), or critical success factors (Hietajärvi et al, 2017b;Jefferies et al, 2014;Love et al, 2010)-are shown below in Table 1.…”

Making sense of team integration practice through the “lived experience” of alliance project teams

“…A high degree of commitment leadership from the alliance board and management is required in order to inspire the development of a collaborative and participative culture as well as influence the intensity of the integration process towards best for project (McCormick, 2010;Mills et al, 2012). Forming an integrated office is critical for project teams to enhance and improve their interaction and collaboration in real time ( Jefferies et al, 2014). Finally, in relation to free flow communication, several scholars (e.g.…”

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

“…The alliance theme has also generated much doctoral research (Davis, 2005;Davies, 2008;Sweeney, 2009;MacDonald, 2011;Chen, 2013;Vilasini, 2014;She, 2014;Ibrahim, 2014). Related study in general has focussed on finding the success factors of the alliance ( Jefferies, Brewer and Gajendran, 2014;Mistry and Davis, 2009). These studies also emphasise the characteristics of the alliance which some other research efforts have attempted to define (Chen and Manley, 2014;Walker and Lloyd-Walker, 2015;Chen et al, 2012).…”