A Client’s Perspective of Critical Success Factors in Project Alliances

Project alliances have become an attractive option for delivering large, complex infrastructure construction projects in Australia. The development of relationships in cost competitive project alliances is central to performance and achievement of project objectives. Critical success factors in relationship development of alliance projects that improve performance were investigated. Conclusions indicate that the most critical success factors that enhance relationship development are trust and the provision of appropriate resources. Trust appeared dominant in the formation phase of alliances. These attributes provide a better understanding between partners. Alliances may facilitate the development of stronger relationships over traditional contracting as the parties’ work closely developing a target outturn cost (TOC) in the preliminary phase of the project. Collectively developing the TOC helps the partners assess and understand each other’s 'culture and abilities'. These in turn assist clients to select a compatible non-owner participant organisation. In sum these actions increase the probability of a successful alliance and its delivery.