Alliancing in Australia—No-Litigation contracts : a tautology?

Cheung, Yan Ki Fiona and Rowlinson, Steve and Simons, Roland H. and Rafferty, Alannah (2006) Alliancing in Australia—No-Litigation contracts : a tautology? Journal of Professional Issues in Engineering Education and Practice, 132 (1). ISSN 1052-3928


A project alliance is a business strategy whereby client and commercial participants’ objectives are aligned. This paper takes an alliance project between public and private organizations in Queensland, Australia as a case study and reports the critical factors identified that influence the success of the alliance project. Alliancing is a system that provides a collaborative environment and a framework to adapt behavior to project objectives. It is about sharing resources and experiences, exposing the “hidden” risks. The case study suggests that leadership has a strong influence on the alliance climate. Commitment and action by the Project Alliance Board and, so, parent organizations have a strong impact on the team and alliance culture, indicating alliancing has a high chance of failure when there is inadequate support from top management. Like all relational contracting approaches, trust between alliance partners is important. This case study project takes a further step toward reinforcing the trust element by placing a No-Dispute clause in the alliance agreement. A review of the effects of the no-litigation clause upon the project team is presented. The writers conclude that without a positive approach to relationship management, a No-Dispute approach is impossible. Hence, they postulate that a “no-litigation” alliancing contract is essentially tautological, and go on to argue that a no-litigation contract cannot exist without the help of a clear relational vision, that leads to both soft and hard infrastructure to assist in decision making and relationship building.

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Item Type: Article
Collection: CRC for Construction Innovation
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Keywords: contract; litigation; Australia; legal factors; CRC for Construction Innovation; Program A : Business and Industry Development; Project 2002-022-A : Value in Project Delivery Systems: Facilitating a Change in Culture
DOI: 10.1061/(ASCE)1052-3928(2006)132:1(77)
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Last Modified: 04 Sep 2015 02:24
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