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
Abstract
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.
Additional Information
Item Type: | Article |
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Collection: | CRC for Construction Innovation |
Sub-Collection Title: | Australian National Audit Office (ANAO). (2001). Contract management: Best practice guide, Canberra, Australia. Black, C., Akintoye, A., and Fitzgerald, E. (2000). “An analysis of success factors and benefits of partnering in construction.” Int. J. Proj. Manage., 18, 412–434. Bresnen, M., and Marshall, N. (2000). “Building partnerships: Case studies of client-contractor collaboration in the UK construction industry.” Constr. Manage. Econom., 18(7), 819–832. Cheung F., Rowlison S., and Jefferies, M. (2005). “A critical review of the organizational structure, culture, and commitment in the Australian construction industry.” K. Sullivan, and D. T. Kashiwagi, eds., Proc., Int. Symp. of CIB W92/TG23/W107 Joint Symp. on the Impact of Cultural Difference and Systems on Construction Performance, CIB, Las Vegas, Nevada, 347–354. Cooperative Research Centre for Consturction Innovation (CRC CI). (http://www.construction-innovation.info) (Sept. 9, 2005). Halberg, T. (2002). “Project alliancing in the Australian Department of Defense.” PPP/PFI Global Defence Conf., Brussels. Hutchinson, A., and Gallagher, J. (2003). Project alliances—An overview, Alchimie Pty. Ltd and Philips Fox, Australia. Jefferies, M. C., Gameson, R., Chen, S. E., and Elliot, T. (2001). “The justification and implementation of project alliances—Reflections from the Wandoo B development.” J. Constr. Procure., 7(2), 31–41. Love, P. E. D., and Gunasekaran, A. (1999). “Learning alliances: A customer-supplier focus for continuous improvement in manufacturing.” Ind. Commercial Train., 31(3), 88–96. Manivong, K., and Chaaya, M. (2000). “Life cycle project management.” Proc., 4th Int. Conf. of the International Research Network on Organizing by Projects, Sydney, 221–229. Ross, J. (2003). “Introduction to project alliancing.” Alliance Contracting Conf., Project Control Int. Pty Ltd., Sydney. Rowlinson, S., and Cheung, F. (2003). A review of the concepts and definitions of the various forms of relational contracting (Report 2002-022-A-01), CRC for Construction Innovation, Brisbane, Australia. Rowlinson, S., and Cheung, F. Y. K. (2004a). “A review of the concepts and definitions of the various forms of relational contracting.” S. N. Kalidindi and K. Varghese, eds., Proc., Int. Symp. of CIB W92 on Procurement Systems, CIB, Chennai, India, 227–236. Rowlinson, S., and Cheung F. Y. K. (2004b). “Relational contracting, culture, and globalization.” S. Ogunlana, C. Charoenngam, P. Herabat, and B. H. W. Hadikusumo, eds., Proc., Int. Symp. of CIB W107/TG23 Joint Symp. on Globalization and Construction, CIB, Bangkok, Thailand, 239–247. |
Date: | January 2006 |
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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Date Deposited: | 11 Mar 2014 03:15 |
Last Modified: | 04 Sep 2015 02:24 |
Copyright Owner: | Copyright 2006 Icon.Net Pty Ltd |
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URI: | https://digitalcollections.qut.edu.au/id/eprint/1801 |
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