The project has risks that cannot be adequately defined or measured in the business case or prior to tendering.
The cost of transferring project risks to the contractor is prohibitive.
The project needs to start as early as possible before the risks can be fully identified and/or project scope can be finalised, and the project client (as well as the project investor) is prepared to take the commercial risk of a sub-optimal price outcome.
The client has superior knowledge, skills, preference and capacity to influence or participate in the development and delivery of the project, including for example, in the development of the design solution and construction method.
Where taking a collective approach to assessing and managing project risks will produce, in special and rare circumstances, a better outcome than contracted allocation risk. (It should be noted, however, that in past practice the exposure of the project client to project risks in alliance contracts has been uncapped while that of the non-owner participants was capped.)
The project has risks that cannot be adequately defined or measured in the business case or prior to tendering.
The cost of transferring project risks to the contractor is prohibitive.
The project needs to start as early as possible before the risks can be fully identified and/or project scope can be finalised, and the project client (as well as the project investor) is prepared to take the commercial risk of a sub-optimal price outcome.
The client has superior knowledge, skills, preference and capacity to influence or participate in the development and delivery of the project, including for example, in the development of the design solution and construction method.
Where taking a collective approach to assessing and managing project risks will produce, in special and rare circumstances, a better outcome than contracted allocation risk. (It should be noted, however, that in past practice the exposure of the project client to project risks in alliance contracts has been uncapped while that of the non-owner participants was capped.)
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