A Comparative Analysis of Alliancing and Integrated Project Delivery on Complex Projects: Parallel Systems Sharing a Common Objective
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Relational contracting methods are a natural evolution from the many versions of project delivery that have been developed over the past two decades aimed at increasing the amount of integration and collaboration among mega-project stakeholders. Alliancing was born in the 1990’s in North Sea oilfields and imported down under to Australia and New Zealand where it has used to deliver over 300 complex projects. The litigious environment present in the North American construction sector led project owners to implement partnering programs to enhance the quality of relationships on projects of all sizes delivered using the full spectrum of delivery methods. Integrated Project Delivery (IPD) made its appearance in 2002, employing nonbinding partnering program objectives into multi-party relational contracts. While developed separately, alliancing and IPD share the same objective: an environment where decisions are made on a “best-for-project” basis and all stakeholders share the both the pain and the gain associated with ultimate project performance. This paper chronicles the evolution of project delivery methods, as well as their successes and failures. The paper finds that each approach has been tailored to maximize collaboration within each culture’s legal and business environment. It also finds that alliancing appears to offer the most advantages and has a well-documented record of success. Lastly, the paper recommends that the commercial building project IPD currently used in North America needs to be revised to increase its potential on complex megaprojects.
This is a pre-print of the article Gransberg, Douglas D., and H. David Jeong. "A Comparative Analysis of Alliancing and Integrated Project Delivery on Complex Projects: Parallel Systems Sharing a Common Objective." (2019). Posted with permission.