Alliance Contracting

oilgasIn my more than 25 years of experience, this is the first time that I am working for an Alliance in project implementation. It is a very different way of doing a project from the way I was used to. There are new terminologies which I have not encountered in previous completed projects.

An Alliance as the term may imply is a cooperation of several companies which have their own specialization including the principal. A common example of an alliance is a design company, a project management company and a constructor company combining their expertise and capitalization to bid on a particular project.

In an Alliance contracting, there are more transparency, risk sharing, no blame, no dispute and lower risk leading to a win-win situation for all parties.

Only in Alliance contracting that I have learned the term Total Out-turn Cost (TOC) and Innovations.

The alliance way of contracting is now very popular in greenfield project for governments and the oil & gas sectors.