REGISTER

Graham Russell Chief Operating Officer

Ansaldo STS

Our industry is experiencing unprecedented investment and expansion driven by years of under investment in certain sectors of the Australian Rail industry and more recently the seemingly insatiable appetite for commodities particularly iron ore and coal of China and other expanding economies. The IRSE conference has a theme of Delivering Efficiencies – "Doing more with Less". To examine the contract model of Alliance contracting in the rail environment is entirely appropriate under this theme.

This paper examines the movement toward Alliance contracting within the Australian construction industry and provides the observations of the author of the successes and challenges for the rail industry to date and moving forward in an Alliance contracting context.

The Rail industry not unlike the general construction industry has an unenviable reputation for contractual disputes, cost overruns and unfortunately for all involved, occasionally litigation (unfortunate for all bar the lawyers). It is not surprising on the back of this reputation and the acute shortage of experienced engineering and project management skills in this country if not globally that the rail industry has embraced Alliance contracting.

An alliance contract if well formed in an environment capable of generating and maintaining healthy alliance behaviours can in-fact deliver the best possible risk adjusted Total Out Turn cost (TOC) with an improved focus on scope and time management.