Innovative collaborative contracting for major projects

Traditional contracting models struggle to balance the opposing aims of transferring risk and minimising cost, in an attempt to create certainty. In reality, the anticipated benefits of such traditional strategies are often illusory on major projects, where many aspects of the project and its environment remain uncertain. GMG Associates provides expert advice and strategic consulting to facilitate collaborative contracting alternatives for major projects.

Project alliance facilitation

GMG Associates has unparalleled international project alliance experience in forming project alliances between project owner(s) and each key service provider (designer, constructor, supplier, etc.). The result is the establishment of high-performance, integrated teams, cherry picked from the organisations of all the parties. These teams are empowered to deliver outstanding results under a no-blame contractual framework which aligns their commercial interests to the success of the project.

Project alliances dramatically reduce the risk of litigation and dramatically increase the probability of outstanding results, creating the foundation for an optimal design focused on buildability', innovation, minimised outturn costs and speed of delivery.

Master – Servant Short term   Essentially adversarial   Win-Lose outcomes   Objectives and drivers not aligned. Motivated by individual performance not project outcome   Defensive accounting   Risks often placed on those unable to influence them   Competition (between client and contractor) rather than cooperation			Single integrated team - including Client   Focused on full project life   Commitment to trust, collaboration, innovation and mutual support   Collective ownership & equitable sharing of risks and reward   Incentivised and all energy focussed on achieving outstanding project performance   Full “Open Book” accounting   Culture of No Fault, No Blame and No Dispute   Decisions taken on “Best for Project” basis

Project alliance expertise

Graham Thomson, founder of GMG Associates, has had extensive involvement in project alliances since their introduction into Australia in the early 1990's. Graham acted on the East Spar Alliance, which was one of the first two alliances in Australia. Since then, Graham has been at the forefront of the development of alliancing in Australia, as well as advising on project alliances in Canada, Germany, the Philippines, England and the North Sea.

Graham developed the ‘single contract' model which is widely used today and advised on the first government alliances in Australia. Graham also developed, with Steve Knisely of JMJ Associates, the alliance selection process which is now commonly accepted and used as best practice in Australia and New Zealand.

Alliancing requires a unique combination of people skills, legal skills and commercial acumen, and Graham exhibits all three. For example, at the time Graham was a partner of Mallesons Stephen Jaques, in recognition of Graham's strong commercial skills, the largest independent power producer in Asia (at that time) seconded Graham as its Chief Operating Officer.

Strategic advisors on project alliances

Harness this unique experience for your major project. Contact GMG Associates for a confidential discussion and strategic advice about your project alliancing needs.