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Alliancing meaning

What does Alliancing mean?
Alliancing describes a collaborative contracting approach in which the client and key suppliers enter a single, multi‑party agreement to deliver a project collectively, sharing risk and reward under a “no claim, no blame” ethos. It is a descriptive term used across construction and infrastructure procurement rather than a concept defined by statute or case law, though standard forms (notably the NEC4 Alliance Contract) embody its principles. Typical legal features include: an integrated project team; open‑book costing; shared pain/gain mechanisms linked to agreed targets and KPIs; collective governance (often via an alliance board and “best for project” decision‑making); restrictions on inter‑party claims save for carve‑outs (eg fraud, wilful default); and tiered dispute resolution aimed at avoiding adversarial proceedings. Liability, insurance and IP provisions are usually aligned to the shared‑risk model. Alliancing is used for complex or high‑risk projects in sectors such as transport, utilities, energy and major public works. Across England & Wales, Scotland, Northern Ireland and Ireland, its usage and core features are broadly consistent, subject to local contract law principles and mandatory procurement rules for public sector clients. Careful drafting is required to reflect governance, incentive regimes, claims carve‑outs and compliance with UK and Irish procurement legislation.
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View the related Practice Notes about Alliancing

PRACTICE NOTES
UK Construction Law Glossary: F—Facilities Management, FIDIC, Final Account, Fitness for Purpose, Force Majeure, Frameworks and Funding

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Facilities management Facilities management contracting is, at its core, a commercial services contract arrangement, covering ‘Hard FM’ (relating to the upkeep and fabric of a building, for example mechanical and electrical systems), ‘Soft FM’ (relating to in-building support functions such as cleaning, security and helpdesk services) or ‘Total FM’ (which can combine a number of hard and soft facilities management services), as required within buildings. See subtopic: Facilities management for construction lawyers. Fédération Internationale des Ingénieurs-Conseils (FIDIC) The International Federation of Consulting Engineers. FIDIC issues a suite of standard-form contracts for deployment on international construction projects. In common usage, ‘FIDIC’ typically refers to that family of contracts rather than the institution itself. See subtopics: FIDIC contracts 2017 onwards and FIDIC contracts pre-2017 editions in practice by practitioners. Feed-in tariff The Feed-in tariff (FIT) scheme—also sometimes known as the...

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PRACTICE NOTES
Public-Private Partnerships post-Brexit: procurement regimes, structures and suitability (PFI/PF2, concessions, LEPs/LIFTCos, public delivery organisations, JVs, alliancing and hybrids)

Note on public procurement post-Brexit The Implementation Period provided by the EU–UK Withdrawal Agreement concluded at 11:00 pm GMT on 31 December 2020 (IP Completion Day). From that point, the modifications made by the Public Procurement (Amendment etc) (EU Exit) Regulations 2020, SI 2020/1319, to the body of EU-derived public procurement rules have taken effect, save for the changes identified in Regulations 7, 9, 11 and 16. This Practice Note has been revised to reflect those post-Brexit developments. The UK government has also issued high-level guidance on public procurement after IP Completion Day, namely: Public procurement policy and Public-sector procurement. Overview Public Private Partnerships Public Private Partnerships (PPPs) are intended to drive efficiency in public services by allocating risk appropriately and drawing upon private sector know-how. Access to private finance can likewise ease the burden on public funding, which is under growing demand. PPPs encompass a range of arrangements, forming a suite of procurement approaches. The more established variants include: conventional procurement PFI/PF2...

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PRACTICE NOTES
Infrastructure procurement: delivery models, risk allocation and standard forms (EPC, EPCM, non-single-point, alliancing/partnering), plus two-stage tendering, split contracts and project finance

Infrastructure procurement describes how a facility’s delivery is organised. This Practice Note concentrates on arranging the design, engineering and construction of a facility. For information on funding models, see Practice Note: Funding models for infrastructure. A variety of factors will shape the decision on the most suitable way to procure an infrastructure facility. Factors influencing the procurement method Factors significant when deciding on the form of procurement for an infrastructure project include: the nature of the infrastructure project—eg mining, road, port, energy project the project’s complexity—does it involve process technology or multiple facilities? who the owner is—eg a public body using PPP or a Regulated Asset Base (RAB) model, or a private company experienced in managing works? how the project is funded—by public money, debt or private investment? Lenders may require a particular procurement route the allocation of risk between the parties—is single-point responsibility for project risk required? the price for the project—single-point responsibility comes at a premium the...

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