Alliancing in Australia—No-Litigation contracts : a tautology?

Cheung, Yan Ki Fiona, Rowlinson, Steve, Simons, Roland H., & Rafferty, Alannah (2006) Alliancing in Australia—No-Litigation contracts : a tautology? Journal of Professional Issues in Engineering Education and Practice, 132(1), pp. 77-81.

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Abstract

A project alliance is a business strategy whereby client and commercial participants’ objectives are aligned. This paper takes an alliance project between public and private organizations in Queensland, Australia as a case study and reports the critical factors identified that influence the success of the alliance project. Alliancing is a system that provides a collaborative environment and a framework to adapt behavior to project objectives. It is about sharing resources and experiences, exposing the “hidden” risks. The case study suggests that leadership has a strong influence on the alliance climate. Commitment and action by the Project Alliance Board and, so, parent organizations have a strong impact on the team and alliance culture, indicating alliancing has a high chance of failure when there is inadequate support from top management. Like all relational contracting approaches, trust between alliance partners is important. This case study project takes a further step toward reinforcing the trust element by placing a No-Dispute clause in the alliance agreement. A review of the effects of the no-litigation clause upon the project team is presented. The writers conclude that without a positive approach to relationship management, a No-Dispute approach is impossible. Hence, they postulate that a “no-litigation” alliancing contract is essentially tautological, and go on to argue that a no-litigation contract cannot exist without the help of a clear relational vision, that leads to both soft and hard infrastructure to assist in decision making and relationship building.

Impact and interest:

25 citations in Scopus
8 citations in Web of Science®
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ID Code: 17874
Item Type: Journal Article
Refereed: Yes
Additional Information: Yan Ki Fiona Cheung is the maiden name of Fiona Lamari
Additional URLs:
Keywords: contract, litigation, Australia, legal factors, CRC for Construction Innovation, Program A : Business and Industry Development, Project 2002-022-A : Value in Project Delivery Systems: Facilitating a Change in Culture
DOI: 10.1061/(ASCE)1052-3928(2006)132:1(77)
ISSN: 1052-3928
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Building Construction Management and Project Planning (120201)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Past > QUT Faculties & Divisions > Faculty of Science and Technology
Past > Institutes > Institute for Sustainable Resources
Past > Schools > School of Urban Development
Copyright Owner: Copyright 2006 Icon.Net Pty Ltd
Copyright Statement: The Participants of the CRC for Construction Innovation have delegated authority to the CEO of the CRC to give Participants permission to publish material created by the CRC for Construction Innovation. This delegation is contained in Clause 30 of the Agreement for the Establishment and Operation of the Cooperative Research Centre for Construction Innovation. The CEO of the CRC for Construction Innovation gives permission to the Queensland University of Technology to publish the papers/publications provided in the collection in QUT ePrints provided that the publications are published in full. Icon.Net Pty Ltd retains copyright to the publications. Any other usage is prohibited without the express permission of the CEO of the CRC. The CRC warrants that Icon.Net Pty Ltd holds copyright to all papers/reports/publications produced by the CRC for Construction Innovation.
Deposited On: 16 Feb 2009 23:39
Last Modified: 04 Sep 2015 02:23

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