FAQ

FAQ: Organization and decision-making bodies

• D.1 What is the alliance leadership team and what is its role?

  The alliance leadership team is the highest management body of the project alliance and is responsible for its supervision, strategic leadership and the overall management of the project.

  Each alliance partner delegates at least one qualified manager from their own organization who is directly authorized to make decisions within the framework of the alliance agreement to the alliance management team and appoints at least one deputy. The specific number of representatives of each alliance partner on the management team must be agreed in the alliance agreement.

  The alliance management team should not comprise more than ten people. Larger teams risk a loss of efficiency in the work of the management team and delays in the project.

• D.2 What is the alliance management team and what is its role?

  The Allianz management team, together with the Allianz project team, is responsible for the management and control of day-to-day business. This also includes the areas of occupational health and safety, the environment and quality assurance.

  The alliance management team makes all necessary decisions in compliance with the decision-making powers defined by the alliance agreement and the alliance management team within this framework.

  Decisions in the alliance management team can only be made unanimously.

• D.3 What is the alliance project team and what is its task?

  The alliance project team comprises all other persons working operationally in the project alliance and entrusted with the implementation of the project planning, execution and support processes. The alliance partners implement the “best person for the job” principle.

  Where possible, the alliance project team works in shared premises that enable direct teamwork.

• D.4 How are decisions made?

  • In the alliance project team: Decisions in the alliance project team are made in such a way that the project objectives are optimally achieved (best for project principle).
    If no decision can be reached by consensus, the issue in question must be submitted to the alliance management team for a decision.

  • In the alliance management team: Each member must reach a unanimous decision.
    If a unanimous decision cannot be reached, the issue in question must be submitted to the alliance leadership team for a decision.

  • In the alliance leadership team: Each member must reach a unanimous decision. Decisions to which the client alone is entitled under the alliance agreement (e.g. project termination) are reserved.
    In the event that unanimity cannot be achieved, provisions for conflict resolution should be agreed in the alliance agreement.

• D.5 Is there a different weighting among the alliance partners?

  No, every alliance partner has the same voting rights in the project.

• D.6 There will be a clear difference in the scope of the project between the partners. How can a fair approach be achieved here?

  In the alliance, the principle applies that everyone works together to achieve the best possible project result, which is why all alliance partners have equal rights regardless of their share. In financial terms, the best possible project result means meeting or falling below the target costs.

  Ultimately, all alliance partners participate in the final financial result in accordance with their different participation shares and their individual risk-bearing capacity. The risk of higher cost sharing by alliance partners with a high performance and risk share (in the event of cost overruns) is offset by the opportunity of higher cost sharing for any cost reductions (which should be the primary objective). The remuneration system is therefore balanced and fair, but must be supported by all alliance partners and must not be questioned in the course of the project.

• D.7 How are team decisions made and who decides what is to be carried out and what the best solution is?

  Decisions in the alliance team are always made according to the “best for project” principle.

  All alliance partners can submit proposals for decisions. With regard to decisions, all alliance partners are involved both in the alliance project team and in all management levels of the alliance. The decision-making mechanisms are listed in the answer to question D.4.

• D.8 How are employees trained and who bears the costs?

  Working in project alliances is breaking new ground. The employees in an alliance must be enabled to do so, whether through training, team-building events, coaching, etc. The distribution of costs must be determined on a project-specific basis. It is both conceivable that costs are borne jointly (project costs) or that the client offers training.

• D.9 When is it possible to replace employees?

  The usual rules of employment law also apply in the project alliance.

  Employees who are unwilling or unable to support the Alliance’s code of values should be replaced.

• D.10 How can staff fluctuation in the project be minimized?

  The tolerable staff fluctuation rate can be defined as a non-monetary alliance target, which is linked to remuneration level 4 (bonus/malus regulation).

  The alliance partners can only withdraw employees from the project if there are important reasons for doing so (illness, maternity or leaving the company). Withdrawal from the alliance project and assignment to another project without the consent of the other partners does not count as an important reason.

• D.11 What conflict resolution mechanisms are available?

  • Stage 0: Solution finding in the alliance project team or in the alliance management team
  • Stage 1: Decision by the alliance management team
  • Stage 2: Application of a conflict resolution procedure (if provided for in the alliance agreement) (mediation, conciliation, adjudication, arbitration)
  • Stage 3: standard legal process

  The costs of using a conflict resolution procedure (stage 2) are prime costs at the expense of the target costs 1.

  The alliance and its basic principles are considered to have failed at the latest when recourse is made to the ordinary courts (level 3). From level 3, each alliance partner bears its own costs.

  The alliance partners can also agree on preventive measures (regular discussions, coaching, supervision, etc.) to avoid conflicts or deal with them constructively from the very beginning.

• D.12 How are legal conflicts resolved?

  The project alliance should act according to the principle of “no blame, no dispute”. Because the alliance partners contractually waive any liability on the part of individual alliance partners, any problems and damages do not lead to legal disputes. The only exceptions to this are cases of intentional or grossly negligent disadvantage and damage.

  With regard to the resolution of any conflicts that may nevertheless arise, the applicable conflict resolution processes are to be regulated in the alliance agreement.

  In Switzerland, the legal process cannot be excluded.