Characteristic features of the alliance contract

The contract for a project alliance is called an “alliance contract” to distinguish it from the traditional contract for work and services. This contains the agreements on the provision of services and the culture of cooperation. The contract construct is a contract similar to a contract for work (innominate contract similar to a contract for work) not defined by the law.

The Factsheet SIA 2065 clearly states that every effort must be made to ensure that clear rules are in place to avoid giving the impression that the project alliance is a simple company (joint venture). This would question the important basic principle of joint risk-bearing.

The alliance contract is usually a multi-party contract with which the client concludes the corresponding service agreement with the individual realization partners, but including the principle of joint risk-bearing. Theoretically, parallel individual contracts would also be conceivable, but these are not recommended.

The following characteristic features should be reflected in the alliance agreement:

• Joint definition of the scope of services
• Alliance project team – decisions based on the project objectives
• Agreement on target costs and performance-related remuneration
• Joint risk management
• Additional incentives
• Mutual limitation of liability