BuildLaw Issue 34 December 2018 | Page 13

capital investment programme”;7
3. Alliances entered into by Network Rail. For example, Network Rail entered into an alliance with Atkins, Laing O’Rourke and VolkerRail for the design and construction of the East–West Rail phase 2.8
What are the perceived benefits of alliancing?
Alliancing is perceived as particularly beneficial where there is a complex environment with multiple stakeholders, interests and goals. The idea is that creating an alliancing contract will help collaboration and enable better performance. Similarly, it is viewed as a good tool for achieving performance improvement and changing behaviour patterns. Alliances are also popular where there is an extended supply chain and either innovation of some form is required or direct customer access if through that supply chain.
As outlined above, alliancing is generally perceived to be more beneficial for long-term and high value projects. This is essentially because the costs of setting up an alliance are high and the benefits that alliancing may bring will need to be discounted against this cost. Obviously for higher value projects the benefits are likely to be more tangible from a cost/benefit point of view.9 Time is also required to build the relationships and trust required within the alliancing chain and that means that alliancing is more likely to suit longer-term projects.
What standard alliancing contract options are already available?
For high value construction projects a bespoke alliancing contract may well be used. Indeed in the 2012 Effectiveness of Frameworks Report, it was found that the absence of a suitable standard form is impeding progress in the use of alliancing etc.10
Other standard form alliancing contracts do exist including the recently published TAC-1 (Term Alliance Contract) published by the ACA11 in conjunction with King’s College London.12 The same group also publish the FAC-1 or Framework Alliance Contract which came out in 2016. The FAC-1 can be set up between one or more clients













and other alliance members. These alliance members can include contractors, consultants and specialists as required. An Alliance Manager leads the agreed procedures and makes sure the FAC-1 is adhered to by the parties.13
The TAC-1 contract is described in detail on the ACA and King’s College joint website, Alliance Forms, as follows:
“TAC-1 is a versatile standard form term alliance contract which:
- enables a client and its team to obtain better results from any term contract
- helps to integrate a team into an alliance
- helps to obtain improved value through building information modelling
- is designed for use in any sector and in any jurisdiction.
TAC-1 supports and integrates the provision of any type or scale of works and/or services and/or supplies. It is endorsed by the Construction Industry Council and by Constructing Excellence. . . .