We are pleased to share our achievement of an important milestone – the signing of the “Project Alliance Agreement (PAA)” for our Taramani IT SEZ project. The PAA was signed on May 26, 2009 at 4:30pm at TRIL office. The Participant companies signing the PAA were - TRIL (Owners), Leighton Contractors (Contractors), Edifice Consultants (Architects); Spectral Consultants (Services Consultants) and Sterling Engineers (Structural designers).
TRIL is undertaking the implementation of this project under the “Alliance Contracting” framework. The moment is historic as this is the first Alliance Contract to be undertaken in the construction industry in India.
The salient features of this arrangement are;
-
Project implementation by way of creating a virtual
company – “Alliance 1st” – where each
Participant company deputes its best resource as
employees of Alliance 1st
-
The employees work
for the common interest of the project rather than
their individual respective companies i.e. the
“Alliance comes first”
-
The members of
Alliance 1st work towards completing
the project within the jointly agreed “Target Cost
(we lovingly call this as the TOC)” and within the
agreed milestones
-
If the actual
costs go beyond/fall within the TOC, then the
Pain(loss) /Gain(Profit) is shared amongst the
Participants
-
Value engineering
at all stage becomes the mantra as the same
directly impacts the TOC and thereby the Pain/Gain
share
-
The Participants
agree “Not to Blame each other and Not to
Litigate”. All disagreements/disputes shall be
discussed and resolved between the Participants
until there is unanimous agreement.
-
The Alliance 1st
also has pre-determined KRA’s set for itself –
Time, Quality, Safety and Environment – consistent
performance will be rewarded by an additional
incentive scheme which is shared amongst the
non-owner participants
-
The Alliance 1st
as a virtual company – is Managed by the Alliance
Management Team (reps of all companies) headed by
the Alliance Manager (akin to the CEO) and
Governed by the Project Alliance Board (PAB). PAB
comprises of senior representatives of individual
participant companies
-
Alliancing is the
predominant form of contracting adopted in
Australia for over 15 years. As of today, over 200
b $ of contracts are executed on this route
|
