Alliance model – a controlled and collaborative delivery method for complex projects
What is the alliance model?
The alliance model is a collaborative project delivery method in which the client, designers and contractors form a single integrated project organization. All parties operate under one agreement and share responsibilities, risks and benefits in a pre-agreed manner.
The key principles of the model include openness, transparent cost structure, jointly agreed target cost, and the sharing of risks and rewards. Decisions are made together, and project success is based on shared objectives and trust.
The alliance model is particularly well suited to projects involving technical complexity, uncertainty or multiple stakeholders. The model enables solutions to be developed collaboratively already before the construction phase.
Why does the alliance model work in complex projects?
In complex construction projects, success requires close collaboration, proactive planning and systematic risk management. In the alliance model, the focus is on:
Shared organization
Key stakeholders work within the same integrated project organization and participate in joint decision-making.
Transparency
The cost structure is open, and financial information is shared in an agreed manner among all parties.
Sharing of risks and rewards
Potential savings and risks are shared according to a pre-agreed model, encouraging all parties to act in the best interest of the project.
Early involvement
Key contractors are involved already during the development phase, improving buildability, strengthening technical solutions and reducing the need for changes during construction.
Laakso Joint Hospital
The City of Helsinki and HUS will reform the Laakso Hospital area between 2022 and 2030. The project will be implemented by the Laakso Joint Hospital Alliance. TPE participated in the development phase of the Laakso Joint Hospital alliance by developing the facades. We are also involved in the facade implementation phase.
Rendering: Laakso LATU
TPE in alliance projects
TPE acts as an active and committed partner in alliance projects. During the development phase, we bring the full expertise of our company into the project. Our in-house design capabilities, strong material knowledge and extensive procurement network enable solutions to be developed in close collaboration with other parties. Throughout the development phase, solutions are evaluated from technical, qualitative and financial perspectives.
During the development phase, cost estimates are refined in close cooperation with the project partners. This enables systematic comparison of alternatives and supports achieving the best possible value for money.
Risks and opportunities are identified and addressed jointly. Some risks can be eliminated through coordinated solutions, while the remaining risks are transparently reflected in the cost structure. This ensures that decisions are based on facts rather than assumptions.
Commitment to jointly defined objectives is stronger. When solutions are developed collaboratively, responsibility and motivation are shared as well.
Alliance model vs. traditional contracting
The traditional contracting model works well in clearly defined and limited projects where the plans are complete and the need for changes is minimal.
The alliance model is particularly well suited to projects where:
- there are significant uncertainties
- solutions evolve during the design phase
- effective risk management requires close collaboration
- improved cost and schedule predictability is a priority
- innovation can deliver substantial benefits
In the alliance model, success is built on trust, transparency and the ability to work towards a common goal.
A committed and competent partner for demanding alliance projects
Early involvement of key contractors, shared risk management and a transparent cost structure improve cost control, shorten schedules and reduce the need for changes.
In alliance projects, TPE acts as a partner that brings not only technical expertise but also commitment, transparency and a structured project approach to demanding projects.