What is an Alliance?

Building Bridges and Making Tracks: How Alliance Contracting Can Transform the U.S. Infrastructure Market

The infrastructure sector in the United States is undergoing a profound shift, reflecting a combination of unprecedented public investment and the adoption of innovative procurement strategies. With the Bipartisan Infrastructure Law (BIL) of 2021, the U.S. government has initiated the largest infrastructure investment in decades, channeling significant funding into the modernization of transport systems, including rail and highways. This legislative milestone not only allocates $66 billion to rail but also prioritizes resilience, sustainability, and community equity in infrastructure development. At the forefront of these efforts are evolving contracting models, including the Alliance model, which has the potential to redefine collaborative project delivery in the transport sector.

The shift in procurement methods is driven by several factors, including the increasing complexity of infrastructure projects, stakeholder demands for greater transparency, and the need to balance risks effectively. Traditional models, such as Design-Bid-Build (DBB) and Public-Private Partnerships (P3s), have shown limitations in addressing these needs, often leading to adversarial relationships and cost inefficiencies. In contrast, models like Progressive Design-Build (PDB) and the Alliance model have gained traction, emphasizing collaboration, shared accountability, and flexibility in risk management. The Alliance model, in particular, has demonstrated success in complex projects across the globe and is now being increasingly considered for implementation in the U.S.

Alliance contracting is built on four core principles: good faith, a “best-for-project” ethos, open-book accounting, and a no-blame/no-claim culture. These principles are designed to foster a collaborative environment where all participants—owners, contractors, and stakeholders—work together as a unified team with shared goals. Unlike traditional contracts, where individual parties often prioritize their own objectives, Alliance agreements focus on delivering the best outcomes for the project as a whole. Decision-making is typically unanimous, ensuring that all key stakeholders align on critical issues, while risk and reward are shared among the participants. This integrated approach has proven effective in managing complex technical challenges, addressing stakeholder needs, and delivering value for money.

One of the model’s most significant advantages is its ability to adapt to evolving project requirements and unforeseen risks. For instance, projects such as Australia’s Waterview Connection and New Zealand’s Kaikōura Earthquake Response leveraged Alliance agreements to achieve cost savings, schedule acceleration, and superior environmental outcomes. However, implementing Alliance contracts also presents challenges, including the need for a robust governance framework and the potential for slower decision-making due to the requirement for unanimous agreement. Additionally, successful execution depends on the participants' ability to embrace collaborative behaviours and maintain a shared commitment to the project's goals.

The U.S. transport sector offers a fertile ground for leveraging the Alliance model, particularly in rail and highway infrastructure. Rail projects, supported by the Federal Railroad Administration’s Corridor Identification and Development (CID) program, represent significant opportunities. The CID initiative, funded through the BIL, aims to modernize intercity passenger rail by advancing projects through structured development stages. With 69 rail corridors selected for development, including high-speed, conventional, and service improvement projects, the potential for transformative infrastructure is immense. Notable examples include the Midwest Connect Corridor, which aims to establish a passenger rail link between Chicago, Fort Wayne, and Columbus, Ohio. This project underscores the sector’s push toward improving regional mobility, supporting economic development, and fostering sustainable transportation alternatives.

Similarly, highways are experiencing a wave of innovation and investment. Projects which are delivered under the State of Good Repair program (such as the Interstate 81 Viaduct Project in Syracuse, New York) focus on upgrading aging infrastructure to improve resilience and accommodate emerging technologies, such as electric vehicles. With complex stakeholder environments and evolving technical requirements, highway projects stand to benefit from Alliance contracts’ flexibility and collaborative focus.

How can we help?

Navigating these opportunities requires a depth of expertise across multiple disciplines, from procurement and risk management to stakeholder engagement and project execution. This is where CIVEX Consulting Group excels. With extensive experience in supporting government agencies, contractors, and infrastructure professionals, CIVEX offers tailored solutions to meet the demands of modern procurement models. The firm’s capabilities include bid preparation, contract negotiation, risk assessment, and project management, all underpinned by a commitment to fostering collaboration and delivering value.

CIVEX’s success is reflected in its track record of supporting clients in complex projects across North America. Whether guiding stakeholders through the intricacies of Alliance agreements or helping them align on shared objectives, CIVEX brings a strategic perspective that ensures projects are delivered on time, within budget, and to the highest standards of quality and sustainability.

As the U.S. transport sector continues its transformation, the adoption of innovative procurement models like the Alliance approach is set to redefine how infrastructure is delivered. By embracing collaboration, shared responsibility, and a focus on collective success, stakeholders can unlock the full potential of these opportunities. CIVEX Consulting Group stands ready to partner with clients to navigate this evolving landscape, providing the expertise and insight needed to succeed in a new era of infrastructure development.