The Case for Alliancing

Alliancing is gaining popularity as clients look for different ways to deliver complex projects. In a market shaped by building safety reform, net zero obligations, inflationary pressure and constrained public funding, it is being viewed more favourably than traditional contracting models. The Construction Playbook’s emphasis on outcome-based specifications and “sustainable, effective, win-win contracting arrangements” reflects a wider shift in how projects are expected to be delivered.

A different delivery model

Alliancing challenges the long-standing assumption that value is best protected by allocating risk downwards through the supply chain. The Construction Playbook emphasises that risk should sit with those best able to manage it - achieved through earlier engagement, clearer outcomes and more integrated decision-making. Alliancing translates those principles into practice by bringing together the client, contractor, consultants and key suppliers around shared objectives and a genuine ‘best for project’ culture. For NEC users, this should feel less like a departure from the norm, where the procurement philosophy is already built on early warnings, active management and collaboration.

What makes an alliance effective?

The difficulty lies in turning high-level concepts into successful implementation. Successful alliances require disciplined front-end planning, mature governance and a commercial model that supports openness rather than defensiveness. This means a clear shared vision, aligned decision-making structures, transparent cost and performance mechanisms, and a realistic approach to behavioural expectations. Alliancing works best where parties are prepared not simply to cooperate, but to learn, adapt and solve problems collectively over the life of a programme.

Where it works best

Alliancing demands time, commitment and organisational maturity, and will not suit every project. It lends itself to complex, high-value or long-term programmes where repeat learning and innovation can be optimised - and where traditional procurement can struggle. For the right projects, the real question is no longer whether alliancing is acceptable in principle, but whether traditional procurement is still good enough in practice.

Rachel Murray Smith, Partner and construction and procurement law expert, said: “Adopting an alliancing form is not an automatic salve. Alliancing must be underpinned by behaviours that fully align and support the collective objectives rather than individual positions; in many instances this requires maturity, openness and trust.”

This article was originally published as part of official programme for the NEC Annual Conference 2026, sponsored by Sharpe Pritchard. You can find the digital version of the programme here.