Research Methods For Engineers (Factors Affecting Project Alliances in Proposal

Methods For Engineers (Factors Affecting Project Alliances in Construction Industry ((Australian Construction Industry )))) - Research Proposal Example This was a source of losses to both the construction companies and the general public. It was also a blow to the government since it was not able to complete the planned development projects within the stipulated timeline. These are the factors which contributed to research and proposition of the Industry Alliance design in strategic operation and management of projects (Shayne, 2012: 382). Project alliance is strategic management proposition that works to integrate the objectives various stakeholders in the construction industry. This is a concept in relationship contracting that dates back to the 20th century. This concept entails sharing risks and benefits between those involved in the construction projects. This method was first used in streamlining operations in the UK oil and gas industry. It was then first applied in Australian in the 1990s. Since then, project alliance has been modified to suite various sectors. For instance, project alliance is now widely used as a procurement tool for public infrastructural projects (Mounir, 2011: 263). The initial procurement rules applied pricing tactics in tender allocation. This old process was flawed as it failed to address the key problems related to large cost construction projects. For instance, there were foreseen and undetermined project outcomes. In event of such, some stakeholders were forced to fully absorb the outcomes, a factor that was demoralizing. Project alliancing shifted from these traditional procurement procedures by creating new guidelines for procurement. These new procedures called for complete and thorough evaluation of bidders in objection to price bidding. This helped to ascertain the capabilities of the bidders to meet any unseen occurrences and their corporate social responsibility strategies (Diponio & Dixon, 2013: 167). During its inception, its major aim was to unify all those involved in the Australian construction industry.