Risk factors for alliance infrastructure construction projects: A study in New Zealand

Abstract

The Alliance Organizational Model is increasingly becoming a world-wide used method to manage large infrastructure projects. However there is little empirical research on the effectiveness of such a model in managing risks to ensure project success. To fill this gap, this research aims to investigate the risk factors that are inherent in a large infrastructure construction project and how the alliance organizational model plays a role in risk management. A case study of the Waterview Connection Project in Auckland was undertaken along with a series of interviews with professionals that were involved with its project management organization, the Well-Connected Alliance. The critical risk factors identified are primarily operationally-related and relationally-related. A highly specified software called Activated Risk Manager, the execution of a 'High Performance Plan' and Construction Execution Plan were the most cited mechanisms used to managing those risks. The learnings from the Waterview Connection Project, one of the most important infrastructure developments to take place in New Zealand contribute to an improved understanding of risks that exist in complex large infrastructure construction projects. The ways those risks are managed can be transferable to inform risk management practice for future alliance projects both nationwide and internationally.