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Project Alliance Agreement

Project Alliance Agreement Template for New Zealand

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Key Requirements PROMPT example:

Project Alliance Agreement

"I need a Project Alliance Agreement for a major water infrastructure upgrade project in Auckland, commencing March 2025, involving three construction partners and requiring specific provisions for environmental protection and MÄori cultural heritage preservation."

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Document background
The Project Alliance Agreement is specifically designed for complex, high-value infrastructure projects in New Zealand where traditional contracting models may not effectively address project risks and complexities. This agreement type is particularly suitable when projects involve significant uncertainties, require innovation, or demand close collaboration between multiple stakeholders. The PAA establishes a governance framework that aligns commercial interests with project outcomes, typically including a sophisticated three-limb compensation model comprising direct costs, corporate overhead and profit, and a risk/reward sharing mechanism. Used extensively in New Zealand's infrastructure sector, it incorporates local legislative requirements while promoting collaborative project delivery. The document typically includes detailed provisions for project governance, risk sharing, performance measurement, and dispute resolution, all structured within New Zealand's legal framework.
Suggested Sections

1. Parties: Identifies all alliance participants, including the owner and non-owner participants

2. Background: Sets out the project context, objectives, and the rationale for using an alliance delivery model

3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the agreement

4. Alliance Principles and Commitments: Establishes core alliance principles, including good faith, collaboration, and 'best for project' decision-making

5. Term and Phases: Defines the duration of the agreement and different project phases (e.g., design, construction, defects liability)

6. Alliance Leadership Team: Establishes the senior governance body, its composition, duties, and decision-making processes

7. Alliance Management Team: Defines the operational management team, roles, responsibilities, and reporting requirements

8. Project Scope and Delivery: Details the works to be performed and delivery obligations

9. Commercial Framework: Outlines the three-limb compensation model, including reimbursable costs, fee, and pain/gain share arrangements

10. Performance Measurement: Defines key performance indicators (KPIs) and measurement methods

11. Risk and Opportunity Sharing: Details the shared risk approach and allocation of specific risks

12. Insurance: Specifies required insurance coverage and responsibilities

13. Intellectual Property: Addresses ownership and licensing of project IP

14. Dispute Resolution: Establishes dispute resolution procedures aligned with alliance principles

15. Termination: Sets out circumstances and procedures for termination

16. General Provisions: Contains standard contract clauses including notices, governing law, and assignment

Optional Sections

1. Early Works: Used when certain works need to commence before full alliance establishment

2. Interface Management: Required when significant interfaces exist with other projects or stakeholders

3. Community and Stakeholder Engagement: Important for projects with significant public impact

4. Environmental Management: Required for projects with significant environmental considerations

5. Indigenous Participation: Important for projects affecting MÄori interests or requiring indigenous engagement

6. Design Development: Detailed when significant design work is part of the alliance scope

7. Quality Management: Required for projects with specific quality requirements

8. Site Access and Management: Important when complex site logistics or access issues exist

9. Force Majeure: May be included for projects with specific force majeure risks

10. Parent Company Support: Required when financial backing from parent companies is necessary

Suggested Schedules

1. Project Brief: Detailed description of project scope, objectives, and requirements

2. Target Outturn Cost: Detailed breakdown of project costs and cost elements

3. Commercial Framework Details: Detailed calculations for pain/gain share and performance payments

4. Key Performance Indicators: Detailed KPI definitions, measurements, and targets

5. Governance Structure: Detailed roles, responsibilities, and organizational structure

6. Insurance Requirements: Detailed insurance specifications and certificates

7. Site Details: Plans, access requirements, and site-specific conditions

8. Form of Warranties and Certificates: Templates for required warranties and certificates

9. Personnel and Key Resources: Details of key personnel and minimum resource requirements

10. Program: Project timeline, milestones, and scheduling requirements

11. Design Requirements: Technical specifications and design standards

12. Quality Management Plan: Quality assurance and control procedures

13. Environmental Management Plan: Environmental compliance and management procedures

14. Stakeholder Engagement Plan: Communication and engagement protocols

15. Risk Register: Identified risks and planned mitigation measures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions





















































Clauses









































Relevant Industries

Infrastructure Development

Construction

Civil Engineering

Public Works

Transportation

Water and Utilities

Energy

Mining

Healthcare Infrastructure

Environmental Services

Urban Development

Rail and Transit

Ports and Maritime

Public Private Partnerships

Relevant Teams

Legal

Commercial

Procurement

Project Management Office

Engineering

Design

Construction

Finance

Risk and Compliance

Operations

Health Safety and Environment

Quality Assurance

Stakeholder Relations

Contract Administration

Relevant Roles

Project Director

Alliance Manager

Commercial Manager

Construction Manager

Design Manager

Risk Manager

Legal Counsel

Contract Administrator

Project Controls Manager

Chief Financial Officer

Operations Director

Technical Director

Engineering Manager

Procurement Manager

Stakeholder Relations Manager

Health and Safety Manager

Environmental Manager

Quality Assurance Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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