Denmark
Contracts with elements of risk and reward sharing (partnering) have been known in Denmark for decades, whereas full alliancing contracts between contractors and employers are still very rare. Even where a contractor owns a share of a project entity, this entity will often enter into a traditional construction contract with the contractor.
However, examples of alliancing and fully incentivised contracts have been seen in the highly international Danish energy (construction and development) industry.
On public and infrastructure projects, full alliancing has not yet been seen though incentivised framework agreements (strategic partnerships) have become widespread. The “Byk med Trust” framework with a value of c. EUR 250 million under the City of Copenhagen incorporated several of the organisational elements of alliancing. The framework involved a large number of individual projects. All of these were completed within budget, which had not been the case for similar projects earlier.
In commercial construction, a tendency that contractors also act as developers (a traditional employer role) can be seen.
The step from framework agreements and internalising functions to alliancing does not appear to be that far. Thus, the Danish market appears to be ready for alliancing to really make an impact.
