Country snapshots

In the countries contributing to this publication, alliancing is at varying stages of development and adoption. In some countries, alliancing or co-operative contracts of some form are being used and in others, it is not a concept which is well recognised. There is no country where alliancing is significantly developed and adopted in the construction industry but there are many examples of individual projects where this is being used or employers who are taking the lead in using this form of contracting.

What follows are three specific country case studies where alliancing has been more readily used (Australia, Austria and Finland) as well as a snapshot of the experience in a number of other countries listed below. 

Key contacts

Contact
Shona Frame
Partner
T +44 141 304 6379
Picarel_Pechndimaldjian_John
John Picarel-Pechdimaldjian
Associate
T +33 1 47 38 42 38

Ukraine

See the case studies:

Australia

Austria

Finland

The concept of alliancing agreements is generally unknown under Ukrainian law. Currently, there are no legislative or business initiatives to introduce alliancing contracting in Ukraine.

The collaborative approach in contracts in Ukraine is usually achieved through Joint Activity Agreements (JAA). JAAs have similar features to alliancing agreements in that no separate legal entity is established, there is an obligation to act jointly, there is a defined purpose of activity, there is the possibility to join the capital/other property and there is risk and profit sharing.

Unlike alliancing agreements, JAAs in Ukraine do not provide for a multi-party approach as JAA is a form of integration on employers'/investors' side and not an integration between employers and contractors. They also do not contain no-blame/no-claim clauses and do not provide for creation of an integrated management team.

In construction, JAAs in Ukraine are mostly used by state enterprises or municipalities, when they ally with private investors. Usually the former contributes land and the latter contributes cash. Antimonopoly Committee approval is required if the terms of the JAA contemplate concerted actions of the parties and where the transaction exceeds certain financial thresholds. For tax purposes, the JAA requires separate tax reporting and separate VAT-payer registration of the entity performing tax reporting on behalf of the JAA. Payments for the purposes of the JAA can be made through a separate bank account opened for the activity under the JAA.

Key contacts

Picture of Anna Pogrebna
Anna Pogrebna
Partner
Head of Banking & Finance Practice
T +380 44 500 1718