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In 2005 South East Water (SEW) entered into a
12-year alliance agreement with a consortium for operations,
maintenance and smaller capital works with an expected value of
around $850 million over the life of the agreement. Alliancing is a
relatively new though increasingly used procurement strategy
whereby an ‘owner’ and ‘commercial participants’ establish a
‘virtual organisation’ to undertake works.
The objectives of the audit were to
assess the planning and management of the alliance agreement and to
determine whether the alliance is achieving SEW’s objectives and
the expected benefits.
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