Review of South East Water's Works Alliance Agreement
Overview
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.