Alliance Contracting

"$x will likely have an effect on half of a given treatment cohort with effects lasting an average of six months before progam effects begin to degrade."

input and output based contracts sentence future service users and providers to nothing better than the best possible thinking available when the contract was signed

payers and providers are frank about the limits of current evidence and agree to contracts which allow them to work in collaboration to test, refine and re-deploy continuously improving service methodologies

Alliance Contracting

• The project has risks that cannot be adequately defined or measured in the business case or prior to tendering.
• The cost of transferring project risks to the contractor is prohibitive.
• The project needs to start as early as possible before the risks can be fully identified ..
• The client has superior knowledge, skills, preference and capacity to influence ... the development and delivery of the project.
• ... a collective approach to assessing and managing project risks will produce...a better outcome than contracted allocation risk.

How it works

• Hypothesis testing
• Definition phase
• Performance management phase

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