Peter Ruland
May 21, 2025
How Alliance contracting builds smarter infrastructure in Germany
What if a new way of delivering infrastructure projects could dramatically improve collaboration and performance? This article showcases how the alliance model is being used in a major German railway project to incentivise co-operation between the delivery partners and achieve the best possible outcome.
Developing a connection to the Fehmarnbelt Fixed Link
The 2 billion Euro project is part of the hinterland connection for the Fehmarnbelt Fixed Link that together will:
- Reduce train travel times between Copenhagen and Hamburg by half
- Create a rail network that transports people and goods quicker from the North to the South of Europe.
- Increase rail capacity to help shift transport from road to rail and thereby reduce carbon emissions.
The project delivery involves 55km of rail infrastructure development including electrification, as well as major new-build sections and upgrades along a corridor between Lübeck and the German-Danish border.
This is one of Germany’s first major rail infrastructure to employ the alliance delivery model.
What makes an alliance contract effective?
In contrast to traditional contracting, the alliance model fosters a collaborative culture for the stakeholders to share risks, rewards and responsibility from day one. This approach ensures each party has a clear view of expectations, leading to better overall alignment.
For example, in the hinterland connection project, collaborative ownership allows clear roles to improve communication, resource management, and synergy between the parties:
- DB InfraGO is the German rail operator and client
- Ramboll, Arcadis and Obermeyer form a joint venture as the design partners
- Six specialist contractors
The legal structure is distinct from a joint venture, but functionally just as integrated. It enables early collaboration, transparent budgeting, and flexibility to adjust course as challenges emerge.
“We’re all working toward one shared goal: delivering the best solution together. It’s not about winning claims, it’s about creating the best possible outcome for the client and at the same time ensuring sound business for the other partner of the Alliance.”
This commitment to collaboration is a direct result of lessons learned from traditional contracts, which often lead to disputes, delays, and a war of responsibility.
The alliance structure aligns everyone around performance, not positioning. This means each partner bids based on cost-plus arrangements, with shared performance incentives tied to achieving or improving the project’s “threshold price”. As a result, strong proactive problem-solving, cost control and integrated design are encouraged.
How this collaboration’s outcomes impact the future
Combining investment in low-carbon transport mobility with the alliance model is helping to maximise the long-term benefits and impact of the hinterland connection:
1. Reducing carbon footprint
This contract type encourages all parties to collaboratively focus on decarbonisation from the beginning.
This commitment is also reflected during the execution process itself, where material choices, energy sources, and methods are all reviewed through a low-carbon lens. For example, the use of bio-based fuels like Hydrotreated Vegetable Oil (HVO) for heavy machinery is a tangible step towards a greener build.
2. Reinforcing economic resilience
The project is a strategic investment for the future. By strengthening links between Hamburg, Berlin and the Nordics, it will create greater opportunities for trade, tourism, and regional development.
Is the alliance delivery model suitable for all projects?
Alliance procurement is not a one size-fits-all solution. Its real value is its ability to manage complexity and uncertainty. This makes it particularly suitable for large, multi-phase infrastructure schemes where the scope may evolve over time.
Australia and Finland have long embraced the model for major tunnel and transport projects. Now, Germany and the UK are applying the approach to unlock innovation and deliver long-term value.
A blueprint for what’s next in alliancing partnerships
This project serves as a prime example of how this model can lead to more resilient and sustainable outcomes, a lesson that can be applied across the industry.
For Ramboll, Alliancing contracting is more than a procurement method. It’s a commitment to collaborative delivery and high-performing partnerships that create value beyond the assets.
Want to know more?
Dr.-Ing. Peter Ruland
Director Market Development
+49 40 32818124