Michael Stevns
March 25, 2025
Why the alliance model is better for delivering infrastructure projects
In early 2017, commuters in Helsinki were promised a new light rail line connecting the eastern and western suburbs. Large-scale transport projects are rarely delivered on time or ahead of schedule. Yet Light Rail Line 15 not only opened 10 months early but also close to 10% below budget. The secret? A procurement model that is turning traditional contracting on its head: the Alliance Model.
Key drivers for adopting a collaborative contracting approach
For decades, major infrastructure projects have suffered from adversarial relationships between clients, contractors, and designers. The standard model forces firms to bid aggressively low, claim aggressively high, and battle over variations in between. This results in frequent legal conflicts, rising project costs, and stalled infrastructure execution.
To avoid these issues, alliance contracting is proving to be an effective alternative for optimising project collaboration and outcomes.
What is the alliance delivery model?
This strategic alliance contracting style for infrastructure projects focuses on collaboration over conflict. This means that the client, contractors and designers can agree on goals alignment, forecast risks, rewards and responsibilities for higher-quality results and fewer disputes. The approach originated in Australia but was later adapted in Finland to fit a European context, and now the UK and Germany are also beginning to incorporate alliance principles into their procurement systems.
"When you create a project culture where all sides have a stake in the game, you stop wasting time on claims and start focusing on what really matters — delivering results.”
Peter Molin is one of the Nordics’ leading experts on the alliance delivery model, with over 30 years’ experience in infrastructure development. He has spent almost two decades delivering projects using this collaborative approach. Molin has advised government transport agencies, contractors, and engineering firms, sharing insights at conferences across the region. His expertise has influenced decision-making in Finland, Sweden, and Estonia, where the model is gaining traction.
Benefits of integrating an alliance procurement in projects
1. Greater cost control and efficiency
This collaborative partnership method improves budgeting accuracy and reduces unexpected expenses. Early planning and transparent decision-making help to keep projects on track and prevent cost overruns that are often seen in traditional contracts.
2. Innovation through collaboration
Shared problem solving and incentives encourage innovative solutions to design, construction, or logistical challenges. This flexibility makes it easier to address complexity, minimise inefficiencies, and optimise resources across the project lifecycle.
3. Stronger operational impact from faster execution
Streamlined decision-making helps ensure deadlines are met more reliably, allowing infrastructure to become operational sooner. This accelerated deployment generates economic benefits and improves service availability for communities.
Helsinki’s Light Rail Line 15 shows how alliance delivery can turn complexity into shared success. The team streamlined execution, cut inefficiencies, and introduced cost-saving measures that brought the final investment to €386 million, well below original projections and the set target. And critically, Helsinki’s trams began running nearly a year early, saving the city millions in avoided delays and generating early economic benefits and enhanced urban mobility for residents. Ramboll’s rail engineering services continue to build on this expertise, helping cities deliver smarter, faster, and more reliable infrastructure solutions.
This shared-risk infrastructure delivery is reshaping how major transport projects are planned and executed. Nordic countries, particularly Finland, have become pioneers in applying this contracting framework. Since adopting the model in the early 2010s, Finland has completed more than 15 transport projects this way, including the landmark Helsinki Airport expansion.
The future of infrastructure initiatives
Governments are under pressure to deliver infrastructure that is faster, more sustainable, and cost-efficient, making traditional procurement methods look increasingly outdated. Alliancing offers a proven alternative by rewarding collaboration, minimising risk, and creating better value for taxpayers.
For Ramboll, which has delivered multiple alliance initiatives across the Nordics, the model aligns perfectly with a culture of partnership and long-term thinking. The next step is scaling this approach beyond the region to show that well-run infrastructure projects can be delivered on time, within budget, and without public frustration.
Want to know more?
Peter Molin
Director, Infrastructure and transport
+358 40 7523667