Publications

Strategic Partnering or Strategic Alllancing is a contractual arrangement between an owner and his chosen contractor(s), uhich has cithcr formal or informal mechanisms to promote coopcration between the parties It IS based on teamwork, a pre-defined and agreed set of common goals, a rational assignment of tasks based on shills and expertise, and rewards for meeting and exceeding goals (and penalties for not meeting them) These arrangements require the development of successful worhing relationships, based on a high level of motivation, mutual trust and respect.Certain features are required to make Alliances a success, but in general they have resulted in considerable benefits for both owners and contractors. Different types of Alliance arrangements are possible, and in this paper emphasis is placed on Project Alliances, since the main characteristics can be easily extended to other types of contracting arrangements. Alliance type contracts are not necessarily the best way to structure the supply of services and the execution of projects: and a number of criteria should be observed when adopting them.While Alliance type contracts are not the cure for all possible applications, they have led to many impressive results and have gained considerable support in Industry. An attempt will be made at placing them in the context of the Oil and Gas Industry in Indonesia, and proposing a number of possible steps for having them accepted as viable alternatives for future contracts. It is hoped that this proposal will generate the type of broad and open discussion that is desirable when a novel approach to business is suggested.