Alliances are a unique project delivery model of choice for major infrastructure projects — combining collaboration, innovation and the shared risk model to achieve better public value outcomes. But for alliances to truly deliver on their promise, one capability stands out as essential and often underdeveloped: commercial acumen in understanding and optimising the Alliance commercial model.
Why Commercial Acumen Matters on Alliances
Being commercially astute on an Alliance is not about squeezing margins or chasing short-term savings. It’s about understanding value for money — how each decision contributes to outcomes for the client, the community, the Non Owner Participants and the alliance as a whole.
In today’s environment of tightening budgets, heightened scrutiny, and a demand for demonstrable public value and value for money, alliance project teams must understand:
- How the alliance commercial model works, including Limb 1, Limb 2 and Limb 3 pain/gain mechanisms
- How budgets, forecasts, and cost performance link directly to outcomes
- What “above and below the line” commercial behaviours look like in practice on a day to day basis on an alliance project
- The importance of forecasting for the Alliance and how to do this effectively
- Cost performance and active management of your budget to ensure we are making the right decisions at the right time on the Alliance
- How to meet the requirements under the Project Alliance Agreement (PAA), procure effectively and manage sub-contractors
Commercial acumen builds trust, transparency and accountability — ensuring that every dollar spent creates measurable value for the community.
From Foundations to Mastery
At BRS, we’ve developed and facilitated Commercial Acumen Training for Alliances across New Zealand and Australia with strong results.
Our approach combines foundational awareness for all alliance staff with targeted capability building for those managing budgets, sub-contractors, undertaking procurement or other commercial responsibilities.
- Foundational Training focuses on why commercial management matters, explaining alliance principles, value for money and shared-risk models in plain language
- Adept Training goes deeper into what and how: setting budgets, forecasting, cost performance management and effective change management
This two-tiered design ensures that everyone — from project engineers to alliance management — has a shared understanding of what good commercial decision-making looks like. The results that follow are improved commercial outcomes for everyone given that we win and lose together on an Alliance.
To see some of our case studies from Alliances that have implemented this training within their projects, visit Te Tupu Ngatahi Alliance Commercial Acumen Training and Eastern Busway Alliance Commercial Acumen Training.
Tailored for Each Alliance
While the concepts of commercial acumen apply broadly, each alliance operates within a unique commercial framework. Our training is tailored to reflect the client’s commercial model, PAA commercial requirements, governance approach and performance objectives.
This outcome-based approach bridges theory and practice — helping participants immediately apply what they learn to deliver measurable value.
Embedding Learning Over Time
Commercial acumen is not built in a day. That’s why we recommend spacing each module around one month apart. This allows participants to reflect, apply lessons and return with real-world live project examples for discussion.
Each module also includes access to BRS’s Learning Management System, where participants can revisit materials, templates and recordings from virtual training, long after the training has finished — embedding continuous learning into the alliance culture.
Creating Long-Term Capability
Beyond the immediate benefits of the training, we also support alliances in developing commercial capability frameworks. These frameworks identify current gaps, define the commercial behaviours and skills the alliance needs and create pathways for long-term capability growth in all levels of the Alliance.
Ultimately, the goal is not just training — it’s transformation. A commercially capable alliance is one that can deliver projects that are efficient, transparent and truly aligned to the public good which translates to value for money outcomes. It also ensures that we develop leaders that are commercially astute which benefits the wider industry and future projects.
Final Thoughts
Commercial acumen isn’t an optional extra in alliances — it’s a foundation for value, trust and performance.
When alliance members understand how commercial decisions shape outcomes, they make better choices, hold each other accountable and work together to deliver real value for money.
The most successful alliances are those that combine strong relationships with smart commercial capability — ensuring the “we all win together” principle isn’t just a phrase but a daily reality.
If you think your Alliance could benefit from Commercial Acumen Training, please reach out to us at enquiries@brsresults.com.
