Michael Stevns
March 25, 2025
The alliance advantage: Why infrastructure needs a new delivery model
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.
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. The result? Legal disputes, ballooning budgets, and political headaches.
Collaboration over conflict
The Alliance Model takes a radically different approach: the client, contractor, and designer work together as one integrated team from day one. Instead of setting rigid contractual boundaries, the alliance shares risks, rewards, and responsibilities - aligning incentives for all players to find the best solution, not just the cheapest bid.
Few understand this model better than Peter Molin, one of the Nordics’ foremost experts on collaborative contracting. With over three decades of experience in infrastructure development, Molin has been involved in the delivery of projects employing the alliance model for nearly 20 years.
He has advised government transport agencies, contractors, and engineering firms, and has spoken extensively on the topic at industry conferences and international forums. His insights have influenced not just Finnish transport authorities but also decision-makers in Sweden and Estonia, where variations of the Finnish model are now gaining traction.
"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"
A Nordic model with global potential
The Nordic countries have become pioneers in alliancing, with Finland leading the charge. Since adopting the model in the early 2010s, the country has completed more than 15 transport projects this way, including the landmark Helsinki Airport expansion.
The model originated in Australia, and Finland adapted it to a European context and now the UK, and Germany have begun adapting their procurement systems to incorporate alliance principles.
The Light Rail Line 15 project is a shining example. The project’s alliance team developed cost-saving solutions that refined the scope and reduced inefficiencies. The final cost? €386 million - well below conventional projections and the set target cost. And critically, Helsinki’s trams began running nearly a year early, saving the city millions in avoided delays and generating early economic benefits.
The future of infrastructure procurement
With governments worldwide pushing for faster, more sustainable, and cost-efficient infrastructure, traditional procurement methods look increasingly outdated. In an age of budget constraints and political scrutiny, alliancing offers a credible alternative: one that rewards collaboration, minimises risk, and delivers value to taxpayers.
For firms like Ramboll, which has delivered multiple alliance projects across the Nordics, the model aligns perfectly with a culture of partnership and long-term thinking. The next step? Exporting this approach beyond the Nordics, proving that well-run infrastructure projects do not have to result in cost overruns and public frustration.
Want to know more?
Peter Molin
Director, Infrastructure and transport
+358 40 7523667