A new way to build: Alliance contracting enables smarter German infrastructure

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 — especially valuable on complex, multi-phase projects.

Why alliance contracting?

Germany’s adoption of the alliance model is rooted in lessons learned. As Peter explains: “Traditional lump sum contracts often lead to disputes, delays, and a war of responsibility. The alliance model avoids this by incentivising cooperation from the start. Everyone is aligned around performance, not position.”

Each partner bids based on cost-plus arrangements, with shared performance incentives tied to meeting or improving the project’s “threshold price.” This encourages proactive problem-solving, cost control, and integrated design — rather than finger-pointing over change orders.

As part of the alliance team, Ramboll is delivering multidisciplinary services with a primary focus on the design of structures.

A model gaining global momentum

This project is part of a broader trend: the rise of alliance contracting in complex infrastructure delivery. Australia and Finland have long embraced the model for major transport and tunnel projects, and countries such as UK and now Germany are seeing its value in managing uncertainty, unlocking innovation, and delivering long-term value.

“This is not about replicating Finland — it’s about adapting best practice,” says Peter. “What’s unique here is that the client selected all partners independently and brought them into one alliance. For designers, that’s a real opportunity to bring our best thinking to the table and avoid being dependent on a contractor.”

Building socio-economic and climate resilience

The project isn’t only a logistics upgrade — it’s also a climate enabler. By improving freight and passenger rail capacity, the new corridor will reduce emissions and shift transport from road to rail.

Peter also highlights that material choices, energy sources, and construction methods are being reviewed through a low-carbon lens — including the use of bio-based fuels like Hydrotreated Vegetable Oil (HVO) for heavy machinery.

“It’s early days, but we’re already having detailed discussions on how to lower carbon at every level — from materials to mobility,” he says.

Long-term, the project will enhance economic resilience by strengthening links between Hamburg, Berlin, and the Nordics — supporting trade, tourism, and regional development.

A blueprint for what comes next

As alliance projects begin to take root in Germany through the Fehmarnbelt rail line, projects in Cologne and southern Bavaria, and new tunnel tenders — this model could reshape how infrastructure is delivered in the region.

“For Ramboll, it’s a continuation of our commitment to collaborative delivery, decarbonisation, and high-performing partnerships that create value beyond the asset,” says Peter. “This is more than an engineering challenge — it’s a test of how well we work together - and it’s working.”