The reference project is the most likely and efficient form of public sector delivery that the government would traditionally have used to satisfy all elements of the output specification.
The process of formally defining the reference project should commence after the output specification has been developed to an advanced stage. This ensures that the reference project meets the service requirements of the project, and helps to assess the validity of the output specification. It is sometimes easier to define the output specification after the identification of the required inputs for the requisite project services. This does not, however, imply that the project should be procured on the basis of those inputs.
The reference project then forms the basis for the public sector comparator. As such, it should be updated and refined as issues that impact on the output specification or the expectations of the project are identified.
When developing the reference project and public sector comparator , the project team should limit the scope of what is included in those activities that form traditional delivery. Other commercial developments should only be included in the reference project if the agency has a mandate from government to undertake such business activities
Note that the compilation of a reference project for a social infrastructure project (e.g., prison, hospital) may differ in focus when compared with an economic infrastructure project (e.g., water treatment plant, road). Therefore, the terms of reference outlined below may not be applicable to all projects, although the level of detail should be taken as a guide irrespective of sector.
The type of project may also indicate the most appropriate group of advisors to develop the reference project. For instance, architects may be the most appropriate advisors to develop the reference project for a serviced accommodation type project, but for an economic infrastructure project, engineers may be better placed to develop the reference project.