The Risk or Reward regime is the key mechanism in the alliance agreement for encouraging and rewarding superior performance and addressing poor performance. The Non-Owner Participant agrees to put all or a certain percentage of its profit and/or corporate overhead at risk-tied to its performance against the target cost and other project objectives. The regime will usually incorporate cost and non-cost components. For example, actual cost overruns or savings (as compared to the target cost) are shared between the alliance Participants in an agreed percentage. The Risk or Reward regime is always particular to the project, and is developed and proposed by the Owner as part of the tender documentation released to the bidders; and is then enhanced and finalised during the TOC development phase of establishing the alliance.