Guidance Note: The commercial principles outlined below should be amended by the Project Owner to reflect the specific Commercial and Legal Framework developed for the Project. Proponents should be made aware that the Project Owner is required, by undertaking the Project, to achieve certain objectives in delivering the Project. These objectives are set out in a business case that has been approved by the Project Owner's relevant governance body or bodies. |
The Project Owner is committed to achieving commercial and business outcomes that will provide value for money for the State. There are a number of commercial principles which inform the Commercial and Legal Framework:
∙ all alliance participants are jointly responsible for achieving the Project objectives;
∙ 100% open and transparent accounting;
∙ actual cost reimbursement;
∙ performance that fails to achieve MCOS Performance leads to liability under the Risk or Reward Regime;
∙ collective assumption of risk in accordance with the Risk or Reward Regime;
∙ the Non-Owner Participants remuneration is commensurate with their performance; and
∙ the Non-Owner Participants are incentivised to achieve the Project objectives.