The Non-Owner Participants will be remunerated in accordance with the following three elements. Further details regarding the calculation of each element will be provided in the RFP.
Non-Owner Participants will be reimbursed for direct project costs and indirect project specific overhead costs which are actually and reasonably incurred in the performance of the Works.
(b) Corporate Overhead and Profit
Corporate Overhead and Profit provides the only contribution (other than under the Risk or Reward Regime) to the Non-Owner Participants' required profit margin and corporate overheads. The Proponent's Corporate Overhead and Profit expectations must reflect an equitable return for delivering the Project for the TOC whilst achieving MCOS Performance in each of the KRAs within an alliance environment.
Proponents will be required to submit their proposed Corporate Overhead and Profit as part of their Initial Proposal.
The Project Owner considers that Corporate Overhead and Profit expectations within an alliance environment should reflect the benefits of the alliance approach, including the collective assumption of risk by all alliance participants.
Under the Risk or Reward Regime, an amount will be payable or deductible (as the case may be) depending on the Participants' collective performance. The Risk or Reward Regime will be designed to incentivise participants to achieve the Project objectives and reward participants for price and non-price performance.
The Risk or Reward Regime will comprise both payments of reward amounts by the Project Owner to the Non-Owner Participants and the payment of liability amounts by the Non-Owner Participants to the Project Owner.