5.1  Introduction

This chapter provides the key Study findings.

The findings below are structured following the project lifecycle and have been developed with consideration given to the associated VfM expectations at each stage of the lifecycle as articulated in state government guidelines.

The various state government guidelines have similar models of the project lifecycle and VfM expectations and the differences are not considered material. For convenience, the Victorian DTF Investment Lifecycle Guidelines was used as the basis, as shown in the diagram below.

Figure 5.1: Project Lifecycle in DTF Investment Guidelines

This project lifecycle model was tailored as follows to suit the purposes of this Study:

•  The first three stages (strategic assessment, options analysis and business case) were combined into a single stage (business case) due to the lack of available information on the stages for strategic assessment and options analysis available from the research.

•  Project tendering and solution implementation stages were disaggregated into the stages of procurement strategy, selecting the NOPs and agreeing the commercial arrangements to provide more granularity.

•  Solution implementation was renamed project delivery to fit the alliance specific nature of the Study.

The project lifecycle used for this Study is shown diagrammatically below.

Figure 5.2: Project Lifecycle model used for this Study

The essence of the VfM expectations at each stage of the project lifecycle is:

Business Case:

Clearly define the project's VfM proposition to investment decision makers.

Procurement Strategy:

Identify the delivery method which will best achieve the VfM proposition defined in the business case.

Selecting the NOPs:

Select NOPs based on their potential to optimise the VfM proposition defined in the business case.

Agreeing the Commercial Arrangements:

Under a non-price selection process, the preferred NOPs must develop and agree commercial arrangements (including the PAA, TOC and painshare/gainshare) to deliver the VfM proposition defined in the business case.

Project Delivery:

At conclusion of the project, realise the VfM proposition defined in the business case. This requires achievement of the project's objectives in terms of time, quality and other non-price objectives for minimum cost.