The compensation framework of an alliance is a key mechanism for aligning the objectives of the NOPs with the Owner's project objectives (DTF Project Alliancing Practitioner's Guide).
There are generally three elements:
1. Reimbursable costs - Actual costs of design and construction and project specific Overheads.
2. Fee - Corporate overhead and profit.
3. Painshare/Gainshare - A pre-agreed share of the pain or gain depending on actual outcomes.
These are discussed further below.