Noting that the number of price competition approaches examined was limited to two case studies:
■ Owner representatives reported a significant management demand on their organisation (compared with non-price selection approach)
■ the total cost to establish a TOC using price competition (two TOCs) was less (of the order of 2% of TOC) than when non-price selection (single TOC) was used.
■ the TOC was found to be of the order of 5-10% (of TOC) less, relative to non-price competition on the basis that the following items were lower (in aggregate and individually) when using price competition:
- On-site overhead costs
- Design costs
- TOC development costs
- NOP profit margins
Owners on all alliances in the Study advised that good relationships had developed and that the participants worked well together as effective teams. No discernible difference was found between alliances that used price competition and non-price competition.
Generally NOPs have a strong preference for alliancing over other traditional delivery methods. Additionally, NOPs have a strong preference for non-price selection approach over price selection approach.