This Guidance Note has been prepared to:
• provide consistent and leading practice guidance on TOC development in alliance contracting to government departments and agencies that develop and own infrastructure projects ('Owners');
• provide the minimum conditions for Owners in order to comply with the principles in the Policy Principles (the 'Policy')3 when developing the TOC;
• assist public officials using alliance contracting to ensure Value-for-Money (VfM) outcomes through the TOC development process as set out in Chapter 5 of The Guide to Alliance Contracting (the 'Guide');
• provide a template for reporting the alignment between the TOC developed with the preferred tender Proponent and the estimate and other objectives approved in the Business Case; and
• improve the quality, consistency and commercial outcomes of public sector alliance projects.
The Guidance Note has been developed recognising that alliance contracting:
• should comply with all relevant government policies and principles that generally regulate public sector procurement; and
• is a complex commercial transaction and, accordingly, Owners should apply good commercial practices to the selection, development, procurement and implementation of alliance contracts.
This Guidance Note does not address:
• the process for government approval of a project;
• the Owner's assessment of alternative procurement strategy options;
• the preparation of capital cost estimates for Business Cases;
• the broader processes involved in government procurement; or
• the processes involved in detailed cost management during the delivery phase of projects, including alliances.
These are dealt with in other (general) government policies and guidelines and are not repeated here.
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3 National Alliance Contracting Policy Principles; Department of Infrastructure and Transport, Commonwealth of Australia, March 2011.