2.3  How to use this Guidance Note

This Guidance Note is an aid to navigate the practical realities of TOC development in alliance contracting. It outlines successful and proven practices, and incorporates insights and examples from recent research4 and experienced alliance Participants. This should assist public officials with understanding the process, the opportunities to enhance VfM, the key risks and how to mitigate them, and to ultimately conduct a successful TOC development process.

Alliance contracting is a complex delivery method, and successful development of the TOC is similarly complex and critical to successfully achieving the Owner's VfM Statement. Consequently, there can be no 'single truth' or 'recipe' for the development of a TOC. In this Guidance Note, the Owner is provided with principles and benchmark practices that, if applied to their TOC development process, will position them to agree an appropriate TOC for their project.

This Guidance Note includes chapters on all key parts of the TOC development process as follows:

This Guidance Note has been written on the basis that Owners are experienced in infrastructure delivery and government decision-making and that they will refer to other general (non-alliance specific) government policies and guidelines applying to procurement planning including Business Case project budget guidelines.

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4 In Pursuit of Additional Value - A benchmarking study into alliancing in the Australian Public Sector, DTF Victoria, October 2009.