The scope of the capital works is broadly defined in the Owner's VfM Statement, being the Owner's required physical works to deliver the approved uplift in community services. This broad definition should also include the Owner's project timelines, requirements for whole- of-life project planning and project affordability constraints.
As illustrated in Figure 3, not all costs for capital works required by an approved Business Case are for works delivered by the alliance, including:
• all sunk costs incurred prior to alliance selection;
• all project scope that is not to be delivered by the alliance (e.g. land acquisition, early works etc);
• all costs to be incurred by the Owner in managing and governing the alliance including gainshare;
• all risk that is not taken by the alliance; and
• contingency allowance to cover the Owner's exposure to cost overrun.