6.1  The objective of the TOC development process

There are two primary objectives of the TOC development process. The most obvious is to arrive at a TOC that is acceptable to both the Owner and the NOPs and for the Owner to have confidence that the TOC reflects a Project Proposal that will satisfy the Owner's VfM Statement at a fair cost at project completion (i.e. the AOC). The second objective is to give the Owner insight into its potential alliance partners to deliver a success outcome prior to entering a PAA. The process of developing the TOC provides the Owner with a high degree of assurance and understanding of the solution and allows them to participate effectively in project delivery.

The overall objective of a TOC development process can therefore be viewed as a collaborative effort by the Proponent's team and the Owner to improve and increase the certainty of project outcomes. The project outcomes are represented as achieving the Owner's VfM Statement after the application of competitive processes and best-in-market or market-tested pricing, which provides a high degree of certainty that the TOC can be relied upon by both the NOPs and the Owner.

Consistent with Figure 5, this objective of reducing uncertainty through the TOC development process is shown diagrammatically in Figure 11 below.

Figure 11: Reducing uncertainty by the TOC development process

Overview - the TOC development