The outcome of the TOC development process will be a Project Proposal by the Proponent to the Owner comprising their offer of a project solution, PAA, Commercial Framework, team and TOC. Whilst the mechanics of developing the TOC number are very similar to the preparation of a traditional (D&C) tender estimate by Proponents, there is the very significant and critical input of Owner collaboration in the context of alliancing principles.
The preparation of the TOC is not a linear activity. In this iterative and interactive process the Proponent's team applies intellectual effort to the Project Solution and Commercial Framework as they strive to win the work. It requires high degrees of experience, judgement and innovation that will not come from any one individual but from the combined input of all Proponent members and the Owner Participants.
These TOC development mechanics can be considered in the context of the alliance success factors described in the Guide:
• Integrated, Collaborative Team;
• Commercial Arrangements; and
• The TOC.
These are discussed in turn below, together with the importance of:
• estimating procedures;
• risk assessment; and
• management resources (Proponent and Owner).