To optimise the benefit of a competitive full price process the Owner must ensure that each Proponent delivers a complete Project Proposal, capable of acceptance at the conclusion of the process. This being, to the greatest extent possible, agreed terms of the PAA including the commercial arrangements and a TOC that allows the Participants to enter into an alliance contract with little or no further discussion, reconciliation of terms, scope or risk or negotiation. To achieve this, Owners should provide sufficient instruction, clarification and resources during full price selection to enable this.
As outlined in the Guide, VfM is more likely to be achieved if intellectual effort is focused on innovating the project solution and scope with the Proponents rather than just focussing on positional negotiations to reduce the NOPs Fee or simply driving the TOC down.
The management of undimensionable risk will require Proponents to have confidence that there is adequate time to properly address the issues and that the Owner will be realistic about assessing their impacts, including cost impacts. This must be properly addressed in the selection process.