In non-price selection, the selection process for the Preferred Proponent concludes prior to the commencement of TOC development, although it remains beneficial to the Owner to preserve, and make clear, its right to invite an alternative Proponent to prepare a TOC if the Preferred Proponent is not performing to the required standard. During the non-competitive phase of the tender 'selection' process, the Owner needs the same basic range of capabilities as in the full price selection process plus a far greater skill set to understand all aspects of the Project Proposal negotiated outside competition. In this case, the Owner requires capability at least equal to that of the Proponent in the areas to be negotiated, including the capability to:
• assess the design and project solutions without any direct comparison;
• understand the proposed construction methodologies, delivery and procurement strategies, risks and costs associated with the project solution; and
• negotiate contract terms with a party who will have misaligned commercial drivers to the Owner.
The increasing capability required by the Owner as competition in the selection process decreases is depicted in Figure 19.
[Access Figure 19: Owner capability requirements in alternative TOC development processes - PDF]