Ensuring capability symmetry between Owners and Participants is particularly important during TOC development and the associated negotiations and agreement of the commercial terms with the Preferred Proponent. Whilst it can be a challenge for a public sector Owner to achieve an effective symmetry with Proponents, there are strategies that can be used to mitigate the adverse impacts of asymmetry. The most obvious of these is competition as discussed in Chapter 7.
Owners should be aware of the Proponent's capability in negotiating commercial terms and contracts. The Proponent's parties are adept at surviving in a 'hard dollar' project delivery industry which requires considerable commercial acumen and contracting proficiency that is not always matched by Owners at all levels (who generally come from a significantly different industry/business sector). That is not to say that Owners are any less competent in managing project delivery (as evidenced by the completion of many successful infrastructure projects); however, in alliancing Owners are in effect acting as, and being exposed to the risks, of an infrastructure designer/constructor. Owners should be aware of the potential for asymmetry of capability when negotiating commercial terms, contract conditions and the pricing of TOC components with an experienced infrastructure designer/constructor Proponent.
The Owner should demonstrate in the Business Case, when it recommends alliance contracting, that it has the capability, capacity and processes available to undertake a TOC development process with Proponents and can fully participate throughout the life of the alliance. The Owner should demonstrate that the quality of its resourcing during the establishment and implementation of the alliance is commercially equivalent to the Proponent's.