This section should address the following:
Selection and TOC development process
• Provide a description of the processes the Owner has undertaken to validate that the outcomes and the Project Proposal (including the TOC) developed represent VfM, i.e., Owner's comparative TOC, Owner's Estimator to compare the Proponent's Proposal, competitive selection process, etc.
• How did the TOC development achieve the 'right price' for the 'right scope'?
Innovations
• Report on identified innovations/opportunities of solution options in physical materials, resources and delivery has impacted the price
• Provide a brief description on the alignment of the total cost of the alliance project, advised in the Business Case, against the final TOC and other actual or forecasted Owner's costs which form part of the capital project.
• Provide reasons for any discrepancy between the Business Case estimate and the alliance TOC estimate.
• Provide a brief description of the Owner's costs outside the alliance.
• Identify any costs shifting between the TOC and those costs outside the TOC.
• Provide a description of the underpinning pricing assumptions used by the Proponents to develop the TOC and how these compare with the assumptions used in the Business Case.
• Provide a description of any constraints or conditions impacting the TOC, i.e., market conditions, tight timeframes for completion, type and complexity of the Project, resources constraints, quality of information etc.
A capital project cost summary reconciliation should be provided in a tabular form as follows, with additional information should be provided outside the table as required.