Occasionally, after execution of the PAA, it may be observed that the Commercial Framework is not effectively driving the alignment of the NOPs' commercial objectives and Owner's objectives. Reasons are varied and could include:
changing Owner objectives; and
unforeseen project challenges.
The Owner, through its Owner's Representative, needs to be alert to this possibility. If the Owner's Representative feels the Commercial Framework is not working effectively to achieve the project's goals, it should discuss this with the ALT and negotiate changes to the Commercial Framework.
This decision should not be taken lightly and only the Owner (in agreement with the NOPs) can change the Commercial Framework. The Owner Participant and the ALT do not have that authority.
Appropriate commercial and legal advice should be obtained in relation to any change to the Commercial Framework.
| Innovative commercial arrangements While Owners are encouraged to develop a project-specific Commercial Framework and include it in the tender documents, they should ensure that Proponents are encouraged in their responses to innovate commercially (as well as technically) in striving to best satisfy the Owner's VfM Statement. This may require guidance from Owners as to what areas of the Commercial Framework are or are not open to innovation. |