5.2.1 Differences between alliance and other selection processes

The selection process for alliance contracts is sometimes different to traditional selection approaches for 'risk transfer' contracts. For example:

Project Solution: In alliancing, there is significant value in the Owner working closely and collaboratively with the Proponents to develop elements of the design solution and construction method prior to a final tender offer submitted by the Proponent(s).

Team: The alliance culture should be characterised by a high level of teamwork and cooperation between the Owner and NOPs. Therefore, it is appropriate for cultural factors to be applied as a key selection consideration.

TOC: The TOC, effectively the 'contract price', is developed by the Proponents in collaboration with the Owner.

Commercial Framework: The Commercial Framework should be designed to incentivise the NOPs to achieve the Owner's project objectives in collaboration and on an equal footing with the Owner's Participants.