5.3.1 Non-price elements

There are a number of non-price elements of the project which are crucial to establishing a successful alliance. In particular, the dynamic of alliance contracting requires the NOPs and the Owner to form an integrated, collaborative and cohesive team. The alliance 'culture' created by the Participants underpins the joint decision-making process and the Participants' commitment to 'no fault - no blame', open book reporting and transparency.

The following is a list of non-price selection criteria which may be applied to select the NOPs. The list is not intended to be exhaustive, but rather illustrates the non-price elements that are usually incorporated in tender selection criteria for an alliance project:54

PAA and Commercial Framework: Proponents should demonstrate that the Participants who constitute their team are willing to comply with a PAA consistent with the proposed alliance principles, behaviours and Commercial Framework arrangements documented in the RFP.

Team capability: Proponents should demonstrate that their proposed project team nominees have sufficient managerial, technical and leadership competencies to deliver projects of the nature, size, scale and complexity of the respective projects. Proponents should also demonstrate that these team competencies will be maintained for the duration of the project, from the Alliance Development Phase through to Practical Completion and handover.

Financial capacity: Proponents should demonstrate that the parties who constitute their team have the financial capacity to deliver the project.

Accreditation: As a minimum, Proponents should:

o provide copies of the certificates of all relevant ISO and other accreditations for all parties who constitute their team; and

o indicate whose management system will be used.

Project systems: Proponents should explain the proposed approach to introducing project systems into the alliance.

Corporate experience: Proponents should provide details of the relevant experience of the Participants who constitute the Proponent's team in the delivery of projects of similar size, complexity and risk profile as the Owner's project, including:

o design and optimisation;

o construction and commissioning; and

o maintenance during the Defects Liability Period.

Proponents should identify the link between this corporate experience and the project teams nominated

Governance: Proponents should consider and comment on the model proposed in the RFP.




_________________________________________________________________________________

54 This list has been adapted from the Request for Proposal for Dam Infrastructure Projects Wyaralong prepared by Queensland Water Infrastructure Pty Ltd, October 2008. Their permission to summarise and edit their document is gratefully acknowledged.