Owners will often select alliancing to deliver a major infrastructure project on the basis of the potential to achieve outstanding outcomes and gamebreaking performance (which is usually described in various alliancing literature as 'not been done before', 'quantum not incremental improvement', etc).
However, outstanding outcomes and gamebreaking performance (as described in alliance literature) are not always required to achieve the requirements set out in the Owner's VfM Statement. In fact, pursuing performance standards and outcomes that are inconsistent or not aligned with the VfM proposition in the Business Case may even erode VfM.
| Including cost of achieving outstanding outcomes in the TOC Alliance development activities should only be undertaken to the extent that they directly support achieving the Owner's VfM Statement. Alliance culture and relationships should not be considered as the objectives or outcomes to be achieved by the alliance in their own right. In other words, they are a means to the end, not the end in itself. The Alliance may decide to engage service providers to assist the Alliance to achieve Owner's requirements for outstanding outcomes (e.g. team building) to realise the resulting gainshare. The costs of these services should not be included in the TOC. |