Term

Meaning

Business-as-usual

The practices and activities that are normally undertaken by a business.

Business Case

The vehicle that is used by the Owner to obtain approval and funding to undertake the project as required by that Owner's jurisdiction.

Commercial Framework

This sets out the structure and principles that govern the NOPs' remuneration for the project.

Non-Owner Participants (NOPs)

All Participants to the alliance excluding the Owner.

NOPs' Fee

Corporate Overhead and Profit as defined in the PAA.

Owner

Entity which will own the asset to be delivered by the alliance and generally has responsibility for the procurement of the alliance.

The Owner's VfM Statement sets out the project deliverables to be achieved by the Alliance and the success criteria by which the Alliance will be ultimately judged. It is designed to be specifically relevant to, and applied by, the Alliance. The development of the Owner's VfM Statement should use the approved Business Case as the starting point; and in addition incorporate project level details that expand on the normal specifications and corporate standards found in Business Cases.

Participants

All Participants to the alliance (Owner and NOPs).

Project Alliance Agreement

The contractual agreement of the alliance.

Proponents

Organisations that respond to EOI or RFP.

Public Officials

Individuals employed by the Government.

Reimbursable Costs

The direct project costs and indirect project specific overhead costs actually and reasonably incurred by the NOPs in the performance of the work as provided in the PAA.

Risk or Reward Regime

The mechanism for determining how the pain or gain of the project will be shared between the NOPs and the Owner.

Target Outturn Cost or TOC

The specific sum developed by the Participants and approved by the project Owner under the Alliance Development Agreement as being the pre-estimate of the Reimbursable Costs, Corporate Overhead and Profit and Risk & Contingency Provisions for bringing the works to a stage where the Final Certificate can be issued under this Agreement, as set out in the Project Proposal.

Value-for-Money (VfM)

Value-for-Money is a measure of benefits (which covers quality levels, performance standards, and other policy measures such as social and environmental impacts), balanced against the price and risk exposure of achieving those benefits.

Generally, Value-for-Money is assessed on a 'whole-of-life' or 'total cost-of-ownership' basis. This includes the various phases of contract period, including transitioning-in and transitioning-out.

The concept of 'long-term sustainability of Value-for-Money' often applies, and this emphasises the government's focus on investment choices that ensure Value-for-Money outcomes are promoted and protected outside the contract period and over successive anticipated contracts.

Works

The whole of the works and services to be performed by the Participants from time to time under the PAA and includes:

any direction by the project Owner or scope variations;

the construction plant; and

rectification work necessary to make good any defects arising before and during the Defects Correction Period,

but excluding any works or services performed by the Participants which are not directly referable to the Owner's VfM Statement, the scope of works and the assumptions adopted by the Participants in developing the TOC.