This appendix presents worked examples of calculating the Risk or Reward on project completion.
In order to illustrate the underlying principles these examples are presented in simplified conceptual form rather than the complexity that could be expected in an actual alliance. Thus:
The NOPs' fee is presented as an aggregate single figure that is fixed as a lump sum once the TOC is agreed.
The non-cost risk or reward is treated as a performance score from a single KRA (recognising that in practice there may be several KRAs).
There are no adjustments to the initial TOC due to Owner changes.
The calculation and distribution of the Risk or Reward amongst individual NOPs is not presented.