Model 2a) Cost and Non-Cost Performance Linked

Base Data:

a) TOC Components

Reimbursable Costs

$88 m

NOP (Aggregate) Fee

$12 m

TOC

$100 m

b) Cost Gainshare/Painshare Split

50:50, no caps

c) Non-Cost Reward/Penalty

NOP performance on non-cost KRAs is reflected in an increase (or decrease) in their share of cost under/overruns. There is no separate pool of funds and any reward can only be funded by cost underruns.

Alliance Performance on Non-Cost KRA

Score

Reward/Penalty to NOP (Cost Gain/Pain split)

Achieve Stretch Target

100

75:25

Business-as-Usual

0

50:50

Poor

-50

25:75

Scenarios

1

2

3

Model 2a)

Very good cost and non-cost performance

Mixed-Very good cost and poor non-cost performance

Poor cost and non-cost performance

TOC

$100 m

$100 m

$100 m

AOC

$90 m

$90 m

$125 m

Under (Overrun) to TOC

$10 m

$10 m

<$25 m>

Non-Cost Performance Score

100

-50

-50

Cost Gainshare/<Painshare>

Owner

$5 m gain

$5 m gain

<$12.5 m> pain

NOPs

$5 m gain

$5 m gain

<$12.5 m> pain

Non-Cost Reward/Penalty to NOP

Reflected in gain/pain split

Total Gainshare/<Painshare>

Owner

$2.5 m

$7.5 m

<$6.25 m>

NOP

$7.5 m

$2.5 m

<$18.75 m>