The Participants acknowledge and agree that a key purpose of this Agreement is, and they will commit themselves to achieving, a Value-for-Money outcome in respect of the Works performed under this Agreement. For this Agreement, Value-for-Money means achieving the objectives set out in the Owner's VfM Statement at a fair cost.
Guidance Note: To satisfy this commitment, the Participants must have a clear understanding of the Owner's objectives of the Project (and must formally commit to achieving those objectives) and the nature of the project asset being delivered under the alliance contract. The Participants must work collaboratively to develop and agree a methodology or approach in designing, costing (as part of development of the TOC) and constructing the Works which will produce a 'Value-for-Money' outcome having regard to the Owner's VfM Statement. The Value-for-Money outcome must be able to be demonstrated to the Owner, the Government and other stakeholders of the Project. The Participants must give a real commitment to ensuring that the Owner is able to understand the methodology or approach used by the Participants in designing, costing and constructing the Works so that the Value-for-Money outcome can be demonstrated to the Owner. The Owner has a responsibility to provide the Participants with the Owner's VfM Statement as part of the Alliance Development Agreement phase and the Project Alliance Agreement. |