Project management level

(Where project delivery is by an alliance, the alliance will work to deliver the agency's or Owner's VfM Statement, which is aligned to the Business Case approved by the government.)

Following execution of the PAA, as the Owner's Participants and the NOPs continue to plan and deliver the alliance project, there will be ongoing decisions that need to be made on details of design, construction, stakeholder management, supply of construction inputs, emerging risks, etc.

Such decisions by an alliance would often be in the nature of VfM judgements based on a balance of price (e.g. costs and risks) and non-price considerations (e.g. quality and functional specifications, Whole of Life (WoL) impacts, service benefits impacts, etc). These VfM decisions will need to be informed by the objectives and requirements of the Owner's VfM Statement/PAA and issues of affordability regarding the agreed TOC.

An ongoing question that should always inform project management is: how can I best deliver the required project outcome at the lowest cost?

Figure 5: Various layers of the VfM concept being applied