The VfM Statement should take the Business Case as its starting point and provide the following advice and directions:
• the compelling reason for the investment;
• the benefits the investment is expected to deliver to government;
• the expectations the Owner/government held when it approved the alliance procurement strategy (that could be met by an alternative strategy);
• total amount of investment approved in Business Case that pertains to the work of the alliance;
• project scope and deliverables;
• time commitments for investment;
• the primary risks to the success of the investment and proposed ownership of risks;
• external conditions affecting the investment; and
• environmental and community obligations.
The Owner may also consider providing to the short-listed Proponents:
• relevant sections of the Business Case, so that the alliance Proponents can fully appreciate the wider context of relevant business requirements and their importance to the Owner;
• the Investment Logic Map, ideally as part of the Business Case, in order to further assist the alliance Proponents to understand the wider business context of the investment and to develop fit-for-purpose solutions;
• the assumptions, constraints and the drivers of VfM for the project, to ensure that the alliance can plan to respond accordingly; and
• a representative to work with the alliance Proponents who is fully informed and understands the Business Case VfM proposition, in order to ensure the short-listed alliance Proponents are appropriately advised as they develop their final tender project proposal (including the TOC), and have a good understanding of possible risks in terms of the Business Case objectives.
The Owner needs to fully articulate its requirements for addressing 'whole-of-life planning' in the alliance's project. Normally, the Owner has established corporate standards and principles regarding whole-of-life that apply across all of its capital and infrastructure works. The Owner needs to ensure that there is sufficient clarity in the VfM Statement on any trade-off between increased upfront capital investment and reduced long-term operational savings. This is necessary to enable the alliance to plan successfully to meet the Owner's expectations and budget.
Also, the Owner's VfM Statement may include requirements for the alliance to achieve other benefits, such as improved quality in earthworks (on a whole-of-life basis) or improved traffic management. The alliance will need to develop appropriate metrics to assess whether these benefits have been achieved.