Review Terms of Reference - Focus Areas

1. Business Case

Whether the budget presented was based on reasonable supporting analysis and assessments of costs, including appreciation of the inherent and contingent risks and their associated financial implications.

Particular consideration should be given to:

i.  The development of the PSC; and

ii.  The commercial case for selection of the preferred procurement model and the rationale for doing so.

2. Risk Transfer

Whether key risks were appropriately allocated and communicated, with consideration to be given to:

i.  Whether the AT was sufficient given the nature of the risks transferred to the Contractor, including how was it set, the decision making pertaining to that process and the authorising environment, and what can be learned from the influence the AT had on the procurement; and

ii.  Whether the consenting strategy was appropriate, including the allocation of consenting risk and the impact Consenting Authorities may have had on project outcomes.

3. Governance and Timeframes

i.  Whether sufficient time was allowed for approvals, commencement, and completion of the tender process so as to allow the tendering parties to fully understand and appraise the project risks and Waka Kotahi to understand the nature of the proposals; and

ii.  Whether the project governance structure had the knowledge and experience of delivering PPP construction projects (including the nature of risks transferred to the private sector), to effectively oversee the project and address issues in a timely fashion.