ABSTRACT
The basis of managing the project is through the development of Target Outturn Cost', more commonly known as TOC. With the exception of those costs specifically excluded, the TOC embraces the entire cost of the project. The components of the TOC include design costs, costs to set up and maintain the CWA, cost of permanent and temporary works, on-site management, establishment costs, off-site management, off-site overheads, profit and margins as well as a risk contingency. TOC is established and conducted under a partnership agreement, the process of determining the TOC relies on achieving transparency of financial and other data and on independent scrutiny of the numbers, assumptions and calculations. Given that in a CWA there is no market testing of the cost estimates through traditional tender processes, transparency and independent scrutiny are the mechanisms through which assurance is gained that costs are the most efficient.
