Date Supplier Engagement models Traditional Delivery Partner Alliance Limited Partnership DBOM Limited Partnership Outsourcing Supplier Engagement Models Engaging

Date Summary of each of the 7 Models (1) Outsourcing: Lump sum fixed price whereby work is given to the market to develop, design and deliver with option to extend to maintain and/or operate (usually GRIP 2 or 3) Traditional: Lump sum fixed price whereby NR manages the design development contract, the detailed design and construction contracts separately Engaging: Contractor(s) brought in at GRIP 4 (or earlier) on reimbursable basis until risk and scope is defined enough to enable a target cost or lump sum fixed price to be agreed Delivery Partner: Market partner is integrated into NR programme management team at GRIP 3 (or earlier) in order to bolster skills and is targeted with operating below opex target as well as incentivised (but capped) on all let contracts on pain/gain basis

Date Summary of each of the 7 Models (2) Alliance: Contractor(s) brought in at GRIP 4 (or earlier) on reimbursable basis until risk and scope is defined enough to enable a target cost to be agreed. NR staff are integrated into each contractor’s delivery organisation on ‘best man for the job’ basis. Development, design and construction risk/opportunity is shared across the alliance. All staff seconded into alliance are incentivised solely by the performance of the alliance/programme. An Alliance can be expanded into a Programme Alliance whereby some form of framework is established which enables joint performance targets between separate parties Limited Partnership: This follows a similar approach to alliancing but usually involves integration of multiple parties into a single legal entity. All staff seconded into the partnership are incentivised solely by the performance of that entity within its terms of reference DBOM Limited Partnership: This is an expansion of a limited partnership where the entity would also maintain and/or operate the built asset over a fixed period of time to an agreed budget, where all parties within the partnership share equitably the risk & opportunity. DBOM Alliance can also operate in a similar way outside of a legal entity

Date Selecting the Best Supplier Engagement Model for each Project BUSINESS RISK CONTRACT VALUE OUTSOURCING TRADITIONAL ENGAGING DELIVERY PARTNER ALLIANCE LIMITED PARTNERSHIP DBOM LIMITED PARTNERSHIP Move by lowering risk and/or raising value by packaging with other projects