Table 1: Sample of Risk Allocations between Government of Alberta and Contractor 8
<Amend table for specifics of this project and complete allocations
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| Traditional | |||
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| Contractor | Contractor | ||
| Construction Risks |
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| Design interaction with site conditions |
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| Construction interaction with site conditions |
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| Site safety |
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| Construction methodology |
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| Construction costs |
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| Unforeseen site conditions |
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| Labour issues |
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| Material issues |
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| Design errors |
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| Schedule issues |
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| Construction quality issues |
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| Scope changes |
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| Delayed site access |
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| Material inflation |
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| Wage inflation |
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| Not meeting agreed milestone dates |
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| Adverse weather conditions |
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| Labour disputes |
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| Fire during construction |
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| Vandalism/theft/arson during construction |
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| Damage and/or injuries to third party |
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| Damage to work |
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| Damage and/or loss to utilities |
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| Defective materials |
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| Public interface |
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| Workplace health and safety |
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| Insufficient performance bonding |
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| Subcontractor insolvency |
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| ||||
| Land acquisition |
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| Life cycle management |
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| Stakeholders management |
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| Coordination and approvals through users |
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| Third party objections |
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| Patent infringement |
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| GOA supplied data - accuracy |
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| GOA supplied data - sufficiency |
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| GOA supplied data - interpretation |
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| Utilities hook up/connections |
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| Concept approvals - environmental |
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| Development permits |
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| Building permits |
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| Occupancy permits |
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| Environmental permits |
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| Utilities crossing requirements |
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| Regulatory requirements |
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| Building Code compliance |
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| Land Use approvals |
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| Utilities approvals |
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| Municipal requirements |
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| Environmental Risks - Known | ||||
| Geotechnical |
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| Contamination |
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| Archaeological |
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| Flood plain analysis |
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| Environmental Risks - Unknown | ||||
| Geotechnical |
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| Contamination |
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| Archaeological |
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| Flood plain analysis |
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| Technical Risks | ||||
| Core school design |
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| Modular design and performance |
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| Structure safety |
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| Design quality issues |
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| Material behaviour |
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| Construction process innovation |
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| Construction performance specification risks |
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| Operation performance specification risks |
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| Lack of building system integration |
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| Aggressive schedule |
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| Delayed schedule |
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| Future IT risk |
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| Financial and Economic Risks | ||||
| Sourcing of capital - construction |
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| Allocation of capital - operations |
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| Cash flow management - construction |
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| Cash flow management - operations |
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| Inflation risks prior to financial close |
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| Exchange rate risks |
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| Base interest rate changes before Agreement signed |
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| Interest rate changes after closure |
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| Inflation on operations, maintenance and renewal |
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| Inflation on construction |
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| Insurance |
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| Change orders |
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| Government withdrawing from P3s | n/a |
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| Demand Risks | ||||
| Modular additions above original projections |
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| Modular additions (escalation impact) |
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| Growth in student population over design capacity |
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| Changes in school programming |
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| Under-utilized school facilities |
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| Appropriateness of schools |
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| Operations and Maintenance Risks | ||||
| Changes in legislation |
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| Damage to property |
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| Increased maintenance costs |
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| Performance issues |
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| Change in performance standards |
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| Labour issues |
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| Material issues |
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| Non-availability of facility or portions thereof |
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| Vandalism during O&M period |
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| Fire damage |
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| Flood and other natural disasters |
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| Water, air and/or soil pollution |
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| Labour disputes |
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| School security issues |
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| Unplanned major replacements |
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| Soft maintenance issues |
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| School Board labour relations |
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| Consequential damage due to contractor non-performance |
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| Facility condition risk at 20/25/30 years |
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| Third party damages risk |
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| Liability insurance |
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| Business Risks | ||||
| Bankruptcy of contractor |
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| Subcontractor default |
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_________________________________________________________________________________________________
8 The project agreement should be consulted for a comprehensive allocation of risks between the parties. The final form of the project agreement is available at <insert URL here>.