In a PPP, retained risks are risks borne by the owner because either the cost of self-insuring against them is less than the cost to transfer them, or they cannot be transferred to the private sector at all. An example of a retained risk is owner-initiated scope changes during the design phase. This can lead to delays in the project schedule and possibly higher project costs, but is out of the control of a private partner. To account for retained risks, a contingency fund equal to their expected value should be included in the project budget and funding analysis.