After analysis of the project risk allocations in the business case, commercial framework summary and the SDA, we found that the actual construction phase risk allocations in the SDA were consistent with, and in some cases achieved a better outcome, compared with the preferred allocations in the Partnerships Victoria Risk Allocation and Contractual Issues guide.
Due to refinement of the project risks, after more information was gathered and more analysis was conducted by the SCSA, there were justifiable differences between the specific actual construction phase risk allocations under the SDA and to the government-preferred allocations stated in the business case.
The key high-level risks that the State intended for the concessionaire to bear (as outlined in the original business case) were actually allocated to, and borne by, the concessionaire under the terms of the SDA, being:
• the majority of the design, construction, finance and operational risks associated with the transport interchange
• virtually all of the design, construction, finance and operational risks associated with the commercial development
• the risks associated with the construction of the rail and signalling infrastructure.