3.4.3  Conclusion on construction phase risk allocation

Analysis of the project risk allocations in the business case, commercial framework summary, SDA and the Partnerships Victoria Risk Allocation and Contractual Issues guide, 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.

As further analysis by SCSA was conducted and the project risks refined, there were justifiable differences between the specific actual construction phase risk allocations under the SDA and the government-preferred allocations stated in the business case. 

The key high-level risks that the State intended for the proponent to bear (as outlined in the original business case) were actually allocated to, and borne by, the proponent 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.

A summary of the key risks identified at each stage of the project is included in Appendix C of this report.

In March 2006, the station was ready for the Commonwealth Games.