Site risk is the risk that:
• the project land will be unavailable or unable to be used:
- at the required time or
- in the manner or the cost anticipated or
• the site will generate unanticipated liabilities,
with the result that the contracted service delivery and/or projected revenues are adversely affected.
Specific examples of site risk include:
• the risk of unanticipated geo-technical conditions increasing the cost of construction
• the risk of unanticipated contamination
• the risk of delays in obtaining statutory approvals
• the risk of delays caused by the discovery of indigenous and non-indigenous artefacts and
• the risk of native title claims being made on the land.
Generally site risk will be allocated to the private party. However in certain circumstances it maybe appropriate for Government to accept some site risk. For further guidance on when Government may accept some site risk, see Chapter 4 (Site conditions and suitability), Chapter 5 (Environmental issues), Chapter 6 (Native title and artefacts), Chapter 7 (Planning and other approvals) and Chapter 8 (Site access) of the Risk Allocation and Commercial Principles for PFPs.