Network risk arises where the contracted services or method of delivery of those services are linked to, rely on or are otherwise affected by certain infrastructure, inputs and other services or methods of delivering the contracted services.
Interface risk is the risk that the contracted services will not be compatible with the delivery of core services and vice versa.
While network risk is often within the control of Government, its community obligations can be in competition with the goal of efficient management of the network. Therefore Government generally only accepts network risk where there is a change in the network which actively discriminates against the project and directly affects project viability.
Provided that Government does not materially change its service delivery, the private party should be responsible for, and bear the risk of, ensuring that the contracted services are compatible with the Government’s services.