Optimal risk allocation minimises both project costs and the risks to the project by allocating particular risks to the party in the best position to control them. That party has the best opportunity to reduce the likelihood of the risk eventuating and to control the consequences of the risk if it materialises. Allocating risk in this manner creates an incentive for the controlling party to use its influence to prevent or mitigate the risk. The party responsible for mitigating a risk may use its capacity to do so in the overall interests of the project and thereby maximise a value for money outcome for government.