5.2  Allocating design, construction and commissioning risk: government's likely preferred position

Design, construction and commissioning risk is implicitly allocated to the private party by the nature of a public private partnership project. If government imposes detailed obligations on the private party relating to the design, construction and commissioning of a project, the risk allocation to the private party is jeopardised, as is the private party's ability to make decisions about how best to manage these risks.

Government will most likely not assume or in any way share design, construction and commissioning risk with the private party, unless it is a risk associated with a government-initiated design or construction change, or a discriminatory act or omission by government which is not in accordance with a government law, regulation or policy (that has previously been advised to the private party) during the design and construction process.

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