Where government delivers core services from facilities owned by a private party, (for example, an accommodation facility) government bears the operating risk of delivering its core services, except to the extent that the core services delivery is adversely affected by the private party not meeting its service provision obligations. As such, the private party must bear the risk of the adverse affect upon the delivery of the government's core services.
Proper allocation of this risk can be achieved though abatement or non-payment of the service charge and other forms of financial compensation. If disruption is prolonged or the effect on core services severe, government step-in (and eventually termination) should occur to maintain the continuity of its core services. Costs of operation during step-in should be reimbursed to government.
Government also bears the risk that changes to the provision of core services may impact adversely on the private party's ability to deliver the contracted services. In the event that such a risk materialises, government will be prevented from abating the relevant service charge to the extent that the failure to deliver the contracted services to the required standard and level relates directly to the change in the provision of core services.