No.

Risk Heading

Definition

Allocation

public sector1

private sector

shared

2.1

Incorrect cost estimates

The estimated cost of construction may be incorrect.

2.2

Incorrect time estimate

The time taken to complete the construction phase may be different from the estimated time.

2.3

Unforeseen ground/site conditions

Unforeseen ground/site conditions may lead to variations in the estimated cost.

2.4

Unforeseen ground/site conditions under the footprint of existing facilities

Additional costs resulting from where the private sector is unable to carry out necessary surveys prior to commencing work because facilities are currently occupied.

2.5

Delay in gaining access to the site

A delay in gaining access to the site may put back the entire project.

1

2.6

Responsibility for maintaining on-site security

Theft and/or damage to equipment and materials may lead to unforeseen costs in terms of replacing damaged items and delay.

2.7

Responsibility for maintaining site safety

The Construction, Design and Management (CDM) regulations must be complied with.

2.8

Third party claims

This risk refers to the costs associated with third party claims due to loss of amenity and ground subsidence on adjacent properties.

2.9

Compensation Events

An event of this kind may delay or impede the performance of the contract and cause additional expense.

2.10

Delay Events

An event of this kind may delay or impede the performance of the contract and cause additional expense.

2.11

Force Majeure

In the event of Force Majeure additional costs will be incurred. Facilities may also be unavailable.

2.12

Termination due to force majeure

There is a risk that an event of force majeure will mean the parties are no longer able to perform the contract.

2.13

Legislative/ regulatory change: NHS specific

A change in NHS specific legislation/regulations, leading to a change in the requirements and variations in costs.

2.14

Legislative/ regulatory change: non-NHS specific

A change in non-NHS specific legislation/regulations taking effect during the construction phase, leading to a change in the requirements and variations in costs.

2.15

Changes in taxation

Changes in taxation may affect the cost of the project.

2.16

Changes in the rate of VAT

Changes in the rate of VAT may increase the costs of the project. VAT should generally be refundable to the NHS body.

2.17

Other changes in VAT

Changes in VAT legislation other than changes in the rate of VAT payable.

2.18

Contractor default

In the case of contractor default, additional costs may be incurred in appointing a replacement and may cause a delay.

2.19

Poor project management

There is a risk that poor project management will lead to additional costs. For example, if sub-contractors are not well co-ordinated, one sub-contractor could be delayed because the work of another is incomplete.

2.20

Contractor/ sub-contractor industrial action

Industrial action may cause the construction to be delayed, as well as incurring additional management costs.

2.21

Protester action

Protester action against the development may incur additional costs, such as security costs.

2.22

Incorrect time and cost estimates for decanting from existing buildings

The estimated cost of decanting from existing buildings may be incorrect, there may also be delays leading to further costs. Public sector risk unless delays and cost attributable to the private sector operator.

2.23

Incorrect time and cost estimates for commissioning new building

The estimated cost of commissioning new buildings may be incorrect, there may also be delays leading to further costs.