14.4  ALLOCATION OF RISK OF CHANGE IN LAW

14.4.1 In some projects, it is possible to treat changes in law of any type as the Contractor's risk. This has occurred in particular in projects in which such costs can be passed on to the users of the Project (e.g. toll bridges).

14.4.2 In other sectors, a risk sharing approach has developed where the main user of the Project is the Authority and it is not appropriate for the Contractor to bear all of the change in law risks as the risk cannot be quantified or passed on to third party users. There are a number of different possible approaches to risk sharing that build on the distinctions between discriminatory/specific legislation and general legislation. These all involve a sharing of the risk of changes in law.