Type of risk | Allocation | Comments |
Design and construction |
|
|
1 Construction lasts longer than expected. | Defence Management did not start to receive any payment due under the contract until the start of service delivery in the newly completed facilities. Despite problems during the construction, the new facilities were completed on time in August 2000 (paragraph 2.23). | |
2 Construction costs more than expected. | Increased costs arising from problems during the facilities' construction were not passed on to the Department (paragraph 2.24). | |
3 Failure to provide the new facilities to specification. | Defence Management had to complete the new facilities to the approved specification and design and to rectify any defects at its own cost. An independent certifier, whose costs were met jointly by Defence Management and the Department, certified that the new facilities had been completed satisfactorily in August 2000. | |
4 Equipping the facilities costs more than expected. | Defence Management was responsible for the provision of equipment that it needed to provide the contracted services. The Department only supplied library books and some other, minor items. | |
5 Unsatisfactory design causes operational problems. | The payments to Defence Management are reduced if an unsatisfactory design results in the unavailability of areas of the new facilities or the poor performance of the support services. |