1.15 The Department's ability to secure value for money from a Private Finance contract depends in part on the allocation of risk between them and the supplier. The Agency therefore adopted the working objective of seeking to allocate risk to the party best able to manage that risk. In practice the private sector should bear most risks arising from their ownership of both the new buildings they have designed and constructed and the existing buildings transferred to them as part of the deal.
1.16 A summary of the risks allocated through the contract is at Appendix3. The Agency achieved an appropriate allocation of risks. This is similar to the allocation we have found on other Private Finance projects.