Site risk

Site risk is the risk that:

•  the project land will be unavailable or unable to be used at the required time, or in the manner or the cost anticipated; or

•  the site will generate unanticipated liabilities;

with the result being that the contracted service delivery and/or projected revenues are adversely affected.

Specific examples of site risk include:

•  the risk of unanticipated geo-technical conditions increasing the cost of construction;

•  the risk of unanticipated contamination;

•  the risk of delays in obtaining statutory approvals;

•  the risk of delays caused by the discovery of indigenous and non-indigenous artefacts;

•  the risk of native title claims being made on the land; and

•  the risk of unanticipated planning constraints on the use of the site, such as threatened species and offset requirements.

Generally site risk will be allocated to the private party. However, in certain circumstances it maybe appropriate for government to accept some site risk. For example, government will usually accept site acquisition risk.