Shared
Allocation | Category Codes | Risk | Timing | Description | Consequence | Rationale/Mitigation | Risk Expert | Probability | Consequence | @ Risk Distribution | @ Risk Discrete Distrib'n | ||||
Yes | No | Best | Most likely | Worst | Yes | No | |||||||||
Shared | S4 | Environmental risk | Risk that the site is contaminated requiring significant expense to remedy. | Clean up costs which could result in delays. | Undertake a site contamination assessment. As this is a green field site located on the urban fringe, it is unlikely that contamination risk will be an issue. | 22% | 78% | 2000 | 3500 | 6000 | 3896.3 | 0 | 0 | ||
D5 | Lengthy detailed design time | Risk that detailed design time is longer than anticipated | Delay in works commencement or completion and cost increases. | 36% | 64% | 8000 | 8500 | 10000 | 8897.7 | 0 | 0 | ||||
D6 | Local community protest | Risk of adverse reaction and protest from local community to the Project. | Delay in works commencement or completion and cost increases. | Allow sufficient time for community consultation. | 15% | 85% | 1500 | 2000 | 4000 | 2597.8 | 0 | 0 | |||
D7 | Local community protest | Risk of adverse reaction and protest from local community to the Project. | Delay in works commencement or completion and cost increases. | Allow sufficient time for community consultation. | 15% | 85% | 1100 | 1200 | 1500 | 1279.5 | 0 | 0 | |||
SF5 | Risk of obtaining insurance cover | Risk of inability to obtain insurance or material increases in insurance premiums eg, construction, third party, professional indemnity, collapse of insurance company, WorkCover. | Material increases in premiums priced into the bid by the Private Party or inability to obtain the relevant insurance. | This risk is shared due to the uncertain situation regarding insurance since September 11 2001, it is expected that availability of insurance will decrease or increases in premiums will occur. | 44% | 56% | 2000 | 3000 | 5000 | 3396.7 | 0 | 0 | |||
SC13 | Lengthy negotiation of changes to specifications | Risk of lengthy negotiations between stakeholders on what is a legitimate change to the service specifications. | Delay in works commencement or completion and cost increases. | Agree with all stakeholders a dispute resolution process. | |||||||||||
SC14 | Negotiation of changes to specifications | Risk of lengthy negotiations between stakeholders on what is a legitimate change to the service specifications. | Impact on Hospital Operator quality of service to patients of the Facility and increases in cost | Agree with all stakeholders a dispute resolution process. | |||||||||||
SC15 | Service required from private sector is higher than expected or does not meet expectations. | Risk that demand for private party services differs from the expected level, ie maintenance works are higher than expected due to unanticipated increase in patient demand | Increase in costs | The State will conduct a detailed service specification incorporating future projected changes in population where possible to ensure that unanticipated additional services/ facilities are kept to a minimum. | |||||||||||
D15 | Contamination or infection caused by inadequate design layout of clinical areas | Risk that the design or the layout leads to contamination or infection with regard to the clinical functionality of the area. | Impact on Hospital Operator quality of service to patients of the Facility and increases in cost. | Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be endorsed by the State. | |||||||||||
D16 | Contamination or infection caused by inadequate design layout of clinical areas | Risk that the design or the layout leads to contamination or infection with regard to the clinical functionality of the area. | Impact on Hospital Operator quality of service to patients of the Facility and increases in cost. | Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be endorsed by the State. | |||||||||||
SF1 | Foreign exchange rate movement -(medical equipment purchased overseas) | Risk of adverse movements in foreign exchange rates in relation to the purchase of medical equipment | Increase in cost | The Private Party can hedge their exposure to foreign exchange. | |||||||||||
SF3 | Risk of material changes in inflation. | Risk that the value of payments made/ received during the term is eroded by inflation | Diminution in real returns of the Private Party. | Private party takes the risk on the methodology adopted to maintain value, however the State shares risk to the extent of agreed indexation | |||||||||||
L2 | Change in law/policy | A change in Law which is limited in its application to any of the following: the Project, provision of publicly funded health care premises in Victoria, or other States within Australia including Victoria, or provision of health care accommodation services by the private sector to the public sector for operation as a publicly funded hospital in Victoria or other States within Australia including Victoria. | Adverse cost consequences in order to comply with the change. | This will be a shared risk depending on the nature of the change. | |||||||||||
L14 | Other authority changes | Risk of authority changes which impact for example, the design of cooling towers. | Adverse cost consequences in order to comply with the change. Impact on Hospital Operator operational service. | ||||||||||||
F1 | Force Majeure | Risk of inability to provide any aspect of the Project caused by a force majeure event. | Delay and costs | The State will share in reinstatement costs with the private party to resume services. | |||||||||||
F2 | Force Majeure | Risk of inability to provide any aspect of the Project caused by a force majeure event. | Increase in costs | The State will share in reinstatement costs with the private party to resume services. | |||||||||||