Activity

Description of risk

Risk borne by Contractor

Risk borne by Authority

Comments/Actions to be taken to minimise risk

C. Design

Design in construction not complying with planning requirements and/or Building Regulation approvals

•  cost of redesign

•  delay in receiving full unitary charge if failure to meet programme dates

•  potential cost for the provision of alternative accommodation

•  potential termination if long stop date extended

•  Contractor to ensure design requirements and approvals are fully understood and met

•  Designs approved in Planning applications

Stock condition survey and building surveys inaccurate

•  Additional work and cost, under-estimate of investment required and unitary charge too low

•  delay in receiving full Unitary Charge and additional cost of works to contractor

•  potential costs for providing alternative accommodation

•  potential termination if long stop date exceeded

•  any additional costs incurred as a result of Authority post survey works not being up to standard

•  100% external and substantial 50% plus representative internal survey of property archetypes

•  Council and Bidders have agreed survey briefs and understand survey findings

•  Council and Bidders should note exclusions / limitations of stock condition and building surveys

•  Warranties from Surveyors to Contractor

•  Bidders should make their own assessment of the necessity for risk pricing by bidder and sub-contractors

•  Council should make an assessment of their own necessity for risk pricing / affordability provision, if any

Structural and/or latent defects become apparent during refurbishment

•  Structural or latent defects to be remedied to the extent output specification to be met at contractors cost

•  under-estimate of investment required and Unitary Charge too low

•  delay in receiving full Unitary Charge

•  potential cost of provision of alternative accommodation

•  potential termination if long stop date exceeded

•  latent defects - anything that is agreed ought not to be covered and revealed by stock survey and not otherwise provided for in the PA e.g. that lies outside the output specification

•  Warranties from Surveyors to Council and Contractor

•  Council and Bidders have agreed survey brief and understand survey findings

•  Council and Bidders should note any exclusions / limitations of stock condition and building surveys

•  Bidders should make their own assessment of the necessity for risk pricing by bidder and sub-contractors

•  Council should make an assessment of their own necessity for risk pricing / affordability provision

Discriminatory and specific changes in law

•  cost of complying with legislation

•  Discriminatory and specific changes in law only apply to services.

General changes of law

•  delay in receiving full unitary charge if failure to meet programme dates

•  increased costs

•  increased costs

•  Will be agreed cap on capital expenditure by reference to a progressive cost share by the Authority

Changes in Authority design requirements post financial close

•  failure to meet programme dates without compensation

•  potential capital contribution and/or increased Unitary Charge if design requirements are more costly

•  Will be covered by the Authority Change Protocol and procedures in the Contract

Life expectancy of building elements and components

•  costs of future works to prolong life expectancy

•  reduced unitary charge by virtue of unavailability or performance deductions associated with failure to meet target standards

•  Warranty from professional team and Contractor / sub-contractors