3.15 To reflect the transfer of risk, the Department applied risk adjustments to key cost items. These were discussed and agreed with representatives in its financial evaluation team. The should cost model included adjustments for two types of risk. The first, estimation risk, the extent to which base cost estimates are likely to be over or under-estimated, the Department priced at £23.6 million (NPV). The second, event risk, the Department priced at £21.3 million (NPV), to reflect the impact of uncertain future events. Land Securities Trillium made an overall risk adjustment of £27.7 million (NPV).