The appointment of the risk advisor (a role that may be led by an individual with a broader role or title such as a commercial advisor), should be considered on all procurements that use the project alliancing method. The appointment does not arise solely in the process of insuring a project alliance. The advisor should be appointed when the Business Case is being developed and before the procurement decision.
The risk advisor role can be filled by either an appropriately qualified and experienced internal officer or an external advisor selected from a pre-approved panel or through a competitive tender process. Appendix G shows a suggested process for appointing third parties.
The risk advisor should be an experienced person or organisation familiar with the risks encountered in similar projects and more generally in project alliancing. The main tasks of the risk advisor are to carry out the risk analysis tasks outlined in Appendix A. In summary, the tasks are to:
• conduct a project risk analysis;
• allocate the risks within the alliance framework;
• participate in selecting the Non-Owner Participant selection; and
• review the risk matrix in the underwriting submission (more information in Step 6.8.
The appointment of the risk advisor should be for the period from the development of the Business Case until at least the time the insurance program is placed.
The risk advisor should be remunerated on a fee-for-service basis.