1.7  APPROPRIATE RISK ALLOCATION

1.7.1  To improve value for money there will be greater management of risks by the public sector including:

•  the risk of additional capital expenditure being required as a result of an   unforeseeable change of law occurring in the operational period of a project;

•  the Authority demonstrating good title to any property which it provides, and providing expert consultants' reports on contamination and ground condition;

•  the Authority bearing utility consumption risk, subject to a two year extended handover test, and utility tariff risk; and

•  the Authority taking a larger share of the risk of insurance premiums changing.