Whilst many advances have taken place in the last 20 years in the development of alternative delivery models for major infrastructure projects, the manner in which risk allocation, as opposed to risk management, has been addressed has not genuinely advanced. In fact the view can be formed that in major projects the allocation of risk is even less equitable than in the “dark ages” of the past.

Public clients, private clients and particularly financial institutions, which are increasingly closely involved in major infrastructure projects, are seemingly becoming more risk averse and often require constructors and designers to assume far more risk than the principle stated above would suggest.

The author subscribes to the view that in the often complex environment of new contracting arrangements, it is vital that the project parties put in place arrangements which promote a fair and equitable management of risk and that in turn provides better value to all parties.