Project risks contractually allocated to government

Selected project risks that directly affect PPP project outcomes or deliverables are contractually allocated to government. Aside from express allocation of risks, commercial contracts may contain contractual obligations implied by law. There may also be consequences arising from statute3 or from the general law.4  Government must appropriately manage those risks allocated to it by the contract and those that arise from implied duties under the contract5 or from general law.

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3  For example, Trade Practices Act 1974 (or its jurisdictional equivalent) issues of misleading conduct and unconscionable conduct

4  For example, a failure to warn

5  For example, where applicable, the duties to act in good faith and to act fairly