Risks arising from issues not resolved at contract execution

As a practical matter, not all issues that may arise in a PPP project will have been identified and expressly allocated in the project contracts. Some may not have been identified at all. For example, before 11 September 2001, unavailability of terrorism insurance in Australia was not generally identified as a project risk.

Other risks may have been identified, but were intentionally or unintentionally left unresolved. The fact that these issues are unresolved creates a risk that they may, in future, compromise the ability of the parties to achieve the project objectives. Government must appropriately manage the unresolved issues consistently with the risk allocation for the project generally, to minimise the impact of this risk on the project objectives.