Transferable

Allocation	Category Codes	Risk	Timing	Description	Consequence	Rationale/Mitigation	Risk Expert	Probability		Consequence			@ Risk Distribution		@ Risk Discrete Distrib'n
								Yes	No	Best	Most likely	Worst	Yes	No
Transferable	S2	Adverse drainage and groundwater conditions.	C	Risk of unanticipated adverse ground conditions especially in relation to drainage and groundwater.	Additional construction time and cost.	Undertake the requisite surveys in relation to drainage and groundwater conditions.		22%	78%	250	300	600	400.0	0	0
	S3	Adverse geological ground conditions.	C	Risk of unanticipated adverse ground conditions especially in relation to geotechnical ground conditions.	Additional construction time and cost.	Undertake a geotechnical site investigation assessment but the State will not provide any warranties or indemnities in relation to the information provided.		22%	78%	300	375	500	394.8	0	0
	S6	Cultural heritage	C	Risk of cultural heritage discoveries	Delay in works commencement or completion and cost increases.	Undertake a search of the Victorian Heritage Register and undertake a survey of archaeological features.		15%	85%	100	250	350	230.2	0	0
	S7	Unidentified Flora and fauna	C	Risk that the designated Site contains protected species of flora and fauna.	Additional construction time and cost.	Undertake a study to assess whether the site has any flora, fauna or archaeological features of significance.		15%	85%	100	250	600	329.4	0	0
	S9	Inadequate water services	C	Risk that water services are inadequate to meet fire requirements.	Delay in works commencement or completion and cost increases.	The Private Party is responsible for ensuring the water services meet fire authority requirements		29%	71%	120	270	400	262.1	0	0
	S10	Unavailability of services to the site	C	Risk that services (power, gas, sewer, stormwater, roads) are unavailable to the Site.	Delay in works commencement or completion and cost increases.	The Private Party is responsible for ensuring the relevant services are available to the site.		22%	78%	150	200	400	259.8	0	0
	S11	Trade waste treatment	C	Risk that the requirement for the treatment of trade waste is to be conducted on site.	Delay in works commencement or completion and cost increases.	The Private Party is responsible for ensuring the treatment of trade waste complies with relevant standards		29%	71%	400	450	500	450.0	0	0
	S12	Trade waste treatment	O	Risk that the requirement for the treatment of trade waste is to be conducted on site.	Unexpected increase in operating cost	The Private Party is responsible for ensuring the treatment of trade waste complies with relevant standards		29%	71%	100	170	300	193.8	0	0
	SC12	Renegotiation of Victorian Building Industry Agreement	O	Risk that the renegotiation of the Victorian Building Industry Agreement produces an adverse result for the Project	Potential for decreased level of service from the Private Party, inability to meet service KPI's.	The Private Party is responsible for delivering the requisite services to the State specified KPI levels.		51%	49%	2750	3000	4000	3298.9	0	3298.916572
	D1	Inadequate design of gas and bulk chemicals storage	C	Risk that the design of gas and bulk chemicals storage is inadequate.	Delay in completion, increase in costs	Tight specification of the Commissioning specification		22%	78%	600	750	1000	789.6	0	0
	D2	Inadequate design of gas and bulk chemicals storage	O	Risk that the storage of gas and bulk chemicals storage is inadequate.	Gas and chemical supply may not be sufficient to service the Facility or for Hospital Operator staff to carry out their duties.	Tight specification of the Commissioning specification		22%	78%	200	250	400	289.8	0	0
	D8	Building is not orientated to achieve energy conservation	C	Risk that the design of the building is not oriented to maximise the environmental benefits of sun and light and to minimise deficiency of excessive heat gain, glare and wind.	Increase in energy volume and cost	Design of the building to be conducted by appropriately qualified experts and endorsed by the State.		29%	71%	550	600	800	659.8	0	0
	D9	Building is not orientated to achieve energy conservation	O	Risk that the design of the building is not oriented to maximise the environmental benefits of sun and light and to minimise deficiency of excessive heat gain, glare and wind.	Increase in energy volume and cost	Design of the building to be conducted by appropriately qualified experts and endorsed by the State.		29%	71%	100	150	400	229.9	0	0
	D10	Inefficient design of the building in terms of safety and security for users	C	Risk that the design of the building impacts on appropriate vision and sight lines for all users of the Hospital	Injury to users, potential litigation and increase in insurance costs	Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be endorsed by the State.		22%	78%	400	500	700	539.7	0	0
	D11	Inefficient design of the building in terms of safety and security for users	O	Risk that the design of the building impacts on appropriate vision and sight lines for all users of the Hospital	Injury to users, potential litigation and increase in insurance costs	Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be endorsed by the State.		22%	78%	175	200	300	229.9	0	0
	D12	Design inefficiencies in terms of net area to gross area ratios	C	Risk that the design of the Facility is inefficient in terms of net area to gross area ratios.	Increased costs to rectify	Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be endorsed by the State.		29%	71%	750	1000	2000	1298.9	0	0
	D13	Design inefficiencies in terms of net area to gross area ratios	O	Risk that the design of the Facility is inefficient in terms of net area to gross area ratios.	Increased costs to rectify	Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be endorsed by the State.		29%	71%	300	450	800	529.4	0	0
	D14	Design inefficiencies in terms of sound transmission and reverberation	O2	Risk that the design does not control sound transmission and reverberation to a sufficient level.	Impact on Hospital Operator staff working conditions and quality of patient stay at the Facility. Increased cost to rectify.	Design of the building to be conducted by appropriately qualified experts and clinical functionality is to be endorsed by the State.		36%	64%	850	900	1000	919.8	0	0
	D17	Design does not take into account clinical functionality	O2	Risk that the design is not fit for purpose in terms of clinical functionality	Delay and costs	The design of the building is the responsibility of the Private Party unless the problem arose due to inaccurate specifications by the State. The State will endorse that the design meets the clinical functionality requirements.		22%	78%	750	800	1000	859.8	0	0
	C1	Construction costs	C	Risk that construction cost estimates materially change between bid and implementation due to changes in underlying costs (labour or materials).	Increase in cost	Ensure that the PSC cost estimate correctly reflects the Reference Project.		58%	42%	30000	32000	40000	34391.3	0	34391.33258
	C2	Equipment price changes	C	Risk that the price of equipment will change from now to construction period.	Increase in costs			44%	56%	800	880	1000	895.8	0	0
	C4	Substandard building	O	Risk that the final building does not meet quality standards.	Delay in works commencement or completion and cost increases.	A Commissioning process and the appointment of an Independent reviewer will help to ensure that the final product complies with the requisite standards and quality.		36%	64%	250	300	400	319.8	0	0
	C5	Substandard building	C3	Risk that the final building does not meet quality standards.	Impact on Hospital Operator quality of service to patients of the Facility and increases in cost.	A Commissioning process and the appointment of an Independent reviewer will help to ensure that the final product complies with the requisite standards and quality.		36%	64%	100	120	200	143.9	0	0
	C6	Industrial relations and civil commotion	C	Risks of strikes, industrial action or civil commotion during the Construction Phase	Delay and costs	The Private Party or its sub contractors are to manage Project delivery and operations.		58%	42%	750	800	900	819.8	0	819.8325413
	C8	Breach of OH&S Standards	C	Risk that a breach of the OH&S Standards occurs during Construction Phase.	Additional construction time and cost.	The Contractor is to develop an OH&S plan and maintain a safe site.		22%	78%	600	650	800	689.8	0	0
	C9	Risk of unexpectedly long lead times for equipment.	C3	Risk that equipment that is purchased from overseas does not arrive on time.	Delay in construction or completion			29%	71%	8000	8500	10000	8897.7	0	0
	C10	Time Overrun	C	Risk of not meeting construction programme timeline	Delay in construction or completion			50%	50%	22000	25000	30000	25792.7	0	0
	C11	Upgrade Costs	CO	Risk of upgrade of equipment costs	Increase in costs			58%	42%	10000	12000	15000	12396.2	0	12396.18574
	CO1	Commissioning program for other authorities is inadequate (eg, fire, ambulance)	C3	Risk that the Commissioning program for other authorities is inadequate (eg, fire, ambulance)	Delay in works commencement or completion and cost increases.	The private party is responsible for the ensuring that the Hospital meets the commissioning tests.		22%	78%	100	250	500	289.6	0	0
	CO2	Commissioning cannot be successfully completed.	C3	Risk that the operational commissioning tests which are required for the provision of services to commence cannot be successfully completed. This includes the risk that delay could also be due to the building being ready, but lag time for equipment to be in place and ready for use.	Delay in Hospital Operator commencement of services. Liquidated damages will be calculated at on a daily basis.	The private party is responsible for ensuring that the Hospital meets the commissioning tests. Liquidated damages apply if delay in Hospital Operator service is caused by the private party .		15%	85%	14000	15000	18000	15795.3	0	0
	O14	Operating costs are underestimated.	O	Risk that operating costs in relation to services are underestimated.	Increase in costs	The Private Party will be responsible for ensuring that their operating cost estimates are reasonable.		45%	55%	2000	2500	4000	2897.7	0	0
	O15	Private Party performance risk	O	Risk that the private party does not meet the Service KPIs	Increase in cost to rectify.	The payment mechanism is linked to meeting service KPI's which the Private Party is responsible for achieving otherise deductions will be made.		40%	60%	4000	4500	6000	4897.7	0	0
	O16	Equipment risk due to change in OH&S standards	O10	Risk that the Category 2 equipment (furniture and fixtures) breaches the OH&S standards due to a change in law	Increase in cost to rectify.	The State will undertake the appropriate research of the OH&S Standards in their detailed service specification to ensure that unanticipated additional services / facilities are kept to a minimum.		25%	75%	2000	2200	4000	2842.5	0	0
	O17	Traffic accident review	O2	Risk that a traffic review of the Traffic Management Plan may lead to a forced change in the carparking design.	Potential need to increase size of car park or design of car park leading to increase in costs.	The State will conduct a detailed service specification incorporating possible scenarios in relation to traffic management to ensure that unanticipated additional services/ facilities are kept to a minimum.		36%	64%	100	150	300	189.8	0	0
	O18	Maintenance and refurbishment risk	O	Risk that design and or construction quality is inadequate resulting in higher than anticipated refurbishment costs.	Increase in cost which may also result in a corresponding adverse effect on the Hospital Operator's ability to deliver core services.	The private party is to manage this risk through suitably qualified and resourced subcontractors and through consultation process with the State.		40%	60%	5000	6000	8000	6396.7	0	0
	O19	Maintenance and refurbishment risk	O	Risk that design and or construction quality is inadequate resulting in higher than anticipated maintenance costs.	Increase in cost which may also result in a corresponding adverse effect on the Hospital Operator's ability to deliver core services.	The private party is to manage this risk through suitably qualified and resourced subcontractors and through consultation process with the State.		40%	60%	1250	1500	2000	1599.2	0	0
	O20	Security	O	All risks associated with security for the Hospital including the risks that operating costs and / or industry standards change over the term of the Project.	Increase in cost which may also result in a corresponding adverse effect on the Hospital Operator's ability to deliver the Hospital's core services.	The private party is to manage this risk through long term subcontracts with suitably qualified and resourced subcontractors and through consultation processes with the State.		22%	78%	100	125	300	185.1	0	0
	O21	Security	O	All risks associated with security for the Hospital including the risks that operating costs and / or industry standards change over the term of the Project.	Increase in cost which may also result in a corresponding adverse effect on the Hospital Operator's ability to deliver the Hospital's core services.	The private party is to manage this risk through long term subcontracts with suitably qualified and resourced subcontractors and through consultation processes with the State.		22%	78%	80	100	250	152.1	0	0
	O22	Car park	O	All risks associated with the car park including the risks that operating costs and / or industry standards change over the term of the Project.	Increase in cost which may also result in a corresponding adverse effect on the Hospital Operator's ability to deliver the Hospital's core services.	The private sector will manage the car park within the parameters advised by the State. Should the Hospital Operator wish to change these parameters, this will require agreement with the State before implementation.		15%	85%	750	800	1000	859.8	0	0
	O25	Third-party revenue risk	O	Risk that third party revenue is different from expectations				50%	50%	550	600	800	659.8	0	0
	E1	Efficiency of energy systems	C	Risk that energy systems are less efficient than expected.	Increase in costs	The Private Party is responsible for ensuring efficiency in energy systems, and the State may specify that systems are to meet efficiency requirements.		25%	75%	750	800	1000	859.8	0	0
	E2	Efficiency of energy systems	O	Risk that energy systems are less efficient that than expected.	Increase in energy costs	The Private Party is responsible for ensuring efficiency in energy systems, and the State may specify that systems are to meet efficiency requirements.		25%	75%	300	325	400	344.9	0	0
	E3	Availability of energy	O	Risk that the energy supply is not available as required by Hospital Operator.	Loss of Hospital Operator services.	The Private Party is responsible for ensuring availability of energy systems, and the State will also specify adequate backup systems and procedures.		22%	78%	900	1000	1250	1059.6	0	0
	T1	Technology Risk	O	Risk that the design life of the Hospital infrastructure proves to be shorter than anticipated resulting in earlier than anticipated refurbishment expense.	Additional capital and / or maintenance costs incurred.	The Private Party may have recourse to the designer, builder, maintenance provider or their insurers.		30%	70%	600	650	900	729.9	0	0
	L1	Employer superannuation contributions	O	Risk that the Federal Government will increase the level of employer superannuation contributions.	Adverse cost consequences in order to comply with the change.	The private party will bear the risk of changes in their labour related costs		22%	78%	100	120	200	143.9	0	0
	S14	Approvals risk		Risk that necessary approvals cannot be obtained or may be obtained subject to unanticipated conditions that have adverse cost consequences or cause delay in the progress of the Works.	Delay in works commencenent or completion and cost increases.	The Private Party will be responsible for obtaining the requisite planning approvals from the local government for the proposed developments.
	C7	Industrial relations and civil commotion		Risks of strikes, industrial action or civil commotion during the Operating Phases.	Delay and costs	The Private Party or its sub contractors is to manage Project delivery and operations.
	CO3	Commissioning program is inadequate (building)		Risk that the building commissioning program does not incorporate all the relevant standards and is therefore inadequate.	Delay in construction or completion	The private party is responsible for ensuring that the Hospital meets the commissioning tests.
	CO4	Commissioning program is inadequate (human commissioning)		Risk that human commissioning program which primarily relates to staff training regarding how the building operates is inadequate.	Delay in the commencement of Hospital Operator operations and/or impact on Hospital Operator quality of service to patients.	The private party is responsible for ensuring that the Hospital meets the commissioning tests.
	SF2	Foreign exchange rate movement - (engineering equipment purchased overseas)		Risk of adverse movements in Foreign exchange rates in relation to engineering equipment	Increase in cost	The Private Party can hedge their exposure to foreign exchange.
	O10	Changes in development around the hospital		Risk that changes in local use and future developments around the hospital have an adverse impact on the hospital, eg fall in water pressure.	Adverse cost consequences in order to comply with the change.	The State will undertake the appropriate research of the surrounding area and incorporate this in their detailed service specification to ensure that unanticipated additional services / facilities are kept to a minimum.
	O11	Changes in development around the hospital		Risk that changes in local use and future developments around the hospital have an adverse impact on the hospital, eg fall in water pressure.	Adverse cost consequences in order to comply with the change.	The State will undertake the appropriate research of the surrounding area and incorporate this in their detailed service specification to ensure that unanticipated additional services / facilities are kept to a minimum.
	O23	Car park		All risks associated with the car park including the risks that operating costs and / or industry standards change over the term of the Project.	Increase in cost which may also result in a corresponding adverse effect on the Hospital Operator's ability to deliver the Hospital's core services.	The private sector will manage the car park within the parameters advised by the State. Should the Hospital Operator wish to change these parameters, this will require agreement with the State before implementation.
	O24	Slow response to help desk calls		Risk that slow response to help desk calls results in someone incurring an injury.	Reduction in service payments to the Private Party, potential litigation by the injured person.	The payment mechanism is linked to meeting service KPIs which the Private Party is responsible for achieving.
	E4	Availability of energy		Risk that the energy supply is not available as required by Hospital Operator.	Loss of Hospital Operator services.	The Private Party is responsible for ensuring availability of energy systems, and the State will also specify adequate backup systems and procedures.
	E6	Price risk - electricity and gas		Risk that electricity and gas prices will change above expectations.	Increase in energy costs	This will be a shared risk as an estimated 70% of electricity and gas usage is due to infrastructure and the remaining 30% is operational.
	E7	Volume/ usage risk - electricty and gas		Risk that the volume of electricity and gas used is greater than anticipated.	Increase in electricity and gas costs	This will be a shared risk as an estimated 70% of electricity and gas usage is due to infrastructure and the remaining 30% is operational.
	L4	Change in State legislation		Risk of changes in State legislation which does not take into account L3	Adverse cost consequences in order to comply with the change.	General changes in the business environment are part of the Private Party's general business risk profile.
	L5	Change in Federal legislation		Risk of changes in Federal legislation especially in the areas of insurance and aged care that are not included in L3	Adverse cost consequences in order to comply with the change.	General changes in the business environment are part of the Private Party's general business risk profile.
	L6	Change in Government policy		Risk of changes to Government policy, especially with regard to industrial relations requirements that are not included in L3	Adverse cost consequences in order to comply with the change.	General changes in the business environment are part of the Private Party's general business risk profile.