This First Principles of Risk were developed as a means to start the risk conversation – identify the principles that work for the agency and project developer and take time to create consensus on other areas. For Association Members: Promote the First Principles of Risk to ensure transparent, fair, and successful P3 procurements. Ensure the messaging of the work product is in accordance with the association goals to ensure you effectively circulate and advocate for its adoption within your networks.

For Private Sector Industry Participants: Understand the core purpose and transformative potential of the First Principles of Risk to navigate the P3 procurement period more strategically and successfully.

For Public Sector Officials: Incorporate the First Principles of Risk into your P3 procurement strategy to optimize outcomes and increase the efficiency of the procurement process, thereby reducing the RISK of lengthy procurement processes.

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1.1 Common Defined Terms
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Common Defined Terms
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2. Site Issues
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2.1 Reliance on Information
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2.2 Undisclosed Site Issues
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2.3 Right of Way Acquisition
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2.4 Hazardous Materials
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3. Utilities, 3rd Party Coordination and Approvals
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3.1 Utilities
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3.2 Third Party
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3.3 Government Approvals
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4. Changes and Modifications
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4.1 Owner Led Changes
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4.2 Developer Led Changes
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4.3 Directive Letters
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5. Supervening Events
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5.1 Compensation Events
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5.2 Relief Events
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5.3 Force Majeure Events
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5.4 Change in Law
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5.5 Process for Claims
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6. Operations and Maintenance
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6.1 O&M Work
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6.2 O&M Costs
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6.3 Major or Life-cycle Maintenance
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7. Handback Requirement
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7.1 Handback Obligations
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8. Performance Requirements:
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8.1 Key Performance Incentives
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9. Financing Risks and refinancing
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9.1 Financing RIsk
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9.2 Interest Rate Risk
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9.3 Refinancings
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10. Equity Requirements (copy)
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10.1 Change in Ownership
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10.2 Revenue Sharing
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11. Insurance and Indemnity
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11.1.1 Insurance
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11.1.2 Benchmarking Insurance Costs
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11.2 Uninsurable Risks or Unavailable Term
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11.3 Indemnity
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12. Defaults and Termination
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12.1 Developer Defaults
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12.2 Remedial Plan
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12.3 Termination by Owner for Developer Default
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12.4 Compensation on Termination for Developer Default
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12.5 Owner Defaults
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12.6 Compensation on Termination for Owner Default
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12.7 Termination by Owner for Convenience
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12.8 Termination by Either Developer or Owner in No-Fault Circumstances
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13. Key Personnel and Subcontracting
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13.1 Key Personnel
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13.2 Subcontracting
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14. Miscellaneous
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14.1 Performance Security Requirements
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14.2 Price Adjustments for Commodities
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Contact:

Lisa Buglione, Executive Director
For more information or to set a meeting to discuss AIAI's First Principles of Risk.

lbuglione@aiai-infra.org

516-277-2950 (office)