In order to limit their liability, P3 Authorities will look to transfer as much risk as possible onto the Consortium. Cook Advisory will work to maximize your profitability through the effective management and balancing of the risk / reward ratio.
How Do We Do That?
Starting with the fundamental contract documentation (Project/Concession Agreement, the Design/Build Contract and the Finance Agreement) we create a Risk Matrix and Insurance Schedule.
The Risk Matrix charts all potential events that may hinder the project and prioritizes those events for severity, including issues such as Clash Compounding. We then chart the mitigation strategy that best achieves the Consortia's goal including:
Contractual relief (example: Compensation events or Force Majeure protection)
The Risk Matrix highlights inconsistencies between the insurance required by the Authority and by the Lender. This tool gives us power in reaching agreement on behalf of the Consortium with both the Authority and the Lender.
The Insurance Schedule documents required coverage and who is responsible for obtaining it. This document evolves through to financial close of the project and will be managed and monitored by Cook Advisory.
The Risk Matrix and the Insurance Schedule are critical tools in monitoring and mitigating risk. Cook Advisory will use both of these in order to ensure the completion of a timely, safe and competitive bid.