[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR636.114]

[Page 201]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 636--DESIGN-BUILD CONTRACTING--Table of Contents
 
                           Subpart A--General
 
Sec. 636.114  What factors should be considered in risk allocation?

    (a) You may consider, identify, and allocate the risks in the RFP 
document and define these risks in the contract. Risk should be 
allocated with consideration given to the party who is in the best 
position to manage and control a given risk or the impact of a given 
risk.
    (b) Risk allocation will vary according to the type of project and 
location, however, the following factors should be considered:
    (1) Governmental risks, including the potential for delays, 
modifications, withdrawal, scope changes, or additions that result from 
multi-level Federal, State, and local participation and sponsorship;
    (2) Regulatory compliance risks, including environmental and third-
party issues, such as permitting, railroad, and utility company risks;
    (3) Construction phase risks, including differing site conditions, 
traffic control, interim drainage, public access, weather issues, and 
schedule;
    (4) Post-construction risks, including public liability and meeting 
stipulated performance standards; and
    (5) Right-of-way risks including acquisition costs, appraisals, 
relocation delays, condemnation proceedings, including court costs and 
others.