Construction risk is the possibility that during the Construction Phase the actual project costs or construction time exceeds those projected.

The delay in the completion or commissioning will also represent a loss of income. This is assessed and categorized as a separate or ad hoc risk category in a number of manuals and guidelines, including this PPP Guide. (see below).

Broadly speaking, design risk may refer to the following two type of events.

As with the environmental impacts and environmental clearance, the government should try to anticipate and obtain permits based on the outline plans for the works (or a reference design, if that has been prepared). This is done in order to mitigate risks and prepare the project. It should also be responsive to risks associated with permits in so far as they may relate to technical prescriptions.

Most projects will be required to pass an Environmental Impact Assessment(EIA). Environmental issues may be related to a number of different aspects, which can be grouped in two categories.

The potential impact of the project in terms of contamination or pollution (gas emission, noise pollution during construction, water contamination, and so on). Impact on the natural environment such as impacts on biodiversity, visual impact on the landscape, and so on.

The land or site for building the asset may already be available, or it may be in the hands of the authority, and available for use.

However, in most of the cases it is not. In such cases, land has to be acquired. This is especially complex in linear infrastructure, such as roads and rails where there may be multiple owners.

The outcomes of the work undertaken during this phase are:

The last tasks of the process in the Structuring and Pre-launching Phase will include the following.