Transferring Contract Risk Does Not Make It Disappear | Lesson 14

Transferring Contract Risk Does Not Make It Disappear Allocate responsibilities to support outcomes. Explore procurement, contracts and commercial strategy in Course 001: Strategic Project Management for Infrastructure and Megaprojects, lesson 14 of 23. For project sponsors, engineers, managers and infrastructure delivery teams. Compare packaging, incentives, capability and market capacity. Explain risk allocation to parties able to manage it. Distinguish commercial principles from jurisdiction-specific contract law; claims require evidence and qualified review. ILLUSTRATIVE CASE Transferring unknown ground conditions to a weak supplier may raise bids or cause disputes rather than eliminate risk. This example supports decision practice; it is not evidence of a real project outcome. APPLY THE LESSON Procurement options memo and risk-allocation matrix. Explain assumptions, evidence, responsible owner, decision criteria and one limitation. Pause to develop your own response, then compare the assumptions and evidence supporting your decision. KNOWLEDGE CHECK Does transferring a risk remove exposure? No: failure and interface exposure can return to the sponsor. The GAO example discussed concerns a specific Navy three-ship programme; its approximately 75% operating/support/disposal share is not an infrastructure benchmark. FURTHER LEARNING HM Treasury: The Green Book 2026 https://www.gov.uk/government/publica... US GAO: Cost Estimating and Assessment Guide https://www.gao.gov/products/gao-20-195g US GAO: Schedule Assessment Guide https://www.gao.gov/products/gao-16-89g Follow the course in learning order:    • Course INEX 01: Strategic Project Manageme...   All 23 lessons are public and arranged in learning order. Follow INEX Global Institute for strategic project management, HSE, resilience, net-positive infrastructure, risk management, AI and robotics. Subscribe:    / @inex-global-institute   Which party can actually control the risk you plan to allocate? Share your reasoning in the comments without disclosing confidential project information. Save the lesson to revisit the exercise. AI-assisted educational production. Case numbers are illustrative assumptions. Guidance and legal responsibilities depend on jurisdiction. Source organisations retain rights to their publications; references do not imply endorsement. Professional education; no accredited qualification or certification is promised. #StrategicProjectManagement #Procurement #ContractManagement #RiskAllocation #Infrastructure #INEXGlobalInstitute COURSE NAVIGATION Previous available lesson (13):    • Keep Your Options Open: Risk and Adaptive ...   Next available lesson (15):    • Safety Paperwork Is Not Proof That Critica...