About Risk Allocation
Risk — our first reaction should be to understand what this is, not just to transfer it.
Too often, clients assume that pushing risk onto the contractor means it’s “dealt with.” But under NEC contracts — particularly under Options C and E — risks remain shared, whether you like it or not.
And when clients don’t take this seriously, projects suffer.
🔍 An example:
On a NEC Option C project, the client left utility diversion risks with the contractor — but provided no site investigation data and expected it priced blind.
🔸 Result?
Inflated risk allowances, tense early negotiations, and inevitable compensation events when diversions delayed the programme.
No one won.
Contrast that with a similar job where the client engages early under X22, jointly funded surveys and used the risk register as intended — collaboratively.
🔹 Result?
Clear allowances, shared contingency, fewer surprises — and a smoother relationship through Stage 2.
👉 Risk allocation under NEC isn’t about shifting blame. It’s about placing each risk where it’s best managed.
A well-run risk register isn’t a paper exercise or just something for the auditors.
It’s a live tool for making smarter decisions — and protecting programme, budget and relationships.
Clients: if your first thought is “how can we push this risk away?” — you may already be setting yourself up to pay for it later.
This is the kind of risk planning I help clients and contractors get right.
If you’re heading into a Stage 1 or planning a major civils scheme, let’s talk.
