cost overrun

(redirected from Cost risk)
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excess of cost over budget

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Operation and maintenance (O&M) and lifecycle cost risk is passed through to AquaSure rather than retained by the public sector, although Victoria will, from October 2019, absorb the risk of non-performance by electricity provider AGL Energy, one of Australia's largest energy utilities.
From DAU's Cost Risk Analysis Introduction course, I took the continuing education opportunity to refresh myself with those intangible and difficult to quantitatively study costs of risk.
A fixed-price contract allocates all cost risk to the contractor.
For the 66 UCAs GAO reviewed that were eventually definitized, contracting officers generally did not document their consideration of cost risk to the contractor during the undefinitized period of work as required.
The company president and chief executive officer, Michael Collins, said, 'The Patti Ann LOI has reduced Bluerock's production and cost risk profile and will provide the Company with increased flexibility for delivery into its White Mesa Milling Agreement.
(4) If, however, the contracting officer decides that the unbalanced pricing poses an unacceptable cost risk, the bid may properly be rejected.
This could lead to airlines stopping interlining to avoid the cost risk, with the traveller left facing repeated baggage claim and check-in, says IATA.
Arbitrage is captured by those organizations who can take on the cost risk of providing care, and who can then manage that risk internally for a profit.
"But the cost risk of developing alloys from existing materials stocks is still less than inventing a new polymer."
The rating reflects a continuation of DHC's robust operational performance, with minimum deductions and strong relationship shown between all parties, stable availability-based revenues from a creditworthy counterparty and moderate cost risk due to pass-through to contractors.
The contractor who consistently assumes all of the cost risk is not likely to be in business long.
(2) Sound Business Arrangements - Selecting the appropriate type is important because certain contracting arrangements may increase the government's cost risk where others transfer some of that cost risk to the contractor.
Adding material-cost indexes to this fixed-price contract would protect the shipbuilder against exogenous cost risk.
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