the risk and has any thought been given as to whether it is value for money for the contractor to price the risk? Considering allocation of risk fairly does not mean that the contractor market is given an easy ride, simply that the parties have considered risk and fairly allocated it. With many off-shore construction companies entering the New Zealand market, New Zealand clients are faced with having to re-consider previously held views on limits of liability and allocation of risk. A fair allocation of risk is now critical to ensure that the best contractors will tender for projects. Contractors will no longer consider taking on risks that they cannot control, (eg unknown ground conditions, weather risk, design creep etc). Contractors’ change in attitude to risk and the severe shortage in the market has led to clients and contractors developing tools on how to best manage risks in a construction contract. Tools such as risk registers, early identification of risks, sharing of risks (eg sharing the time and cost risk), and incentivising management of risks through Performance Regime’s etc, are now all common in contracts. Securing supply and getting the best out of the market – collaborative framework arrangements Collaborative framework contracts (or panel contracts) are increasingly being used, especially by entities looking to deliver multiple capital works projects, to ensure that the programme of works will be delivered by a group of pre-selected contractors. Councils and Council Controlled Organisations (CCOs) that have recently implemented Framework Contracts, include Christchurch City Council, Queenstown Lakes District Council and Watercare. Massey University has also implemented a framework arrangement for its capital works programme. These organisations took the initiative to develop a contract framework that gave them certainty that they could deliver much needed infrastructure over a period of time, while giving the contractor market a much needed pipeline of work, all of which are designed to deliver the best public value. Features and benefits of Framework Contracting Importantly, Framework Contracting is not simply a