If we look at the methodology that's used in Quebec, we see that there is no standard risk premium. The approach, which is one that is used in other jurisdictions as well, is to undertake a detailed risk analysis for the specific project.
What do we mean by that? We hold risk workshops. We're talking about bringing together around a table sometimes 10 or 15 or more people who are experts, including representatives from the public sponsor, representatives from Infrastructure Quebec, and representatives who speak from the engineering and construction side and who are independent to the project and may have been hired by the public sponsor to assist.
We develop a detailed risk matrix that looks at the risks throughout every phase of the project, from pre-development, design, and construction to maintenance and operations. We go through those risks to identify them, quantify them, and assign probabilities for each of the
implementation methods.
We do that for each of the procurement approaches that could be used for the project—conventional or construction management, or DBF, DB, or DBFM—depending on the number that have been shortlisted. Those workshops can take one to three days, depending on the complexity of the project. I know, for example, that for the Turcot Interchange, which is a $2-billion capital project that will be done as a design-build, the workshops lasted a week.