In project delivery, what does the term 'at-risk' refer to in relation to developers?

The term 'at-risk' in project delivery specifically refers to the potential for financial loss associated with a project. When a developer operates at-risk, it means they are taking on the financial responsibility and exposure connected to the project without the assurance of profit. This concept is critical in understanding the financial dynamics of project delivery, as developers must manage and mitigate risks to avoid losses while aiming to complete the project on time and within budget.

This term emphasizes the importance of careful planning and risk assessment in order to achieve successful project outcomes. Factors such as cost overruns, delays, and unforeseen challenges can lead to financial setbacks, making it essential for developers to structure their strategies to address these potential issues proactively. Being 'at-risk' also often translates to developers having the incentive to ensure high performance throughout the lifecycle of a project, as their financial investment is directly influenced by the project's success or failure.