This paper discusses the topic of risk assessment, management and allocation on typical P3 projects. The paper identifies what a P3 project is; what are the characteristics of the typical P3 project; and what P3 projects are not. It examines the various ways P3 projects may be structured, recognizing that different project structures may well have different project risks. The authors look at why project owners employ the P3 project delivery method including the perceived benefits and potential risks. In determining the above, the paper provides a list of risks typical P3 projects must be prepared to address; and identifies how risks on typical P3 projects are, or should, be allocated in the P3 agreement. Finally, the paper discusses some risk allocation clauses that seem inappropriate in P3 projects and may ultimately lead to project failure if left intact in a P3 agreement.