The nature of limited recourse (project) financing militates against the use of procurement models in which key pricing or completion risks are retained by an employer: project financing construction risk models are therefore derived from the design and build model but with greater risk transfer from the employer to the contractor. There may however be projects where it is simply not possible to apply the traditional project finance construction model: the transfer of traditional project finance risks to a contractor may not represent a value for money risk transfer, or a contractor may simply not be willing to assume those risks at any price. In these circumstances the issue arises as to what extent other forms of construction procurement can be accommodated within the limited recourse model. The London Underground Ltd (LUL) PPP is an example of the limitations of the traditional project finance construction model as an effective mitigant of project risk. This paper discusses the means by which construction risk was allocated and managed, not only at the subcontract level but as between the other project participants, so as to produce a bankable project structure.