Protection against Project Risks:

a) Failure to meet budget & time table: 

• Studies, site surveys
• Penalty clauses in subcontracts
• "Cost Plus" rather than "Fixed Price" contract

b) Failure to meet revenue targets:

• Studies and surveys
• Pricing & staging options

c) Natural disaster; construction accidents:

• Insurance
• Safety plan - WHEN to work; HOW to work

d) Bankruptcy:

• Minimal leveraging
• loan guarantees

e) Government interference:

• Partnerships with government or local firms

Project Managers should answer following basic questions at time of deciding on  a new project

• Are MY risks commensurate with MY potential benefits?
• Can I include sufficient time in the work schedule to cover the expected range of delays and a sufficient amount in my budget to cover the expected range of cost variation?
• Can I get insurance to limit my liability for the worst things that might occur?
• Can I negotiate a better deal?
• Whether contract document judiciously provides for sharing of project risks  among various actors involved in a Project?

We recommend Project Managers to read "Project Risk Management Handbook" to understand how to practically apply the Concept of Risk Management  in your project. You may also like to take assistance of "ProjectFuture - the Project Risk Management Software" to effectively implement the concept in your organization.