Index: Core/Common/src/Core.Common.Base/Data/IProjectFactory.cs
===================================================================
diff -u -rc4125b3012678bd098090e0a1dbb5b099fbe2d3d -r7f397d62e5fd14b5202c620c2aed09b79f8f94c8
--- Core/Common/src/Core.Common.Base/Data/IProjectFactory.cs	(.../IProjectFactory.cs)	(revision c4125b3012678bd098090e0a1dbb5b099fbe2d3d)
+++ Core/Common/src/Core.Common.Base/Data/IProjectFactory.cs	(.../IProjectFactory.cs)	(revision 7f397d62e5fd14b5202c620c2aed09b79f8f94c8)
@@ -32,8 +32,10 @@
         /// Creates a new instance of <see cref="IProject"/>.
         /// </summary>
         /// <param name="onCreateNewProjectFunc">The func to perform
-        /// after the project is created.</param>
+        /// when the project is created.</param>
         /// <returns>An empty <see cref="IProject"/> object.</returns>
+        /// <exception cref="ProjectFactoryException">Thrown when something
+        /// went wrong while creating an <see cref="IProject"/> object.</exception>
         IProject CreateNewProject(Func<object> onCreateNewProjectFunc);
     }
 }
\ No newline at end of file
Index: Core/Common/src/Core.Common.Base/Data/ProjectFactoryException.cs
===================================================================
diff -u
--- Core/Common/src/Core.Common.Base/Data/ProjectFactoryException.cs	(revision 0)
+++ Core/Common/src/Core.Common.Base/Data/ProjectFactoryException.cs	(revision 7f397d62e5fd14b5202c620c2aed09b79f8f94c8)
@@ -0,0 +1,47 @@
+using System;
+using System.Runtime.Serialization;
+
+namespace Core.Common.Base.Data
+{
+    /// <summary>
+    /// Exception thrown when something went wrong while creating an <see cref="IProject"/>.
+    /// </summary>
+    [Serializable]
+    public class ProjectFactoryException : Exception
+    {
+        /// <summary>
+        /// Initializes a new instance of the <see cref="ProjectFactoryException"/> class.
+        /// </summary>
+        public ProjectFactoryException() {}
+
+        /// <summary>
+        /// Initializes a new instance of the <see cref="ProjectFactoryException"/> class 
+        /// with a specified error message.
+        /// </summary>
+        /// <param name="message">The message that describes the error.</param>
+        public ProjectFactoryException(string message)
+            : base(message) {}
+
+        /// <summary>
+        /// Initializes a new instance of the <see cref="ProjectFactoryException"/> class with a specified error message 
+        /// and a reference to the inner exception that is the cause of this exception.
+        /// </summary>
+        /// <param name="message">The error message that explains the reason for the exception.</param>
+        /// <param name="innerException">The exception that is the cause of the current exception,
+        /// or <c>null</c> if no inner exception is specified.</param>
+        public ProjectFactoryException(string message, Exception innerException) : base(message, innerException) {}
+
+        /// <summary>
+        /// Initializes a new instance of <see cref="ProjectFactoryException"/> with
+        /// serialized data.</summary>
+        /// <param name="info">The <see cref="SerializationInfo"/> that holds the serialized
+        /// object data about the exception being thrown.</param>
+        /// <param name="context">The <see cref="StreamingContext"/> that contains contextual
+        /// information about the source or destination.</param>
+        /// <exception cref="ArgumentNullException">The <paramref name="info"/> parameter is
+        /// <c>null</c>.</exception>
+        /// <exception cref="SerializationException">The class name is <c>null</c> or
+        /// <see cref="Exception.HResult" /> is zero (0).</exception>
+        protected ProjectFactoryException(SerializationInfo info, StreamingContext context) : base(info, context) {}
+    }
+}
\ No newline at end of file
Index: Core/Common/test/Core.Common.Base.Test/Core.Common.Base.Test.csproj
===================================================================
diff -u -r08e8d26a0715f0f3db57c1d3e86256aa06934db4 -r7f397d62e5fd14b5202c620c2aed09b79f8f94c8
--- Core/Common/test/Core.Common.Base.Test/Core.Common.Base.Test.csproj	(.../Core.Common.Base.Test.csproj)	(revision 08e8d26a0715f0f3db57c1d3e86256aa06934db4)
+++ Core/Common/test/Core.Common.Base.Test/Core.Common.Base.Test.csproj	(.../Core.Common.Base.Test.csproj)	(revision 7f397d62e5fd14b5202c620c2aed09b79f8f94c8)
@@ -5,10 +5,10 @@
     <Reference Include="System.Core" />
   </ItemGroup>
   <ItemGroup>
-    <ProjectReference Include="..\..\src\Core.Common.Base\Core.Common.Base.csproj"/>
-    <ProjectReference Include="..\Core.Common.Base.TestUtil\Core.Common.Base.TestUtil.csproj"/>
-    <ProjectReference Include="..\Core.Common.Data.TestUtil\Core.Common.Data.TestUtil.csproj"/>
-    <ProjectReference Include="..\Core.Common.TestUtil\Core.Common.TestUtil.csproj"/>
+    <ProjectReference Include="..\..\src\Core.Common.Base\Core.Common.Base.csproj" />
+    <ProjectReference Include="..\Core.Common.Base.TestUtil\Core.Common.Base.TestUtil.csproj" />
+    <ProjectReference Include="..\Core.Common.Data.TestUtil\Core.Common.Data.TestUtil.csproj" />
+    <ProjectReference Include="..\Core.Common.TestUtil\Core.Common.TestUtil.csproj" />
   </ItemGroup>
   <ItemGroup>
     <None Include="..\..\..\..\build\Copying.Lesser.licenseheader">
Index: Core/Common/test/Core.Common.Base.Test/Data/ProjectFactoryExceptionTest.cs
===================================================================
diff -u
--- Core/Common/test/Core.Common.Base.Test/Data/ProjectFactoryExceptionTest.cs	(revision 0)
+++ Core/Common/test/Core.Common.Base.Test/Data/ProjectFactoryExceptionTest.cs	(revision 7f397d62e5fd14b5202c620c2aed09b79f8f94c8)
@@ -0,0 +1,11 @@
+using System;
+using Core.Common.Base.Data;
+using Core.Common.TestUtil;
+using NUnit.Framework;
+
+namespace Core.Common.Base.Test.Data
+{
+    [TestFixture]
+    public class ProjectFactoryExceptionTest :
+        CustomExceptionDesignGuidelinesTestFixture<ProjectFactoryException, Exception> {}
+}
\ No newline at end of file
Index: Riskeer/Integration/src/Riskeer.Integration.Plugin/RiskeerProjectFactory.cs
===================================================================
diff -u -rc4125b3012678bd098090e0a1dbb5b099fbe2d3d -r7f397d62e5fd14b5202c620c2aed09b79f8f94c8
--- Riskeer/Integration/src/Riskeer.Integration.Plugin/RiskeerProjectFactory.cs	(.../RiskeerProjectFactory.cs)	(revision c4125b3012678bd098090e0a1dbb5b099fbe2d3d)
+++ Riskeer/Integration/src/Riskeer.Integration.Plugin/RiskeerProjectFactory.cs	(.../RiskeerProjectFactory.cs)	(revision 7f397d62e5fd14b5202c620c2aed09b79f8f94c8)
@@ -21,6 +21,8 @@
 
 using System;
 using Core.Common.Base.Data;
+using Core.Common.Base.IO;
+using Riskeer.Common.IO.Exceptions;
 using Riskeer.Integration.Data;
 
 namespace Riskeer.Integration.Plugin
@@ -42,20 +44,27 @@
                 throw new ArgumentNullException(nameof(onCreateNewProjectFunc));
             }
 
-            var assessmentSection = (AssessmentSection) onCreateNewProjectFunc();
-
-            if (assessmentSection == null)
+            try
             {
-                return null;
-            }
-
-            return new RiskeerProject
-            {
-                AssessmentSections =
+                var assessmentSection = (AssessmentSection) onCreateNewProjectFunc();
+                
+                if (assessmentSection == null)
                 {
-                    assessmentSection
+                    return null;
                 }
-            };
+
+                return new RiskeerProject
+                {
+                    AssessmentSections =
+                    {
+                        assessmentSection
+                    }
+                };
+            }
+            catch (Exception e) when (e is CriticalFileReadException || e is CriticalFileValidationException)
+            {
+                throw new ProjectFactoryException(e.Message, e);
+            }
         }
     }
 }
\ No newline at end of file
Index: Riskeer/Integration/test/Riskeer.Integration.Plugin.Test/RiskeerProjectFactoryTest.cs
===================================================================
diff -u -rc4125b3012678bd098090e0a1dbb5b099fbe2d3d -r7f397d62e5fd14b5202c620c2aed09b79f8f94c8
--- Riskeer/Integration/test/Riskeer.Integration.Plugin.Test/RiskeerProjectFactoryTest.cs	(.../RiskeerProjectFactoryTest.cs)	(revision c4125b3012678bd098090e0a1dbb5b099fbe2d3d)
+++ Riskeer/Integration/test/Riskeer.Integration.Plugin.Test/RiskeerProjectFactoryTest.cs	(.../RiskeerProjectFactoryTest.cs)	(revision 7f397d62e5fd14b5202c620c2aed09b79f8f94c8)
@@ -77,7 +77,7 @@
         }
 
         [Test]
-        public void CreateNewProject_WithOnCreateNewProjectFuncThrowsException_ThrowsException()
+        public void CreateNewProject_WithOnCreateNewProjectFuncThrowsException_ThrowsProjectFactoryException()
         {
             // Setup
             var projectFactory = new RiskeerProjectFactory();
@@ -87,8 +87,9 @@
             void Call() => projectFactory.CreateNewProject(() => throw new Exception(expectedMessage));
 
             // Assert
-            var exception = Assert.Throws<Exception>(Call);
+            var exception = Assert.Throws<ProjectFactoryException>(Call);
             Assert.AreEqual(expectedMessage, exception.Message);
+            Assert.IsInstanceOf<Exception>(exception.InnerException);
         }
     }
 }
\ No newline at end of file