Transferring Risk: Pass risk to another party – if it occurs, they pay the consequences, not you:
A) Fixed price contracts:
- remember to assess which party can best control the activities that would lead to the risk occurrence
- and make sure the contractor is able to absorb the risk.
B) Insurance:
- but not all risks are insurable
C) Consider or insist on using Build-Operate-Transfer (BOT) contracts for certain risky projects.