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Transferring Risk-Develop Risk Response

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.

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