From the course: Construction Management: Project Delivery Methods
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A shift in the allocation of risk
From the course: Construction Management: Project Delivery Methods
A shift in the allocation of risk
- A contractor takes on risk when they sign any contract to build a project. It's what we do. If there were no risk, there would be no reward, no profit, or money to be made. It's the nature of the business. Identifying the risks we're assuming and taking measures to mitigate or control those risks is one of the things that makes a contractor successful. Some of the risks we manage remain unchanged across any of the project delivery methods. Things like job site safety, theft, or destruction of project property and resources, a trade contractor's ability to complete the job, adherence to plans and specs, these are all risks that are assumed by the general contractor under, virtually, all methods of project delivery. Some risks, though, get shifted among the different parties, depending on the type of project delivery method being utilized. In Design-Bid-Build, remember that the contractor has a right, rooted in much legal doctrine, to assume that construction plans are correct and…
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