Contracting parties should proactively and cooperatively identify significant project-specific _____ and clearly identify in the contract how such _____ will be handled.

Contracting parties should proactively and cooperatively identify significant project-specific _____ and clearly identify in the contract how such _____ will be handled.

• A. Issues; Issues
• B. Opportunities; Risks
• C. Risks; Risks
• D. Delays; Delays

Answer: (C)

Proactively identifying significant project-specific risks and tying them to clear in-contract responses is a core approach to collaborative design-build contracts. By focusing on risks, the parties anticipate what could go wrong or affect cost, schedule, or performance, and they agree upfront on who owns each risk and how to handle it—whether by avoidance, mitigation, transfer, or acceptance. This sets a proactive, shared framework rather than reacting only after problems surface. Choosing “risks” instead of “issues” aligns with that forward-looking mindset. Issues are current problems that have already occurred, while opportunities would emphasize potential gains rather than potential harms; delays are just one possible risk, not the full spectrum of uncertainties the contract should address. Identifying and managing risks in the contract provides the necessary structure to manage uncertainty across the project.

Proactively identifying significant project-specific risks and tying them to clear in-contract responses is a core approach to collaborative design-build contracts. By focusing on risks, the parties anticipate what could go wrong or affect cost, schedule, or performance, and they agree upfront on who owns each risk and how to handle it—whether by avoidance, mitigation, transfer, or acceptance. This sets a proactive, shared framework rather than reacting only after problems surface.

Choosing “risks” instead of “issues” aligns with that forward-looking mindset. Issues are current problems that have already occurred, while opportunities would emphasize potential gains rather than potential harms; delays are just one possible risk, not the full spectrum of uncertainties the contract should address. Identifying and managing risks in the contract provides the necessary structure to manage uncertainty across the project.