Which of the following lists the three key risks when selecting a contract?

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Multiple Choice

Which of the following lists the three key risks when selecting a contract?

The main concept is identifying the three major risks a contract should manage: what happens if the contractor defaults, whether the work is completed on time, and whether the work meets the required quality. The best answer includes all three: Default, Delay, and Quality. A contract should address performance (default), schedule (delay), and workmanship (quality) to protect the project on all fronts. If you only consider one or two of these risks, you leave part of the project exposed—default alone ignores timing and quality; delay alone ignores reliability and workmanship; and delay with quality misses the risk of the contractor not performing at all.

The main concept is identifying the three major risks a contract should manage: what happens if the contractor defaults, whether the work is completed on time, and whether the work meets the required quality. The best answer includes all three: Default, Delay, and Quality. A contract should address performance (default), schedule (delay), and workmanship (quality) to protect the project on all fronts. If you only consider one or two of these risks, you leave part of the project exposed—default alone ignores timing and quality; delay alone ignores reliability and workmanship; and delay with quality misses the risk of the contractor not performing at all.

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