The basic purpose of the contracting process is to allocate risks among the various parties.
Many risks are easy to identify and evaluate. For example, a contractor can evaluate the risk of labor cost changes or material prices. Similarly, the owner can evaluate and cover the risk of a contractor’s default by requiring a payment and performance bond.
In contrast to quantifiable risks, the risks presented by unknown conditions (such as subsurface conditions) are difficult to identify and evaluate.
Continue Reading Differing Site Conditions: The Dangers of the Great Unknown










