Ch 15: Risk

Question 1

Risk - It’s all about mitigating and allocating risk

Answer 1

This can be done through:

• Contract
• Insurance
• Disclaimers
• alternately, the court will allocate the responsibility

Question 2

To ensure a contract, it is BEST Practice to:

Answer 2

• Define Roles and Responsibility

  - How often do I need to be at the job site? 
  - What kinds of decisions can I make?

  • Contemplate assignment of Risk

  * Address Insurance
  * Dispute resolution Mechanism

Question 3

Risk Assessment:

Answer 3

• Determine What ifs
  * Allocate for worst case
  * Create Insurance/ performance bonds

Question 4

Courts have come to the conclusion that disputes are inevitable

Answer 4

case

• Court must create consistency & Fairness

Question 5

Exam noteworthy presumptions

Answer 5

• Contracts are entered into freely -
  * Words in contract have a normal meaning
  * Agreements DO NOT include guarantees (unless otherwise expressed)
  * Agreements DO include warranties of minimum standards of competency, quality of work

Question 6

Risk Shifting

Answer 6

To ensure that the right person bears the right risk.

Question 7

Best Practice to understand the clients expectations to prevent disatisfaction

Answer 7

• Advise client of choices available
  * Explain the advantages & disadvantages of each option
  * Be Proactive
  * Record your decisions

Question 8

Record Your Decisions

Answer 8

• Facts should be recorded in detail from meetings, photos are even better
  * This increases your chance of success when fighting a lawsuit down the road

Question 9

Disclaimers

Answer 9

Written and shift responsibility in advance