DBIA Risk Management and Allocation 2

Question 1

In design-build, which risk allocation principle holds that risks should be assigned to the party best able to control and manage them?

Accepted Answer

Equitable risk sharing

Answer

Equitable risk sharing means risks are allocated to the party best positioned to control, manage, and mitigate them.

Question 2

A design-build contract includes a differing site conditions clause. Which category covers conditions materially different from those indicated in the contract documents?

Accepted Answer

Type I conditions

Answer

Type I differing site conditions are those materially different from what is indicated or reasonably inferable from the contract documents.

Question 3

When the design-builder assumes design liability in a lump-sum contract, which insurance product specifically covers errors and omissions in the design?

Accepted Answer

Professional liability (E&O) insurance

Answer

Professional liability (Errors & Omissions) insurance covers claims arising from design mistakes or negligence by the design-builder.

Question 4

Which risk response strategy involves the design-build team negotiating a contingency allowance within the contract price?

Accepted Answer

Risk retention

Answer

Risk retention with a contingency allowance means the team accepts known risks and budgets for them rather than eliminating or transferring them.

Question 5

Under DBIA best practices, who is primarily responsible for developing the risk register during the pre-award phase?

Accepted Answer

The design-build team collaboratively

Answer

DBIA best practices emphasize collaborative development of the risk register by the entire design-build team during pre-award.

DBIA - Design-Build Institute of America Certification Practice Test

DBIA - Design-Build Institute of America Certification Practice Test

DBIA Risk Management and Allocation 2