DBIA Risk Management and Allocation 4

Question 1

Under the DBIA standard contract documents, which indemnification model is most commonly recommended to limit overreaching liability transfers?

Accepted Answer

Intermediate form indemnification proportional to fault

Answer

Intermediate form indemnification, proportional to each party's degree of fault, is the DBIA-recommended approach to prevent unfair overreach.

Question 2

A design-build project experiences cost escalation due to tariffs on imported steel imposed after contract execution. Which contractual provision would most directly provide relief to the design-builder?

Accepted Answer

A price escalation or material cost adjustment clause

Answer

A price escalation or material cost adjustment clause specifically addresses unanticipated increases in material costs beyond the design-builder's control.

Question 3

In DBIA's risk allocation framework, which scenario is considered an example of 'risk avoidance'?

Accepted Answer

Redesigning to eliminate a known hazardous site feature

Answer

Risk avoidance means eliminating the risk entirely, such as redesigning to remove a hazardous condition rather than managing its consequences.

Question 4

When a design-builder's subcontractor fails to perform, who bears primary liability to the owner in a traditional design-build contract?

Accepted Answer

The design-builder, who retains responsibility for all work including subcontractors

Answer

The design-builder holds single-point responsibility for all work, including that performed by subcontractors, under the prime contract with the owner.

Question 5

Which risk assessment tool uses a matrix plotting likelihood versus consequence to prioritize risks for active management?

Accepted Answer

Risk probability-impact matrix

Answer

A risk probability-impact matrix visually plots each risk's likelihood and potential consequence to prioritize which risks require active management.

DBIA - Design-Build Institute of America Certification Practice Test

DBIA - Design-Build Institute of America Certification Practice Test

DBIA Risk Management and Allocation 4