A company has entered into a $20, 000, 000 fixed-price contract with a general contractor for the construction of a new retail outlet. For this contract, which of the following would represent the greatest risk?
A) Excessive labor charged to the project.
B) Poor physical protection of materials and equipment.
C) Failure to complete the project within budget.
D) Substitution of inferior materials.

Question

Quizplus · Accepted Answer

Substitution of inferior materials poses the greatest risk as it can lead to structural issues, safety hazards, and potential legal liabilities, impacting the project's integrity and reputation.

A Company Has Entered into a $20, 000, 000 Fixed-Price