During the procurement phase of a complex infrastructure project, what is the most effective way to allocate risk between the owner and contractor?

During the procurement phase of a complex

Multiple choice — select the best answer

ADistribute risks equally between all parties regardless of management capability
BAssign each risk to the party best positioned to manage it
CTransfer all identifiable risks to the contractor with appropriate price premiums
DHave the owner retain all risks to keep contractor bids lower

✓ Correct answer: B. Assign each risk to the party best positioned to manage it Assigning risks to the party best able to manage them is the most effective allocation strategy as it improves project efficiency and reduces cost premiums associated with parties taking on risks they cannot effectively control.

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