In the context of Lean Integrated Project Delivery (IPD), what contract mechanism best supports collaborative risk management?

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Multiple choice — select the best answer

ATime and materials contracts with no cap
BSeparate contracts for each trade with individual performance metrics
CShared risk/reward pools tied to overall project outcomes
DTraditional fixed-price contracts with liquidated damages

✓ Correct answer: C. Shared risk/reward pools tied to overall project outcomes Shared risk/reward pools align all parties' interests toward project success, encouraging collaborative risk management as all participants benefit from effective risk mitigation and suffer collectively from risk events.

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