Company R$$s directors are planning to extend their factory. There is a risk that the

site on which the extension will be built is structurally unsound. If it is$,$ then the cost

of building the extension will increase.

Company R$$s board is considering addressing the risk by asking a building company

to agree to build the extension for a fixed price. Which of the following is the most

likely outcome of this approach?

A The building company will accept the risk of problems with the site.

B The building company will charge more to compensate for the risk.

C The building company will insist on building the extension elsewhere.

D The building company will seek damages from Company R if the site is

unsound.