RISK QUESTIONS Assignment Value: 50 Points FORMAT: Answer each question below. Your answer will be graded on correctness and completeness. BACKGROUND INFORMATION: You are the project manager at ABC Construction. You have been out of school for 5 years and up until now you have been a project engineer. The Sr. Project Manager is turning this project over to you. The Senior PM wants to make sure you are ready to handle this project so he or she is asking the following questions for you to answer. You are responsible for overseeing the construction of a 10,000 square foot commercial office building in the City of Phoenix. The total contract price is $5,500,000.00. The soils report shows rock at 5 feet below existing grade. You excluded hard dig from the bid submitted to the owner. During the contract negotiations, you asked the Owner to include ABC Construction's low bid as part of the contract. The Owner refused. The scope of work reads as "construct building per approved construction drawings". You excluded underground storage tanks, hard rock, architecture, sales tax, building permits, and all underground utilities from your bid. The agreement provided by the Owner for the project includes the following language: Contractor represents and warrants to the Owner: (1) that Contractor is duly licensed in the state where the work will be performed, (2) that Contractor was given a reasonable opportunity to review the project site before entering into the construction contract and has determined through its own investigation that the Contract Price represents a fair and reasonable amount to be paid for by the Owner for the construction of the project, and (3) that Contractor is a professional and will perform all work in a workmanlike manner. The Architect who designed the building is from Orcutt Winslow. You have never worked with them before. The project is being managed by CBRE. CBRE is managing the project on behalf of the project owner. This is your first time working with CBRE. The project was awarded on a low bid basis. The five primary subcontractors you will be using for this project are: Suntec Concrete (Tilt Panel & SOG) - $1,016,000 Manny's Air, LLC - $653,000 Plumbing (this is a plug number) $432,000 Haskin's Electric - $789,000 SoCal Excavating (Earthwork, Utilities, Paving) - $268,000