Scenario: Assume you work for a construction company that is bidding on a greenfield project (being built from the ground up). The project entails the construction of a 2-story, 40,000 SF office building.You have been asked to prepare an estimate for the bid, and part of preparing any estimate accounting for the several types of risks that may be encountered.

Common risk categories are:

1. Construction-related risks
2. Physical risks (subsurface conditions)
3. Contractual and legal risks
4. Performancerisks
5. Economic risks
6. Political and public risks

Assume the project is the traditional delivery method, design-bid-build. The owner has hired a design firm that is sending out 100% CD's (construction docs) for your company and two others to prepare competitive bids, including your estimate. Assume the owner has done sub-surface exploration and provided bidding contractors with the report.

Question:

How would you consider, treat, react to, account for, and estimate for the following potential risks?

what contingencies or buffers will you consider providing?

Ex: Subsurface conditions, Weather, Acts of God, Subcontractor failure, Accidents at the site, DefectiveWork, Defective Design, Errors and Omissions.