One of the important factors to consider in the selection of contract type is the degree of risk…

➤ How do you assess the degree of risk for each party before selecting a contract?
Start with a risk register that lists technical, commercial, and external risks. Estimate probability and financial impact for each item. Assign risks to the party best able to control them. Use sensitivity analysis, historical data, and expert judgment. Record contingencies, insurance needs, and contractual clauses to reflect the allocation.