Document Detail

Title: IR210-2 - Equitable Risk Allocation: Risk Assessment Worksheets Tutorial
Publication Date: 2/1/2007
Product Type: Implementation Resource
Status: Tool
Pages: 86
This Microsoft® Excel spreadsheet tool and the accompanying tutorial have been designed to assess and allocate risk before project execution so that risk management efforts are minimized. Provides a framework for contracting parties to assess and allocate risk through a cooperative, non-controversial contracting relationship. The worksheets allow both common and individual contracting concerns to be identified, discussed, and negotiated.

NOTE: This publication's accompanying beta software is a proof of concept and is available for informational purposes only.

By downloading or purchasing this publication, you understand and accept that its accompanying software may stop opening or running properly on future platforms and is not supported or maintained by CII.

Both the publication and its software are protected by applicable copyright restrictions as set forth by CII.

Any party interested in adapting this software is invited to contact CII Associate Director for Deployment to discuss licensing.
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Abstract

The Two-Party Risk Assessment and Allocation Model encourages contracting parties to compromise during the risk allocation process. Why? The answer lies in the industry’s trend to continually shift risk to lower-tier parties, which can result in financial impacts for everyone who is a participant in an engineering and construction project. The model is not a risk management model; rather, it is designed to assess and allocate risk before project execution so that risk management efforts are minimized.

The Two-Party Risk Assessment and Allocation Model essentially is a framework for contracting parties to assess and allocate risk through a cooperative, non-controversial contracting relationship. The primary means by which the model encourages two-party cooperation is through the utilization of a set of risk assessment worksheets. The worksheets are a means by which to bring two contracting parties to a place where both common and individual contracting concerns can be identified, discussed, and negotiated.