Reference no: EM133609835

Question: You are the project manager for a construction company tasked with building a new residential complex. One significant risk has been identified: Risk: Inadequate Project Budget Risk Description: The budget allocated for the project may not be sufficient to cover unexpected costs, such as material price increases or unforeseen construction challenges. Match the risk with the appropriate risk response from the following options: Explore contracting with a fixed-price construction contract, shifting the responsibility for cost overruns to the contractor. Answer 1 Implement a thorough cost estimation process, including contingency allowances, to account for potential cost overruns. Answer 2 Recognize that there may be budgetary limitations and ensure a contingency fund is available within the project budget. Answer 3 Perform a comprehensive review of the project's scope and reevaluate design specifications to eliminate any non-essential elements.