A Clermont subcontract file shows this risk-transfer gap: certificate limits are lower than contract requirements. What should the contractor do before mobilization?
Correct Answer
A) request corrected evidence
Risk transfer should be documented before work starts; missing or inadequate evidence should be corrected.
Why This Is the Correct Answer
Risk transfer should be documented before work starts; missing or inadequate evidence should be corrected.
Why the Other Options Are Wrong
Option B: release retainage payment
release retainage payment skips the written authority, scope, price, notice, or release control needed for risk transfer.
Option C: close insurance checklist
close insurance checklist skips the written authority, scope, price, notice, or release control needed for risk transfer.
Option D: approve verbal coverage
approve verbal coverage skips the written authority, scope, price, notice, or release control needed for risk transfer.
Memory Technique
Risk Transfer square for Administrator Reviews: scope, authority, price, paper.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Insurance Certificates and Risk Transfer; confirm the administrative duty, record, or control described in the stem.
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