A Jupiter subcontract file shows this risk-transfer gap: policy expires before the work starts. What should the contractor do before mobilization?
Correct Answer
C) require renewal certificate
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 A: release retainage payment
release retainage payment belongs to a different file or record trail; it does not prove the risk transfer event.
Option B: close insurance checklist
close insurance checklist belongs to a different file or record trail; it does not prove the risk transfer event.
Option D: approve verbal coverage
approve verbal coverage belongs to a different file or record trail; it does not prove the risk transfer event.
Memory Technique
File Administrator Reviews where the next reviewer would look first.
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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