The disadvantage of a BOOT contract to the project organization is that they must take on:
A)higher safety risks.
B)higher failure risks.
C)higher financial risks.
D)higher competitive risks.

Question

Quizplus · Accepted Answer

In a Build-Own-Operate-Transfer (BOOT) contract, the project organization takes on the financial risks of the project, including funding the construction and operation of the project until it is profitable. This can be a substantial risk, as there is no guarantee of profitability and the organization must cover costs until the project starts generating revenue. Higher safety risks, failure risks, or competitive risks are not necessarily inherent in BOOT contracts.

The Disadvantage of a BOOT Contract to the Project Organization