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

BOOT (Build, Own, Operate, Transfer) contract transfers not only the ownership but also the financial risk to the project organization. This means the organization needs to finance the project, make a profit from operating it, and then transfer it to the government or the owner within the agreed contract period. Therefore, the disadvantage of a BOOT contract to the project organization is the higher financial risks they must take on.

The Disadvantage of a BOOT Contract to the Project Organization