ABSTRACT
Most clients believe that there is little risk of a significant variation in the cost outcome of a fixed price building contract. They thus feel that the financial viability of the proposed project is known before proceeding with the contract. This paper shows that uncertainty can exist in this type of contract and that risk analysis may be a useful service to private clients who have to promote building works within a limited viable cost range. The paper is based on a case study where risk analysis was used in a design and build contract between a housing association and a contractor/developer.
