1. Based on the case study, assess the risk tolerance of the homeowners. 2. Explain how the contractor might plan a risk strategy that would address the potential risks identified in the case study. RPO Construction Company has been hired to build a custom- made executive home in Abu Dhabi, UAE. Two acres of property have been purchased on the Saadiyat area of Abu Dhabi by a retired executive and his wife for the location of their new custom home. The home will consist of an 8,500 sq. ft. single-family residence, two-story consisting of wood frame, cement slab foundation, and tile roof. There will be a three-car garage attached, fully landscaped front yard with circle around driveway, and patio and deck off the rear of the house overlooking the harbor. The deck will include an infinity pool and oversized spa with outdoor kitchen appliances. A dock with boathouse will be constructed at the water's edge with the patio decking connected by a wood staircase. Possible problems in the house construction are pouring the slab foundation during the hot season, difficulty in locating the septic sewer system, and obtaining permits to allow for creating a dock and boathouse. The owners of the house have sold their current home and will be closing escrow shortly, requiring them to stay in a hotel temporarily. They have given the construction company the completion date so they can minimize the cost of staying at the hotel. The construction company has told the homeowners it will take six months to finish their home if there are no delays due to poor weather, resolving the location of the septic system, and possible delays in obtaining a permit for the dock and boathouse. The homeowners have agreed to the schedule. If everything goes as planned, the house will be finished on time for the homeowners to move in. Details of costs are as follows: slab floor cost AED120K, total risk AED30K; septic sewer system cost AED70K, total risk AED20K; dock and boathouse cost AED300K, total risk AED40K. Contractor's agreement includes a late completion penalty of AEDIOK per day every day the project extends beyond the completion due date