PROCUREMENT AND CONTRACTING

ANSWER CORRECTLY PLEASE!

PLEASE HELP WITH THE QUESTIONS THEY ARE ONE QUETION DIVIDED IN PARTS PLEASE!

After successful completion of the design and build contract for the solid waste treatment complex, the operate and maintain contract between Zibi (Pty) Ltd and Dumpster Divers (Pty) Ltd, are now in effect. The asset remains the property of Zibi (Pty) Ltd.

Note: Do not use the generic terms customer and contractor in your answer. Those are placeholders but those parties have very particular names as specified above.

Residual value risk is related to the uncertainty in the value of the solid waste treatment complex after 15 years when the operate and maintain contract comes to an end. The residual value risk assumes that regular maintenance occurs according to best practices and is thus completely different from the maintenance risks.

42.1. In connection with this particular residual-value risk, who are the relevant contracting parties? (1)

42.2 Will it be possible to either prevent or minimise the risk? How should that be done? (2)

42.3 Who by default carry the risk? (1)

42.4 Is the residual-value risk a force majeure event or not? Justify your answer (2)

42.5 Which party in the contracting model can control and is best able to carry the remaining risk? (1)

42.6. How should that risk be transferred to the relevant party? (1)

42.7 How should exposure to the risk be rewarded if the parties agreed a fixed price contract? (1)

PLEASE ANSWER ALL, ITS ONE QUESTION THEY FOLLOW UP, PLEASE BE ACCURATE!