Game in the Brain

 Risk Acceptance is one of the most interesting philosophical discussions in cost Reimbursable Contracts vs Firm Fixed prices. 

The Dilemma: 

• We have a Building to Build. 
• Firm Fixed Price the Builder will factor all their risks and add a Margin. Risks add to the costs. 
• Cost Reimbursable, the Builder will quote the estimated Time and materials to make the Building and any unforeseen problems will have a particular time and material cost.   

for me the Human Element is how companies approach Risk, how much they accept risk. I’m used to the hostile and cutthroat nature of “It’s your problem, it’s your cost, it’s your burden to communicate, if I make a mistake the burden of proof is on the other party to prove its not theirs.” I’ve seen “falling on your sword” “bahala ka” (Do what ever you want!) 

 “throwing people under the bus” and all the strategies and outcomes when risks do occur and problems arise. 

It boils down to the relationship we have to Uncertainty – to what we Dont know, and what can be. 

Our relationship with uncertainty – is like a white background to contrast our behavior and personality. In light of Uncertainty how does this person act – in light of the end of times, pandemic, war, societal problems unrest, and awareness – how does this person or company approach uncertainty. 

Will they cut their way out to survive? Will they work with others? Will they betray, and exploit? 

Fixed Price Contracts and Cost Reimbursable. Will one party take on the risks, or do we Share the risks?