PMI Risk Management Professional Practice Exam

When preparing a quote for a yacht construction project, what is the best strategy to address uncertainty regarding a new engine design?

1. Accept the risk associated with the engine design

2. Propose an alternate propulsion system

3. Elect not to respond to the quote request

4. Include a warranty or bond from the propulsion system manufacturer

The correct answer is: Include a warranty or bond from the propulsion system manufacturer

Including a warranty or bond from the propulsion system manufacturer is a robust strategy for addressing uncertainty regarding a new engine design in a yacht construction project. This approach provides a safety net for both the builder and the client. By securing a warranty or bond, the builder can assure the client that any defects or failures related to the engine design will be rectified without incurring additional costs, thus minimizing potential financial risk. It also enhances the credibility and reliability of the offer, as it demonstrates due diligence in addressing potential design risks and instills confidence in the client. This strategy is proactive, mitigating the uncertainty surrounding the new engine design by leveraging the manufacturer's commitment to quality and performance. It is particularly valuable in industries like yacht construction, where costly mistakes can arise from untested designs, making assurance mechanisms critical for business relationships and project success.