Final answer:
A lump sum contract is the most appropriate contract type with lower risk to the owner because it establishes a fixed total cost for the project, minimizing financial uncertainty. Other contract types like unit price and cost plus involve more financial variables and potential for rising costs.
Step-by-step explanation:
The most appropriate type of contract with the lower risk to the owner is a lump sum contract. In a lump sum contract, the contractor agrees to complete the project for a predetermined, fixed price. This means the owner's risk is minimized because they know the total cost of the project up front, which cannot increase unless the scope of the work changes. On the other hand, with unit price contracts and cost plus contracts, there are more variables, and costs can escalate if additional work is needed or if unforeseen circumstances arise. The Design-Bid-Build is a project delivery method, not a type of contract, and thus is not directly relevant to the question of reducing risk through contract type. Therefore, for an owner looking to minimize financial risk, the lump sum contract is typically the most attractive option.