Final answer:
Under the IEI 3rd Edition Contract, risks such as natural disasters, war, or massive unemployment are allocated to the Employer as they are considered outside the Contractor's control. These economic risks can greatly affect project cost and feasibility, and it's the Employer's responsibility to mitigate them.
Step-by-step explanation:
In the context of the IEI 3rd Edition Contract, examples of risks allocated to the Employer include those related to unforeseen economic changes or events. These can encompass scenarios like natural disasters, war, or severe economic downturns, such as massive unemployment. Under the IEI 3rd Edition Contract, these would typically be considered force majeure events or similar clauses where the Employer retains the risk because they are outside of the control of the Contractor.
Should such situations arise, these risks would impact the feasibility and the cost of the project significantly, but they are not the responsibility of the Contractor. It is crucial for Employers to plan for such risks and possibly seek insurance or other contractual protections to mitigate the impacts should they occur. The IEI 3rd Edition Contract generally provides a comprehensive allocation of risks to the relevant party that is in the best position to manage, or at least bear the consequences of, such risks.