Modelling risk allocation decision in construction contracts

Lam, K. C.; Wang, D.; Lee, Patricia T.K.; Tsang, Y. T.

doi:10.1016/j.ijproman.2006.11.005

Cited by 211 publications

(150 citation statements)

References 14 publications

(16 reference statements)

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“…Kartam and Kartam [70] proposed 26 types of risks associated with construction companies in Kuwait. Lam et al [81] presented 16 risk factors related to construction projects in terms of contractor capability, contractual and legal, political and societal, economic and physical. Zou et al [15] introduced 85 risk factors for construction in China that were prioritized according to their effects on distinctive project objectives in terms of time, quality, environment, cost and safety.…”

Section: Classification and Identification Of Risksmentioning

confidence: 99%

DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects

et al. 2017

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Oil and gas construction projects are complex and risky because of their dynamic environment. Furthermore, rising global energy demand has increased the need for trustworthy risk assessment models for such projects that can provide adequate and precise policy planning. Traditional risk assessments in oil and gas construction projects do not consider the interrelationships of factors in the best-fit models. The Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Processes (ANP), called the DEMATEL-ANP approach, have been applied to other research disciplines to address this shortcoming. This method is able to construct a structural relationship among the different influence factors to visualize complex correlations. Thus, the purpose of this study is to showcase the DEMTAL-ANP risk assessment model to assess the overall risk factors of OGC projects. This study thus identifies the crucial risk criteria of such projects. Data were collected in 2016 through interviews with experts active in OGC projects in Iran. DEMATEL in this situation is used to determine the interdependencies' relative strengths among the risks. The ANP method is applied to assess the relative importance of the risk factors and to determine the best strategy for implementation of a risk management program. The results presented in this study are a novel adaptation of the risk assessment methodology to OGC projects that determines the important risk factors that directly affect the project success, which in turn helps in formulation of policies for ensuring reliable energy supply planning.

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Section: Classification and Identification Of Risksmentioning

confidence: 99%

DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects

et al. 2017

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“…Therefore, to understand their effects it is useful to reclassify the main PPP risks analysed by the literature so far (among others Grimsey and Lewis 2002;Li et al 2005;Ng and Loosemore 2007;Ke, Wang, and Chan 2010;Lam et al 2007) on the basis of their nature: political and regulatory; market or external; technical.…”

Section: Ppp Risks Classification and The Mitigation Policy Actions Tmentioning

confidence: 99%

Government policies to enhance access to credit for infrastructure-based PPPs: an approach to classification and appraisal

Vecchi

Hellowell

Croce

et al. 2017

Public Money & Management

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Several governments across the world have introduced a variety of instruments to enhance investor appetite for public private partnership (PPP) projects. This paper provides a comprehensive categorization of these instruments, the risks they target and their effects, at project and system level, to support policy makers to design the most appropriate instruments to attract private capital into infrastructure development.Keywords: PPP; guarantees; credit enhancement; infrastructure asset class; risk Box -Impact:The use of financial instruments to attract investors into PPP projects may have significant fiscal and economic implications. Therefore, it is crucial for policy makers and public managers, working for local, national or supranational public organizations, to understand the options available, the mechanisms through which these instruments reduce investor risk, and the possible unintended effects. The paper, grounded in the analysis of the main trends in capital markets, offers a threefold categorization of PPP risks, which is a useful scheme to identify the risks that may be addressed with the policy instruments to sustain the PPP bankability.

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“…Among the risk factors (Wang & Tiong, 2000;Ghosh & Jintanapakanont, 2004;Shen et al, 2006;Bing et al, 2007;Ng & Loosemore, 2007;Lam et al, 2007;Ke et al, 2010;Mu et al, 2014) in infrastructure projects include: a) contractual and legal: risks related to the management of contracts; b) financial and economic: risks associated with the financial capacity of the contractor and market conditions; c) not controllable forces: risks from circumstances beyond control; d) suppliers: risks inherent to suppliers; e) natural/physical: risks related to the infrastructure; f) operational: risks associated with productivity and operations; g) political: risks from policy interventions; i) planning: risks inherent to planning variances; j) procrastination: hazards from the way as the projects are managed; k) safety and social: risks related to the safety, environmental issues and social aspects.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Caracterização da gestão de fatores de risco em projetos de infraestrutura

2017

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ISSN 0104-530X (Print) ISSN 1806-9649 (Online) Resumo: Este estudo tem por objetivo compreender como se caracteriza a gestão dos fatores de risco no desempenho de projetos de infraestrutura. Para tal, utilizou-se o referencial teórico associado tanto à literatura voltada para o gerenciamento de riscos quanto sobre complexidade e desempenho de projetos. A estratégia de pesquisa utilizada baseou-se no método de estudo de casos múltiplos, compreendendo a análise de cinco empreendimentos em dois segmentos econômicos distintos. As evidências empíricas sugerem que o impacto dos fatores de risco no desempenho dos projetos depende da intensidade da gestão dos riscos e das habilidades dos gerentes de risco, mas não varia com a complexidade dos projetos. O estudo também indica que a intensidade do desempenho nas dimensões analisadas varia de acordo com a influência dos fatores considerados. Palavras-chave: Projeto de infraestrutura; Desempenho; Gerenciamento de risco; Fator de risco; Complexidade.Abstract: This study aims to understand how risk factor management is characterized in the performance of infrastructure projects. The multiple-case study methodology was used, including the analysis of five projects in two different economic sectors. Empirical evidence suggests that the impact of risk factors in the performance of projects depends on risk management intensity and on the skills of risk managers, but it does not vary with project complexity. Furthermore, the intensity of the analyzed performance dimensions may vary according to the influence of the factors considered.

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Modelling risk allocation decision in construction contracts

Cited by 211 publications

References 14 publications

DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects

DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects

Government policies to enhance access to credit for infrastructure-based PPPs: an approach to classification and appraisal

Caracterização da gestão de fatores de risco em projetos de infraestrutura

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