Elwood, Dave;
(2008)
Exploring the perception of project risk allocation under design&build contracts; a client side perspective.
Masters thesis (M.Sc), University of London.
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Abstract
Risk and uncertainty are inherent in construction projects and they have been the focus of much attention in recent years. This study reports on a survey of over 40 construction professionals (followed up by semi structured interviews) to understand key procurement selection criteria and the allocation of risk with Design and Build contracts. It is clear that whilst knowledge of risk management procedures and its application is increasing within the industry, differences in the perception of risk allocation within procurement remain. The report explores how even when risks are transferred from the Employer to the Contractor, they are by no means eliminated and highlights areas where residual risk is retained by the Employer such as design responsibility. It also highlights that many of the central concepts of this procurement route, such as the integration of design and construction, remain only partially realised and as such it is not able to deliver the full benefits advocated. Since not all risks are foreseeable at the outset, risk and uncertainty are only truly appreciated in the later stages. Employing even the most exhaustive use of contractual conditions to allocate risks at the start of a project can not manage risks sufficiently. This report focuses on some of the residual risks held by the client under Design and Build and stresses that unclear and unfair risk allocation can hurt both parties and that with shared uncertainties, incentives for both parties are required to mitigate these risks. Risk Management is not something that can be determined entirely through a contract but is instead applied through the attitudes and actions of the parties present. It is only through a collaborative effort involving a Joint Risk Management Strategy, that differences in perception can be comprehensively overcome and the opportunities for project success maximised.
| Type: | Thesis (Masters) |
|---|---|
| Qualification: | M.Sc |
| Title: | Exploring the perception of project risk allocation under design&build contracts; a client side perspective |
| Open access status: | An open access version is available from UCL Discovery |
| Language: | English |
| Additional information: | This thesis has been digitised by ProQuest. |
| UCL classification: | UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10206860 |
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