A theoretical framework for optimizing risk allocation and management in Public-Private Partnership projects

Abstract

Previous studies focusing on risk management dealt with general construction projects. However, appropriate mechanism of risk allocation and management is of critical importance to the success of PPP projects in which many risks traditionally retained by government are transferred to private sectors. This necessitates specific research on understanding of risk allocation and management in PPP projects. Ongoing criticism and discussion on a number of PPP projects across Australia over last few years also justify the need for an independent viewpoint in this context. In this paper, a theoretical framework is proposed to predict risk criticality under different risk allocation patterns and opti..