Owusu-Manu, D G; Kukah, A S K; Edwards, D J and Ameyaw, E E (2023) Fuzzy synthetic evaluation of moral hazard and adverse selection of public private partnership projects. International Journal of Construction Management, 23(11), pp. 1805-1814. ISSN 1562-3599
Abstract
Moral hazards and adverse selection (MHAS) lead to failure in public-private partnership (PPP) projects and delay in delivery outputs' requirements. This research developed a fuzzy synthetic evaluation model (FSEM) to measure cause and effect level of MHAS of PPP construction projects. Mean score ranking and principal component factor analysis (PCFA) evaluated the causal factors. FSEM calculated overall cause and effect (OCE) level. PCFA analysis yielded three components: party and risk factors, incentives and contractual obligations and contract and project conditions while FSEM determined the OCE level to be 3.92. Party and risk factors; incentives and contractual obligations; contract and project conditions had cause and effect levels of 3.99, 3.99 and 3.79. Findings will enhance knowledge on MHAS risk levels of PPP construction projects thereby prompting project stakeholders to reduce the risks. Further research recommends using computer-based systems to minimize complexities and human errors during manual computation of fuzzy analysis.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | adverse selection; construction projects; fuzzy synthetic evaluation model; moral hazard; public-private-partnership |
| Index terms: | moral hazard, fuzzy synthetic evaluation, complexity, construction project, project stakeholder, computation, partnership, public private partnership, factor analysis, risk factor, adverse selection |
| Subjects: | computational methods, contractual arrangements, production management, financial risk, partnership management, sociology, decision-making and optimization, systems engineering, statistical analysis, environmental hazards |
| Topics: | Digital Applications, Stakeholder Management, Sustainability, Procurement, Cost Management, Engineering Principles, Project Management, Research Practice |
| Descriptive scope: | 3 PCA |
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