Yamaguchi, H; Uher, T E and Runeson, G (2001) Risk allocation in PFI projects. In: Akintoye, A (ed.) Proceedings of 17th Annual ARCOM Conference, 5-7 September 2001, Salford, UK.
Abstract
Private Finance Initiative (PFI) is a popular method of developing infrastructure projects but is characterized by a complex problem of risk allocation, which frequently causes conflicts among the stakeholders. This paper presents a conceptual model of risk allocation, developed for PFI projects, focusing on how costs and profit are allocated between the government client and the private PFI contractor. The model identifies feasible risk allocations, conditions of stakeholders' risk attitudes and assessments for financially freestanding PFI projects. It is concluded that the conceptual model developed in this paper provides a theoretical basis for risk allocation in PFI projects.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | insurance theory; private finance initiative; risk allocation |
| Index terms: | infrastructure project, insurance, private finance initiative, risk allocation, profit, risk attitude |
| Subjects: | contractual arrangements, economic analysis, infrastructure and transport systems, financial risk, decision-making and reasoning |
| Topics: | Procurement, Research Practice, Engineering Principles, Cost Management, Business Strategy |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here