Xenidis, Y and Angelides, D (2005) Identification and classification of risks in a new modelling process for build-operate-transfer projects. In: Khosrowshahi, F (ed.) Proceedings of 21st Annual ARCOM Conference, 7-9 September 2005, London, UK.
Abstract
The Private - Finance -Initiative (PFI) procurement methods provide a framework for countries that lack the adequate own funds to develop major infrastructure projects. The Build-Operate-Transfer (BOT) projects represent a variation of these procurement methods. Success of these projects depends on the project agreement and, especially, the risk management during the whole life cycle. This paper contributes to the risk management of a successful BOT project by introducing a comprehensive new risk inventory and classification scheme of BOT risks. The inventory comprises 86 risks, which are classified based on two criteria, i.e. their nature and the source of their origin. Each one of these criteria comprises several categories, which are explicitly presented and discussed. This classification enables the assignment of risks to the project's life cycle phases, where they may occur, and the mapping of their interrelations; both are the next steps of the development process for a BOT fuzzy-based risk assessment model, which is also presented and discussed in brief. The overall approach facilitates risk assessment and understanding in BOT projects and provides a clear risk framework, which is comprehensible by risk analysts as well as responsive to their demands.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | BOT projects; fuzzy theory; life cycle; risk |
| Index terms: | inventory, procurement method, variation, build-operate-transfer, modelling, risk assessment, whole life cycle, risk management, mapping, fuzzy theory, infrastructure project, life cycle |
| Subjects: | analytical methods, decision-making and optimization, spatial and geospatial analysis, inventory management, infrastructure and transport systems, financial risk, value management, contractual condition, contractual arrangements, sustainability assessment, risk assessment |
| Topics: | Cost Management, Risk Management, Procurement, Contract Administration, Project Management, Supply Chain Management, Engineering Principles, Research Practice, Sustainability |
| Descriptive scope: | 3 PCT |
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