Managing risks under nuclear power plant projects: A latent similarity-guided contract customization

Global energy is transforming, with nuclear power emerging as a pivotal player in achieving sustainable and low-carbon energy goals. The nature of nuclear technology introduces unique challenges, such as stringent safety and environmental requirements. Existing studies focus on general risk identification, such as supply chain delays, cost overruns, and public perception issues. However, these studies fail to address integrating these risks into tailored contractual provisions, which are critical for navigating the unique challenges of nuclear projects. The goal of this paper is to examine how standard construction contracts can be tailored to better accommodate the risks inherent in nuclear power plant construction. This study employs a multistep methodology. It begins with a comprehensive literature review using the Scopus search engine to identify construction management risks and associated keywords specific to nuclear projects. These risks are analyzed using latent Dirichlet allocation (LDA) to objectively identify relevant clauses within a standard construction contract. By leveraging associated keywords, LDA determines whether the identified risks are adequately addressed in the contractual clauses. Cosine similarity is then used to measure the alignment between the risks and the extracted clauses. Finally, the study integrates industry experience by reviewing nuclear-specific guidelines, reports, and lessons learned to address risks not sufficiently covered in standard contracts and then validating the integration through industry experts. Results showed that the most neglected risk under the standard contract was stakeholder relations and cultural differences. It was recommended to include stakeholder mapping exercises, appoint dedicated cultural mediators, and establish multilingual communication protocols to bridge language barriers and mitigate cultural misunderstandings in nuclear projects. By systematically analyzing risks and aligning them with contractual provisions, this research provides a framework for improving risk management in high-stakes nuclear construction. The findings highlight the necessity of adapting standard contracts to address nuclear-specific challenges.