PPP CONTRACTUAL RISK IDENTIFICATION AND ALLOCATION FRAMEWORK

Abstract

With the PPP approach introduced into the market worldwide, more options were created for quality services delivery. PPP procurement had been successfully implemented by countries around the world, and has been able to provide integrated value for money public services. However, risk is the main consideration when using the PPP procurement method. Thus, handing risk becomes the fundamental success of the PPP projects. As there are not many PPP projects, Singapore’s Construction Industry do not have much information on handling risk and allocation them to the preferred parties. This dissertation adopts a mix research design of both literature review phase and quantitative approaches. The literature review phase consists of reviewing on PPP model and local conventional procurement method and evaluations of the three governmental guidelines from the local industry’s perspective. A survey was conducted on both public and private sectors to complete the quantitative part. The survey also examined the requirements of PPP contract proficiency in Singapore’s Construction Industry. The survey results identified 50 potential contractual risk factors and their allocation preference. The significant requirements on the industry’s PPP contract proficiency. In addition, a proposed risk allocation framework and assessment matrix has been developed.