A computerized risk evaluation model for public-private partnership (PPP) projects and its application

Yelin Xu, Yujie Lu, Ping Chuen Chan, Miroslaw J. Skibniewski, John F Y Yeung

Research output: Journal article publicationJournal articleAcademic researchpeer-review

20 Citations (Scopus)

Abstract

PPP projects usually involve more risks than other traditional procurement models because of their complexity. This paper presents the third stage of a funded study, which aims to develop a practical and computerized risk evaluation model for PPP projects. In the first and second stages, a risk hierarchal structure composed of 17 weighted risk factors is developed to describe risk profiles of PPP projects. The weightings and membership functions for risk factors are established using the Delphi survey technique and Fuzzy Set Theory. The risk evaluation model is then developed using a fuzzy synthetic evaluation approach. In the third stage, an automated decision support tool based on the risk evaluation model is designed for PPP practitioners by using Visual Basic for Application (VBA). The computerized tool can not only assist PPP participants to assess a PPP project's overall risk level for auxiliary investment decision, but can also help practitioners to identify the most risky areas of a PPP project for effective risk response. To demonstrate the applicability of the computerized model, an illustrative case is finally provided.
Original languageEnglish
Pages (from-to)277-297
Number of pages21
JournalInternational Journal of Strategic Property Management
Volume16
Issue number3
DOIs
Publication statusPublished - 1 Sep 2012

Keywords

  • Decision support
  • Fuzzy
  • Public Private Partnerships (PPP)
  • Risk evaluation
  • Risk management

ASJC Scopus subject areas

  • Strategy and Management

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