REDUCTION OF THE RISK IN PUBLIC PROCUREMENT BY USING DESIGN-BUILD AS A MEANS FOR SUITABLE CONSTRUCTING
DOI:
https://doi.org/10.14311/CEJ.2016.02.0007Keywords:
design-build, public procurement, RIPRAN, design-build risksAbstract
Suitable and sustainable buildings have increased demands for design and for the transfer of design requirements to realization. That causes an increase of risk connected with the differences between planned and real parameters of the buildings. This article will outline the main theme comparison between DBB and DB projects concerning contractor’s risk management level. This comparative analysis explains, using the RIPRAN method, the hidden risks in each type of delivery method. The comparison identifies numerous contractual topics and risks included in both and gives deeper insight into risk management, both for the contracting party and also for public procurement. Applying risk analysis strategies and tools to the process will help decision-makers evaluate and select the suitable delivery method consistently and defensibly. This paper gives generic risk factors related to both project types. The results indicate risk factors with influence on the price, probability of occurrence and unfavourable impact on the project and help allocate risk level more properly in accordance with its high, middle or low probable impact. Public investment is a significant part of the public budget, the application of design-build can help with the reduction of corruption, and the public sector can benefit from the usage of DB projects to help eliminate the mistakes made by contracting authorities.
Downloads
References
Chang, A., Shen, F. and Ibbs, W. Design and construction coordination problems and planning for design-build project new users. Canadian Journal of Civil Engineering, DOI: 10.1139/L10-090, 2010
Palaneeswaran, E., Kumaraswamy, M., and Ng, T. Targeting optimum value in public sector projects through “best value”-focused contractor selection, Engineering, Construction and Architectural Management, DOI: 10.1108/0969998310509390, 2003
RAMP. Risk Analysis and Management for Projects. ICE—Institution of Civil Engineers, Faculty of Actuaries, and Institute of Actuaries, London, 2004
Lam, K., et al. Modelling Risk Allocation Decision in Construction Contracts. International Journal of Project Management, 25, 485-493. DOI: 10.1016/j.ijproman.2006.11.005, 2007
ÖZTAŞ, Ahmet a Önder ÖKMEN. Risk analysis in fixed-price design–build construction projects. Building and Environment,39(2), 229-237, DOI: 10.1016/j.buildenv.2003.08.018. ISSN 03601323. 2004
AL-RESHAID, Khaled a Nabil KARTAM. Design–build pre-qualification and tendering approach for public projects. International Journal of Project Management, 23(4), 309-320, DOI: 10.1016/j.ijproman.2004.11.004., 2005
Lacko, B.: Aplikace metody RIPRAN v softwarovém inženýrství., In: Sborník celostátní konference TVORBA SOFTWARU 2001, VŠB Ostrava, Str.97 – 103 (ISBN 80-85988-59-3), 2001
Pavelková, M. – Korytárová, J.: Analýza rizik a nejistot projektu Moravian Science Centre Brno. Stavební obzor, 21, č. 10, s. 312-320. ISSN 1805-2576, 2012
JEŽKOVÁ, Zuzana, KREJČÍ Hana, LACKO Branislav. Projektové řízení Jak zvládnout projekty. Kuřim: Akademické centrum studentských aktivit, (ISBN 978-80-905297-1-7), 2014
PMBOK Guide, A Guide to Project Management Body of Knowledge (Fifth Ed.). Project Management, Institute, Pennsylvania, s. 310 - 320, ISBN 9781935589679, 2013
Edwards, L. Practical risk management in the construction industry, London, Thomas Telford, ISBN 0727733907, 1995
Flangan, R. Risk management and construction, Oxfor, Blackwell Science, ISBN: 0-632-02816-5, 1993
Alali, B. and Pinto, A. Project, systems and risk management processes interactions. Management of Engineering & Technology, DOI: 10.1109/PICMET.2009.5261999, 2009
Wang, S., Dulaimi, M. & Aguria, Y. Risk management framework for construction projects in developing countries. Construction Management and Economics, 22(3), 237-252, DOI: 10.1080/0144619032000124689, 2004
Tah, J. y Carr, V. Knowledge-Based Approach to Construction Project Risk Management. Journal of Computing in Civil Engineering, 15(3), 170-177, DOI: 10.1061/(ASCE)0887-3801(2001)15:3(170), 2001
Kamara, J., Augenbroe, G., Anumba, C., & Carrillo, M. Knowledge management in the architecture, engineering and construction industry. Construction Innovation: Information, Process, Management, 2(1), 53-67, DOI: 10.1108/14714170210814685, 2002
Forbes, D., Smith, S. & Horner, M. Tools for selecting appropriate risk management techniques in the built environment. Construction Management and Economics. 26, 1241-1250, DOI: 10.1080/01446190802468487, 2008
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
