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.
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