Project Life Cycle Risk of Public-Private Partnership (PPP) Projects for Construction Sustainability

Abstract

One of the principles of PPP projects is value for money in maintaining the construction sustainability of a project. Thus, driven by this necessity, for the purpose to seek a solution in minimizing both the total management costs to the public and private sectors firms, the risks identified in PPP projects must be allocated to the party who is able to manage it effectively. Evidence from projects worldwide shows that risks are not managed properly, and little attention has been committed in the Malaysian research community to systematically identify and manage the risk in Malaysian PPP projects. This paper reviewing the concept of Public- Private Partnership (PPP) in Malaysian construction industry by identifying the critical risks factors in PPP projects and explores the actions taken by the private party in managing these risks. A mixed methodology of quantitative and qualitative approaches was used to identify the allocation, probability and impact of the risk factors and determine what risk response measures are used to deal with the critical risks. The outcome from this study revealed that there are 23 risk factors allocated to private parties determined as critical risk factors. This study also proposed 79 risk responses taken by private parties to manage the critical risks. Private parties have to adopt the relevant skills and knowledge in risk management to ensure the projects were successfully gives a value to the public without compromising their profit and improving the sustainability of the construction project.