University of Twente Student Theses
Private Sector Risk Management in the Construction Industry: A Study on Contractor Selection and Risk Allocation
Bokdam, E.H.S. (2025) Private Sector Risk Management in the Construction Industry: A Study on Contractor Selection and Risk Allocation.
|
PDF
1MB |
| Abstract: | The construction sector is complex and project-driven, involving multiple interdependent parties. Consequently, construction projects face risks such as cost overruns and quality issues. Despite the significance of these risks, there has been limited empirical research on risk management practices in the private sector, particularly regarding contractor selection and risk allocation. This study aims to fill this gap by examining how private sector clients manage these risks. A qualitative study was conducted, incorporating a literature review and a multiple case study of a contractor specialised in company premises. Contract analyses and interviews with both contractors and clients provided valuable insights into risk management strategies. The findings indicate that clients mitigate risks through contractor selection and contractual risk allocation. Key selection criteria include financial stability, technical and management capabilities, safety standards, and reputation. While reputation and previous collaborations are important, price often becomes a deciding factor. Various risks are typically transferred to contractors through contracts, with contractual securities such as penalties and guarantees ensuring compliance. Despite detailed agreements, both parties prefer collaboration over legal disputes. This study enhances the understanding of risk management practices in the private construction sector, addressing the existing research gap. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/105330 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Show download statistics for this publication
Show download statistics for this publicationRepository Staff Only: item control page