Management strategies towards risk handling at project initiation and implementation of complex projects

Abstract

With the trend in procurement systems from the traditional competitive tender to negotiated tender with a consortium or joint venture company, there is a growing need for the management of risks to be handled with greater care and depth. There are two levels of risk handling in these comp/ex projects, one between consortia partners and the second between the consortium and the client. There is growing need to link the risk management plan to the negotiation of contract to create a lasting partnership between the project participants. Contracts negotiated in isolation to the risk management study results, if at all conducted, fail to allocate the risks to the parties most capable or willing to take those risks and manage them. Contractors have to adapt to the innovative, long-term type contract. This paper discusses the management strategies of contractors who are major stakeholders in such ventures using a case study model.