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Corresponding Author

Gamal Marouf, Khaled

Subject Area

Civil and Environmental Engineering

Article Type

Original Study

Abstract

In many cases, due to the absence of risk allocation models, the owner tended to convey all risks to the contractor who attempted to transfer them to the suppliers and subcontractors. Such attitude is causing a series of conflicts and disputes which will eventually influence the success of the project. In this study, the risk factors associated with the implementation of roads projects were classified based on the responsibility and allocated to the party who can best control them as well as introducing the most effective risk management actions. The risk responsibility was introduced through classifying 88 identified risks into 7 responsibility groups. A Risk Allocation Model (RAM) was introduced for allocating the major risks to the suitable party (Owner, contractor, or shared responsibility between both). Furthermore, the model proposed the risk response to be assigned to each risk factor, i.e., the risk management action. In order to generate the RAM, the Delphi technique was adopted to allocate the risks to the appropriate party and to propose the proper risk response as well. The impacts on time, cost, and quality were determined and the top-ranked risks were identified based on the value of their Risk Factor Indices (RFI) values. The major risks were allocated based on Delphi results, 57% to the contractor, 10% to the owner while 33% were shared liability between both. Moreover, the percentages of risk management actions allocated to each risk factor were, the “risk control” represented 33%, and the “contract clause” represented 24%, However, both “avoidance” and “mitigation” represented 19% for each action while the “insurance” represented 5% only of the proposed risk responses. The proposed RAM shall help the decision-makers to take the proper decision in favor of the project and to compare between the projects as well.

Keywords

risk analysis, risk allocation, Responsibility, Egypt, roads activities, and Risk management

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