Theoretical And Empirical Analysis Of Risk Allocation In Design-Build And EPC/Turnkey Projects

The Design-Build and EPC/Turnkey prevail in the construction industry around the world for shorter period, lower construction cost and less disputes. The improper risk allocation between the client and the general contractor in Design-Build and EPC/Turnkey projects is the important reason for poor project resource optimization, even project failure.Based on risk management theory and economics theory, this thesis aims to propose a proper risk allocation model from the perspective of the overall project performance.First the basic theories were analyzed, which are the project risk management theory and contract theory in economics. The two important branches from the contract theory were selected. Then the objective attributes (characteristics, project context, contract relations, and contract types) and subjective attributes (project stakeholders'attitude against the risk) of Design-Build and EPC/Turnkey projects were studied and the risk factors classification framework was established. With this framework, risk allocation principles in Design-Build and EPC/Turnkey projects are analyzed based on risk and contract theory. Then the theoretical model of risk allocation in Design-Build and EPC/Turnkey projects is put forward. With the reference of Conditions of Contract for Plant and Design-Build issued by FIDIC and a large Design-Build petroleum project, the model is analyzed.