[Risk Allocation in Partnering Construction Contracts]

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of risk allocation in a holistic context. The main focus of the research is on risk allocation and its relation with Construction Industry, running and functioning in the United Kingdom. The research also analyzes many aspects of “risk allocation in construction projects” and tries to gauge its effect on the feasibility of construction in the world of construction and infrastructural development. Finally the research describes various factors which are responsible for risk allocation, making it necessary for us individuals to disseminate and create portfolios for effective fund management and performing minimum wastage of funds and sources, which shall aid timely and cost-effective completion of construction projects.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 01: INTRODUCTION1

1.1 Key definitions1

1.2 Issues2

1.3 Aims and Objectives4

1.4 Limitations of research4

CHAPTER 02: LITERATURE REVIEW5

2.1 Risk in Construction Industry5

2.2 Risk Allocation in changes of work5

2.3 Risk allocation in site conditions changes in contract6

Partnering Construction Contracts7

CHAPTER 03: METHODOLOGY9

3.1 Research Design9

3.2 Research Ethics9

3.3 Literature selection criteria9

3.4 Search technique10

3.5 Keywords used10

3.6 Theoretical framework10

3.7 Research instruments10

CHAPTER 04: DISCUSSION AND ANALYSIS11

CHAPTER 05: CONCLUSION12

REFERENCES13

CHAPTER 01: INTRODUCTION

Men act in their own interest is the axiom of economics postulated by Adam Smith in his enquiry Wealth of the Nations through which he is widely attributed as the founder of the systematic academic study of Economics, in the examination of logical necessary implications of human choice. It may be of note to emphasize that in this investigation “own interest” is referred to with no ethical connotation to it but rather a declaration of description that men, will pursue in decision making such that which is perceived to be of benefit to them .

With the advent of the Global Financial Crisis in late 2000 and the subsequent credit crisis in which the world markets are currently bedeviled by, major construction projects have been frozen in the United Kingdom and any future developments put on hold. It is expected that there will be a concerted effort from both clients and contractors to form relational contracting mechanisms in ever greater extents for any approved large scale construction projects.

Even though, under the climate of these turbulent financial markets that these radical changes to contracting mechanisms may precipitate, the theoretical, conceptual and legal implications underpinning these arrangements and their inevitable effects to the whole supply chain in the construction industry are yet to be articulated (Bower 2012).

1.1 Key definitions

A construction project definition captures the elements of a set of planned activities pursued with a start and end in relation to time and sequence, to an ...