Multidimensional modelling of complex and strategic construction projects for a more effective risk management

Abstract

Risk management is a growing concern in the field of construction management. Public–private partnership (PPP) procurement is recent and was introduced in France in 2004. This type of construction project is complex and may have a very long life-cycle, a complex organizational plan, contractual complexities, macro-environmental factors and a strategic importance. An objective, reliable and practical risk management process is essential for establishing an efficient risk management framework and reaching the project objectives. However, traditional methods are rather limited for managing the risks of complex construction projects. In this research study, a formalized and systematic multidimensional modelling of risk management process (MMRMP) is developed. This process aims to identify systematically the risk events, assess them, determine the critical risks and develop action plans in order to mitigate, eliminate or transfer the negative risk impacts. The MMRMP proposes a dynamic risk management approach in parallel with the project management through the project life-cycle, adapted to the evolving nature of the project. The model is developed based on the multi-dimensional analysis of several PPP projects in France, and in partnership with a major construction company to favour its use in real operation conditions. The process is primarily developed for PPP projects in general, but the model can be replicated in a specific type of complex and strategic construction project, and contractual frame. A user-friendly prototype interface has been developed to apply the process for real construction projects. How it works in practice is illustrated through a PPP project in France.