Risk Management in Public Private Partnership Building Construction Projects

Abstract

The study examines risk management in Public Private Partnership (PPP) projects carried out in the federal capital city of Nigeria. A questionnaire survey approached was adopted in acquiring the data required for the analysis. A total of 155 copies of questionnaire were administered. The analysis shows that the public sector preferred to retain most political, legal and project selection risks, while the private sector preferred to retain most construction risk and operation risk. It was also established that both parties preferred to share the economic risks and market risks. The findings indicate that PPP is a good approach in building construction projects. Also, the findings show that adequate allocation of risk is necessary for the smooth implementation of any PPP model. The paper provides investors a better understanding of risk preferences among the stakeholders in the Nigerian construction industry so that they could better adjust and plan their strategies according to the specific risk factors and achieve better value for money when executing PPP projects.