Risk Assessment and Transaction Cost Incorporated Budgeting for Construction Joint Ventures

Min Ren Yan

doi:10.4028/www.scientific.net/AMR.255-260.3878

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A Model of Construction Quality Intelligent Control for Large-Scale Complex Project
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Analysis of Contract Dispute Settlement Mode for International Project Based on DAB
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Risk Assessment and Transaction Cost Incorporated Budgeting for Construction Joint Ventures
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Communication in the Cladding Supply Chain
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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 255-260Risk Assessment and Transaction Cost Incorporated...

Risk Assessment and Transaction Cost Incorporated Budgeting for Construction Joint Ventures

Abstract:

Proper budgeting and cost control are essential efforts for a successful project. The task has been conventionally supported by sophisticated project cost estimation from a production perspective. However, from a transaction cost perspective, the alliance risks with inter-organizational partners in joint venture (JV) projects should always be considered for budgeting. Aiming to assess the risks of a JV project, this paper proposes a transaction cost incorporated budgeting model with multi-criteria utility analysis. A case study is presented to demonstrate the applications of the proposed model which would help project managers to identify a proper risk contingency for practical project budgeting in construction JVs. The rationale of estimating the alliance risks with different partners is also enhanced by the proposed model.

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Periodical:

Advanced Materials Research (Volumes 255-260)

Pages:

3878-3882

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.255-260.3878

Citation:

Cite this paper

Online since:

May 2011

Authors:

Min Ren Yan

Keywords:

Cost Estimation, Joint Venture, Project Management (PM), Risk, Strategic Alliance, Utility Theory

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