Factor analysis of risk allocation criteria (RAC) in public-private partnership (PPP) projects: A case of New Zealand
The utilization of Public Private Partnerships (PPPs) has become widely prevalent as an innovative approach for procuring public infrastructure projects. Risk transfer/allocation is one of the main reasons for this widespread adoption and considered a critical success factor for a PPP. Given the im...
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| Format: | Article |
| Language: | English |
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UTS ePRESS
2024-09-01
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| Series: | Construction Economics and Building |
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| Online Access: | https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/9021 |
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| _version_ | 1846118179500195840 |
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| author | Nasir Rasheed Wajiha Shahzad James Rotimi |
| author_facet | Nasir Rasheed Wajiha Shahzad James Rotimi |
| author_sort | Nasir Rasheed |
| collection | DOAJ |
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The utilization of Public Private Partnerships (PPPs) has become widely prevalent as an innovative approach for procuring public infrastructure projects. Risk transfer/allocation is one of the main reasons for this widespread adoption and considered a critical success factor for a PPP. Given the importance of equitable risk allocation, this study identified and analysed 10 key risk allocation criteria. Experts with experience in PPP projects in New Zealand were surveyed through an empirical questionnaire to obtain industry-wide data. Mean score analysis and factor analysis were then used to analyse the collected data. In order to ensure the validity of the analysis results, appropriate statistical tests such as Cronbach’s Alpha, Kaiser-Meyer-Olkin (KMO) statistic and Bartlett’s test of Sphericity were conducted. Result indicate that the most important criteria for risk allocation are “risk foresight”, “minimize risk loss” and “response to risk”. Furthermore, factor analysis showed that the identified RAC can be classified into three component groups namely “risk management expertise”, “core risk management capability” and “risk management strategy”. This study aims to provide PPP stakeholders with useful insights into the most effective measures for achieving equitable risk allocation. To achieve this, the study recommends to consider the risk management capabilities of both the public and private sectors in light of the identified RACs/groupings. The results of the study are expected to assist PPP stakeholders in developing strategies that can enhance risk management and achieve a fair distribution of risks.
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| format | Article |
| id | doaj-art-2bc3c46f9c52463ebab4b5bedb2ddc24 |
| institution | Kabale University |
| issn | 2204-9029 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | UTS ePRESS |
| record_format | Article |
| series | Construction Economics and Building |
| spelling | doaj-art-2bc3c46f9c52463ebab4b5bedb2ddc242024-12-18T05:10:02ZengUTS ePRESSConstruction Economics and Building2204-90292024-09-01244/510.5130/AJCEB.v24i4/5.9021Factor analysis of risk allocation criteria (RAC) in public-private partnership (PPP) projects: A case of New ZealandNasir Rasheed0Wajiha Shahzad1James Rotimi2{'en_US': 'School of Built Environment, Massey University, Albany, 0632, Auckland'}School of Built Environment, Massey University, Albany, 0632, AucklandSchool of Built Environment, Massey University, Albany, 0632, Auckland The utilization of Public Private Partnerships (PPPs) has become widely prevalent as an innovative approach for procuring public infrastructure projects. Risk transfer/allocation is one of the main reasons for this widespread adoption and considered a critical success factor for a PPP. Given the importance of equitable risk allocation, this study identified and analysed 10 key risk allocation criteria. Experts with experience in PPP projects in New Zealand were surveyed through an empirical questionnaire to obtain industry-wide data. Mean score analysis and factor analysis were then used to analyse the collected data. In order to ensure the validity of the analysis results, appropriate statistical tests such as Cronbach’s Alpha, Kaiser-Meyer-Olkin (KMO) statistic and Bartlett’s test of Sphericity were conducted. Result indicate that the most important criteria for risk allocation are “risk foresight”, “minimize risk loss” and “response to risk”. Furthermore, factor analysis showed that the identified RAC can be classified into three component groups namely “risk management expertise”, “core risk management capability” and “risk management strategy”. This study aims to provide PPP stakeholders with useful insights into the most effective measures for achieving equitable risk allocation. To achieve this, the study recommends to consider the risk management capabilities of both the public and private sectors in light of the identified RACs/groupings. The results of the study are expected to assist PPP stakeholders in developing strategies that can enhance risk management and achieve a fair distribution of risks. https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/9021Public-private-partnerships, risk management, risk allocation criteria, factor analysis |
| spellingShingle | Nasir Rasheed Wajiha Shahzad James Rotimi Factor analysis of risk allocation criteria (RAC) in public-private partnership (PPP) projects: A case of New Zealand Construction Economics and Building Public-private-partnerships, risk management, risk allocation criteria, factor analysis |
| title | Factor analysis of risk allocation criteria (RAC) in public-private partnership (PPP) projects: A case of New Zealand |
| title_full | Factor analysis of risk allocation criteria (RAC) in public-private partnership (PPP) projects: A case of New Zealand |
| title_fullStr | Factor analysis of risk allocation criteria (RAC) in public-private partnership (PPP) projects: A case of New Zealand |
| title_full_unstemmed | Factor analysis of risk allocation criteria (RAC) in public-private partnership (PPP) projects: A case of New Zealand |
| title_short | Factor analysis of risk allocation criteria (RAC) in public-private partnership (PPP) projects: A case of New Zealand |
| title_sort | factor analysis of risk allocation criteria rac in public private partnership ppp projects a case of new zealand |
| topic | Public-private-partnerships, risk management, risk allocation criteria, factor analysis |
| url | https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/9021 |
| work_keys_str_mv | AT nasirrasheed factoranalysisofriskallocationcriteriaracinpublicprivatepartnershippppprojectsacaseofnewzealand AT wajihashahzad factoranalysisofriskallocationcriteriaracinpublicprivatepartnershippppprojectsacaseofnewzealand AT jamesrotimi factoranalysisofriskallocationcriteriaracinpublicprivatepartnershippppprojectsacaseofnewzealand |