Abdelhalim Boussabaine

Risk Pricing Strategies for Public-Private Partnership Projects

• Gebundenes Buch

Produktbeschreibung

The complexity of public-private partnership project procurement requires an effective process for pricing, managing and appropriate allocation of risks. The level at which risk is priced and the magnitude of risks transferred to the private sector will have a significant impact on the cost of the PPP deals as well as on the value for money analysis and on the section of the optimum investment options.

The construction industry tends to concentrate on the effectiveness of risk management strategies and to some extent ignores the price of risk and its impact on whole life cost of building assets. There is a pressing need for a universal framework for the determination of fair value of risks throughout the PPP procurement processes.

Risk Pricing Strategies for Public-Private Partnership Projects addresses the issues of risk pricing and demonstrates the use of a coherent strategy to arrive at a fair risk price. The focus of the book is on providing risk pricing strategies to maximise return on risk retention and allocation in the procurement of PPP projects. With its up-to-date coverage of the latest developments in risk pricing and comprehensive treatment of the methodologies involved in designing and building risk pricing strategies, the book offers a simple model for pricing risks.

The book follows a thematic structure: PPP processes map; Risk, uncertainty and bias; Risk pricing management strategies; Risk pricing measurement and modelling; Risk pricing at each of the project life cycle stages - and deals with all the important risk pricing issues, using relevant real-world situations through case study examples. It explains how the theory and strategies of risk pricing can be successfully applied to real PPP projects and reflects the broad understanding required by today's project risk analysts, in their new and important role in PPP contract management.

Produktdetails

• Innovation in the Built Environment
• Verlag: Wiley & Sons
• 1. Auflage
• Seitenzahl: 288
• Erscheinungstermin: 16. Dezember 2013
• Englisch
• Abmessung: 246mm x 173mm x 18mm
• Gewicht: 698g
• ISBN-13: 9781405177924
• ISBN-10: 1405177926
• Artikelnr.: 38030125

Autorenporträt

Halim Boussabaine, School of Architecture, University of Liverpool

Inhaltsangabe

Preface ix Chapter 1 Mapping of the PPP's Processes and Concepts 1 1.1
Introduction 1 1.2 Rationale for PPPs 2 1.3 key stages in the PPP
procurement process 7 1.4 Financing PPP projects 12 1.5 Rationale for value
for money and risk transfer in PPPs 16 1.6 PPP project structure 19 1.7
Payment mechanisms in PPPs 25 1.8 PPP emerging issues 28 1.9 Summary 29
References 30 Chapter 2 Uncertainty in Pricing Risk 31 2.1 Introduction 31
2.2 Concepts of Risk and uncertainty 31 2.3 Relationship between risk and
uncertainty 44 2.4 Attitudes to risk and uncertainty 46 2.5 Variability and
uncertainty 48 2.6 Quantifying uncertainties in risk pricing 50 2.7
Taxonomies of uncertainty 53 2.8 Pricing risk under uncertainty 54 2.9
Summary 55 References 55 Chapter 3 Bias in Risk Pricing 59 3.1 Introduction
59 3.2 Risk bias theories 60 3.3 Sources of bias 66 3.4 Managing bias 81
3.5 Summary 87 References 87 Chapter 4 Management Strategies for Risk
Pricing 91 4.1 Introduction 91 4.2 Principles of risk pricing strategies 92
4.3 Risk pricing management strategies 95 4.4 Value gain and loss from risk
retention 97 4.5 Risk retention analysis 100 4.6 Resources capability for
risk control 103 4.7 Summary 105 References 106 Chapter 5 Framework for
Pricing PPP Risks 107 5.1 Introduction 107 5.2 Framework for pricing
construction risks 108 5.3 Strategies for risk costing 114 5.4 Risk pricing
in PPP transaction 119 5.5 The choice of the discount rate in risk costing
129 5.6 Summary 135 References 136 Chapter 6 Risk Measurement and Modelling
139 6.1 Introduction 139 6.2 Quantifying risks 140 6.3 Probability
distributions for risk costing quantification 146 6.4 Risk analysis Methods
153 6.5 Selecting a risk analysis technique 162 6.6 How to build a risk
pricing BN model 164 6.7 Building risk price models using Monte Carlo
simulation 169 6.8 Summary 172 References 172 Chapter 7 Risk Allocation
Networks in PPP Contracts 175 7.1 Introduction 175 7.2 Risk systems in PPP
contracts 178 7.3 Modelling the parameters of the risk allocation network
180 7.4 The structure of risk allocation networks in PPP contracts 181 7.5
Modelling the structure of the risk allocation network 185 7.6 The
characteristics of a typical PPP risk allocation network 186 7.7 Key
observations 191 7.8 Summary 192 References 193 Chapter 8 Pricing
Development and Construction Risks 195 8.1 Introduction 195 8.2 Overview of
development and construction risks 196 8.3 Strategies for mitigating and
managing development and construction risks 209 8.4 Pricing development and
construction risks 214 8.5 Summary 218 References 219 Chapter 9 Pricing
Operational Risks 221 9.1 Introduction 221 9.2 Overview of operational
risks 221 9.3 Strategies for mitigating and managing operational risks 228
9.4 Pricing operational risks 233 9.5 Operational risks pricing example 235
9.6 Summary 241 References 241 Chapter 10 Financial Risk Assessment in PPP
Projects 243 10.1 Introduction 243 10.2 Emergence of risks in project
finance 244 10.3 Risk network concepts 246 10.4 Project finance cash Flow
risk network 247 10.5 Assessment results 256 10.6 Summary 260 10.7
Acknowledgements 261 References 261 Index 263