The evaluation on risk factors for public-private partnering project in Perak construction industry

Abstract

The purpose of this paper is to evaluate the risk factors of Public-Private Partnering (PPP) Project in the state of Perak, Malaysia. The existence of these risk factors for application of PPP projects would help the joint-venture projects between public and public sector, especially in Perak, to be able to investigate their current PPP projects practices and how they could be improved. Risk factors are identified by extensive literature review from previous study. Then, Delphi method is used to identify significant risk factors in Perak PPP practices and Analytical Hierarchy Process (AHP) approach is used for determining the ranking of risks for impact level of PPP projects. The Delphi method is employed by gather data from experts involve in PPP projects in Perak and the AHP approach is based on pair-wise comparison from expert’s judgement between each significant risk factor. The series of rounds that took place during the Delphi method increased the length of time required for data collection and the follow-up process. On the basis of the consideration given, the limited resources included time, financial resources, and technical availability for this study, small sample sizes has been used. The ranking of risk impact level for PPP projects could be useful for stakeholders involved in PPP project to create action plans to reduce risk, save cost and time, and increase quality of output for PPP projects. Based on the stydy, 40 risk factors have been identified and 11 factors is have been validated as significant risk factors. The finding of this study showed third party delay risk is the most important factors for impact level of risk in Perak PPP projects.