Risk management framework for build, operate and transfer (BOT) projects in Kuwait

Abstract

Successful implementation of build-operate-transfer (BOT), infrastructure projects is dependent on a full and thorough analysis of factors that include social, economic and political, amongst others. Alongside the financially focused evaluations, qualitative factors will also have a strong impact on the project and so require specific techniques for the analysis. This paper presents a new evaluation framework, based on the analytical hierarchy process technique, for use in assessing the most common and significant decision factors relating to risks in BOT projects. Consultations with an expert group identified a series of risk decision factors. The results produced twenty-eight critical Risk Factors, which have a particular impact on the risks of BOT projects. The project risk framework was constructed by classifying the factors into five categories. The framework was successfully validated using a BOT project case study. This research seeks to make a valuable contribution to the field by having developed and validated a new risk evaluation framework, focused on BOT projects in Kuwait.

Keywords:

• build/operate/transfer (BOT)
• construction management
• risk analysis
• risk management framework

Additional information

Notes on contributors

Khalid Fahad Al-Azemi

Khalid Fahad AL-AZEMI. He is a member of the Kuwait Society of Engineers, and a PhD Graduate of Wolfson School of Mechanical and Manufacturing Engineering, Loughborough University, UK, received his MSc in Engineering and Manufacturing Management from Coventry University, UK. His main research interest is risk management in buildoperate-transfer (BOT) infrastructure projects.

Ran Bhamra

Ran BHAMRA. A Senior Lecturer in Engineering Management in the Wolfson School of Mechanical and Manufacturing Engineering at Loughborough University. He has over 15 years of manufacturing industry experience in manufacturing engineering and management. His main research interests include organisational strategy, resilience and sustainability.

Ahmed F. M. Salman

Ahmed F. M. SALMAN. Assistant Professor of Construction Engineering and Management, BSc in Civil Engineering, from Zagazig University in Egypt in 1986, MSc in Construction Management from Zagazig University, Egypt in 1994, and PhD from, Zagazig University, Egypt, and Purdue University, USA “Joint Supervision grant”. His main research interest areas are in construction project management, Build-Operate and Transfer (BOT), construction engineering modeling and decision making, and international construction contracting.