Analytic Network Process Approach to Risk Allocation of EPC Projects Case Study: Gas Refinery EPC Projects in Iran

Abstract:

Risk allocation is the most significant factor in risk management. Earlier research has shown that risk allocation is essential to achieve success in construction projects. Risk allocation may fail to be achieved due to lack of a mechanism for joint risk management. Successful optimal risk allocation requires one to identify and evaluate the risk allocation criteria, which interact and overlap with each other and can lead to significant variation in the decision outcome in risk allocation. This study aims to allocate the risks in EPC projects using the analytic network process (ANP) method. The ANP approach is preferable in identifying the problems of interdependence and feedback among various criteria factors. The method utilizes data that are collected through a literature review, interviews, and a questionnaire distributed to EPC project experts. The results have shown that 12 risks are allocated to the developer, 9 risks are shared between developer and contractor, and 12 risks are allocated to the contractor. In conclusion, ANP is found to be suitable in analyzing the feedback and interdependencies among risk allocation criteria.

• Periodical: Applied Mechanics and Materials (Volume 567)
• Pages: 654-659
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.567.654
• Online since: June 2014
• Authors: Alireza Valipour*, Hadi Sarvari, Nordin Yahaya, Md Noor Norhazilan, Seyed Meysam Khoshnava
• Keywords: ANP Method, Criteria, EPC Project, Risk Allocation

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