Risk Assessment and Transaction Cost Incorporated Budgeting for Construction Joint Ventures

Abstract:

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Proper budgeting and cost control are essential efforts for a successful project. The task has been conventionally supported by sophisticated project cost estimation from a production perspective. However, from a transaction cost perspective, the alliance risks with inter-organizational partners in joint venture (JV) projects should always be considered for budgeting. Aiming to assess the risks of a JV project, this paper proposes a transaction cost incorporated budgeting model with multi-criteria utility analysis. A case study is presented to demonstrate the applications of the proposed model which would help project managers to identify a proper risk contingency for practical project budgeting in construction JVs. The rationale of estimating the alliance risks with different partners is also enhanced by the proposed model.

Info:

Periodical:

Advanced Materials Research (Volumes 255-260)

Edited by:

Jingying Zhao

Pages:

3878-3882

DOI:

10.4028/www.scientific.net/AMR.255-260.3878

Citation:

M. R. Yan "Risk Assessment and Transaction Cost Incorporated Budgeting for Construction Joint Ventures", Advanced Materials Research, Vols. 255-260, pp. 3878-3882, 2011

Online since:

May 2011

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Price:

$35.00

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