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