Risk Management Model for International Construction Joint Ventures
Publication: Journal of Construction Engineering and Management
Volume 125, Issue 5
Abstract
The current Asian financial crisis has put the role of risk management in the construction business into focus. For firms engaging in the international construction business, one of the most effective means of mitigating financial risks is through a joint venture (JV) with a local partner. There are, however, risks associated with an international construction JV. Based on a study by the writers on the risk factors and their mitigating measures, the most effective risk mitigating measures were categorized into eight groups. These are partner selection, agreement, employment, control, subcontracting, engineering contract, good relationship, and renegotiation. In this paper, a risk management model incorporating these measures was proposed. Three cases of international construction JVs were analyzed from the perspectives of the execution of these measures. It is hoped that this model would help construction firms in improving their decision-making process for their overseas ventures.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 125 • Issue 5 • September 1999
Pages: 377 - 384
History
Received: Nov 10, 1998
Published online: Sep 1, 1999
Published in print: Sep 1999
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