Risk management framework for the delivery of public-private partnership (ppp) housing construction project : case study of malaysia housing programme (pr1ma)

In many developing countries, Public-Private Partnership (PPP) has shown an increased reliance not only for infrastructure development but it has expanded in other sectors that including social housing (affordable houses). However, there are evident in previous literature on the accounts of lacking success reporting on the PPP housing approach, plus inadequacy of proper evaluation for PPP performance projects. This study aims to develop a risk management framework based upon the derived risk index determined by the analysis of quantitative Analytical Hierarchy Process (AHP), used as an indicator for the project performance score. This study is designed in three (3) phases by employing a mixed-method approach (qualitative and quantitative). Results demonstrated that a total 9 risk elements and 33 sub-elements obtained from the literature review and was validated during pilot study, by employing semi-structured interview, with eight (8) PPP housing construction experts. The data set for the study comprised thirty-three (33) construction experts involved in the PPP housing construction project. Results showed that natural hazard risk (geologic hazard risk) and economic and financial risk (inflation and interest rate) risk prevails as extreme external risks that influenced PPP housing project performance more than the market and social-politics risk. On the contrary, unreliable value for money and fluctuation in the currency exchange rate of economic and financial risks discovered as moderately influenced PPP housing project performance. Similarly, project-related risk (internal) in procurement and contractual risks that including (absence of transparency and accountability during the procurement process, and absence of a robust and clear agreement) discovered will moderately affect the delivery of PPP housing project performance risks. Akin in moderating the effect in technical faulty risks are (unforeseen ground condition and shortage of technical expertise). Eventually, it was found that internal risks monopolized the low risks occupied within the risk index of (0.000 < RI ≤ 0.050) including insufficient capacity in procurement and negotiation, frequent design change, design over-specification, poor quality workmanship, absence of specific PPP framework and inadequate PPP skills and knowledge leading to poor planning. While captured from external risks are financial incapacity of private partners, weak state intervention, and persistent land acquisition. Risk response strategy for the extreme risks categorized within (0.100 < RI ≤ 0.150) is by avoiding the risk and best to assign the risks to the private sector. On the contrary, risk response approaches suggested considering the medium risks categorized at interval (0.050 < RI ≤ 0.100), is to transfer the risks and shared within both parties, i.e. public and private. While for low risks lies between (0.000 < RI ≤ 0.050), all the risks best to accept and retained within the public sectors. Taken together, the development of risk response and risk mitigation plan that emerged from the risk index offered significant contribution which has gain a new understanding that risks with severe or low exposure can be reduced or avoided taking into account its strategic and effective response and mitigation approaches. The developed risk management framework is expected to assist the successful implementation of risk management for the PPP housing project and the success of the PPP housing project

Scoping review on procurement and contractual risks affecting PPP housing construction project in Malaysia

PPPs have been increasingly used in many countries as an alternative approach for the procurement of public facilities and services. Tendering periods in PPP project is significant since it represents a substantial ratio of overall project life-cycle principally the on-time and on-budget of the project. This paper conducted a scoping review in identifying the risk factors involved for the procurement and contractual risks in PPP housing construction projects. Five (5) risk factors that revolved on the procurement and contractual risk of PPP housing construction project. Among the identified risks are absence of transparency and accountability, absence of good governance, poor contract design, lack experience and knowledge of PPP mechanism, and insufficient capacity in procurement and negotiations. The obtained risk factors will act as a basis for further works on developing a risk management model that complementing the risk management plan

Flood Risk Management in Development Projects: A Review of Malaysian Perspective within the Sendai Framework for Disaster Risk Reduction 2015-2030

This study rigorously assesses Malaysia's development projects' alignment with the Sendai Framework for Disaster Risk Reduction 2015-2030 to identify synergies that can be improved, with a focus on flood risk management challenges and opportunities. The primary goal is to establish a flexible framework that integrates national and grassroots initiatives to advance economic, social, and environmental responsibility in conjunction with development objectives. As Malaysia undergoes rapid development, it is increasingly exposed to flood risks, exacerbated by climate change and urbanization. The Sendai Framework provides guidelines to mitigate these escalating threats. Nonetheless, there is a discernible gap in the existing literature that neither adequately evaluates the development patterns amplifying flood risks nor scrutinizes Malaysia's conformity with the Sendai Framework's objectives. Utilizing a systematic and scoping literature review in conjunction with a qualitative approach. The findings underscore that despite notable progress in Malaysia's flood risk management, significant deficiencies persist in policy execution, financial allocation, and public cognizance. This research refined the flood risk management conceptual framework to adapt to changing environmental contexts. Crucially, the proactive involvement of the federal government, local authorities from various Malaysian states, and the Department of Irrigation and Drainage Malaysia is indispensable in flood risk mitigation. While frameworks like the National Physical Plan 4 (NPP4) have improved, local planning must adapt them to local needs. Every development project should mandatorily embed a comprehensive flood risk assessment, ensuring alignment with national guidelines. This increases compliance and construction sector interest, elevating flood disaster risk reduction. This enables a future where innovation, professionalism, and knowledge improve life quality while prioritizing safety and sustainability

Multicriteria Decision Model for Road Construction Project

. Construction of roads plays an important role in linking one area to another, and also acts as a substance for the local economy. However, the limitation of study on the project performance towards the road infrastructure construction project requires more precise attention. Thus, it requires distinct responsiveness from contractors to evaluate and cope with the risks. This study aims to identify the project execution risk factors involved in the road construction project, reference to a current case study from a federal government project Public Work Department (PWD) on the East Coast of Malaysia: Upgrading 14.7 kilometre (km) federal road from the Pekan town to Sungai Miang. This study will begin with the identification of the project execution risk factors, utilizing an extensive review of the literature. Next, the gathered risk factors will go through a pilot phase validation interview with road construction experts from the public work department (PWD) and also construction practitioners that are involved directly in the project case study. Findings found seven (7) main project execution risk factors involved in the road construction project, which include resource risk, land acquisition issue, project management issue, technical risk, service utility issue, unforeseen ground condition, and force majeure risk. Among the seven (7) factors twenty-one (21) project execution risk sub-factors, were further explored that are crucial to the project. The main contribution of this study is the final multi-criteria decision model obtained from literature searching cross-referenced to the real case study that may be beneficial to the road construction project team specifically

Environmental sustainability and engineering performance of OPC-fly ash mortar mixs with different workability

Engineering performance and environmental sustainability of mortar mixes through the incorporation of different replacement levels of fly ash at 10%, 20%, 40% and 60% respectively were investigated. Samples of mortar were prepared by using four different water / binder ratios of 0.35, 0.40, 0.45 and 0.50, and were also prepared with different dosages of superplasticizer to give three ranges of workability that is normal, high and self-compacting spread flow. Engineering performance was assessed through compressive strength at 3, 7, 14, 28 and 90 days and the durability aspect through the water absorption test when mortar reached 28 days of age. Environmental performance or basically the sustainability aspect was assessed through the determination of CO2 footprint which denotes the environmental impact of each mix. The relationship that is to be investigated lies in the potential of CO 2 reduction in the mortar mixes, when cement was replaced by fly ash. Analysis of relative performance index for engineering performances and environmental sustainability found that regardless of the w/b ratios, for every type of flow, 60% replacement of fly ash gave the lowest relative performance index with an average of 50% less than OPC mortar. Cost analysis revealed that, cost per kg of mortar for self-compacting flow increased by 44% compared to normal flow. Optimum mix analysis found that with replacement of 10% to 20% of fly ash, gave a balance in environmental sustainability performance and engineering performance

Environmental sustainability and engineering performance of OPC-fly ash mortar mixes with different workability / Putri Zulaiha Razi

Engineering performance and environmental sustainability of mortar mixes through the incorporation of different replacement levels of fly ash at 10%, 20%, 40% and 60% respectively were investigated. Samples of mortar were prepared by using four different water / binder ratios of 0.35, 0.40, 0.45 and 0.50, and were also prepared with different dosages of superplasticizer to give three ranges of workability that is normal, high and self-compacting spread flow. Engineering performance was assessed through compressive strength at 3, 7, 14, 28 and 90 days and the durability aspect through the water absorption test when mortar reached 28 days of age. Environmental performance or basically the sustainability aspect was assessed through the determination of CO2 footprint which denotes the environmental impact of each mix. The relationship that is to be investigated lies in the potential of CO2 reduction in the mortar mixes, when cement was replaced by fly ash. Analysis of relative performance index for engineering performances and environmental sustainability found that regardless of the w/b ratios, for every type of flow, 60% replacement of fly ash gave the lowest relative performance index with an average of 50% less than OPC mortar. Cost analysis revealed that, cost per kg of mortar for self-compacting flow increased by 44% compared to normal flow. Optimum mix analysis found that with replacement of 10% to 20% of fly ash, gave a balance in environmental sustainability performance and engineering performance

Incorporation of Risk Index for Risk Response and Risk Mitigation Strategies of Public-Private Partnership (PPP) Housing Construction Project in Malaysia

The present work attempt to derive a risk index that causing performance failures among Public-private partnership (PPP) housing construction project, and to propose a risk response and monitoring strategy based on the risk index obtained. A total of thirty-three (33) respondent involved in the PPP housing construction assessing the risk elements employing the Analytical Hierarchy Process (AHP). Findings reveal that among the risks that were captured for high to extreme risks (0.100 < RI ≤ 0.150) are geologic hazard risk (0.125), and inflation and interest rate risk (0.116) whereas strategy proposed for both of the extreme risks are avoiding the risk and it best to be assigned the risks to the private sector. On contrary, results for moderate risks captured with unreliable value for money (0.066), fluctuation in currency exchange rate (0.058), absence of transparency and accountability during procurement process (0.084), absence of robust and clear agreement (0.077), unforeseen ground condition (0.058) and shortage of technical expertise (0.054) the strategy advocated for the moderate risk is to transfer the risks and shared within both parties i.e. public and private. Eventually, low risks occupied within the risk index of (0.000 < RI ≤ 0.050) are financial incapacity if private partners (0.034), weak state intervention (0.039), persistent land acquisition (0.039), insufficient capacity in procurement and negotiation (0.035), frequent design change (0.039), design over specification (0.023), poor quality workmanship (0.029), absence of specific PPP framework (0.046) and inadequate PPP skills and knowledge leading to poor planning (0.043) all the risks best to accept and retained within the public sectors. Taken together, the development of risk response and risk mitigation plan that emerged from the risk index offered significant contribution which has gain a new understanding that risks with severe or low exposure can be reduced or avoided taking into account its strategic and effective response and mitigation approaches

Selection of Method in Construction Industry by using Analytical Hierarchy Process (AHP)

Method in construction industry is very important in construction industry. The type of method used in construction may affect the quality of the project. Three distinct method that will be explore in this paper are traditional method, design and build and industrial building system (IBS). The traditional procurement method, known for its separate entity by the client, architect and contractor. The architect will responsible for design work, while contractor will responsible for construction work. Meanwhile, the design and build, whereby the contractor accepts responsibility for some or all of the design finally the IBS is when the construction built using pre-fabricated components. This paper aiming in identifying the criteria and suitability for selecting different kind of construction delivery method in construction by using the multi-criteria decision making (MCDM) namely the Analytical Hierarchy Process (AHP) method. Results provides some empirical finding which contractor for Grade 7 is suitable employing the industrial building system(IBS) method while the traditional method is appropriately for the Grade 1 contractor

Selection of contractor by Using Analytical Hierarchy Process (AHP)

Construction projects is progressing rapidly in Malaysia and have been as one of an important factor in contributing the boost of country's economic. Well known as a sectors with involvement of multiple players, thus, contractor selection is an important aspect in construction sector especially for client or parties involve that need to hire the best contractor to manage and complete their project within time-line and bearable cost couple with comprised quality. Furthermore, without a suitable method use in selection of contractor, it will affect the completion of whole project. This paper aiming in make use of the analytical hierarchy process (AHP) as a decision support model to select contractor. The AHP allows constructing decision as hierarchies and each criterion can be evaluated through weighted determined by the expert in construction field. The objectives of this study is to develop the main criteria used by client in selection of contractors also identify the weighted criteria by using AHP method from current practice in Malaysia. Besides, this method is one of the decision-making that is necessary to eliminate the risks of project failure due to poor contractor's performance

Selection of Best Consultant by using Analytical Hierarchy Process (AHP)

Consultant selection is a complex problem involving qualitative and quantitative multi criteria decision. In this study, an AHP-based consultant selection model is applied to develop and assist in decision making process to resolve the consultant selection problem in choosing the most favourable consultant's criteria combination. The Analytic Hierarchy Process (AHP) is an established decision method used to synthesize judgements and select the best alternative. When the objectives and scopes of study are set, then the data collection are made through two methods which are through literature review and pair-wise questionnaire survey. Information obtained from the questionnaire is interpreted into a simpler form and analysed by using the Expert Choice software. Results shows that financial capability of the consultant prioritize the decision of the selection while dominating the sub-criteria for selection is the profit made by the consultant within the last 3 years