Enhancing Risk Management by Partnering in International EPC Projects: Perspective from Evolutionary Game in Chinese Construction Companies

Yujing Yang, Wenzhe Tang, Wenxin Shen and Tengfei Wang
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Yujing Yang: Department of Civil Engineering, Shanxi University, Taiyuan 030006, China
Wenzhe Tang: Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China
Wenxin Shen: Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China
Tengfei Wang: Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China

Sustainability, 2019, vol. 11, issue 19, 1-16

Abstract: Research on risk management in Engineering–Procurement–Construction (EPC) projects has received increasing attention. It is essential to integrate the resources of all participants into the risk management process optimally from the perspective of evolutionary games. The conceptual risk management model in the delivery of international EPC projects is developed in the study. Based on the data from an industry survey, the model has been validated. The path analysis shows that partnering not only directly contributes to interface management and risk management, thereby improving project outcomes, but also has a positive impact on risk management through enhanced interface management. The case study illustrates how partnering has a close linkage with interface management and risk management to achieve superior project performance, confirming the analysis of evolutionary game. The results suggest that contractors’ success in applying partnership can play an exemplary role for other contractors, and governments can create a favorable environment to stimulate participants using win–win philosophy for better infrastructure development.

Keywords: partnering; risk management; interface management; evolutionary game; project performance; international EPC project (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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