Stakeholder’s Perspective on Risks Allocation in Design and Build Projects in Malaysia

Abstract

Design and Build (DB) projects are prone with high risks. The appropriate risk allocation among contracting parties in Design and Build (DB) projects is an important and essential decision leading to the project performance. The establishment of risk allocation at early stage of the projects will contribute great impact to the project objective. It is required judgement and experiential knowledge of the construction experts to determine the appropriateness of risk allocation to the parties involved in DB projects. Therefore, this study has been carried out to investigate and determine the most responsible parties that should handle the risk in DB projects. A total of 170 responses from stakeholder’s (Client, Consultant and Contractor) were received and analysed by using descriptive statistics and Kruskal-Wallis test. Sixty-four risk allocation criteria were used and the results of these analyses shows that 41 risks allocated to the contractor, 9 risks allocated to the client, 6 risks allocated to the consultant, and 8 risks are undecided. There were 17 risks allocations were found with significant differences in between stakeholders on their perceptions. This paper is to help stakeholders define clearly their responsibilities on risks in DB projects and make a better decision in handling it.