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.Sustainability 2019, 11, 5332 2 of 16 relationships on how partnering associated with risk management in generating improved project outcomes [14].Therefore, the aim of this research is to reveal an interdisciplinary link between partnering, risk management, interface management and project performance by establishing a conceptual model, which provides a structure that reveals causal relationships among them from the perspective of evolutionary game.
Literature Review
Partnering in International ProjectsPartnering principles have been introduced to improve project delivery efficiency in the construction industry [15]. It is crucial for contractors to use a partnering approach in pursuing international competitive advantages and manage their relationships with stakeholders properly because they need to handle complex relationships to deal with the risks in projects [16]. For instance, partnering helps fully understand the expectations and requirements of clients, and seeks common goals while ensuring the efficiency of EPC project delivery. Partnership using well-defined risk/reward allocations can provide participants with strong motivations and the resources necessary to achieve EPC project goals [2,17,18].Contractors can establish partnership relationships with other participants to facilitate open communication for integration of the necessary information efficiently. To construct partnering relationships with participants in delivery of EPC projects, contractors need to increase their level of application of partnering CSFs, such as attitudinal factors (common objective, commitment, fairness, attitude and trust) and open communication factors (openness, effective communication, team building, problem resolving and timely response), thereby facilitating sharing ideas, information, knowledge and technology among participants for improving interface management and risk management [15].
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