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Airports projects, amongst other construction projects, are considered very complex as they face a number of challenges that inevitably cause them to become exposed to risks. In Saudi Arabia, the sector of aviation is considered an important sector owing to the fact that, on an annual basis, it is recognised as the first destination for Muslims. However, it has been found that projects continue to be delivered with a significant number of time and cost overruns. Moreover, the absence of a risk allocation framework has been identified. Hence, the aim of the research underpinning this thesis is to develop a framework detailing how such risks can be allocated properly in the specific context of aviation construction projects in Saudi Arabia. A robust methodology that been designed and outlined in the research—which notably includes the use of semi-structured interviews and questionnaires with highly experienced senior project managers representing GACA, their contractors and consultants. The aim of conducting the interviews was twofold. Firstly, to identify risks associated with GACA construction projects. Secondly, to examine the risk allocation practice that is been carried by GACA. While, the questionnaire method was adopted to identify the importance of the risks identified, based on quantifying each risks’ probability of occurrence and impact. In addition, to test the perception of risk allocation within GACA construction projects. As a result, Fifty-four risks are associated with the construction of aviation projects in Saudi Arabia, with the decision on such an allocation of risks within GACA found to be based on a number of criteria that are subjective in nature, such as the authority of project managers, experience from different projects and so on, coupled with the absence of well-defined principles of risks allocation. Importantly, a number of risks have been found to have undecided allocation, with no allocation on any risk found to be shared amongst parties. A framework of risk allocation was developed in an effort to replace the current practice applied within GACA and their projects. This framework is presented in flow chart to make it easy to follow its steps. It incorporates a well-defined strategy that imposes GACA, as a client, to perform a solid risk management practice, taking into consideration the best practice of risk- allocation principles. It further allows GACA contractors to make their decision on whether the allocation made by GACA should be accepted, or alternatively whether to withdraw from the bidding otherwise. As a means of validating the framework, a number of interviews were carried out with professionals representing GACA, contractors and consultants. The research is the first of its nature to focus on an existing problems of risk allocation practice within the aviation sector in the country and accordingly solving these problems by introducing a framework for a proper allocation of risks. In this sense, the study is believed to make a contribution to knowledge as it provides a tool from which GACA can benefit with regards their current issue of risks-allocation.

The Public-Private Partnership (P3 or PPP) model has been proposed as an alternative delivery system to address funding shortage problems associated with large-scale projects. Appropriately allocating and managing risks among project participants is critically important for a P3 project's success. This thesis focuses on one of the tools to manage revenue risk, the revenue guarantee, where a guarantor compensates a concessionaire with a predetermined amount of revenue in the event of a revenue shortfall. It is a form of real option—specifically a put option if a premium is paid for the downside protection or a collar option if potential upside revenue is traded for the protection. Previous research has explored the purpose and valuation of revenue guarantee options. This study focuses on the feasibility of utilizing a guarantee in US P3 highway projects through preparatory study and field investigation. In the preparatory phase, the work examines existing revenue risk management methods and how revenue guarantee options supplement them while also proposing an implementation framework. Additionally, it discusses a new option type,a collar option, including its concept, benefits, applicability, and valuation. In the field investigation phase, the preparatory work is synthesized into interview protocols that are used to seek market perspectives on revenue risks and revenue guarantee feasibility. Twenty people representing government officials, concessionaires, financial advisors and lending institutions were interviewed. The interview results indicated that a revenue guarantee shows promise as a viable tool, and the government should be willing to provide one. The decision to utilize a revenue guarantee depends on funding method selection, a public agency's institutional capacity, and the effectiveness of alternative risk mitigation approaches. Suggestions for implementation, such as applicable projects and a guarantee triggering criterion, are also provided. / Ph. D.

This study is an examination of how English courts have approached, or are likely to approach - and therefore, the effectiveness of - attempts by the parties to oil and gas contracts to allocate risks arising from the activities which form the subject matter of their respective contracts inter se. The study utilises petroleum industry standard form offshore drilling contracts in the United Kingdom, Canada and the United States of America as the context for this analysis, and examines the risks associated with drilling and other incidental operations, in the light of catastrophic events such as the Macondo disaster in the Gulf of Mexico and the Montara disaster in the Timor Sea. Drawing from the Economic Theory of Law espoused by Richard Posner, which correlates market behaviour, resource allocation and the legal system, and so conceptualises risk from a cost and utility perspective, the study will show that it is actually the economic consequences of the occurrence of an event that are being allocated, and that the entire notion of risk allocation is a determination of how the economic cost of the occurrence of the particular consequence will be borne by the parties to the contract. The study will conclude with a comparative analysis of risk allocation in the different model contracts, and an opinion on the success/effectiveness of the model contracts, as tools used by parties for risk allocation inter se, in response to the challenges created by legislative and judicial intervention. Justification for this opinion will be given, with reference to relevant case law and statutes in the different jurisdictions. Recommendations will be made on how the risk allocation structure can be improved, either by reference to other approaches the parties could adopt, or by clarifying ambiguities in the current approach (where applicable), and proposing a balance in the instances in which, from the study's perspective, the allocation formula is skewed, either due to the imbalance of power between the parties or by the interference of external forces such as the courts and legislature.

It has been suggested that projects in the construction industry are subject to risks more than other industries. However, there is often little parity in allocation of risks in the construction industry. Usually, project participants allocate risks by aversion where owners tend to shift risks to the primary contractor, who in turn transfers them to the subcontractors. As a result of this, risks are not necessarily allocated/ re-allocated to the party that is best able to manage them efficiently and effectively. Risk allocation can significantly influence the behavior of the project participants and hence affects project schedule, cost and performance. Inappropriate risk allocation has led to adversarial relationships between contracting participants and has consequently increased project cost. The objective of this dissertation is to shed light on the current practices of risk allocation in the construction industry. The dissertation consists of three sections. The first section investigates and evaluates the problems of the current practice of risks allocation and their impacts on project performance. The second section investigates, identifies, and classifies barriers to optimal risk allocation. The third section looks into allocating construction risk from a more cooperative and rational perspective. The goal is to provide the construction industry with a rational decision-making mechanism that will provide an alternative to the current practice of typically allocating risks by aversion. To meet the objectives, structured survey questionnaires for Sections One and Two were used. The first survey found that the current practice of risk allocation has four major problems. These problems include: 1. Dispute, claims and tension leads to adversarial relationships. 2. Competitive relationship leads to aggressive relationships. 3. Subjective pricing of risk leading to higher contingency. 4. Allocation by aversion that leads to misallocation of risks. The second survey found thirteen barriers to optimal risk allocation, which were classified into three main categories: behavioral, technical, and organizational barriers. Lack of an efficient risk allocation mechanism ranks at the top of the identified barriers. These findings were linked, in causal-effects relationships, to formulate an analytic model for the current practice of risk allocation. This dissertation uses the research findings and the rational decision-making process to develop a practical mechanism for optimizing risk allocation. The developed mechanism was then fine-tuned and validated by a Delphi expert panel technique. The developed mechanism should aid construction industry professionals and construction project participants in making rational and economical risk allocation decisions to alleviate the identified above-mentioned problems, overcome the identified barriers, and improve project efficiency by minimizing the negative impacts of the current practice of risk allocation on project cost, schedule and overall project performance. / Graduation date: 2013 / Access restricted to the OSU Community at author's request from Jan. 4, 2013 - July 4, 2013

The purpose of this thesis is to analyze the notion of risk as set out in Issues Notes 1, in the document “Transfer Pricing Aspects of Business Restructurings: Discussion Draft for Public Comment”. Furthermore, the approach of this draft is compared with the authorized OECD approach, established in the 2010 Report on the Attribution of Profits to Permanent Establishments. German law on transfer pricing provisions will also be examined to see whether domestic provisions could make a good example in allocating risks, as a supplement to the guidance from the OECD. Issues Notes 1 has been subject for a debate as to how it should be interpreted and whether the provisions laid down in the document provide the tax authorities of contracting states too much room for subjectivity in determining whether risk allocation scenarios as set up by associated enterprises have economic substance. It has also been argued that Issues Notes 1 is an attempt by the OECD to align risk allocation under Article 9 of the OECD Model Convention with the authorized OECD approach, applicable to permanent establishments, because risk allocation under Article 7 is conducted by applying the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations by analogy. There are however crucial differences between associated enterprises and permanent establishments which makes this impossible. The guidance under Issues Notes 1 is insufficient, why the OECD should seek to further clarify the concepts regarding business restructurings. The German way of implementing domestic provisions is incompatible with the provisions of the OECD and Article 9 and therefore violates most of its tax treaties.

Any contractual operation has a risk, which can be assumed by one of the parties, as agreed. In this context, it is common for cases of delays due to concurrent causes imputable to both parties, which can generate a high difficulty when assigning the risk. In this article, the author explains, from a comparative perspective, the different possibilities of solution in front of cases related with the concurrent delay controversies. It analyzes the various doctrines developed both in the Civil Law tradition and in the Common Law. / Toda operación contractual conlleva un riesgo, el cual puede ser asumido por una de las partes según lo convenido. En ese contexto, es habitual que se presenten casos de demora (por causas concurrentes imputable a ambas partes, lo cual puede generar una gran dificultad al momento de asignar el riesgo. En el presente artículo, el autor explica, desde una perspectiva comparada, las diferentes posibilidades de solución frente a las controverisas relacionadas con la mora concurrente. Se analiza las diversas doctrinas desarrolladas tanto en la tradición del Civil Law como del Common Law.

Many construction projects suffer from mismanagement despite continuous improvement in the field of project risk management. With the construction boom in the Middle East, and especially the Gulf region, construction projects suffer from a high failure rate. The lack of the implementation of standard risk management methods in the construction industry of the Gulf region leads to construction projects that suffer from poor performance, delays, disputes and claims. In order to design a standard risk management model, there is a need for an in-depth study of the construction environment to lay down the foundation for designing a Standard Construction Risk Management Model in the future. This study aims to identify and assess risk factors during the construction phase of construction projects in the Gulf region focusing on two countries of the Gulf region – the State of Kuwait and Kingdom of Bahrain. The risk factors (RF) were identified and assessed and responsiblty shares were allocated to construction parties: clients, consultants and contractors. The research strategy was a Sequential mixed-method. It was adopted by means of interview surveys followed by a questionnaire. The study started with a qualitative approach in which eleven practitioners were interviewed to evaluate and validate a questionnaire. This was followed by questionnaires distributed to a representative sample of 140 consultants, 128 contractors and 139 clients in the State of Kuwait, in addition to 71 consultants, 99 contractors and 78 clients in the Kingdom of Bahrain, to assess the negative impact of the risk factors during the construction phase on the completion of construction projects. Parametric tests were used to analyse the collected data. Including, the Analysis of Variance (ANOVA) test, the independent-samples t-test, and Pearson correlation coefficient (r) test. The study revealed a difference in perception of the risk factors negative impact on project completion between Kuwait and Bahrain, Bahrain perceives highest degree of impact on projects. On the categories level, both countries agreed on the Finance category as the main factor threatening project completion, and the External category as having the least impact. In Kuwait, almost all parties agreed on the negative impact of all categories on project completion except contractors who have different perception on management category. Furthermore, clients and consultants held different perceptions on the impact of design category. Bahrain results reveal significant differences in perceptions on the impact of categories between clients and the other parties, however there are slight differences between consultants and contractors in all categories. The limitations of the study include only large contractors and consultants in Kuwait and Bahrain were included in the study. The study was limited to the construction phase of construction projects and only six categories of risk factors were included in the study and This research was based on practitioners and participants opinions rather than actual occurrences on projects.

Compared to other areas of Finance, the field of Project Finance is a relatively unexplored area for both empirical and theoretical research. And in particular, most of the research to date has focused more narrowly on risk management through financial instruments. From another point of view and by looking at different types of projects, Cross Border projects are usually considered 'high risk', mostly due to a lack of adequate overseas environmental information and overseas project experience. Given this setting, this research aims to explore risks attributed to Cross Border Project Financed projects and understand why South African companies should or should not use Project Finance for their Cross Border projects.There were two phases to the research. The first phase consisted of an analysis of literature on Project Finance, the Cross Border project context and Risk Management processes and, the further analysis of fourteen case studies where Cross Border projects have used Project Finance. This was with the aim of extracting risks and relevant allocation and mitigation methods. The second phase consisted of ten interviews with South African Project Finance experts, based on findings from phase one. This phase’s aim was to explore the practical risk allocation and mitigation methods and compare them to what was said in theory, making recommendations for further research into Project Finance in South Africa.The first phase resulted in a broad description of the theory of risks associated with Cross Border Project Financed projects and those specific risks and allocation or mitigation methods addressed in Cross Border projects that have used Project Finance as their financing vehicle. The second phase produced a comparative scheme between what is being addressed in theory as risk allocation and mitigation methods and what is being exercised in South African Project Financed projects. This comparison showed that Project Finance is a recommended financing vehicle for Cross Border projects provided that required due diligence and homework are done upfront. It was concluded that there is a gap between theory and practice in terms of risk allocation and mitigation methods developed for Cross Border Project Financed projects. This research provided a framework to introduce similarities and differences between theory and practice and ended up with a set of recommendations for further research into Project Finance. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Daily rhythms occur in numerous physiological and behavioral processes across an immense diversity of taxa, but there remain few cases in which mechanistic links between rhythms of trait expression and organismal fitness have been established. We construct a dynamic optimization model to determine whether risk allocation provides an adaptive explanation for the daily foraging rhythm observed in many species using the orb-weaving spider Cyclosa turbinata as a case study. Our model predicts that female C. turbinata should generally start foraging at lower levels of energy reserves (i.e., should be less bold) during midday when predators are most abundant. We also find that individuals’ foraging efficacy determines whether daily rates of encounters with predators or prey more strongly influences boldness under high risk. The qualitative model predictions are robust to variation in our parameter estimates and likely apply to a wide range of taxa. The predictions are also consistent with observed patterns of foraging behavior under both laboratory and field conditions. We discuss the implications of our study for understanding the evolution of daily rhythms and the importance of model predictions for interpreting empirical studies and generating additional hypotheses regarding behavioral evolution.