Negotiation based project risk management framework

Author

Guanjie Jiang ; Min Huang ; Ruiyou Zhang ; Xingwei Wang

Author_Institution

State Key Lab. of Synthetical Autom. for Process Ind., Northeastern Univ., Shenyang, China

fYear

2014

fDate

May 31 2014-June 2 2014

Firstpage

130

Lastpage

134

Abstract

In view of the distribution feature of decision-making between owner and contractors, a novel decision-making framework based on negotiation is proposed. The owner and contractors negotiate on completion time in order to obtain the expected completion probability of a project with the constraint of cost. Considering the dynamic property of risks, Markov process is used in each subproject. The evaluation mechanism of the owner is presented based on program evaluation and review technique (PERT) and negotiation tactics are designed. Numerical analysis shows that this framework can achieve effective risk management.

Keywords

Markov processes; contracts; decision making; numerical analysis; risk management; Markov process; PERT; completion probability; contractors; decision making framework; distribution feature; effective risk management; evaluation mechanism; negotiation based project risk management framework; negotiation tactics; numerical analysis; program evaluation and review technique; Assembly; Decision making; Educational institutions; Markov processes; Probability; Proposals; Risk management; Markov Process; Negotiation; PERT; Risk Management;

fLanguage

English

Publisher

ieee

Conference_Titel

Control and Decision Conference (2014 CCDC), The 26th Chinese

Conference_Location

Changsha

Print_ISBN

978-1-4799-3707-3

Type

conf

DOI

10.1109/CCDC.2014.6852131

Filename

6852131