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Owner's control and risks in various airport delivery methods

Author

Listed:
  • Ghavamifar, Kamran
  • Bakhshi, Payam
  • Touran, Ali

Abstract

Airport projects are sensitive in terms of security and control over operations. They are usually complex undertakings and require a comprehensive risk analysis. Many airport projects have a phased plan for expansion which equates to simultaneous operation and construction. These distinguishing characteristics affect the choice of project delivery method (PDM) as each PDM provides the airport with its own advantages and disadvantages in terms of risk, control and security. This paper studies the interactions of risk, control and security in airport projects and discusses these interactions in the context of major available PDMs, namely design-bid-build (DBB), design-build (DB) and construction manager at risk (CMR). Several interviews with airport authorities were conducted to ensure the validity of findings. This paper shows that there is no ideal delivery method that can facilitate risk transfer and security measures implementation while giving the owner a high level of control over the project with the lowest possible contract price. The trade-off between risk and control in airport projects is the main focus of the paper.

Suggested Citation

  • Ghavamifar, Kamran & Bakhshi, Payam & Touran, Ali, 2010. "Owner's control and risks in various airport delivery methods," Journal of Airport Management, Henry Stewart Publications, vol. 5(1), pages 40-50, September.
    • Handle: RePEc:aza:jam000:y:2010:v:5:i:1:p:40-50
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    More about this item

    Keywords

    delivery methods; risk; airport security; construction manager at risk; design-build;
    All these keywords.

    JEL classification:

    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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