Accounting for social risks in the implementation of public-private partnership projects in the construction sector

Background. Public-private partnership (PPP) is an effective mechanism for interaction between the state and business, the volume of PPP agreements and concessions is growing every year. The construction sector is characterized by the greatest capital intensity and investment attractiveness for PPP projects. The development of project activities requires improvement of the risk management system. The risk category in PPP, recorded in regulatory documents, does not fully cover the risk consequences. In the article, risk in PPP is considered as a measurable or objectified uncertainty expressed in the possible formation of losses and damage to PPP projects, which is manifested in changes in the income and expenses of the parties to the project, changes in the overall result of the project, changes in the project timing. Subject‑subject relations arising in the process of initiation and implementation of PPP projects imply the presence of not only public and private partners, but also the population as a participant in the PPP. Most studies of risks in PPP are focused on groups of financial, economic and legal risks. It is noted that the social factor is not taken into account in the risk management system. In the article, social risk is proposed to be understood as an objectified uncertainty expressed in the possible formation of losses and damage to PPP projects, arising from social contradictions. Social contradictions in the initiation and implementation of PPP projects increase the likelihood of adverse consequences for projects and are expressed in the mismatch of interests and actions of PPP subjects. Purpose. Defining the place and role of social risks in public-private partnerships system. Methodoly in article general scientific methods of analysis, synthesis and generalization were used. Results. Identified characteristics of social risks arising during the initiation and implementation of PPP projects in the construction sector. Practical implications. The obtained results are advisable to apply in improving the risk management system in PPP in the construction sector.