Risk Allocation Modeling On Integrated Project Delivery

A reasonable risk-sharing is the basic premise of the successful implementationof Integrated Project Delivery model (Integrated project delivery, IPD). IPD isdifferent from the other projects in the pact of risk management."Risk-sharing,benefit sharing" is the feature of IPD. IPD risk sharing model can gain the overallinterests of the project, through the cooperation among several parties, risk sharingand reward sharing.In this paper, we make a survey among the project workers and scholars in relatedfields. We mainly analyze the state of project risk management, and risk attitudes ofthe parties to the project, so that I can provide some basis for the risk. At the sametime, this paper also analyzes the features of IPD, which provide the basis of risk andprofit sharing mechanism proposed for later. And analysis of the IPD projectimplementation process, the major risk sharing. The main purpose of this part is todetermine the risk categories in the risk-sharing mechanism later.Reasonable sharing of risk is an inevitable requirement for the application of IPD(Integrated Project Delivery). Based on the multilateral negotiations model, this paperanalyzes risk allocation of the IPD projects. In this paper, firstly, we propose the IPDrisk-sharing negotiation model as a basic assumption, and determine three elements ofthe negotiations: the threat point of the bargaining model, the bargaining power andthe level of worry on breakdown of negotiation; secondly, basing on the basis of theabove assumptions, we construct a multiplayer negotiation model involvingparticipant satisfaction and IPD risk-sharing mechanism, also we derive and analyzethe result of the negotiation model; finally, we verify the feasibility and rationality ofthe multilateral negotiation model through an example (case).