TY - JOUR
T1 - Fuzzy synthetic evaluation of moral hazard and adverse selection of public private partnership projects
AU - Owusu-Manu, De-Graft
AU - Kukah, Augustine Senanu Komla
AU - Edwards, David John
AU - Ameyaw, Ernest Effah
PY - 2021/12/2
Y1 - 2021/12/2
N2 - Moral hazards and adverse selection (MHAS) lead to failure in public-private partnership (PPP) projects and delay in delivery outputs’ requirements. This research developed a fuzzy synthetic evaluation model (FSEM) to measure cause and effect level of MHAS of PPP construction projects. Mean score ranking and principal component factor analysis (PCFA) evaluated the causal factors. FSEM calculated overall cause and effect (OCE) level. PCFA analysis yielded three components: party and risk factors, incentives and contractual obligations and contract and project conditions while FSEM determined the OCE level to be 3.92. Party and risk factors; incentives and contractual obligations; contract and project conditions had cause and effect levels of 3.99, 3.99 and 3.79. Findings will enhance knowledge on MHAS risk levels of PPP construction projects thereby prompting project stakeholders to reduce the risks. Further research recommends using computer-based systems to minimize complexities and human errors during manual computation of fuzzy analysis.
AB - Moral hazards and adverse selection (MHAS) lead to failure in public-private partnership (PPP) projects and delay in delivery outputs’ requirements. This research developed a fuzzy synthetic evaluation model (FSEM) to measure cause and effect level of MHAS of PPP construction projects. Mean score ranking and principal component factor analysis (PCFA) evaluated the causal factors. FSEM calculated overall cause and effect (OCE) level. PCFA analysis yielded three components: party and risk factors, incentives and contractual obligations and contract and project conditions while FSEM determined the OCE level to be 3.92. Party and risk factors; incentives and contractual obligations; contract and project conditions had cause and effect levels of 3.99, 3.99 and 3.79. Findings will enhance knowledge on MHAS risk levels of PPP construction projects thereby prompting project stakeholders to reduce the risks. Further research recommends using computer-based systems to minimize complexities and human errors during manual computation of fuzzy analysis.
KW - Moral hazard
KW - adverse selection
KW - public-private-partnership
KW - construction projects
KW - fuzzy synthetic evaluation model
U2 - 10.1080/15623599.2021.2010356
DO - 10.1080/15623599.2021.2010356
M3 - Article
SP - 1
EP - 10
JO - International Journal of Construction Management
JF - International Journal of Construction Management
SN - 1562-3599
ER -