Risk analysis and management of construction projects tendered under design-build (turnkey) contract system

ABSTRACT RISK ANALYSIS AND MANAGEMENT OF CONSTRUCTION PROJECTS TENDERE» UNDER DESIGN-BUILD (TURNKEY) CONTRACT SYSTEM ÖKMEN, Önder M. Sc. in Civil Engineering Supervisor. Assist. Prof. Dr. Ahmet ÖZTAŞ September 2002, 208 pages Construction projects are being tendered and implemented under different contract systems and payment methods. Design-Build (Turnkey) has been a popular contract system in recent years. It provides various advantages through entailing the contractor carrying out and being responsible for not only construction but also the design of the work. However, Design-Build turns to be a risky system for both Owners and Contractors unless the risks are identified, analyzed and managed throughout the tender preparation and project execution stages. In this context, this study aims to present a literature survey on the issues of risk, risk analysis, risk management and Design-Build contract system in order to open a discussion and establish a managerial framework onto the potential risks inherent in Design-Build construction projects. Within the scope of the thesis, two case studies, one of which is hypothetical and the other is real, have been carried out for the purpose of illustrating how risk analysis and risk management techniques can be ivapplied in fixed-price Design-Build construction projects and for showing the necessity of these applications for the success of such projects. Key words: risk management, risk analysis, design-build, turnkey, contract system, construction projects.