A Conceptual Framework for Managing Risks in Public Private Partnership Projects in Housing Estate Development in Nigeria

Abstract

Construction projects are subject to various uncertainties that impact on achieving the project objectives. This is most apparent in the case of PPP projects due to the number of contracting parties with conflicting interests. Effective risk management in such projects becomes crucial. This paper presents a conceptual framework for managing risks in PPP projects for housing development in Nigeria. The purpose of the conceptual framework is to use it for further studies. The conceptual framework is based on extensive review of related literature in the area of PPP and risk management. It identifies the essential variables for the study. The paper described some major characteristics of PPPs as well as the processes involved in their risk management. The study concludes that, PPPs are most effective when there are adequate legal and regulatory frameworks for smooth operation of PPPs, and the risks sharing structure is spelt out clearly in the contract with adequate measures for enforcing the provisions should any of the contracting party default.