Risk Assessment and Analysis of Prefabricated Building Project based on PPP Mode

Abstract

Nowadays, China has been promoting prefabricated construction. However, need for substantial initial investment, heavy incremental costs, and unclear market prospects result in low investments by enterprises and difficulty in promotion of the prefabricated construction. Therefore, many local governments consider public projects with an investment from the government to adopt prefabricated construction. This system leads to financial pressure on the government. Concerning the application of the PPP model for prefabricated construction projects, this paper considers several steps for risk evaluation and the analysis of such projects. First, the framework incorporating the PPP model for prefabricated construction is developed. Second, the assessment and importance analysis of the risks in these projects is carried out. Third, the system dynamics (SD) method is applied to construct the dynamic impact model for evaluating risks in the PPP-based prefabricated construction projects. Finally,the dynamic impact model is analyzed. The purpose of this paper is to evaluate and analyze the related risks and impacts of applying PPP model to the public prefabricated construction projects. This analysis will help to identify alternative ideas and risk assessment methods for resolving the problems concerning the development of prefabricated construction.