Risk Management in Built Operate Transfer (BOT) in Malaysia

Abstract

This paper aims to look into risk management in Built Operate Transfer (BOT) projects in Malaysia. Risk management was used as a tool in managing projects in order to reduce risk especially for projects that involved with huge amount of money. Risk management process in the BOT projects involved risk identification, risk classification, risk analysis and risk response. This paper also will identify the usage of the BOT as a procurement method in construction and to make recommendation on the best way to mitigate the risk encountered in BOT project. Questionnaires survey was sent out to 140 contractors Grade G7 contractors registered under the Malaysian Construction Industry Board and 10 interviews were been held to get in depth information from the respondents. It was found that by having a proper risk management procedure, the risk would be reduced in BOT projects. The main recommendation for this research is all parties should have same appreciation to identify the risks by working together in order to improve the effectiveness of the risk management.