A Multi Objective Decision Model to optimizing ‎project Risk Allocation in ‎infrastructure projects, Multi Objective Analytical Hierarchical Analysis Method

Document Type : Original Article

Authors

1 Assistant Professor, Civil Engineering, Art and Architectural School, Islamic Azad University, West Tehran Branch, Tehran, Iran

2 MSc, Architectural School, Tehran University, Tehran, Iran

3 MSc, Civil Engineering Department, Islamic Aazad University, South Tehran Branch, Tehran, Iran

Abstract

Risk allocation is a strategic decision in project management. But the ‎examination of the practical experience of managing construction projects ‎shows that the process of allocating risks is generally based on the personal ‎judgments of employers, so increases the cost and time of the project. The ‎purpose of this article is to provide a quantitative model for selecting the ‎optimal allocation of project risks, in a way that provides a balanced model ‎agreed upon by all contractual parties. To design the proposed model, by ‎analyzing the behavior characteristics and expectations of the employer in ‎the process of risk allocation, three goals: 1) transferring the risk to the most ‎capable agent, 2) paying the lowest cost of risk management and 3) ‎achieving the lowest level of risk for the employer. has been introduced. ‎Then, by developing quantitative functions to measure these three goals, a ‎multi-criteria decision model is presented that can measure the degree of ‎achievement of the employer's goals in different patterns of risk allocation. ‎By receiving the judgment of the decision maker in the form of qualitative ‎criteria, the proposed model evaluates different risk allocation options and ‎achieves the most appropriate project risk allocation pattern in the form of a ‎Pareto optimal curve. The proposed model in a A case study has been ‎implemented and its results have been compared with some of the most ‎widely used risk allocation models. The results of this model show that ‎achieving a balanced pattern of risk allocation that satisfies the interests of ‎all parties in the project requires attention to the conflicting goals of the ‎employer. While focusing on transferring the maximum risk to the other ‎party, it will increase the project costs and eventually not achieve other time ‎and financial goals of the project.‎

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History

  • Receive Date: 04 February 2023
  • Revise Date: 06 July 2023
  • Accept Date: 11 July 2023

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