Studies close the gap
Researchers at the School of Construction Management and Engineering at the University of Reading are helping to close the gap between theoretical models of commercial risk management and actual practice. Altogether, about a dozen contractors in the UK were involved in the two-year study through interviews and documentary analysis – with a selection of firms allowing the research team to shadow the whole tender process. The study – published in Construction Management and Economics (Laryea and Hughes, “How contractors price risk in bids: theory and practice”, Volume 26: p911-924) – shows how risk is mostly managed through contractual rather than price mechanisms, reflecting commercial imperatives at the time of bidding.
Contact Sam Laryea
(s.laryea@reading.ac.uk) for more information
This particular issue of the ICE Newsletter can be found at the following link: (http://www.ice-southeast.org.uk/southeastengland/documents/Engage_SE_Jan_09_FINAL.pdf)
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