Fuzzy synthetic evaluation of moral hazard and adverse selection of public private partnership projects

De Graft Owusu-Manu, Augustine Senanu Komla Kukah, David John Edwards, Ernest Effah Ameyaw

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

Moral hazards and adverse selection (MHAS) lead to failure in public-private partnership (PPP) projects and delay in delivery outputs’ requirements. This research developed a fuzzy synthetic evaluation model (FSEM) to measure cause and effect level of MHAS of PPP construction projects. Mean score ranking and principal component factor analysis (PCFA) evaluated the causal factors. FSEM calculated overall cause and effect (OCE) level. PCFA analysis yielded three components: party and risk factors, incentives and contractual obligations and contract and project conditions while FSEM determined the OCE level to be 3.92. Party and risk factors; incentives and contractual obligations; contract and project conditions had cause and effect levels of 3.99, 3.99 and 3.79. Findings will enhance knowledge on MHAS risk levels of PPP construction projects thereby prompting project stakeholders to reduce the risks. Further research recommends using computer-based systems to minimize complexities and human errors during manual computation of fuzzy analysis.

Original languageEnglish
Pages (from-to)1805-1814
Number of pages10
JournalInternational Journal of Construction Management
Volume23
Issue number11
DOIs
Publication statusPublished - 2023

Keywords

  • Moral hazard
  • adverse selection
  • construction projects
  • fuzzy synthetic evaluation model
  • public-private-partnership

ASJC Scopus subject areas

  • Architecture
  • Building and Construction
  • Strategy and Management
  • Management of Technology and Innovation

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