How to Make Shared Risk and Reward Sustainable

How to Make Shared Risk and Reward Sustainable

2015

DOI: https://doi.org/10.60164/a4f1e7i6g

Authors: Glenn Ballard, Blake Dilsworth, Doanh Do, Wayne Low, James Mobley, Philip Phillips

Citation:

Ballard, G., Dilsworth, B., Do, D., Low, W., Mobley, J., Phillips, P., … Wood, N. (2015). How to Make Shared Risk and Reward Sustainable. In Sustainable. Lean Construction Journal pp. 25–33.

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Abstract:

Question: How to make shared risk and reward sustainable?

Purpose: To bring to the attention of the construction community the risk that shared risk and reward approaches to project delivery are themselves at risk, and to promote practices that assure its sustainability.

Research Method: Case study of a ‘failed’ shared risk and reward project by academics and industry practitioners, some of whom were participants on the
project.

Findings: The countermeasures to failure of shared risk and reward projects are predominantly principles of Lean/IPD project delivery previously formulated but not universally followed.

Limitations: The proposed countermeasures need to be tested against more shared risk and reward projects.

Implications: Despite its evident value, shared risk and reward can die unless both clients and service providers follow principles of Lean/IPD project delivery.

Value for authors: The authors are strong advocates for shared risk and reward and hope to awake the industry to the possibility that it may disappear.