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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/26166

Title: Risk and risk management in project-related finance
Authors: Price, Andrew D.F.
Shawa, Hani Hashem
Keywords: Construction
Banks
Finance
Risk
Risk management
Issue Date: 1997
Publisher: International Procurement Research Group, University of Glamorgan
Citation: PRICE, A. and SHAWA, H., 1997. Risk and risk management in project-related finance. Journal of Construction Procurement, 3 (3), pp.27-46.
Abstract: This paper introduces the concept of Project Related Finance and discusses the main issues that lending banks should take into account when providing a finance package. The paper is based upon research that investigated the use of Project Related Finance for funding construction projects in The United Arab Emirates (UAE). The main areas of risk have been identified and the use of guarantees to shift specific risks to interested parties has been discussed. Based upon interviews with lending banks in the UAE, seven factors that have the most significant influence on the banks decision on whether or not to provide finance have been identified and used to provide an overall assessment. Three Case Studies were used to demonstrate the assessment process. Important aspects of Risk Management have been discussed along with a five-step decision making process for lending banks. A check list was developed and circulated as part of questionnaire to banks and contractors. The responses have been presented to illustrate the degree of acceptability of certain types of risk normally associated with construction projects. The paper concludes that banks consider many of the risks less acceptable than the contractors do. Banks were also more concerned than the contractors with respect to deficiency in working capital and adequacy of reserves. Both banks and contractors were especially concerned about uncertainty of project completion and contractual matters.
Version: Published
URI: https://dspace.lboro.ac.uk/2134/26166
Publisher Link: http://www.southwales.ac.uk/
ISSN: 1358-9180
Appears in Collections:Published Articles (Architecture, Building and Civil Engineering)

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