Proposal on Hybrid Risk Evaluation Method (HREM) for bidding decision in international infrastructure project

Abstract

This paper describes a proposal on a new method that enables the appropriate and practical decision making in bidding before submitting a proposal to participate in the bidding for a large-scale international infrastructure project. Such a method has been demanded by potential bidders in order to overcome the recent trend that Japanese companies have given up in participating in such projects in spite of opportunities to extend their business in highly potential overseas market. For this, we have established a comprehensive evaluation method for risk assessment with reference to actual experiences of one of the leading Japanese consultants in establishing the basis of the proposed method, and conducted a post-evaluation to verify and validate the proposed method based on assumptions for the Suvarnabhumi Airport Rail Link (ARL) construction project in Thailand. Based on the assessment, we have obtained a positive result to ensure the effectiveness and the validity of the theory assumed as well as the proposed method, with suggestion for further improvement.

Keywords

• project management
• decision making
• massive infrastructure projects
• risk assessment
• check list method
• management of technology
• design knowledge management