Formation of the Mechanism for Risk Management of Construction Projects on the Basis of Compensatory Technology of «Tax Increment Financing»

Abstract

The article is aimed at forming a mechanism for risk management of construction projects, to provide researching within its terms of the possibility of attracting additional financial resources through compensatory financing on the basis of deferred tax payments (Tax Increment Financing – TIF). Studying the risk management practices in the field of construction has demonstrated the fragmentary nature of the existing system, but with the appropriate legal framework and in view of the experience of other countries, development of preventive measures can be a source of financial resources for the implementation of construction projects. According to the results of the carried out research on the financial compensatory technology of TIF, the authors present proposals as to the formation of a mechanism for risk management of construction projects, with allocation the following components in its structure: theoretical-methodological, organizational-economic, process-empirical.

Keywords

• risk
• financing
• construction project
• management mechanism