TY - JOUR ID - 4005 TI - A Model for Sharing the Costs of Uncontrollable Risks among Contracting Parties JO - Journal of Industrial and Systems Engineering JA - JISE LA - en SN - 1735-8272 AU - Makui, Ahmad AU - Mahdavi, Iraj AU - Farrokhian, Fatemeh AD - Iran University of Science and Technology, Tehran, Iran AD - Mazandaran University of Science and Technology, Babol, Iran Y1 - 2009 PY - 2009 VL - 3 IS - 2 SP - 125 EP - 139 KW - Cost sharing ratio KW - Uncontrollable risks KW - Contract KW - Contracting parties KW - Utility value KW - Win-win relationship DO - N2 - The allocation of risks among the contracting parties in a contract is an important decision affecting the project success. Some risks in a project are uncontrollable; these are imposed to a project by external factors. Since contracting parties can neither control nor affect the occurrence of such risks, their allocation to a party would be inequitable. Therefore the cost overrun related to uncontrollable risks should be shared between contracting parties with a ratio which makes a win-win relationship between them in contract. This paper presents a mathematical model to achieve an equitable cost sharing ratio for uncontrollable risks between an owner and a contractor before contract conclusion using multi attribute utility theory. UR - https://www.jise.ir/article_4005.html L1 - https://www.jise.ir/article_4005_aefae59fdbe34d7e332a2016cfa8f99b.pdf ER -