Research on Compensatory Risk Management and Punitive Risk Management for Project Cost Risk Management

Abstract

Aiming at project cost risk management, cost risk management is divided into compensatory risk management and punitive risk management. Compensatory risk management is a positive interaction, but punitive risk management tends to lead to differences and disputes. Punitive risk management is decided by the dominance in the bidding and contracting process, and punitive risks can become compensatory risks. The partition of compensatory risk management and punitive risk management contributes to the positive interaction of cost management.