Managing Risk in Construction Operations: The Effect of Governance Structures and New Engineering Contracts (NEC) on Uncertainty

The construction industry is inherently exposed to significant uncertainty and risks due to project complexity, extensive stakeholder involvement, prolonged timelines, and sensitivity to external factors. Collaborative contract models, especially the New Engineering Contract (NEC) suite, have become useful ways to manage these uncertainties by encouraging proactive collaboration and sharing of risks. This study tries to fill in the gaps by looking at how NEC contracts affect project uncertainty and risk appetite, and how these effects change depending on the type of governance. Using a practical mixed methods approach, the study combines quantitative surveys with qualitative interviews and document analyses to give a full picture of how well NEC contracts work in different types of governance.