Allocating risk in transportation megaprojects: the case of the Canada Line

This project investigates risk allocation in urban transportation megaprojects within Canada and how public-private-partnerships (P3s) allocate risk in new ways. More specifically, I focus on how effectively the Canada Line P3 model dealt with construction-stage risk. The literature on megaprojects identifies ineffective risk allocation and cost overruns as typical features of megaprojects and recommends improved accountability and transparency throughout project planning and implementation. I also focus on how the Canada Line sets precedents for future transportation megaprojects. I analyzed the legal case of a Cambie Street merchant affected by Canada Line construction and found the project particularly poor at managing compensation as a construction-stage risk, resulting in costly litigation. A case study comparison of three other transportation megaprojects revealed different ways of allocating construction-stage risk that were more effective than litigation. The role of transparency and comprehensive mitigation strategies emerged as being crucial to managing risk in transportation megaprojects.