In the process of promoting large-scale development projects, there are cases of public losses due to the developer’s breach of contract, and therefore, it is necessary to prepare countermeasures in terms of risk management in the public sector. In order to prepare public countermeasures, this study analyzes the direct estimation of the scale of loss, the items of indirect public loss, and its value through cases.
Public loss can be evaluated largely divided into public benefit loss, socioeconomic value loss, direct income reduction and cost increase. First, estimating the loss of public benefit is analyzed by deriving benefit items according to the introduction function and facilities and considering the benefit estimation methodology. Second, the unrealized social value of project delays is qualitatively reviewed for public contribution items presented in the project plan. Third, the unrealized economic ripple effect of project delays is analyzed through an industry-related model. Fourth, it analyzes the items of income reduction and cost increase as direct public losses due to project delays.
Through this analysis of public losses, it is necessary to identify the quantitative and qualitative scale of risks in large-scale development projects, maximize the welfare of residents by strengthening public risk responses, and strengthen stable administrative capabilities by strengthening the efficiency of public development projects.