Assessing the Quality of Risk Transfer Continuity during handover from Tender to Execution in Offshore Energy Projects

Abstract

Large offshore projects have been relying on effective risk management practices that are initiated during tender phases. These projects are characterized by high technical complexity, involve many project actors, and interface dependencies between them. As projects transition from tender to execution, the focus shifts to evolving operational risks, without seeing the contextual and underlying reasons behind it. Risk information and decision logic are often fragmented that contributes to reduced project performance. The financial influence is significant, as risk contingencies can account for 10-12% of total project value. While successfully exploited opportunities or omitted risks may not produce visible effects, insufficient risk treatment can result in adverse outcomes severe enough to reduce contractor profit margins. This thesis investigates how quality of project risk transfer and continuity can be improved during handover from tender to execution in offshore energy projects. This study has adapted a qualitative research design that combines literature review, two in-depth case studies of offshore energy projects executed by major marine contractor, Boskalis. Additionally, this research presents semi structured interviews with key stakeholders involved in the case study projects as well as actors in general of similar expertise working at the company. This analysis is guided by theoretical perspectives from Knowledge Management and Transition Management, that frames risk knowledge as both strategic organisational asset, and dynamic construct shaped by feedback loops, time delays and organisational interfaces. The findings indicate that risk transfer discontinuity is caused due to weakness in knowledge continuity and failure in bidirectional flow of information across project phases. The company demonstrates strong institutional capabilities and expertise in the field of risk engineering, tender and project management. So, it can also be said that continuity is not due to lack of tools, technical knowledge, or formal procedures. There are critical breakdowns during negotiation stages, planning handovers, and team transitions, where contextual reasoning, assumptions and tacit knowledge are not sufficiently transferred. This thesis concludes that improving risk transfer quality needs a shift in focus from static documentation of risk registers, towards managing transition moments, strengthening feedback mechanisms, and preserving common knowledge across organizational boundaries. Practical recommendations are proposed in the end, including targeted negotiation feedback gates, operational involvement in tendering, and adaptive practices to capture lessons learned.