Risk-Informed Contract Design For Nuclear Power Plants-A Structured Analysis

Abstract

The global energy sector is shifting toward sustainable solutions, with nuclear power playing a crucial role in reducing carbon emissions. However, nuclear projects present distinct challenges, including strict safety regulations and environmental concerns. While prior research highlights common risks such as cost overruns, supply chain delays, and public perception issues, there is little focus on integrating these risks into contractual frameworks. This study explores how standard construction contracts can be modified to better manage risks specific to nuclear power plant development. The research follows a structured approach. First, a literature review identifies key risks and relevant terminology linked to nuclear construction. Next, Latent Dirichlet Allocation (LDA) is employed to analyze these risks and determine their presence in standard contract clauses. Cosine similarity is then applied to assess how well the identified risks align with contractual provisions. Finally, industry reports and expert insights are incorporated to address gaps in risk coverage. Findings reveal that stakeholder relations and cultural differences are often overlooked. Recommendations include stakeholder mapping, appointing cultural mediators, and establishing multilingual communication strategies. This study provides a systematic approach for strengthening risk management in nuclear construction, emphasizing the need for contract adaptations that reflect industry-specific challenges.

Department(s)

Civil, Architectural and Environmental Engineering

International Standard Book Number (ISBN)

978-078448698-6

Document Type

Article - Conference proceedings

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2026 American Society of Civil Engineers (ASCE), All rights reserved.

Publication Date

01 Jan 2026

Link to Full Text

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