THE EFFECTS OF RISKS INVOLVED IN CONSTRUCTION PROJECTS IN OSUN STATE, NIGERIA

Abstract

This study aspires to have a good risk management plan to minimize the effects of risks factors in construction projects in Osun state. The major risk factors were identified and the degree of impact on the identified risk factors was determined. The methodology adopted was the survey type which involved the design of a questionnaire. The population for the study was seventy (70) companies handling different construction projects within Osun State. Out of the 70 copies of questionnaire distributed 52 copies representing 74.29%, were properly filled and returned, these were then used for the analysis of the study. The analysis was done using the Likert Scale which is a psychometric response scale often used in questionnaire and its is widely used in survey research. The attributes used were the probability level of occurrence, donated by A and the degree of impact or the level of loss if the risk occurs donated by B. these attributes were used to get the risk significance. The analysis of the results began with answering of the research questioned through Ducan’s Multiple Range Tests. The hypotheses of the study were then tested using Analysis of variance (ANOVA) method of analysis while the level of significance was set at 5%. The outcome of the study revealed that the degrees of impact of main Financial Risks and Management Risks are not significantly related while the degrees of impact of main Legal and Political risks are significantly related. For the significantly related factors, it implies that if one of the risks is adequately addressed, its impact might be felt in another. The study equally recognized the possibility of interference between identified market and technical risk factors. In conclusion, construction of any projects requires adequate planning. This will help to take into consideration some certain factors that may slow down the implementation of the projects. Eight sources of risks were identified. The study made adequate effort to identify sub-risk factors under each of these sources. The identified ones of those sub-risk factors are those found to possess much threat to project construction. Thus, it was advised that significant effort should always be made to address them any time they are noticed.