ASSESSMENT OF RISK FACTORS ASSOCIATED WITH CONSTRUCTION PROJECTS IN RIVERS STATE, NIGERIA

Abstract

The performance of the construction industry in terms of meeting its objectives or goal has been invariably affected by risks, thereby leading to time and cost overruns. This research therefore assessed the risk factors associated with construction projects in Rivers State, Nigeria with a view to enhancing the performance of projects in the study area. In achieving the aim of the study, the objectives set included assessing the types of risk encountered in building projects and factors that could predispose building projects to risk. The study also assessed the strategies adopted by stakeholders in responding to these risks and the measures for mitigating them. Primary data were collected through administration of questionnaires on 284 key construction stakeholders comprising 34 Clients representatives, 61 Contractors/ representatives, 60 Quantity Surveyors, 55 Architects and 74 Engineers in Rivers State, Nigeria. Out of the 284 questionnaires that were distributed, 158 were returned and found suitable for the analysis. Percentile was used for analyzing demographics of the respondents while mean item score was used for ranking of identified factors. Factor analysis was adopted for data reduction via principal component extraction method, Kruskal Wallis H test for examining the differences in the sample means of different groups of respondents. The study revealed that failure to complete within stipulated time and cost, coupled with the hostile nature of the host community were the risk factors impacting the building projects. It was also found that tight project schedule, excessive approval procedures in government departments, bureaucracy and design variations were factors predisposing building projects to risks. Respondents were utilizing both past experience and brainstorming in identifying risk factors sequel to these techniques high level of awareness. Thorough detailing of design and involvement of professionals at the initial stage of project were the most utilized mitigating measures based on their effectiveness. While it is evident that financial, political and contractual sources were predominant sources with which risk could emerge, stakeholders are hereby enjoined to provide for flexibility in the project schedule yet operational and realistic, adequate attention should be accorded time and cost performance of projects without jettisoning the host community. Lastly, adequate provision should be made for finance right from the outset of the projects as this could make or mar the entire project objectives.