ASSESSEMENT OF RISK ASSOCIATED WITH DIRECT LABOUR PROJECTS IN ONDO STATE, NIGERIA

Abstract

Construction is the bedrock of development and direct labour system as one of the variants of procurement system in construction is a method whereby the client design and produces his project by himself with the aid of his in-house professionals devoid of engaging contractors. Risk is present in all the activities in a project; its extent can only vary from one project to the other, therefore is the need to assess the risk associated with direct labour projects as it is frequently used. This research therefore assesses the risk associated with direct labour projects in Ondo State, Nigeria. The levels of awareness of professionals on risk factors based on the qualification of the respondents were assessed through the use of well-structured questionnaire, open interview were also conducted. The level of occurrence and the impact of the risk factors based on profession of respondent were also assessed likewise the mitigating mechanism used for the risk factors were proffered. Data gathered were analyzed using different analytical tools such as; frequencies, percentage, mean item score, ANOVA. The study revealed that the professionals were aware of abandonment of project, financial failure of client, and delay in construction due to alternating weather condition as risk factors in direct labour project in Ondo State. Delay in construction due to alternating weather condition and tight project schedule were indicated as risk factors that has high level of occurrence. The factors that have great impact on direct labour projects were identified as corruption, insufficient time for testing, corporate fraud and change in policy. Most of the risk factors under study were mitigated using reduction mechanism and retention mechanism. Errors or omissions revealed during construction, unseen site condition and inability to achieve project goals were mitigated using elimination mechanism while changes in quality/scope of work were mitigated using either reduction or retention mechanism. Based on the interview, corruption, change in government policies, alternating weather condition were factors that have great impact on direct labour projects while accident rarely occur. The study recommends that government should work on the exchange rate which causes inflation, construction professionals should plan most construction works to times when there is less delay in construction due to weather condition, tight project schedule should be reduced which could result in additional cost.