INFLUENCE OF CONTRACTUAL RISKS ON BUILDING PROJECT DELIVERY IN ABUJA, NIGERIA

Abstract

Contractual risks were risks mostly encountered by contractors in Nigeria and identified to have the consequences on claims, risks in construction especially with the increase construction complexity and the clients are getting more sophisticated in disputes, lack of coordination, delays and inflated costs. Those challenges are due to unanticipated their demands. These challenges prompted this study on influence of contractual risks on building contracts in Abuja. The study largely derives qualitative measure in order to understand the influence of contractual risk on building delivery. The study is criteria – based study, in which certain criteria were outline for the selection of the construction companies. The respondent (stakeholders) samples used in the study were drawn from the total population of stakeholders in the 5 construction companies selected for the study. The total numbers of stakeholders are 220 while 140 were selected for the study following the rules of Krejcie and Morgan, (1970). The analysis of the questionnaires survey data was undertaken using (SPSS) version 20. Correlation analysis was conducted in order to determine the relationship between contractual risks factors and project delivery (time and cost) and the result were found to be significant (P<0.005). This relationship was modeled using simple linear regression and from the model the result shows that contractual risks factors have effect on project delivery in term of time and cost. Risk management should be integrated into project management processes to minimize the effect of contractual risk factors on time and cost increase of building project