STRATEGIES FOR IMPLEMENTATION OF RISK MONITORING AND CONTROL MEASURES IN CONSTRUCTION PROJECTS

Abstract

Projects in the construction industry are fragmented, temporary and complex, this in itself exposes project to risk. Stakeholders within the industry must have access to information and knowledge in order to manage risks in a proper and systematic manner. Therefore, the implementation of effective risk management in relation to its associated project risk knowledge can facilitate the success of the construction project. The purpose of this study is to identify and assess the factors hindering the implementation of risk monitoring and control within the Nigeria construction industry and ultimately develop strategies for its implementation, with the emphasis on the perspective of Nigerian contractors. The study embraced related studies on risk management fundamentals, risk management process and some factors that hinder project risk implementation. Primary data were collected using questionnaires administered to randomly selected construction organizations whereas secondary data were collected from Real Estate Developers Association (REDAN). Analysis of data are based on a mixed method approach. The raw data as obtained from questionnaires were subjected to Likert Scale analysis. The results from this research show that in the Internal risk, contractor risk and subcontractor risk have highest rating factor, while in the External risk, social and cultural risks have the most occurrence and risk index of 4.1. The manner in which majority of construction organizations handle risks is by stoppage to work within budgeted cost. Among the qualitative analysis techniques employed in this, FUZZY Logic technique gives a highest weighted factor of 128. The results shows lack of coordination as the first among the identified factors hindering implementation of risk control in construction industry with a weighted score of 151. One of the strategies been developed in this study is that Professional bodies within construction organization e.g. NIQS, NIOB, NIA should setup a periodic training manual for registered contractors and sub-contractors. In conclusion, risk management, being a new concept in Nigerian construction organizations should be embraced as soon as possible by all stakeholders. It is therefore recommended that federal government should encourage contractors and subcontractors who reduce and mitigate risks in projects by way of incentives and tax waivers.