Stakeholders Perspective of the Impact of Risk Factors on Cost, Time and Quality of Building Construction Projects

Abstract

The paper considers the stakeholders perspective of the impact of risk factors on cost, time and quality of building construction projects. In the study, stakeholders perceptive of the impact of risk factors on cost of building construction projects as well as stakeholders perceptive of the impact of risk factors on time duration of building construction projects and stakeholders perceptive of the impact of risk factors on quality of building construction projects were assessed. Data for the study was obtained Data for the study was collected via a structured questionnaire administered to respondents in Abuja, Port-Harcourt, Kaduna and Lagos state. The questionnaires are designed to assess the views of respondents on the impact of risk factors on cost, time and quality of building construction projects. Respondents were asked to rate their perceptions regarding the severity of risk factors on a five point Likert ordinal scale where 5 = Very Severe, 4 = Severe, 3 = Neutral, 2 = Less Severe and 1 = Not Severe. Data obtained from the survey were analysed using Relative Severity Index (RII) method. The Relative Severity index (RII) was calculated using the formula: RII = ΣnW÷N (for 0≤RII≤5) Where W= the weight assigned to each strategy by the respondents, n = number of respondents, N = the total number of respondents. The limits of definition of RII were: 0≤ RII≤1 = Not Severe, 1≤RII≤2 = Less Severe, 2≤RII≤3 = Neutral, 3≤RII≤4 = Severe, 4≤RII≤5 = Very Severe. The mean relative severity index was then calculated and a rank ordering of these variables were then assigned based on the calculated relative index (RII). Findings revealed that 6% and 91% of the impact of risk factors on cost of building construction projects were perceived to be very severe and severe respectively, 3% of these factors have neutral impact while none of the factors were seen to be of less severity or not having severe impact on the cost of building construction projects. Furthermore, on stakeholders perceptive of impact of risk factors on time duration of building construction projects, improper planning and budgeting, inadequate forecast about market demand, increase of material cost, increase in labour cost and improper project organization structure were giving the overall top ranking with relative index of 4.290, 4.142, 4.110, 4.108 and 4.002 respectively while on stakeholders perceptive of impact of risk factors on quality of building construction projects corruption/bribery, competition from other companies in form of employing lowest bid to get the contract, poor quality of procured materials, design changes and shortage of skillful workers were ranked overall as the top 34 risk factors identified from literature review.