Assessment of Risk Management Techniques for Construction Project under the Design Bid Build and Design & Build Procurement Methods in Abuja, Nigeria.

Abstract

The non-implementation of risk management techniques constitutes a lot to most of the project failures encountered nowadays. This leads to variations, incessant claims due to time loss by the contractor and loss of significant stakeholder’s value. This study assessed risk management techniques for construction projects under Design Bid Build (DBB) and Design & Build (DB) procurement methods in Abuja, with a view to enhancing the level of understanding and implementation of risk management in DBB and DB procurement methods. Data were collected from 150 respondents who are professionals registered with Federation of Construction Industry (FOCI). Tools used for data analysis were Relative Importance Index (RII), Mean Item Score (MS) and Spearman Rank Correlation analysis. Findings from the study revealed that the identified major risk management techniques on construction projects are often practiced (average RII = 0.71). The most effective Risk Management Techniques in construction projects are: “Risk mitigation/Reduction” and “Risk acceptance” (MIS = 3.94 and 3.60 respectively). Risk Management Techniques for the DBB Procurement Method is therefore more effective than that of DB Procurement Method (Mean DBB = 3.4754; Mean DB - 3.0659). it was concluded that the assessment and management of risk for construction projects under the DBB (Design Bid Build) Procurement Method is more effective than when carried out under the DB (Design & Build) Procurement Method in Nigeria. It was therefore recommended that stakeholders should consider the use of DBB Procurement Method for procuring projects in order to more effectively manage risks in construction projects.