EVALUATING THE FACTORS MILITATING AGAINST THE USE OF INSURANCE POLICIES IN MANAGING BUILDING CONSTRUCTION RISKS IN ABUJA

Abstract

This study is evaluating the factors mitigating against the use of insurance policies in managing building construction risks in Abuja with a view to finding solutions towards improving the usage. The objective are to identify and rank the prevalent risk factors that construction firms in Abuja are exposed to and identify the challenges confronting the adoption of these insurance policies by construction firms in Abuja. This study is quantitatively conducted through questionnaire administered on 250 professionals from the selected building construction firms in Abuja. The study adopted descriptive method of analysis. The study identified 18 risk factors mitigating against the use of insurance policies in managing building Construction risks in Abuja in the study area. Among the risk factor identified are weather and seasonal implication and Uncertainty of resource and availability of goods was ranked 1st with a mean score of = 4.40 followed by pollution by construction work with a mean score of 4.30 and ranked 3. Also the major challenges confronting the Adoption of these insurance policies were ranked from 1st to 7th and the financial strength of the construction firm was ranked 1st (MS=3.86). The study therefore recommends proper contracts reviewed by a knowledgeable attorney and read contracts for consistency should be carried out, ethical practices by all stakeholders should be encourage and construction companies should ensure to subscribe to one type of insurance in order to reduce risk. This will go a long way in reducing the influence of risks on construction project performance to the barest minimum and boost the economy of the country. Construction industry plays a vital role in the natural economy development of many countries.