ABSTRACT
The analysis of risk management in civil engineering projects at Akwa Ibom state was carried out. The data used for the analysis was collected using questionnaires. The results from a questionnaire survey of risk management in the different phases of a construction project at Akwa Ibom State Nigeria are presented. The participants of the study were clients, contractors and consultants working in this state. The involvement of these stakeholders in the project phases, their roles in the risk management process in particular and their influence on risk management were analyzed. It was shown that planning and production phases of a construction project are the most important for risk management, wherein risk identification, assessment and response take place. However, collaboration in terms of risk management between the key players is most intensive in these phases. Contractors participate more actively in the risk management process in comparison with other actors and have the largest influence on project risk management. Despite the recognised importance of the early phases in the project, this research shows a very low degree of risk management activity in the programme phase and encourages thorough risk analysis to overcome pushbacks and abandonment of projects to has potentials of enhancing economic growth and development.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgments v
Table of Contents vii
List of Tables viii
List of Figures ix
Abstract x
CHAPTER ONE: INTRODUCTION
1.1 Background of Study 1
1.2 Statement of Problem 4
1.3 Aim and Objectives 4
1.4 Scope of Study 4
1.5 Justification of the Study 4
CHAPTER
TWO: LITERATURE REVIEW 6
2.1 Preamble 6
2.2. Risk Management 7
2.3 Maturity Models 10
2.4 Knowledge Management 12
2.5 Construction
Projects Approach 14
2.6 Concept
of Risk in Construction Projects 16
2.7 Risk Control in Construction Project 17
2.8 The
Roles of the Project’s different Phases in Risk Management 19
CHAPTER THREE: METHODOLOGY 21
3.1 Research Design 21
3.2 Data Collection 21
3.2.1 Choice and description of the projects 21
3.2.2 Questionnaire survey 23
3.3 Method of Analysis 23
CHAPTER
FOUR: RESULT AND DISCUSSION 24
4. 1 Results of the Survey 24
4.2 Respondents 24
4.3 Risk Management in the Different Phases of
the Project 25
4.3.1 Risk identification process 27
4.3.2 Risk assessment process 28
4.3.3
Risk response process 29
4.4 Collaboration in Managing Risk and
Actors’ Influence on the Risk
Management
Process 30
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS 33
5.1 Conclusion 33
5.2 Recommendation 34
5.3 Contribution
to Knowledge 35
References
Appendix
LIST
OF TABLES
4.1:
Knowledge of Risk Management 25
4.2: Evaluation
of Collaboration in Risk Management 31
4.3: Degree
of Communication of known Risks and Opportunities between
Actors in the Procurement Phase 31
LIST OF FIGURES
4.1: Sample Composition 24
4.2: Participation
in the Project Phases 26
4.3: Importance
of Risk Management in the Different Phases 26
4.4: The
Risk Management Systematically Processes Performed in the Project 27
4.5: Risk
Identification in the Different Phases 28
4.6: Risk
assessment in the Different Phases 29
4.7: Risk
response in the Different Phases 30
4.8:
Influence of the Actors on the Risk
Management Process in the Project 32
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF STUDY
Being a
fast developing country with numerous infrastructural project, construction
industry is one of the largest industry in Nigerian economy. It provides
employment teeming population and contribute about 700,000 Million Naira to the
GDP of the nation (NBS, 2015). As the standard of the buildings and
infrastructure has a direct influence on the level of life of populace, a
well-functioning construction organization is a paramount factor for the
advancement of the nation. Nigerian construction industry has been criticized
for increasing costs, low productivity, low quality, project delay and
negligence of safety measures and processes.
Particularly,
the risk management process is argued to play an important role in project and
construction management and, in effect, need to be further developed so as to
achieve improved efficiency in the industry. Risk management is intended to be
an inherent part of construction management (Del Caño and de la Cruz, 2002;
Olsson, 2007;Basaif et al., 2020;
Issa et al., 2020; Koulinas et. al., 2020), where one of the
significant tasks is to interpret the negative effects of the project and how
to mitigate them (Anderson, 2009).
This is a
very important key method for effective project management (Price and Baloi,
2003; Holsomback and Perera, 2005; Pinto and Alali, 2009). Risk management as
generally defined, is the method of identifying and evaluating risks and
implementing ideas to reduce them to an appropriate extent (Tohidi et al., 2011). The main aim of project
Risk management is to define, evaluate and manage the risk for effective and
timely project delivery.
Overall,
risk management procedure involves the following major steps: Risk planning;
Risk identification; Risk assessment (both qualitative and quantitative); (4)
Risk analysis; Risk response; Risk monitoring, and Recording the risk
management process (ISO 31.000, 2009; Baloi and Price, 2003). In the
construction industry, risk management studies have considerably grown in the
past four decades.
(Forbes et al., 2008), as construction projects
are subject to risk during their execution (Schieg, 2006; El-Sayegh, 2008).
Project risk are analyzed from two different points of view. First, is the
project owner (Volm and Bryde, 2009), and then the contractors on the other
side (Baloi and Price, 2003).
The construction industry is subject to more risk and
uncertainty than any other industry. Most of the key players experience risks
in cost and time over runs and many times fail to meet quality standards and
operational requirements. Therefore the need to increase the understanding of
risk management (.Dhivya
and Prabu, 2019). The construction
industry consistently ranks amongst the highest contributors to global gross
domestic product, as well as, amongst the most corrupt. Corruption aslo
inflicts significant risk on construction activities, and overall economic
development (Hosseini
et al., 2020). Nawadays in construction projects risk management is
considered to be a very main managerial process for accomplishment of completing
the project within the financial aspects and within the time period (Shaik et al., 2019).
Probability is a measurable phase of uncertainty, for which
we are capable to estimate the prevalence likelihood and the measurement of
damage. The danger is assumed as a deviation from the preferred level. It can
be nice or, which most frequently happens, it can be negative. Therefore, the
dangers evaluation is so vital for assignment decision and coordination of
development work. The chance evaluation is viewed as the evaluation of damaging
occasions even at the stage of planning and programming of a development
project. This evaluation enriches the decision making system and presents extra
arguments, which assist to choose the choicest variant of a building task the
use of the Multi Aspects approach (Naveen and Deepan,
2020). Risks in construction
projects are dynamic in nature and hence should be considered as a complex
interrelated system rather than a set of separate individual factors (Etemadinia and Tavakolan, 2021). For proper management, it is necessary to undertake a
thorough project risk assessment prior to construction (Serrano-Gomez and Munoz-Hernandez,
2019). Before planning and
managing risks to reduce the causes of severe risks associated with
construction, it is very important to conduct an evaluation first. Aspects
related to risk are convoluted in several steps from design to planning to
project fulfillment (Ariyanto et al., 2020).
Mega projects (MP) require efficient and mandatory management
of risks during their construction. Therefore, it is crucial to identify any
possible deviations towards meeting their objectives. Such deviation forced MP
to be delivered behind schedule and over budget. According references, MP does
not require only qualitative analysis but requires an accurate quantitative
analysis based on knowledge and practice (Nabawy and Khodeir, 2020).
The
methods used for project risk management are based on quantitative risk
analysis, but these approaches do not incorporate experience acquired from
previous projects which might be required in tackling a new one. Forbes et al., (2008) inferred that
construction industries have used only a limited number of risk management
approaches over time since not all techniques are suitable for every situation
(Skitmore, 2004).The whole aim of this research is to analyze risk in the various
phases of construction project.
The
specific objective through which the major objective would be achieved are: to
analyse how risks are shared and managed in various procurement options and to
develop recommendations, which contribute to more effective risk management in
construction projects especially in Nigeria.
1.2 STATEMENT OF PROBLEM
Lack of
or insufficient risk analysis led to project abandonment, delays in project and
even structural failure. Ajaokuta steel company Construction is a very
interesting example of projects that have gone wrong. The project has lasted
for over six decades and apparently have been abandoned. Proper risk analysis
was not done and that is the result. Risk analysis is not only limited to
curbing injury but also to drastically reduce the chance of abandoning project
which in turn results to economic waste.
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim
of this study is to analyze risks at various stages of construction projects.
The specific objectives of this study were to;
i. analyze how risks in Civil Engineering
projects.
ii. develop
guidelines that will lead to better risk management in construction projects.
1.4 SCOPE OF STUDY
The study
area is limited to Uyo in Akwa Ibom State of Nigeria and the questionnaire will
help in collection of necessary data.
1.5 JUSTIFICATION OF THE STUDY
The
findings of this study will first allow a company or contractor to establish a
holistic method of risk management centered on best practices. Second, the
efficacy of this role will be enhanced along with the realization of new
projects.
Proper
and thorough risk analysis of projects especially public project is key to a
successful and hitch-free project. It is believed that such project should
crystallize a blueprint that would minimize injuries, structural collapse and
project abandonment associated with improper risk analysis. This would in no
small measures lead to growth and development of the nation's economy.
This will
also be a step in the right direction in keying into Nigerian current proposition
on easy of doing business, because improper risk analysis affect the easy of
doing construction business.
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