Evaluation of Risk Management strategies and practices used on construction projects: A Study of Luanshya District

Abstract

The study adopted a mixed methodology approach using sequential exploratory designs which entails the collection and analysis of quantitative data followed by qualitative data. The study sample size was 93 which was obtained by purposive sampling. Results were obtained by collecting data using questionnaires for quantitative data and semi-structured interviews with open ended questions for qualitative data. Quantitative data was analyzed using descriptive statistics. In addition, Cronbach’s alpha was used to ascertain the reliability of the data and Pearson correlation coefficient to analyze the validity of the data. Qualitative data was analyzed using content analysis to identify patterns and later categorize the data in coded words or themes. The findings revealed challenges faced by construction projects included risks not being ranked, identified and assessed with no appropriate use of risk management strategies this was indicated by 75% of the respondents. Risk avoidance was the most used strategy as indicated by 51% of the respondents. 43.1% agreed that risk management strategies play a pivotal role in achieving desired construction outcomes. 44.1% indicated that political interference risk has the highest occurrence while 26.9% indicated poor quality has the highest severity of impact. Through correlation analysis, the study established that there is a moderate degree of positive correlation (r = 0.542, p= 0.01) between Project performance and risk management strategies. Critical success factors for project performance included documentation of risk and inspection of the project as indicated by 76.4% of respondents, stakeholder involvement 76.34% and utilization of budgeting techniques by 76.4% of respondents. The study concluded the application of risk management strategies ensures that the organization undertaking the project achieves its goals and that the project concludes within specified requirements. The Study recommends the improvement of the risk management process, stakeholder involvement in construction projects and creation of a risk management strategic framework and plan for management of risk. Lastly, the study contributes to the body of knowledge by the development of the risk management strategic framework for the measurement of the effectiveness of risk management strategies on the completion of construction projects and enhancing project performance. Keywords: Projects, Construction Projects, Strategies, Practices