This document provides an overview of a research project that aims to assess the effects of risk management methods on construction project performance in Rwanda. Specifically, it examines a multi-storey building project by the Rwanda Social Security Board (RSSB). The research design involves interviews and questionnaires with the project team to understand how risks were managed and their impact on project objectives. A literature review and analysis of RSSB project documents will also be conducted. The research seeks to evaluate how different risk management approaches like avoidance, control, retention and transfer influence project success. Findings may help identify barriers to effective risk management in the Rwandan construction industry.
RISK MANAGEMENT IN HIGH RISE CONSTRUCTION PROJECTS IN SURAT CITYA Makwana
This paper gives information about identification of risk factors and perceptions of Indian construction practitioners i.e., contractors, owners, project managers and Engineers on the importance of different construction risks and how the risks should be assigned between the different parties of the contract. As the very common project styles, construction projects have so many characteristics likewise time limitation, specific items, financial restrictions and requirements, extraordinary structural and legal situations, complexity features. For this situation every construction project has own complex method. Risks constantly happen at construction projects and frequently cause time overrun or cost overrun. If you don’t contemplate these risk factors, or neglect the main factors, these risk factors will affect the damage because of the managerial errors. Risk management is the process which covers to identify the risks, for assessment with the help of qualitatively and quantitatively, to response with appropriate technique for management and controlling. The concept has gain popularity in various industries. Various companies frequently found the method in their projects for upgrading their performance, reducing their losses and increasing their profits. Questionnaire survey among clients, contractors, engineers and architects is analysed using, Relative Importance Index (RII)) method. The focus of this study is to understand what Risk Management is, understand the process of risk management at construction project and have depth knowledge on the use of risk management in high-rise construction projects.
ANALYSIS OF RISK CATEGORIES AND FACTORS FOR PPP PROJECTS USING ANALYTIC HIERA...A Makwana
Success of Public Private Partnership projects is greatly influenced by proper management of the risks associated with the project. All projects which are undertaken using conventional procurement method or using a PPP approach have known risks and unknown risks. Risk identification plays an important role in development of PPP framework. The participation and investment of Private sector has been the main stay of the Government of India policy toward infrastructural growth. In this study main risk categories and factors of Public Private Partnership projects have been recognized. A total of 7 risk categories and 31 risk sub-factors for each category were identified for PPP projects safety listed under subheads. The questionnaire was prepared on the basis of literature review and was filled by 100 Stakeholders namely Consultant/Client, Project Manager/ Contractor, Engineer. Generally Analytic Hierarchy Process (AHP) is widely used as multi criteria decision making. Normally it is very hard to meet the consistence need of a comparison matrix in analytic hierarchy process. In this study AHP is used to categories the risks of PPP projects in different levels and the impact of those risks on the PPP projects are identified.
RISK LEVEL ASSESSMENT ON ROAD CONSTRUCTION’S CONTRACTORS USING CULTURAL – PRO...IAEME Publication
This study aimed to analyze the characteristics of potential risk and the risk levels to the contractors in a road construction project and its impact on service providers (contractors), and to make a risk assessment model with multi-criteria to the contractors in road construction projects. Objective contractors road construction is not optimal due to non-performance risk management in the project with the right. This study is done in the form of a survey by capturing the opinions or perceptions, experiences and attitudes of respondents implementing on road construction. Parameters indicating the risk of road construction projects were model and tested using the methodology of Expert Choice to describe, quantify and demonstrate the risk level, allocation, and response in road construction projects with different risk variables. Results of the study firstly identified 281 risks for the road construction including 57 non-technical, 39 technical, 36 financial, 76 cultural, 38 work health and safety management aspect and 35 environmental aspects.
Risk Management in High Rise Construction Projects: A ReviewA Makwana
This paper gives information about identification of risk factors and perceptions of Indian construction practitioners i.e., contractors, owners, project managers and Engineers on the importance of different construction risks and how the risks should be assigned between the different parties of the contract. As the very common project styles, construction projects have so many characteristics likewise time limitation, specific items, financial restrictions and requirements, extraordinary structural and legal situations, complexity features. For this situation every construction project has own complex method. Risks constantly happen at construction projects and frequently cause time overrun or cost overrun. If you don’t contemplate these risk factors, or neglect the main factors, these risk factors will affect the damage because of the managerial errors. Risk management is the process which covers to identify the risks, for assessment with the help of qualitatively and quantitatively, to response with appropriate technique for management and controlling. The concept has gain popularity in various industries. Various companies frequently found the method in their projects for upgrading their performance, reducing their losses and increasing their profits. Questionnaire survey among clients, contractors, engineers and architects is analyzed using, Relative Importance Index (RII) and Importance Index (IMP.I) methods. The focus of this study is to understand what Risk Management is, understand the process of risk management at construction project and have depth knowledge on the use of risk management in high-rise construction projects.
International Journal of Engineering and Science Invention (IJESI)inventionjournals
International Journal of Engineering and Science Invention (IJESI) is an international journal intended for professionals and researchers in all fields of computer science and electronics. IJESI publishes research articles and reviews within the whole field Engineering Science and Technology, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
RISK MANAGEMENT IN HIGH RISE CONSTRUCTION PROJECTS IN SURAT CITYA Makwana
This paper gives information about identification of risk factors and perceptions of Indian construction practitioners i.e., contractors, owners, project managers and Engineers on the importance of different construction risks and how the risks should be assigned between the different parties of the contract. As the very common project styles, construction projects have so many characteristics likewise time limitation, specific items, financial restrictions and requirements, extraordinary structural and legal situations, complexity features. For this situation every construction project has own complex method. Risks constantly happen at construction projects and frequently cause time overrun or cost overrun. If you don’t contemplate these risk factors, or neglect the main factors, these risk factors will affect the damage because of the managerial errors. Risk management is the process which covers to identify the risks, for assessment with the help of qualitatively and quantitatively, to response with appropriate technique for management and controlling. The concept has gain popularity in various industries. Various companies frequently found the method in their projects for upgrading their performance, reducing their losses and increasing their profits. Questionnaire survey among clients, contractors, engineers and architects is analysed using, Relative Importance Index (RII)) method. The focus of this study is to understand what Risk Management is, understand the process of risk management at construction project and have depth knowledge on the use of risk management in high-rise construction projects.
ANALYSIS OF RISK CATEGORIES AND FACTORS FOR PPP PROJECTS USING ANALYTIC HIERA...A Makwana
Success of Public Private Partnership projects is greatly influenced by proper management of the risks associated with the project. All projects which are undertaken using conventional procurement method or using a PPP approach have known risks and unknown risks. Risk identification plays an important role in development of PPP framework. The participation and investment of Private sector has been the main stay of the Government of India policy toward infrastructural growth. In this study main risk categories and factors of Public Private Partnership projects have been recognized. A total of 7 risk categories and 31 risk sub-factors for each category were identified for PPP projects safety listed under subheads. The questionnaire was prepared on the basis of literature review and was filled by 100 Stakeholders namely Consultant/Client, Project Manager/ Contractor, Engineer. Generally Analytic Hierarchy Process (AHP) is widely used as multi criteria decision making. Normally it is very hard to meet the consistence need of a comparison matrix in analytic hierarchy process. In this study AHP is used to categories the risks of PPP projects in different levels and the impact of those risks on the PPP projects are identified.
RISK LEVEL ASSESSMENT ON ROAD CONSTRUCTION’S CONTRACTORS USING CULTURAL – PRO...IAEME Publication
This study aimed to analyze the characteristics of potential risk and the risk levels to the contractors in a road construction project and its impact on service providers (contractors), and to make a risk assessment model with multi-criteria to the contractors in road construction projects. Objective contractors road construction is not optimal due to non-performance risk management in the project with the right. This study is done in the form of a survey by capturing the opinions or perceptions, experiences and attitudes of respondents implementing on road construction. Parameters indicating the risk of road construction projects were model and tested using the methodology of Expert Choice to describe, quantify and demonstrate the risk level, allocation, and response in road construction projects with different risk variables. Results of the study firstly identified 281 risks for the road construction including 57 non-technical, 39 technical, 36 financial, 76 cultural, 38 work health and safety management aspect and 35 environmental aspects.
Risk Management in High Rise Construction Projects: A ReviewA Makwana
This paper gives information about identification of risk factors and perceptions of Indian construction practitioners i.e., contractors, owners, project managers and Engineers on the importance of different construction risks and how the risks should be assigned between the different parties of the contract. As the very common project styles, construction projects have so many characteristics likewise time limitation, specific items, financial restrictions and requirements, extraordinary structural and legal situations, complexity features. For this situation every construction project has own complex method. Risks constantly happen at construction projects and frequently cause time overrun or cost overrun. If you don’t contemplate these risk factors, or neglect the main factors, these risk factors will affect the damage because of the managerial errors. Risk management is the process which covers to identify the risks, for assessment with the help of qualitatively and quantitatively, to response with appropriate technique for management and controlling. The concept has gain popularity in various industries. Various companies frequently found the method in their projects for upgrading their performance, reducing their losses and increasing their profits. Questionnaire survey among clients, contractors, engineers and architects is analyzed using, Relative Importance Index (RII) and Importance Index (IMP.I) methods. The focus of this study is to understand what Risk Management is, understand the process of risk management at construction project and have depth knowledge on the use of risk management in high-rise construction projects.
International Journal of Engineering and Science Invention (IJESI)inventionjournals
International Journal of Engineering and Science Invention (IJESI) is an international journal intended for professionals and researchers in all fields of computer science and electronics. IJESI publishes research articles and reviews within the whole field Engineering Science and Technology, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
A Study on Risk Assessment in Construction ProjectsIJMER
Risks are very common in construction sector. Risk management includes identifying risks,
assessing risks either quantitatively or qualitatively, choosing the appropriate method for handling the
risks, and then monitoring and documenting risks. By identifying risks in an early stage of planning and
assessing their relative importance, project managers can identify methods used to reduce risks and
allocate the best people to mitigate them. Thus, this research focuses on risk identification, as opposed
to other processes of risk management. "Brain-storming sessions" is the most popular method used
frequently to identify the risks in projects as deduced from a questionnaire survey from participants in
large construction projects. Time and cost management need to be fully integrated with the
identification process. Time constraints and project managers with sufficient experience are critical
when identifying the level of risk for large and/or complex projects. The most considerable types of risk
in construction projects are financial risks, construction risks, and demand or product risks
Risks have a significant impact on a construction
project’s performance in terms of cost, time and quality. As
the size and complexity of the projects have increased, an
ability to manage risks throughout the construction process
has become a central element preventing unwanted
consequences. How risks are shared between the project
actors is to a large extent governed by the procurement
option and the content of the related contract documents.
Therefore, selecting an appropriate project procurement
option is a key issue for project actors.
The overall aim of this research is to increase the
understanding of risk management in the different
procurement options: design-bid-build contracts, designbuild contracts and collaborative form of partnering. Deeper
understanding is expected to contribute to a more effective
risk management and, therefore, a better project output and
better value for both clients and contractors. The study
involves nine construction projects recently performed in
Sweden and comprises a questionnaire survey and a series of
interviews with clients, contractors and consultants involved
in these construction projects.
The findings of this work show a lack of an iterative
approach to risk management, which is a weakness in current
procurement practices. This aspect must be addressed if the
risk management process is to serve projects and, thus, their
clients. The absence of systematic risk management is
especially noted in the programme phase, where it arguably
has the greatest potential impact. The production phase is
where most interest and activity are to be found. As a matter
of practice, the communication of risks between the actors
simply does not work to the extent that it must if projects are
to be delivered with certainty, irrespective of the form of
procurement.
A clear connection between the procurement option
and risk management in construction projects has been
found. Traditional design-bid-build contracts do not create
opportunities for open discussion of project risks and joint
risk management. A number of drivers of and obstacles to
effective risk management have been explored in the study.
Every actor’s involvement in dialogue, effective
communication and information exchange, open attitudes
and trustful relationship are the factors that support open
discussion of project risks and, therefore, contribute to
successful risk management.
Based on the findings, a number of recommendations
facilitating more effective risk management have been
developed for the industry practitioners.
A study of various factors affecting risk management techniques in constructi...eSAT Journals
Abstract
Risk management is an important step which should not be neglect or ignore in every project. Because of various risk involved in construction, it is difficult to maintain time, cost and quality as planned. Project undertaken in the construction sector are widely complex and have often significant budgets, and thus reducing the risk associated should be a priority for each project manager. The main purpose of this paper is to identify the key risk factors that affect construction project. Questionnaires has been prepared incorporating of 50 difference questions after which questionnaire survey was conducted where the questions has been focused based on (component of questionnaire) the respondents were selected based on their susceptibility to the risk. The data was analyzed using the Statistical package for social sciences (SPSS) version 21. The result shows that the inadequate planning in construction project, poor adoption of site safety, supply and use of defective materials and poor resources management in construction project are all among the forefront key risk factors which affect construction project, meanwhile, effective recommendations have been developed to increases the efficiency, speedy and minimises risk and abortive work in construction project.
Keywords: Construction Industries, Construction Projects, Risks Management, Techniques
Risk Severity Framework for a BOT Highway ProjectIOSRJMCE
Adequate attention needs to be given to project risk management for reaping the benefits by way of meeting the objectives of an organisation. Organisations which implement good risk management practices derive maximum advantage by way of fewer risks which are quite manageable in general and more so in infrastructure sector which is subjected to plethora of risks. The role of infrastructure in the overall development of a nation cannot be underscored. Considering this, a study has been carried out for an ongoing highway project being executed in the state of Telangana (India) under NHAI. The study was carried out by administering the questionnaire to 250 experts associated with highway sector and the response received was 110. The respondents were asked to identify the risks in four phases of a project namely Feasibility phase, Development Phase, Execution Phase and Operation phase and also the likelihood and impact of each of the identified risks. The severity of risk was determined based on the likelihood and impact of risks and was categorized accordingly. The severity of risk indicates the extent to which the project is exposed to that particular risk and the mitigation measures need to be taken accordingly to minimise the effect of risk
International Journal of Engineering Research and DevelopmentIJERD Editor
Electrical, Electronics and Computer Engineering,
Information Engineering and Technology,
Mechanical, Industrial and Manufacturing Engineering,
Automation and Mechatronics Engineering,
Material and Chemical Engineering,
Civil and Architecture Engineering,
Biotechnology and Bio Engineering,
Environmental Engineering,
Petroleum and Mining Engineering,
Marine and Agriculture engineering,
Aerospace Engineering.
Evaluation of Risk Factors Affecting Cost Performance of Construction Project...IJCMESJOURNAL
Effective management of risk is critical to the success of any construction project. The importance of risk management has grown as projects have become more complex. Contractors have traditionally used financial mark-ups to cover the risk associated with construction projects, but as competition increases and the margins become tighter, they can no longer rely on this strategy and must improve their ability to manage risk. This study has carried out an empirical evaluation of the effect of risk factors on cost performance of projects at delivery. The study is based on the analysis of primary data derived from bills of quantities for the construction/erection of hospital projects by the Ministry of Works and Housing, Jalingo in Taraba State. The obtained data was analyzed using linear regression, t-statistics, F-statistics, line and scatter graphs. The study identified the following risk variables as having significant impact on cost performance: project size, project location, project complexity, level of variations, prime cost sums and provisional sums, estimator bias, market conditions, level of competition, fraudulent practices, construction techniques, economic and political factors, construction accidents, health and safety factors. The study concludes that these factors have to be comprehensively assessed in the light of the individual projects. It recommends among others, the need for a departure from the use of traditional approach of percentage risk adjustment factor to a more comprehensive risk management system.
EFFECTS OF RISK MANAGEMENT METHODS ON PROJECT PERFORMANCE IN RWANDAN CONSTRUC...Sibo Kanyambari Aimable
Risks are very common in construction sector. Risk is the Possibility of suffering loss and the impact on the involved parties. According to APM (2006), all projects are inherently risky because they are unique, constrained, complex, based on assumptions, and performed by people. As a result, project risk management methods must be built into the management of projects and should be used throughout the project lifecycle.
Many construction projects fail because organizations assume that all the projects would succeed and they therefore do not identify, analyze, and provide mitigation or contingencies for the risk elements involved in the project.
Society desires that all projects should be performing and has become less tolerant of failure (Edwards and Bowen, 2005). Pressure is exerted on project managers to minimize the chance of project failure. This increasing pressure for performance which suggests that it is prudent for anyone involved in a project to be concerned about the associated risks and how they can be effectively managed.
Traditionally, performance of a project is analyzed on the criteria of quality, budget and time of completion. Two more criteria to determine the performance of a project were added by Kerzner (2001). Firstly, the project would effectively and efficiently manage risks and, secondly, it should be accepted by the customer.
It is known that the cause of the projects failure can be directly related to the extent of risk management methods undertaken. Besides, the level of risk management methods undertaken during project lifecycle impacts directly on the performance or otherwise of the project. Furthermore, using risk management methods effectively to manage risk should be continuously undertaken throughout the project lifecycle to enhance project performance. Risk management methods are thus an important tool to cope with such substantial risks in projects performance.
The main objective of the enquiry work that underpins this research is to investigate the effect of risk management methods on project performance. In this paper, a case study of RSSB multi-storey already executed project is considered.
Risk Management In Construction Projects Of Developing CountriesIJERA Editor
Managing risks in construction projects has been perceived as a very important management process so as to
accomplish the undertaking goals as far as time, cost, quality, safety and environmental sustainability. Projects
have become shared effort of multiple parties and construction industry is a good example of an area, where the
project outcome is delivered in an extremely complex actor network. By adopting risk management, savings’
potentials can be realized in construction projects. For this reason, consideration of the risk management process
is worthwhile for project managers as well as real estate developers. The implementation of risk management
system in construction projects must be oriented towards the progress of the project and pervade all areas,
functions and processes of the project.
For analyzing the levels of various risk factors in construction industry, questionnaire surveys were used to
collect data. Based on a comprehensive assessment of the likelihood of occurrence of various risks and their
impacts on the project objectives, this paper identifies twenty major risk factors. This research found that these
risks are mainly related to (in ranking) contractors, clients and designers, with a few related to government
bodies, subcontractors/suppliers and external issues. Among them, “Financial Risk” is recognized to influence
all project destinations maximally, whereas working in hot areas, closure, defective design and delayed
payments on contract are also some important risk factors. This research also found that these risks spread
through the whole project life cycle and many risks occur in more than one phase, with the construction stage as
the most risky phase, followed by the feasibility stage. It is concluded that clients, designers and government
bodies must work cooperatively from the feasibility phase onwards to address potential risks in time. Also
contractors and subcontractors with robust construction and management knowledge should be employed early
to make sound preparation for carrying out safe, efficient and quality construction activities.
The aim of this research is to identify and evaluate current risks and uncertainties in the construction industry
through extensive literature survey. It also intends to make a basis for future studies for development of a risk
management structure to be adopted by prospective investors, developers and contractors in Developing
countries.
A Study on Risk Assessment in Construction ProjectsIJMER
Risks are very common in construction sector. Risk management includes identifying risks,
assessing risks either quantitatively or qualitatively, choosing the appropriate method for handling the
risks, and then monitoring and documenting risks. By identifying risks in an early stage of planning and
assessing their relative importance, project managers can identify methods used to reduce risks and
allocate the best people to mitigate them. Thus, this research focuses on risk identification, as opposed
to other processes of risk management. "Brain-storming sessions" is the most popular method used
frequently to identify the risks in projects as deduced from a questionnaire survey from participants in
large construction projects. Time and cost management need to be fully integrated with the
identification process. Time constraints and project managers with sufficient experience are critical
when identifying the level of risk for large and/or complex projects. The most considerable types of risk
in construction projects are financial risks, construction risks, and demand or product risks
Risks have a significant impact on a construction
project’s performance in terms of cost, time and quality. As
the size and complexity of the projects have increased, an
ability to manage risks throughout the construction process
has become a central element preventing unwanted
consequences. How risks are shared between the project
actors is to a large extent governed by the procurement
option and the content of the related contract documents.
Therefore, selecting an appropriate project procurement
option is a key issue for project actors.
The overall aim of this research is to increase the
understanding of risk management in the different
procurement options: design-bid-build contracts, designbuild contracts and collaborative form of partnering. Deeper
understanding is expected to contribute to a more effective
risk management and, therefore, a better project output and
better value for both clients and contractors. The study
involves nine construction projects recently performed in
Sweden and comprises a questionnaire survey and a series of
interviews with clients, contractors and consultants involved
in these construction projects.
The findings of this work show a lack of an iterative
approach to risk management, which is a weakness in current
procurement practices. This aspect must be addressed if the
risk management process is to serve projects and, thus, their
clients. The absence of systematic risk management is
especially noted in the programme phase, where it arguably
has the greatest potential impact. The production phase is
where most interest and activity are to be found. As a matter
of practice, the communication of risks between the actors
simply does not work to the extent that it must if projects are
to be delivered with certainty, irrespective of the form of
procurement.
A clear connection between the procurement option
and risk management in construction projects has been
found. Traditional design-bid-build contracts do not create
opportunities for open discussion of project risks and joint
risk management. A number of drivers of and obstacles to
effective risk management have been explored in the study.
Every actor’s involvement in dialogue, effective
communication and information exchange, open attitudes
and trustful relationship are the factors that support open
discussion of project risks and, therefore, contribute to
successful risk management.
Based on the findings, a number of recommendations
facilitating more effective risk management have been
developed for the industry practitioners.
A study of various factors affecting risk management techniques in constructi...eSAT Journals
Abstract
Risk management is an important step which should not be neglect or ignore in every project. Because of various risk involved in construction, it is difficult to maintain time, cost and quality as planned. Project undertaken in the construction sector are widely complex and have often significant budgets, and thus reducing the risk associated should be a priority for each project manager. The main purpose of this paper is to identify the key risk factors that affect construction project. Questionnaires has been prepared incorporating of 50 difference questions after which questionnaire survey was conducted where the questions has been focused based on (component of questionnaire) the respondents were selected based on their susceptibility to the risk. The data was analyzed using the Statistical package for social sciences (SPSS) version 21. The result shows that the inadequate planning in construction project, poor adoption of site safety, supply and use of defective materials and poor resources management in construction project are all among the forefront key risk factors which affect construction project, meanwhile, effective recommendations have been developed to increases the efficiency, speedy and minimises risk and abortive work in construction project.
Keywords: Construction Industries, Construction Projects, Risks Management, Techniques
Risk Severity Framework for a BOT Highway ProjectIOSRJMCE
Adequate attention needs to be given to project risk management for reaping the benefits by way of meeting the objectives of an organisation. Organisations which implement good risk management practices derive maximum advantage by way of fewer risks which are quite manageable in general and more so in infrastructure sector which is subjected to plethora of risks. The role of infrastructure in the overall development of a nation cannot be underscored. Considering this, a study has been carried out for an ongoing highway project being executed in the state of Telangana (India) under NHAI. The study was carried out by administering the questionnaire to 250 experts associated with highway sector and the response received was 110. The respondents were asked to identify the risks in four phases of a project namely Feasibility phase, Development Phase, Execution Phase and Operation phase and also the likelihood and impact of each of the identified risks. The severity of risk was determined based on the likelihood and impact of risks and was categorized accordingly. The severity of risk indicates the extent to which the project is exposed to that particular risk and the mitigation measures need to be taken accordingly to minimise the effect of risk
International Journal of Engineering Research and DevelopmentIJERD Editor
Electrical, Electronics and Computer Engineering,
Information Engineering and Technology,
Mechanical, Industrial and Manufacturing Engineering,
Automation and Mechatronics Engineering,
Material and Chemical Engineering,
Civil and Architecture Engineering,
Biotechnology and Bio Engineering,
Environmental Engineering,
Petroleum and Mining Engineering,
Marine and Agriculture engineering,
Aerospace Engineering.
Evaluation of Risk Factors Affecting Cost Performance of Construction Project...IJCMESJOURNAL
Effective management of risk is critical to the success of any construction project. The importance of risk management has grown as projects have become more complex. Contractors have traditionally used financial mark-ups to cover the risk associated with construction projects, but as competition increases and the margins become tighter, they can no longer rely on this strategy and must improve their ability to manage risk. This study has carried out an empirical evaluation of the effect of risk factors on cost performance of projects at delivery. The study is based on the analysis of primary data derived from bills of quantities for the construction/erection of hospital projects by the Ministry of Works and Housing, Jalingo in Taraba State. The obtained data was analyzed using linear regression, t-statistics, F-statistics, line and scatter graphs. The study identified the following risk variables as having significant impact on cost performance: project size, project location, project complexity, level of variations, prime cost sums and provisional sums, estimator bias, market conditions, level of competition, fraudulent practices, construction techniques, economic and political factors, construction accidents, health and safety factors. The study concludes that these factors have to be comprehensively assessed in the light of the individual projects. It recommends among others, the need for a departure from the use of traditional approach of percentage risk adjustment factor to a more comprehensive risk management system.
EFFECTS OF RISK MANAGEMENT METHODS ON PROJECT PERFORMANCE IN RWANDAN CONSTRUC...Sibo Kanyambari Aimable
Risks are very common in construction sector. Risk is the Possibility of suffering loss and the impact on the involved parties. According to APM (2006), all projects are inherently risky because they are unique, constrained, complex, based on assumptions, and performed by people. As a result, project risk management methods must be built into the management of projects and should be used throughout the project lifecycle.
Many construction projects fail because organizations assume that all the projects would succeed and they therefore do not identify, analyze, and provide mitigation or contingencies for the risk elements involved in the project.
Society desires that all projects should be performing and has become less tolerant of failure (Edwards and Bowen, 2005). Pressure is exerted on project managers to minimize the chance of project failure. This increasing pressure for performance which suggests that it is prudent for anyone involved in a project to be concerned about the associated risks and how they can be effectively managed.
Traditionally, performance of a project is analyzed on the criteria of quality, budget and time of completion. Two more criteria to determine the performance of a project were added by Kerzner (2001). Firstly, the project would effectively and efficiently manage risks and, secondly, it should be accepted by the customer.
It is known that the cause of the projects failure can be directly related to the extent of risk management methods undertaken. Besides, the level of risk management methods undertaken during project lifecycle impacts directly on the performance or otherwise of the project. Furthermore, using risk management methods effectively to manage risk should be continuously undertaken throughout the project lifecycle to enhance project performance. Risk management methods are thus an important tool to cope with such substantial risks in projects performance.
The main objective of the enquiry work that underpins this research is to investigate the effect of risk management methods on project performance. In this paper, a case study of RSSB multi-storey already executed project is considered.
Risk Management In Construction Projects Of Developing CountriesIJERA Editor
Managing risks in construction projects has been perceived as a very important management process so as to
accomplish the undertaking goals as far as time, cost, quality, safety and environmental sustainability. Projects
have become shared effort of multiple parties and construction industry is a good example of an area, where the
project outcome is delivered in an extremely complex actor network. By adopting risk management, savings’
potentials can be realized in construction projects. For this reason, consideration of the risk management process
is worthwhile for project managers as well as real estate developers. The implementation of risk management
system in construction projects must be oriented towards the progress of the project and pervade all areas,
functions and processes of the project.
For analyzing the levels of various risk factors in construction industry, questionnaire surveys were used to
collect data. Based on a comprehensive assessment of the likelihood of occurrence of various risks and their
impacts on the project objectives, this paper identifies twenty major risk factors. This research found that these
risks are mainly related to (in ranking) contractors, clients and designers, with a few related to government
bodies, subcontractors/suppliers and external issues. Among them, “Financial Risk” is recognized to influence
all project destinations maximally, whereas working in hot areas, closure, defective design and delayed
payments on contract are also some important risk factors. This research also found that these risks spread
through the whole project life cycle and many risks occur in more than one phase, with the construction stage as
the most risky phase, followed by the feasibility stage. It is concluded that clients, designers and government
bodies must work cooperatively from the feasibility phase onwards to address potential risks in time. Also
contractors and subcontractors with robust construction and management knowledge should be employed early
to make sound preparation for carrying out safe, efficient and quality construction activities.
The aim of this research is to identify and evaluate current risks and uncertainties in the construction industry
through extensive literature survey. It also intends to make a basis for future studies for development of a risk
management structure to be adopted by prospective investors, developers and contractors in Developing
countries.
RISK MANAGEMENT IN CONSTRUCTION PROJECTS AS PER INDIAN SCENARIOIAEME Publication
Construction industry is highly risk prone, with complex and dynamic project
environments creating an atmosphere of high uncertainty and risk. The industry is
vulnerable to various technical, sociopolitical and business risks. The track record
to cope with these risks has not been very good in construction industry. As a
result, the people working in the industry bear various failures, such as, failure of
abiding by quality and operational requirements, cost overruns and uncertain delays
in project completion. In light of this, it can be said that an effective systems of risk
assessment and management for construction industry remains a challenging task
for the industry practitioners. The aim of the this research is to identify and evaluate
current risks and uncertainties in the construction industry through extensive
literature survey and aims to make a basis for future studies for development of a
risk management framework to be adopted by prospective investors, developers and
contractors
Indian EPC companies really needs rise their bar in execution of EPC projects ,there is substantial risk involved in those projects, needs rise the bar in design , procurement ,safety and integrated project management to successful completion of the project.
Software Project Risk Management Practice in OmanEECJOURNAL
Oman is a member of Gulf Cooperation Council (GCC). It is located in Southwest Asia and it has strategic significant boundaries, Overlooking the Arabian Sea, Gulf of Oman, and the Persian Gulf. It is the 80th in Global Innovation Index in 2019 and 63 in E-Government Development Index in 2018. Oman is an effective member of the Greater Arab Free Trade Agreement (GAFTA) and the World Trade Organization (WTO). Furthermore, Oman's government has continued efforts to develop local and foreign investments by signing a Free Trade Agreement (FTA) with the USA. Oman plays a significant role in investments due to its strategic location connected to the markets in the Gulf, the Middle East, Asia, and Africa. Oman's vision is to involve all new technologies to be always beside the developed countries. To achieve that, Oman established The Government Innovation Initiative to encourage government entities in creativity and introduce their suggestions to enhance governmental performance and enhance the efficiency in different fields. This is realized by involving modern technologies like the Internet of Things (IoT), Artificial Intelligence (AI), Cloud Computing, Virtual Reality Applications, and Blockchain. In Oman, the risk management approach is a core technique. Three major stages are applied systematically in risk management in software projects. These stages involve a) identifying the risk; b) analyzing and assessing the risk, and c) reaction to the risk. There is no doubt that the high risk belonged to business will have negative impacts on all of its participants. Wherefore, this paper sheds the light on that knowledge area. The aim of this paper is to review the present literature on risk management processes implemented in software projects. There is a dearth in the literature which covers the risk management area knowledge in Oman's organizations. This paper target finding out the commonly used frameworks or mechanisms in risk management in software projects. It also tries to collect the responses to state the various types of risk origins in the existing profit and non-profit organizations in Oman and to recognize the coming research trends in this area.
RISK RESPONSE STRATEGIES AND PERFORMANCE OF PROJECTS IN KIRINYAGA .docxdaniely50
RISK RESPONSE STRATEGIES AND PERFORMANCE OF PROJECTS IN KIRINYAGA COUNTY, KENYA
JAMES KADEGHE WARUI
D53/OL/CTY/26217/15
A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (PROJECT MANAGEMENT) OF KENYATTA UNIVERSITY Comment by user: Proposal
MAY, 2019
DECLARATION
I declare that, this proposal is my own original work and has not been presented for award of any degree in any university. No part of this proposal should be reproduced without the authority of the author and/or Kenyatta University.
Signature Date .
James Kadeghe Warui,
D53/OL/CTY/26217/15.
This research proposal has been submitted for the course examination with my approval as the University supervisor.
Signature . Date.
Dr. Lucy Ngugi,
Department of Management Science,
Kenyatta University.
DEDICATION
This work is dedicated to my family for giving me a chance to pursue an education. I also wish to dedicate this proposal to my colleagues for the encouragement and support they gave me towards the completion of this work
ACKNOWLEDGEMENT
I am thankful to God for the good health and strength He installed upon me to pursue this project. I wish to most sincerely thank my entire family for their overwhelming support throughout this process, they have always been a source of inspiration from whom I get my strength. I also appreciate my friends and colleagues who shared this journey with me and encouraged me in this journey. Comment by user: Need to acknowledge supervisor
TABLE OF CONTENTS
DECLARATIONii
DEDICATIONiii
ACKNOWLEDGEMENTiv
LIST OF TABLESvii
LIST OF FIGURESviii
OPERATIONAL DEFINITION OF TERMSix
ABBREVIATIONS AND ACRONYMSx
ABSTRACTxi
CHAPTER ONE1 put chapter and its heading on same line
INTRODUCTION1
1.1Background of the Study1
1.1.1 Project Performance2
1.1.2 Risk Response Strategies3
1.1.3 Projects in Kirinyaga County5
1.2 Statement of the Problem5
1.3 Objectives of the Study6
1.3.1 General Objective of the Study6
1.3.1 Specific Objectives of the Study6
1.4 Research Questions7
1.5 Significance of the Study7
1.6 Scope of the Study8
1.7 Limitation of the Study8
1.8 Organization of the Study9
CHAPTER TWO10 put chapter and its heading on same line
LITERATURE REVIEW10
2.1 Introduction10
2.2 Theoretical Review10
2.2.1 Enterprise Risk Management Model10
2.2.2 Expectancy Theory11
2.2.3 Network Theory12
2.3 Empirical Literature Review12
2.3.1 Risk Avoidance and Project Performance13
2.3.2 Risk Acceptance and Project Performance14
2.3.3 Risk Monitoring and Project Performance15
2.3.4 Risk Mitigation and Project Performance16
2.3.5 Risk Transfer and Project Performance17
2.4 Summary of Literature Review and Research Gaps19
2.5 Conceptual Framework23
CHAPTER THREE24 put chapter and its heading on same line
RESEARCH METHODOLOGY24
3.1 Introduction24
3.2 Research Design24
3.3 Target Population24
3.4 Data Collection Instruments25
.
The length of the implementation period in the construction of projects may lead to a change in
circumstances which expose them to many risks because of the length of the implementation period and multiple
stages, beginning with the start-up phase and even phase of the project, and this leads to increased circumstances of
uncertainty and increasing the probability of the occurrence of risks, and this is reflected negatively on the
construction contracting and construction economy.In this research questionnaire was developed to identify the
risks encountered in construction. Projects have been distributed to some local and foreign construction companies
in Libya, having been identified the risks that may face the projects. Through questionnaires and interviews with
engineers and project managers of companies, and making risk analysis qualitatively, there was a need to prepare a
checklist of the risks facing projects in Libya, and know the benefit of the contractor and the owner based on the
results. This paper examines the most important risks faced by construction projects in Libya, which is difficult and
how they are able to implement these projects and housing companies, the research explains a formulated model to
evaluate companies before being contracted to know the financial and technical capabilities.
The Identification of Risks and its Criticality in the Nigeria Construction I...Dr. Amarjeet Singh
Failure in project delivering can be attributed to many risk events in the Nigerian Construction Industry. This risk could be as a result of the dynamic, sensitivity, and complexity of the construction Industry towards its environment, socio-political, economic, technology, and cultural variables in Nigeria. Nevertheless, the low level of Risk Management in Nigeria construction Industry, and the little understanding and knowledge of the subject by Project Stakeholders prompt this study.
A quantitative method of research was carried out, and among the sixty (60) questionnaires administered to clients, consultants, and contractors in the Nigerian construction industry, thirty-one (31) valid responses were obtained. The questionnaires were designed on the twenty (20) types of risks that were identified by construction professionals which were categorized into five namely; Government and Politics; Finance and Economical; Management and Technology; social and Cultural; Natural and Environmental Risks. And, findings made revealed that economic and financial risks surpass all other types in the Nigeria Construction Industry.
In Indian scenario of infrastructure industry, there is a colossal vocation of peril analysis knacks and tools available for the management of affliction. In dogma, each peril analysis knack has its strengths and weaknesses. Knacks such as Probability Theory, Certainty Factors and Dempster-Shaffer theory of evidence are discussed with regard to their application to peril analysis in road projects. Suggestions on the most appropriate tools associated with the knacks are also presented. The mighty and emaciation of each knack are highlighted and discussed. This paper inferred the peril to be determined in project.
Student information management system project report ii.pdfKamal Acharya
Our project explains about the student management. This project mainly explains the various actions related to student details. This project shows some ease in adding, editing and deleting the student details. It also provides a less time consuming process for viewing, adding, editing and deleting the marks of the students.
Vaccine management system project report documentation..pdfKamal Acharya
The Division of Vaccine and Immunization is facing increasing difficulty monitoring vaccines and other commodities distribution once they have been distributed from the national stores. With the introduction of new vaccines, more challenges have been anticipated with this additions posing serious threat to the already over strained vaccine supply chain system in Kenya.
Saudi Arabia stands as a titan in the global energy landscape, renowned for its abundant oil and gas resources. It's the largest exporter of petroleum and holds some of the world's most significant reserves. Let's delve into the top 10 oil and gas projects shaping Saudi Arabia's energy future in 2024.
TECHNICAL TRAINING MANUAL GENERAL FAMILIARIZATION COURSEDuvanRamosGarzon1
AIRCRAFT GENERAL
The Single Aisle is the most advanced family aircraft in service today, with fly-by-wire flight controls.
The A318, A319, A320 and A321 are twin-engine subsonic medium range aircraft.
The family offers a choice of engines
Courier management system project report.pdfKamal Acharya
It is now-a-days very important for the people to send or receive articles like imported furniture, electronic items, gifts, business goods and the like. People depend vastly on different transport systems which mostly use the manual way of receiving and delivering the articles. There is no way to track the articles till they are received and there is no way to let the customer know what happened in transit, once he booked some articles. In such a situation, we need a system which completely computerizes the cargo activities including time to time tracking of the articles sent. This need is fulfilled by Courier Management System software which is online software for the cargo management people that enables them to receive the goods from a source and send them to a required destination and track their status from time to time.
Welcome to WIPAC Monthly the magazine brought to you by the LinkedIn Group Water Industry Process Automation & Control.
In this month's edition, along with this month's industry news to celebrate the 13 years since the group was created we have articles including
A case study of the used of Advanced Process Control at the Wastewater Treatment works at Lleida in Spain
A look back on an article on smart wastewater networks in order to see how the industry has measured up in the interim around the adoption of Digital Transformation in the Water Industry.
Immunizing Image Classifiers Against Localized Adversary Attacksgerogepatton
This paper addresses the vulnerability of deep learning models, particularly convolutional neural networks
(CNN)s, to adversarial attacks and presents a proactive training technique designed to counter them. We
introduce a novel volumization algorithm, which transforms 2D images into 3D volumetric representations.
When combined with 3D convolution and deep curriculum learning optimization (CLO), itsignificantly improves
the immunity of models against localized universal attacks by up to 40%. We evaluate our proposed approach
using contemporary CNN architectures and the modified Canadian Institute for Advanced Research (CIFAR-10
and CIFAR-100) and ImageNet Large Scale Visual Recognition Challenge (ILSVRC12) datasets, showcasing
accuracy improvements over previous techniques. The results indicate that the combination of the volumetric
input and curriculum learning holds significant promise for mitigating adversarial attacks without necessitating
adversary training.
Cosmetic shop management system project report.pdfKamal Acharya
Buying new cosmetic products is difficult. It can even be scary for those who have sensitive skin and are prone to skin trouble. The information needed to alleviate this problem is on the back of each product, but it's thought to interpret those ingredient lists unless you have a background in chemistry.
Instead of buying and hoping for the best, we can use data science to help us predict which products may be good fits for us. It includes various function programs to do the above mentioned tasks.
Data file handling has been effectively used in the program.
The automated cosmetic shop management system should deal with the automation of general workflow and administration process of the shop. The main processes of the system focus on customer's request where the system is able to search the most appropriate products and deliver it to the customers. It should help the employees to quickly identify the list of cosmetic product that have reached the minimum quantity and also keep a track of expired date for each cosmetic product. It should help the employees to find the rack number in which the product is placed.It is also Faster and more efficient way.
About
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
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Technical Specifications
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
Key Features
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface
• Compatible with MAFI CCR system
• Copatiable with IDM8000 CCR
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
Application
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Final project report on grocery store management system..pdfKamal Acharya
In today’s fast-changing business environment, it’s extremely important to be able to respond to client needs in the most effective and timely manner. If your customers wish to see your business online and have instant access to your products or services.
Online Grocery Store is an e-commerce website, which retails various grocery products. This project allows viewing various products available enables registered users to purchase desired products instantly using Paytm, UPI payment processor (Instant Pay) and also can place order by using Cash on Delivery (Pay Later) option. This project provides an easy access to Administrators and Managers to view orders placed using Pay Later and Instant Pay options.
In order to develop an e-commerce website, a number of Technologies must be studied and understood. These include multi-tiered architecture, server and client-side scripting techniques, implementation technologies, programming language (such as PHP, HTML, CSS, JavaScript) and MySQL relational databases. This is a project with the objective to develop a basic website where a consumer is provided with a shopping cart website and also to know about the technologies used to develop such a website.
This document will discuss each of the underlying technologies to create and implement an e- commerce website.
Final project report on grocery store management system..pdf
Effect or Risk Management Methods on project performance in Rwandan Construction Industry
1. Page 1 of 31
EFFECTS OF RISK MANAGEMENT METHODS ON PROJECT PERFORMANCE IN
RWANDAN CONSTRUCTION INDUSTRY
A CASE STUDY OF MULTI-STOREY BUILDINGS CONSTRUCTION PROJECT OF
RSSB
SIBOMANA Aimable1
, Jaya Shukla2
, Joseph Oduor3
1
{siboaimable@gmail.com} Jomo Kenyatta University of Agriculture and Technology, Kigali,
Rwanda.
2
{js.jayashukla@gmail.com}, Jomo Kenyatta University of Agriculture and Technology, Kigali,
Rwanda.
3
{joekoduor@yahoo.com}, Jomo Kenyatta University of Agriculture and Technology, Kigali,
Rwanda.
ABSTRACT
Risks are very common in construction sector. Risk is the Possibility of suffering loss and the
impact on the involved parties. According to APM (2006), all projects are inherently risky
because they are unique, constrained, complex, based on assumptions, and performed by people.
As a result, project risk management methods must be built into the management of projects and
should be used throughout the project lifecycle.
Many construction projects fail because organizations assume that all the projects would succeed
and they therefore do not identify, analyze, and provide mitigation or contingencies for the risk
elements involved in the project.
Society desires that all projects should be performing and has become less tolerant of failure
(Edwards and Bowen, 2005). Pressure is exerted on project managers to minimize the chance of
project failure. This increasing pressure for performance which suggests that it is prudent for
anyone involved in a project to be concerned about the associated risks and how they can be
effectively managed.
Traditionally, performance of a project is analyzed on the criteria of quality, budget and time of
completion. Two more criteria to determine the performance of a project were added by Kerzner
(2001). Firstly, the project would effectively and efficiently manage risks and, secondly, it
should be accepted by the customer.
2. Page 2 of 31
It is known that the cause of the projects failure can be directly related to the extent of risk
management methods undertaken. Besides, the level of risk management methods undertaken
during project lifecycle impacts directly on the performance or otherwise of the project.
Furthermore, using risk management methods effectively to manage risk should be continuously
undertaken throughout the project lifecycle to enhance project performance. Risk management
methods are thus an important tool to cope with such substantial risks in projects performance.
The main objective of the enquiry work that underpins this research is to investigate the effect of
risk management methods on project performance. In this paper, a case study of RSSB multi-
storey already executed project is considered.
Key words: Risk; Risk management, Risk management methods, Project performance and
Project life cycle.
1. Introduction
In 2011, the Government of Rwanda created Rwanda Social Security Board (RSSB) to manage
the Social Security Fund of Rwanda (SSFR) scheme and Rwanda Health Insurance (RAMA)
scheme together for social security coverage. RSSB‟s mandate is to cover Social Security service
within the country, it has also a legal and fiduciary obligation to act in the best financial interest
of the Fund‟s beneficiaries and to exercise the highest standard of care in taking initiative to
invest in projects that are eligible for the institution to offset obligations by fund‟s investment
earnings in long term.
RSSB, most important funding in its day to day operations is members‟ contributions and
Investment earnings; therefore, strategic management to strengthening organization performance
is vital to all of the fund‟s stakeholders.
In order to cope better with the strong emerging urban demand, RSSB aligned with the Rwanda
Housing Authority to facilitate the implementation of the Vision 2020 goals and EDPRS targets
of developing the housing sector, real estate promotion and construction of public buildings.
3. Page 3 of 31
The objectives of the such projects are to provide high quality, standardized working space for
RSSB district branch staff and any other interested renters, to extend RSSB services nearer to its
clients, to improve on the RSSB‟s coverage ratio nationwide, to get a good and sizable return on
invested funds in this Real Estate venture and last but not least to contribute to the economic
development in all districts across the country.
The projects have a vision of enabling the RSSB be the leading pension fund service provider by
reaching out to the whole of Rwanda, the region and the entire world as well as providing a
comfortable and desirable working environment for all stakeholders (staff and other renters) in
all districts across the country.
In order to examine how risks management problem lead to negative effect to construction
project, all analysis are made based on a theoretical background regarding risk, risk management
methods and project life cycle approach in multi storeyed buildings project. Based on conducted
interviews, this report presents how risks change during a project life cycle and the effect of risk
methods on the performance of the project.
The purpose of this Research project is to evaluate the effects of risk management methods and
how are they being applied in multi storey buildings project towards the performance of a
construction project and how the project manager is managing risks by using the appropriate
methods in everyday operations. The theory of the risk management process will be compared to
the actual methods in practice in order to investigate similarities and differences. In other words,
the main idea is to see if the project is working with risk management approach as it is described
in the literature regarding the methods and techniques.
The research for this Research project will be conducted in Rwanda social Security Board with a
variety of projects in progress notably Multi storey buildings project.
This project works with risks in a way that stakeholders are aware of risks. However, they
believe that a project‟s performance can be improved by implementing risk management
methods. The company was chosen in order to investigate or to assess the methods, practices and
applicability of risk management principles across Multi storey Project.
4. Page 4 of 31
The report starts with a literature overview in order to provide the theoretical context about the
construction industry and how it operates in the field of risk management with focus on the
project life cycle. Subsequently, results from conducted interviews will be presented to show
how the Multi storey project worked with risks. In the discussion part, the results from the
questionnaires are analyzed and compared to the theoretical framework. Finally the final
recommendations are drawn up in the conclusion.
2. Statement of the Problem
Embarking on a construction project involves taking risks, and no one in the construction project
will be free from risk. No matter how small or simple is the project it is still can go wrong as
soon as the two parties, the client and the contractor signed a contract they have taken onboard
the risk (Sawczuk, 1996). The individual in the construction industries that undertake various
activities are heterogeneous since client; consultant and contractors have different roles and
objectives (flanagan, 1995).
Many projects suffer overrun in cost, delayed schedule, failure and even abandonment. They
may equally not meet the quality specifications or may not achieve the benefits for which they
were embarked upon. The cost of failure makes it important to understand what makes a project
successful.
Traditionally, successful project management is analyzed on the criteria of performance/ quality,
budget and time of completion. Two more criteria to determine the performance of a project
management were added by Kerzner (2001). Firstly, the project would effectively and efficiently
manage risks and secondly, it should be accepted by the customer.
According to APM (2006), all projects are inherently risky because they are unique, constrained,
complex, based on assumptions, and performed by people. As a result, project risk management
must be built into the management of projects and should be used throughout the project
lifecycle. Many projects fail because organizations assume that all the projects would succeed
and they therefore do not identify, analyze, and provide mitigation or contingencies for the risk
5. Page 5 of 31
elements involved in the project. This is especially true with the rapid change and increased
competition.
Risk within the construction industry is generally perceived as an occurrence that impacts the
major objectives of projects, namely cost, time and quality. The other fact is that the construction
industry is more prone to risk and uncertainty than any other sector of the economy (Tah& Carr
2000; Othman 2008). This could be due to the inherent idiosyncrasies of the construction sector,
such as considerable complexity, dynamic nature vulnerability to project environment, tight
scheduling and the immense size and volume of the projects. The impacts of these factors are
further exacerbated due to the involvement of a wide range of stakeholders and parties at every
stage of the product delivery. Projects risks might influence every aspect of a project to the
extent that these risks could hamper meeting the main objectives of the project (Tadayon et al.
2012).
As a result, the performance of construction projects lies in effectively managing the risks
involved. The pivotal role of risk management for construction projects has been under-pinned
by Baloi and Price (1976, p. 262), who postulated that there is a direct relationship between
effective risk management methods and project performance since risks are assessed by their
potential effect on the objectives of the project. Thus risk management methods are the process
aimed at controlling the level of risks and modifying the concomitant effects (Uher & Toakley
1999). However, some studies (Dwivedula & Bredillet 2010; Tummala & Schoenherr 2011)
have stated that risk management domain should not be confined to mitigating and controlling
risks but should target avoiding the identified risk. Complying with Fan et al. (2008), for the
purpose of this study, risk management is considered as the whole activities geared towards
spotting risky situations, along with developing the strategies to reduce the probability of
occurrence and impacts of risks.
So, this Research project “Effects of risk management methods on project performance in
Rwandan construction industry; a Case study of RSSB Multi storey buildings projects of
RSSB” intends to assess the effects of risk management methods towards the project
performance in Rwandan construction industry.
6. Page 6 of 31
According to Burchett (1999), risk in construction, however cannot be eliminated, but it can be
minimized, transferred or retained. However, the industry has a very poor reputation for
managing risk, with many projects failing to meet deadlines and cost.
In practice, normally in order to deal with the unexpected event, there will be an allocation about
10 percent from the estimated cost of the proposed construction project as a contingency sum.
Earlier observation shows that the risk management process is not widely being implemented in
Rwandan construction industry. For this reason, this research seeks to identify particularly the
barriers and challenges for the implementation of risk management methods in RSSB
construction project.
3. Research Objective
3.1. General Objective
The aim of this Research project is to assess the “Effects of risk management methods on project
performance in Rwandan construction industry; with the case study of multi-storey buildings
construction project of RSSB”.
3.2. Specific Objectives
1. To study the effects of risk avoidance or prevention on the performance of construction
project in the Rwandan industry
2. To assess the influence of risk control (loss control) on the project performance in
Rwandan construction industry
3. To evaluate the effects of risk retention on the project performance.
4. To analyze the influence of risk transfer on the project performance in Rwandan
construction industry
4. Research Questions
In order to achieve the objectives, the following research questions have been formulated to
support the investigation:
7. Page 7 of 31
1. What are the effects of risk avoidance or prevention on the performance of a construction
project in the Rwandan industry?
2. How does risk control (loss control or risk mitigation) influence the project performance
in Rwandan construction industry?
3. Are there the effects of risk retention on the project performance?
4. How does risk transfer influence the project performance in Rwandan construction
industry?
5. Research Design
The researcher has used a descriptive research design, where qualitative and quantitative
approach has been used. In quantitative approach the research has employed data in form of
numbers collected from Multi storey buildings project team. According to Kothari (2008),
research design is the conceptual structure within which research is conducted, it constitutes the
blueprint for the collection, measurement and analysis of data as such the design includes an
outline of what the researcher will do from writing the hypothesis and its operational
implications to the final analysis of data.
6. Target Population
The case study of this research is Multi storey buildings, a project of RSSB in 4 Districts. The
research has concerned 291 as the target population whom constitute the entire project team; and
from October 2010 to date. According to Kothari (2004) all the items under consideration in any
field of inquiry constitute a „universe‟ or „population‟. It can be presumed that in such an inquiry
when all the items are covered no element of chance is left and highest accuracy is obtained.
7. Sample Design
A sample design has helped the researcher to obtain representative data which are not biased. A
sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure the researcher would adopt in selecting items for the sample (Kothari,
2004).
8. Page 8 of 31
7.1. Sampling Technique
Simple random sampling has been used because the researcher considers this to give a true
picture of the results and hence not being biased. Also a fair representation from each party
(Client, consultants and contractors) has been considered when sampling.
Sampling technique provides a range of methods that enable to reduce the amount of data needed
to collect by considering only data from a sub group rather than all cases or elements. In a focus
group, for example, you may want to consciously seek out respondents at both ends of a
spectrum to insure that all viewpoints are adequately represented (Mark 2009).
7.2. Sample size
In this research study, the sample size was of 169 from a population of 291 using Slovin‟s
formula. When it is not possible to study an entire population a smaller sample is taken using a
random sampling technique. Slovin's formula allows a researcher to sample the population with a
desired degree of accuracy. It gives the researcher an idea of how large his sample size needs to
be to ensure a reasonable accuracy of results. (Michael Slovin 1960).
If a sample is taken from a population, a formula must be used to take into account confidence
levels and margins of error. When taking statistical samples, sometimes a lot is known about a
population, sometimes a little and sometimes nothing at all.
Slovin's formula is written as:
n = N / (1 + Ne2
) While:
n = Number of samples N = Total population e = Error tolerance
To use the formula, first figure out what you want your error of tolerance to be. To this extent,
the researcher was happy with a confidence level of 95 percent (giving a margin error of 0.05).
This research has a group of 291 people as the project team of Multi-storey buildings project and
we would need to survey them to find out which tools are best suited to this research. Here it is
decided that we are happy with a margin of error of 0.05. Using Slovin's formula, it would be
required to survey n = N / (1 + Ne^2) people:
9. Page 9 of 31
291 / (1 + 291 (0.05* 0.05) = 168,451 169.
8. Data Collection
8.1.Structured in-depth Interviews
Structured in depth interview has enabled the researcher to examine the level of understanding a
respondent had about the topic. Since an interview is a purposeful discussion between two or
more people. Interviews are meant to elicit primary data responses through direct questioning.
All respondents are asked the same questions and it will be easy for the researcher to replicate
the discussion or standardize.
It is the most common form of data collection in any construction survey such as elicits different
people‟s opinions on a subject such as the impact of risk on a construction project. The
advantages of using the interview technique approach are that the respondents can expand on
areas of interest and can use non-verbal cues such as expression to emphasize their responses
(Frankel, and Wallen, 1996)
8.2.Questionnaire
Questionnaires was elaborated and distributed to the target groups in order to obtain primary and
reliable data from the respondents. Questionnaires are used to investigate attitudes, beliefs,
feelings, opinions, knowledge and some aspects of behavior. Using questionnaires to collect data
is a relatively quick way of gathering such information with relatively good response rates. It
consists of open-ended and closed-questions.
The open-ended questions are advantageous because they give the respondents the opportunity to
answer adequately applying the detail they like to qualify and clarify issues as well as giving
them an opportunity for self-expression.
Objective responses have been obtained through closed questions while subjective responses
were obtained through open-ended questions. The attempt by the instrument to combine some
10. Page 10 of 31
aspects of quantitative and qualitative data makes it an effective instrument (Sheila and Mwiria
1996).
8.3.Documentary review
This research had also reviewed literature obtained from the case study organization. This
literature included RSSB annual reports and other reports from the project as well as other books
about the subject matter. This method was chosen because; it is vital in providing background
information and facts about risk management methods before primary data could be collected.
Indeed, before Primary datais collected, a wide collection of data had been collected and this was
used to cross check with the primary data that is to be obtained by the field.
9. Data analysis
The data collected were processed and analyzed. This involved data coding, editing and
tabulation especially quantitative data. The purpose of all these is to make the information clear
and understandable for other people. Qualitative analysis techniques have been used. The
Qualitative analysis techniques complemented with some statistics that were mainly obtained
from the secondary data that was obtained through documentary analysis from the case study
organization. Statistics obtained from the primary data is included also in this research.
9.1. Editing
Editing was done as a process of re-evaluation and correction of errors in fact judgment. It also
involved correction of spellings, punctuation and capitalization.
9.2. Coding
Coding was done for grouping facts according to the themes and sub – themes of the study. This
was necessary for easy interpretation and analysis of results.
9.3. Graphical presentation
Graphical presentations were used for presentation of data in form of frequency and percentages.
The graphs indicate the number of occurrence of responses to particular questions statically. The
11. Page 11 of 31
researcher has used SPSS software to analyze data and the presentations are in tables and graphs.
Graphical presentations give clear understanding and interpretations of the results.
10. DATA ANALYSIS, PRESENTATION OF FINDINGS
10.1. Demographic characteristics of respondents
The study considered both the male and female respondents. In RSSB multi-storey project,
Males made up 85% while females made up 15%.
The figure 4.2.1 and Table 4.2.1 below show the percentage distribution of respondents by sex.
Table 1 Gender of respondents
Frequency Distribution Respondents Percentages
Female 18 15%
Male 102 85%
Source: Primary data (2015)
Figure 1 Gender of respondents
0%
20%
40%
60%
80%
100%
Male (85% ) Female (15%)
Gender of respondants
Sex of respondants
12. Page 12 of 31
10.2. Age group of respondents
Findings revealed that there were no respondents aged between 51 and above. All respondents
actually sampled and interviewed were mainly between 21 and 30, these were represented by
53%, and another category aged between 31 and 40 were represented by 22% while those aged
41-50 were represented by 25%. It also needs to be noted that there were no any respondents
aged between 51 and above, this age group was therefore eliminated from the analysis. Table
4.1 and Figure 4.2 below show the age group of respondents.
Table 2 Response according to age group of respondents
Class Frequency Percentages
21 - 30 64 53%
31 - 40 26 22%
41 - 50 30 25%
Source: Primary data (2015)
Figure: 2 Age of respondents
10.3. Level of education of respondents
53%
22%
25%
0%
0%
10%
20%
30%
40%
50%
60%
21-30 31-40 41-50 51 +
Respondents age
13. Page 13 of 31
The level of education of respondents is also analysed in RSSB multi-storey construction project.
The researcher considered primary, secondary, university and post graduate levels of education
as units of analysis.
Findings of the study show that majority of respondents were secondary school graduates (35%),
followed by university graduates (33%). Post graduate covers 27% and 5% had primary level.
Figure 4.2.3 and Table 4.2.3 below shows the percentage distribution by level of education of
respondents.
It also seems clear that most multi-storey project team were secondary school graduates. This
also clearly reflect that people aged 21 to 30 are actually in secondary school or
university/collage in actual cases. This again conforms to the fact that RSSB in its multi-storey
construction project interested in youth.
Table 3 Education of respondents
Education Level Frequency Percentages
Primary 6 5%
Secondary 42 35%
University 40 33%
Post graduate 32 27%
Source: Primary data (2015)
Figure 3: Education of respondents
5%
35%
33%
27%
0%
10%
20%
30%
40%
Primary Secondary University Post Graduate
Education level of respondents
Education level of…
14. Page 14 of 31
10.4. Marital status of respondents
The researcher further analysed the marital status of respondents. The researcher categorised the
potential statuses as single, married, divorced and widowed. Findings show that in RSSB multi-
storey construction project there was no respondent that had been widowed and only 2% had
been divorced. On the other hand 48% were married while 50% of the respondents were single.
Probably the rate of early marriage can be said to be low if findings of this study are to the
generalised. Most respondents aged 31 to 40 were actually the ones that were married while
those aged below 30 were mainly single.
Table: 4. Marital status of respondents
Marital status Frequency Percentages
Single 60 50%
Married 57 48%
Divorced 3 2%
Source: Primary data (2015)
Figure: 4. Marital status of respondents
Single, 50%
Maried,
48%
Divorced ,
2%
0%
10%
20%
30%
40%
50%
60%
Single Maried Divorced
Marital status of
respondents
15. Page 15 of 31
10.4.1. Organization of the respondents
Within the RSSB multi-storey construction project, respondents participating in the execution of
the project, belong respectively in client budget officer representative 1%, client project manager
0.85%, client project finance manager 1%, client supervisor 1%, client site engineer 17.5%,
client quality engineer 2%, client electrical engineer 2%, client structural engineer 2%, client
architectural engineer 0.85%, contractor representatives 15%, contractor site engineers 32%,
contractor site manager 0.85%, consultant 15%, contractor estimator 5% and design manager
3%.
Table: 5 Responses on organization of respondents
Organization of respondents Frequency Percentages
client 34 28.2%
Contractor 62 52.85%
Estimator 2 1%
Consultant 18 15%
Design manager 4 3%
Source: Primary data (2015)
Figure: 5 Organization of respondents
28%
53%
15%
4%
0%
10%
20%
30%
40%
50%
60%
Client Contractor Consultant Design
manager
Organization of respondents
Organization of
respondents
16. Page 16 of 31
10.4. Experience within construction industry
The relevancy of gathered data depends also on the experience one have in the construction
industry. The ranges fall within 0-5 years, 6-10, 10-15 and 15-above as per below table.
Table: 6 Responses on experience of respondents
Experience (years) Frequency Percentages
0-5 28 23%
6-10 52 44%
10-15 19 16%
15-above 21 17%
Source: Primary data (2015)
Figure: 6 Experience of respondents
10.5. Areas of multi-storey construction project in which risk avoidance /prevention
influenced performance
The aim of risk avoidance method is to maximize opportunities and minimize consequences
of a risk event. To this extent respondents were asked to specify which area does risk
avoidance influence their performance.
Findings proved that 29% risk avoidance helped them to ensure quality; 19% risk avoidance
23%
44%
16% 17%
0-5 (years) 6-10' 10-15' 15 and above
Experience of the spondentes
17. Page 17 of 31
helped them to ensure customer satisfaction, 41% risk avoidance helped them to manage
resources and 11% risk avoidance helped them to ensure with project plan.
Table: 7 Responses on Areas of multi-storey construction project in which risk avoidance
/prevention influenced performance
Risk avoidance and project performance Frequency Percentages
Ensure quality 35 29%
Ensure customer satisfaction 22 19%
Manage resources 50 41%
Ensure with project plan 13 11%
Source: Primary data (2015)
Figure: 7 Area of which of risk avoidance influence project performance
10.6. Application of risk avoidance method in multi storeyed construction project
The researcher also sought to find out how frequent project team applied risk avoidance method
in RSSB multi storey construction project towards performance. Findings from the study show
that; 47% applied this approach weekly, 42% monthly, 8% quarterly and 3% rated rarely.
Generally risk avoidance is much known and being applied.
29%
19%
41%
11%
Ensure
Quality
Customer
satisfaction
Manage
resources
Project
Plan
Area of which of risk avoidance influence project performance
18. Page 18 of 31
Table: 8 Responses on Application of risk avoidance method in multi storeyed construction
project
Application of risk avoidance Frequency Percentages
Rarely 4 3%
Quarterly 10 8%
Monthly 50 42%
Weekly 56 47%
Source: Primary data (2015)
Figure: 8. Application of risk avoidance method in multi storeyed construction project
10.7. Parameter in percentage of risk control on project performance
Risk control is the process of keeping track of the identified risks, control residual risks and
identifying new risks, ensuring the execution of risk plans, and evaluating their effectiveness in
reducing risk. Risk control records risk metrics that are associated with implementing
contingency plans. Risk control is an ongoing process for the life of the project. The risks change
as the project matures, new risks develop, or anticipated risks disappear.
Good risk control processes provide information that assists with making effective decisions in
advance of the risk´s occurring. Communication to all project stakeholders is needed to assess
3% 8%
42% 47%
Rarely Quartrly Monthly Weekly
Application of risk avoidance method in multi storeyed
construction project
19. Page 19 of 31
periodically the acceptability of the level of risk on the project. The purpose of risk control is to
determine if:
Risk responses have been implemented as planned.
Risk response actions are as effective as expected, or if new responses should be
developed.
Project assumptions are still valid.
Risk expose has changed from its prior state, with analysis of trends.
A risk trigger has occurred.
Proper policies and procedures are followed.
Risks have occurred or arisen that were not previously identified.
Risk control may involve choosing alternative strategies, implementing a contingency plan,
taking corrective action, or re-planning the project. The risk response owner should report
periodically to the project manager and the risk team leader on the effectiveness of the plan, any
unanticipated effects, and any mid-course correction needed to mitigate the risk.
Thus risk control regulates project performance. In RSSB Multi-storey construction project, the
respondent‟s views on risk control parameter in percentage of risk control on project
performance, most of them assumed that risk control has a huge influence on project
performance. Results are presented in the below table and figure 4.4.2 as follows:
Table: 9. Responses on risk control parameter in percentage for risk control on project
performance
Risk control parameters in percentage Frequency Percentages
10-30% 4 3%
30-50% 14 12%
50-70% 49 41%
70 and above 53 44%
Source: Primary data (2015)
20. Page 20 of 31
Figure: 9. Risk control parameters in percentage for risk control on project performance.
10.8. Influence of risk control on project performance
Risk control involves executing the Risk Management Plan in order to respond to risk events
over the course of the project. When changes occur that include risks, the cycle listed below may
be followed:
Identify the actual risk event - some of the identified risk events will occur; others will
not occur.
Qualify/quantify -as risks are qualified and quantified, the project management team
must separate actual risk events from sources of risk.
Respond - the response for the risk should be appropriate for the risk as defined in the
Risk Management Plan.
It is important to understand that even the most thorough and comprehensive analysis cannot
identify all risks and probabilities correctly; identification of risks are necessary for the
performance of the project. Some effective tools and techniques for risk control are
Workarounds. Workarounds are unexplained responses to negative risk events and are
considered to be short-term solutions. Workarounds are unplanned in the sense that the response
was not defined in advance of the risk event occurring. If the risk event was not anticipated or
3%
12%
41%
44%
10-30% 30-50% 50-70% 70 and above
Risk control parameters in percentage for risk control on
project performance
21. Page 21 of 31
the effect was greater than expected, the planned response may not be adequate. When this
happens, it will be necessary to repeat the response process and the risk quantification process.
Consequently risk control influences hugely project performance. In RSSB Multi-storey
construction project, the respondents were asked if the admit with this fact and have their own
comment. Most of them assumed that risk control has a huge influence on project performance.
Results are presented in the below table and figure 4.4.3 as follows:
Table: 10. Responses on influence of risk control on project performance
Influence of risk control on project
performance
Frequency Percentages
Strongly disagree 2 2%
Disagree 10 8%
Agree 48 40%
Strongly agree 60 50%
Source: Primary data (2015)
Figure: 10. Influence of risk control on project performance
2%
8%
40%
50%
Strongly
disagree
Disagree Agree Strongly
agree
Influence of risk control on project performance
22. Page 22 of 31
10.9. Impact of risk retention on project performance
Going to risk transfer we noticed that risk retention method is the one that shifts the risk from the
project to another party. The purchase of insurance on certain items is a risk transfer method. The
risk is transferred from the project to the insurance company. Multi-storey project in RSSB has
purchased storm and other natural hazards insurance that would cover the cost of a hurricane
damaging the construction sites. The purchase of insurance was usually in areas outside the
control of the project team. Weather, political unrest, and labor strikes are examples of events
that can significantly impact the project and that are outside the control of the project team.
To this point, respondents were asked how they found the usage of this approach directed the
performance of the project. Their views and findings to the approach were positive and hence 3%
have strongly disagree with the impact, 12% disagree, 44% agree and 41% appraised the
approach as very good, as per below table and figure 4.5.2.
Table: 11. Responses on relationship between risk retention and project performance
Risk retention and project performance Frequency Percentages
Strongly disagree 4 3%
Disagree 14 12%
Agree 53 44%
Strongly agree 49 41%
Source: Primary data (2015)
23. Page 23 of 31
Figure: 11. Risk retention and project performance
10.10. Analysis on the influence of risk transfer on project performance in Rwandan
construction industry.
Contractual risk transfer is a technique for allocating the risks associated with the performance of
the endeavor governed by a business contract between the contracting parties. At least in theory,
the objective for this risk allocation should be to assign the risk to the party with the most control
over it. Risks are allocated through the use of various types of contract clauses, including, but not
limited to indemnity (also called “hold harmless”) clauses and insurance clauses. Indemnity
clauses require one contracting party to respond to liability claims made against the other party
by third parties who are not involved in the contractual arrangement.
It is common practice in Rwandan construction industry for project owners to transfer liability
risks to the prime or general contractors and for prime or general contractors to transfer them
down to subcontractors. Thus, indemnity clauses typically are used to push liability exposures
downstream from one tier to the next. In many situations, this is logical as each contractor should
be responsible for controlling and financing the risks resulting from its operations. However,
indemnity agreements sometimes result in transfers that are unfair to the downstream parties, as
when one subcontractor must fund liability arising at least in part from another contractor‟s
negligence. Insurance clauses assign responsibility for purchasing certain types of insurance to
the parties to the contract. The objectives of insurance clauses are:
3%
12%
44%
41%
Strongly
disagree
Disagree Agree Strongly agree
Risk retention and project performance
24. Page 24 of 31
To assure coverage is purchased for certain mutual exposures of all the parties
(e.g., damage to the project during construction) while reducing inefficiencies from
multiple parties buying overlapping coverage;
To ensure that parties who have agreed to indemnify others have insurance in place to
cover liability transferred to them within the indemnification agreement, and
To assure that contracting parties have insurance in place to cover liability to one another.
In RSSB construction contracts one party, generally the prime contractor might buy builders risk
insurance on behalf of all the other parties. This is an efficient way of covering the direct and
indirect property exposures associated with the project without creating the coverage overlaps
that would occur if each sub-contractor tried to insure only its risk. Each sub-contractor is then
generally required to purchase certain casualty coverage‟s, such as commercial general liability,
workers compensation, and auto liability.
Obtaining some protection through another party‟s liability insurance should be viewed as a
way to insulate the transferor‟s liability insurance program from loss rather than as a replacement
of its liability insurance program. On the other hand, contract requirements are often used to
avoid the necessity of both parties purchasing first party insurance on the same property. In
RSSB construction projects, appropriate evidence that coverage has been purchased – usually in
the form of an insurance certificate – should always be presented and maintained to verify
compliance with the contract.
10.11. Reasons of transferring risks
Risk transfer is a risk reduction method that shifts the risk from the project to another party. The
purchase of insurance on certain items is a risk transfer method. The risk is transferred from the
project to the insurance company. RSSB multi-storey project purchased construction site
insurance that would cover the cost of any uncertainty damaging the construction site. The
purchase of insurance is usually in areas outside the control of the project team. Weather,
political unrest, and labor strikes are examples of events that can significantly impact the project
and that are outside the control of the project team. The respondents talked about the reasons of
transferring risks where they argued that it is notably from the nature of work.
25. Page 25 of 31
The table 4.6.1 displays the reasons to which risks should be transferred. It is about client‟s wish,
nature of work, previos experience and other reasons.
Table: 12. Responses on other factors affecting performance
Reasons of transferring risks Frequency Percentages
Previous experience 6 5%
Nature of work 54 45%
Client‟s wish 36 30%
Project manager‟s decision 24 20%
Source: Primary data (2015)
Figure 12. Reasons for transferring risks
10.12. Relationship between risk management methods and project performance
The respondents talked about the relationship between the two variables where they argued that
independent variable affects directly the independent one positively.
The table 4.6.2 displays te extent to which the risk transfer has impact on the project
performance. Using Pearson correlation coefficien, the result is r equals to 0.853. When Pearson
correlation coefficient is zero, then there is no relatioship between the given variables, between
5%
45%
30%
20%
Previous
experience
Nature of work Client's wish PM's decision
Reasons for transfering risks
26. Page 26 of 31
zero (0 ) and 0.5, the correlation is weak,0.5 – 0.79 the variables are strongly correlated. In case
Pearson correlation r is above 0.8, it means the variables are positively,strongly and perfectly
correlated. Therefore, the researcher concluded that risk transfer has extrem positive relationship
on the project performance in Rwandan construction industry.
Table: 13. Responses on relationship between risk management methods and project
performance
Risk
management
methods Project performance
Risk management
methods
Pearson
Correlation 44.2 0.853
Sig. (2-tailed) .000
N. 78 78
Project performance
Pearson
Correlation 0.853 1
Sig. (2-tailed) .000
N 78 78
Correlation is significant at the 0.01 level (2-tailed)
Source: Primary data (2015)
11. Conclusion and recommendations
11.1. Conclusion
The focus of the study was to examine the effect of risk management methods on project
performance in Rwandan construction industry. To assess the benefits of using risk management
methods in construction industry, to identify the relationship between risk management methods
and project performance.
Considering the facts that risk management methods have influence on project‟s goals in the
form of quality, time and cost, it should be an open and conscious process through all phases of
the project. The aim of the paper was to examine the influence of risk management methods on
27. Page 27 of 31
project performance in construction industry and extent to which the actors are involved in risk
management methods through the different phases of the project towards the performance.
For this purpose we conducted a questionnaire survey of clients, contractors and consultants. The
overall conclusion is that, according to project actors, risk management methods are strongly
linked to the performance of the project in terms of quality, time and budget or cost.
Most of risk management methods should be performed in the different phases and contractors
tend to be the most active group with a large influence on the risk management process.
11.2. Recommendations
The research was concerned with the effect of risk management methods to the performance a
project in construction industry. It is in this regard the recommendations were availed basing on
research findings, conclusion as well as study area.
11.2.1. To the Government
Government should be aware that risk management methods are the dynamic project tool
especially in construction projects. It should be very careful to avail the supervisor of the
construction works to ensure that risk management methods are being conducted to prevent post
completion defects and excessive costs. It will ease work and also monitor and emphasize on
tender process to offer such tenders of construction projects basing on assessed risk management
methods as it might lead to the poor quality when the winner do not have required
competitiveness.
11.2.2. To the project managers
The project managers should ensure that risk management methods is conducted not as routine
activity but needed project management tool to perform the project effectively and efficiently.
The rest of the project team should know the importance and reason of conducting risk
management methods and how frequent it should be conducted depending on the nature of work.
28. Page 28 of 31
11.2.3. To the project team
The benefits of risk management in projects are huge. Its success can gain a lot of money if dealt
with uncertain project events in a proactive manner. The result will be that minimizing the
impact of project threats and seize the opportunities that occur. This allows project team to
deliver project on time, on budget and with the quality results project sponsor demands. Also
team members will be much happier if they do not enter a "firefighting" mode needed to repair
the failures that could have been prevented.
11.2.4. To the project partners or resources providers
The partners should let the beneficiaries participate in the activities as they are the one who know
what they need and the exact specification. They should also make sure that the post completion
satisfaction of the users is met not only receiving physical end result of the project and think that
everything is fine.
11.3. Suggestions for further Research
The study was carried out as the effect of risk management methods on project performance
in Rwandan construction industry in RSSB multi-storey project. However, the further
research can be conducted on impact of risk management process on the delay in public
building projects.
29. Page 29 of 31
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