Investigating risks management on construction projects in Uganda: a contractor’s perspective

Abstract

In order to successfully manage construction projects, contractors must effectively manage risks involved on these projects. Construction projects typically include an arbitrary contingency number of 10% to control risk, which does not adequately handle the unidentified risks that have an impact on contractors. This study sought to investigate how risk management is handled on building projects. Eighty respondents from carefully chosen contractors in the Masindi District and central Kampala were taken into consideration in order to collect empirical data for the study. The research methodology used in the study was descriptive. In order to facilitate respondents' comprehension and enable correct responses, the data was gathered using self-administered questionnaires that included both closed-ended and open-ended questions. Regression analysis, means, and frequency tables were used to examine the data. The study identified the following as common risks related to the execution of construction projects; negligence in inspection, labor and resource shortages site conditions, inadequate project management and unknown site conditions. The study established that the risk of project cost overruns had the highest effect associated with implementation of construction projects. Other risk factors with high effect included: schedule delays, loss of company's reputation, slow business growth, high labor turnover and poor-quality output. A contractor’s risk management tool was developed as a regression equation; which can be used to track the effects of risk management in construction projects. It is envisaged that this tool will guide project managers in decision making on which parameters to pay more attention to in implementation of projects. Key words: Risk, Management, Construction Projects, Contractor, regression.