Assessment of effects of construction risks on project delivery among contractors in Kenya

Abstract

The construction industry is crucial in the country’s economy growth. The Kenyan construction industry has been contributing immensely towards the Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF) and employment. Despite this acclaim, studies in recent years have shown poor performance of construction projects. This has among other things provoked increased interest in the nature and mechanism of risk analysis and management. The main objective of this study was to determine the extent to which construction risk affects project delivery among contractors in Kenya. The study assessed the likelihood of occurrence of construction risks and their impact on project objectives namely cost, time, quality, environment and health and safety. Risks were ranked thus determining the key risks influencing project delivery. This study was conducted through a review of literature and a self-administered structured questionnaire to the contractors. Contractors registered by the National Construction Authority in category NCA 5 and above were targeted. A sample of 190 respondents was selected through stratified random sampling to participate in this study. Senior managers, project managers, technical managers, architects, quantity surveyors and engineers were the respondents in this study; one professional was selected from every contractor included in the sample. Data analysis involved cleaning, sorting and coding of raw data collected from the field and processing for purposes of interpretation by use of statistical package for social science (SPSS) and Microsoft Office Excel. The data provided by the questionnaires was analyzed using both descriptive and inferential statistical methods. Findings were presented using statistical tools like pie charts, graphs and tables. Based on a comprehensive assessment of the risks probability and their impact on the project objectives, the study identified and ranked 23 key risks affecting project delivery. Finally this study made recommendations to contractors on risk management procedures and strategies aimed at improving project delivery. It also recommended areas of future research. Key words: risk, risk management, key risks, construction projects objectives, project delivery