INTRODUCTION
Construction, like all industries today is looking to improve business efficiencies. However, it faces unique challenges due to the complexity of construction projects. These complexities create greater risks for efficiencies than those faced by other industries. We believe or it is believed that providing research into construction, risk mitigation is particularly critical in order to help the industry become more successful in overcoming its challenges. Construction is a key activity in any economy, it influences and it is influenced by Gross Domestic Product (GDP) of any nation. Compare to the other industries, the construction industry is at near the top in the annual rate of business failure and resulting liabilities (Enshassi et al., 2006) construction project involve numerous unpredictable and complex processes and as such are plagued with risk. Size can be one of the major causes of risk so can change in political or commercial planning. Other factors carrying risk with them include complexity of construction projects, locations. Speed of construction and familiarity with the types of work (Thompson and Perry, 1992). Risk in construction can be described as exposure of construction activities to economic loss due to unforeseen events or forseeing events for which uncertainty was not properly accommodated. Risk in construction has been the object of attention because of time and cost overrun associated with construction projects. (Akintoye and Macleod, 1997). Too often, these risks are not dealt with satisfactorily and the industry has suffered poor performance as a result (Tah and Carr, 2000).
From the review of literature, several attempts have been made to proffer solution to the problem of risk. There are proliferation of techniques and packages designed to provide risk analysis and management facilities. Although they have not offered a satisfactory solution to the risk problem as a whole. In so far as construction risk cannot be eliminated. There is therefore the need to explore the various strategies available to control and mitigate their adverse effects. As such, the aim of this paper or research work is to identify the key factors inherent in construction projects and evaluate measures to mitigate their effects. It also, investigates risk allocation and response techniques as perceived by the stake holders in the Nigerian Construction Industry. This study examines the opinions of the industry at large and of leaders in risk mitigation to provide insights on the impact of risk in the construction industry and the strategies used by the owners, building project contractors to mitigate risk they face in order to improve their bottom lines and increase project productivity.
I chose to focus this research on a building project construction project because of the number of risks and challenges faced on construction projects. The top line recommendations that emerge from the research findings offer practical solutions that I hope the construction industries will find helpful as they seek to avoid risk and improve their bottom line performance such as;
Ultimately, this result demonstrates that good project management must include good risk management.
1.1 AIM AND OBJECTIVES
1.2 AIM
The aim of this subject is to identify the key risk status inherent in CO structure projects and evaluate measure to mitigate their effects.
1.3 OBJECTIVES
1.4 STATEMENT OF PROBLEM
The construction industry has high rate of work accidents and poor reputation for coping with problems and success in any construction project is indicated by its performance in the achievement of project time, cost, quality, safety and environmental sustainability objectives (Zhon, Zhang & Wang, 2007).
One of the reasons of the bad performance is that the construction industry is one of the riskiest of all business types (Clough, Sears & Sears, 2005). While some degree of poor cost and time schedule performance is inevitable in construction project, it is possible to improve risk mitigation strategies to maximize their negative impact in thus improve the project performance. Some of the key problems in any construction project includes, accidents such as fire outbreak, fall either by slipped or as a result of working at height which may result to injuries or even lost of lives. And if we know that risk are certain to materialize in every construction projects (even if we don’t know what they are), we can accept problem or uncertainties as part and parcel of any project and deal with them in a measured way instead of Overreacting and assuming the project is doomed to failure just because it has hit a bump in the wad.
1.5 STUDY METHODOLOGY
A descriptive research method was adopted as observation techniques (through opinion surely) was used as the primary data collection method (Mbachu, 2011). This involved questionnaire survey of stakeholders in the industry including contractors, quantity surveyors and project managers. A qualitative scoping study was first conducted amongst convenience samples of the stakeholders through purposive sampling. This helped to identify risk factors and mitigation measures. In the questionnaire survey, respondents were then asked to rate the relative levels of the impact of the identified risk factors as well as relative levels of effectiveness of the identified risk management measures.
1.6 RESEARCH QUESTIONS
1.7 STUDY AREA
The study area of this research work is the construction industry in Abuja metropolis. The research only investigated risk management at the planning stage and not during the other construction phases. The research measured cost and schedule performance in construction projects. The respondents were the professionals in the construction industry working in Abuja, selected major developers and the industry regulators. The research targeted on joining and complete projects.
DEFINITION OF TERMS