Identifying Key Risk Influencing Project Delivery in Kenya from Contractors’ Perspective
Peter Mwangi Njogu1, Alkizim Ahmad2, Abednego Gwaya3
1Njogu Peter Mwangi, Masters Student- Construction Project Management, Jomo Kenyatta University of Agriculture and Technology (JKUAT) Nairobi, Kenya.
2Ahmad Alkizim, Senior Lecturer- Construction Management, Jomo Kenyatta University of Agriculture and Technology (JKUAT) Nairobi, Kenya
3Gwaya Abednego, Lecturer- Construction Management, Jomo Kenyatta University of Agriculture and Technology (JKUAT) Nairobi, Kenya.
Manuscript received on August 17, 2015. | Revised Manuscript received on August 29, 2015. | Manuscript published on September 05, 2015. | PP: 64-73 | Volume-5 Issue-4, September 2015 . | Retrieval Number: D2699095415 /2015©BEIESP
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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). The statistics by the Kenya Bureau Statistics (Republic of Kenya, 2014), indicate that the industry contributed 4.2%, 4.1%, 4.2%, and 4.4% towards the Gross Domestic Product (GDP) for the years 2010, 2011, 2012 and 2013 respectively. Despite this praise, studies in recent years have shown poor delivery of construction projects in relation to project objectives. This has been attributed to the many risks inherent in the industry (Ehsan et al., 2010). This has provoked an increased interest into the need for risk management in the industry. The main objective of this study was to determine the key construction risk which affects construction project delivery in Kenya in terms of cost, time, quality, environmental sustainability, and health and safety from contractors’ perspective. Response measures to these risks are believed shall enhance project delivery among contractors.This study was conducted through a review of existing literature and through self-administered questionnaires. The study targeted contractors registered in Kenya by the National Construction Authority (NCA). A sample of 190 respondents was selected through stratified random sampling to participate in this study. Sixteen (16) of the respondents were from class NCA 1, 12 from class NCA 2, 22 from class NCA 3, 74 from class NCA 4 and 66 from class NCA 5. Senior managers, project managers, technical managers, architects, quantity surveyors and engineers working with the contractors constituted the sample units for this study. Ninety eight (98) valid questionnaires were returned.The study assessed the likelihood of occurrence of risks and their impact on project objectives in terms of cost, time, quality, environment and health and safety; ranked the risks depending on their significance index score thus determined the key risks. Statistical package for social science (SPSS) analysis software was used to analyze data collected for the purpose of interpretation and conclusions. Descriptive statistic was applied where some measures of distribution, central tendency and dispersion were used. Findings were presented using descriptive statistical tools like tables and radar diagram. Based on a comprehensive assessment of risk probability and impact on the project objectives, 26 key risk factors were identified and ranked. Project time and cost were found to be the project objectives most vulnerable to construction risk. “Delay in payments” had the highest level of impact on both time and cost having a Risk Significance Index Score (RSIS) of 0.5849 and 0.5514 respectively.
Keywords: Gross Domestic Product (GDP), National Construction Authority (NCA), Statistical package for social science (SPSS) Risk Significance Index Score (RSIS).