The effect of strategic risk management on project delivery; a case study of the construction industry in Ghana

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
Managing risks in construction projects is recognized as a very important management process which enables the achievement of project objectives in terms of time, cost and quality. However, until now most of the previous studies have focused attention on some aspects of construction risk management rather than using a systematic and holistic approach to identify, analyze their impacts and adopt management options to mitigate the effect of these risks. This study sought to identify and analyze the effect of risks associated with the delivery of construction projects from the perspectives of identified stakeholders in the Construction Industry in Ghana (CIG). Additionally, the study sought to identify if risk issues are been managed strategically in the CIG. The researcher utilized a convenient sampling method to collect data but where necessary face to face interviews were conducted. The study identified that there is lack of in-depth understanding and knowledge of the inherent risks issues and the impact among the stakeholders in the CIG. There were also no strategic risk models or process which have been developed for the CIG. The lack of knowledge was attributed to lack of curriculum in the tertiary institution on risk, even though the subject is gradually been introduced at the Master of Business Administration Level. Further, the research found that the main risk impacting on the CIG is financial which stems from overdue payments to Contractors, Consultants, Suppliers, Subcontractors etc. This research also found that the construction stage is the phase which risk impact is most exacerbated. The research did not identify any risk management processes or procedures laid down for CIG. The researcher identifies that policy makers should formulate suitable SRM options for the CIG to enable the judicious use of government funds on construction projects and avoid or reduce the infantile demise of a chunk of the projects or the few completed projects not outlasting their designed life. In concluding, setting realistic Time, Cost and Quality targets is critical and all stakeholders on a project must work collaboratively from the feasibility phase to execution phase to ensure the successful delivery of construction the project.
A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in Partial Fulfilment of the Requirements for the Degree of Commonwealth Executive Master of Business Administration, July, 2011