Impact of subcontractors risk management on construction project cost performance
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Date
2021-07-12
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Abstract
This study was conducted to determine the impact of subcontractor risk management on
cost performance in construction project management using structured questionnaire and
150 participants. Specifically, the study sought to achieve the following: determine the
significant factors of subcontractor risk in construction project management; determine the
significant factors of cost performance in construction project management; determine the
correlation between factors of subcontractor risk and cost performance in construction
project management and assess the extent of impact of risk factors on cost performance in
construction project management. Quantitative research design was used in this study along
with descriptive and explanatory designs. The study found that there was a significant
positive (R=0.491, p-value = 0.000<0.05) association between cost performance and risk
of subcontracting management. The study found that subcontractor risk management
explains about 24.1% variance in cost performance. The study concludes that risk of
subcontractor management significantly predicts cost performance. This implies that with
all things being equal, a change in risk of subcontractor management leads to 27.6% change
in cost performance. Moreover, the study concludes that factors such as short-term
relationships with the main contractor, low management competency of the subcontractor,
financial problems, amendments, poor site safety, shortage of construction materials, site
coordination risk, lack of safety, inexperienced workmanship of the contractor and site
coordination challenges were ranked very high and significant risks in subcontractor
management. The study recommends that management of construction project must
conduct proper assessments on sub-contractors before awarding contracts to them.
Description
A dissertation submitted to the Department of Construction Technology and Management. College of Art and Built Environment in partial fulfillment of the requirement for the Degree of Master of Science.
Keywords
Subcontractors, Risk Management, Construction, Project Cost, Performance