Impact of subcontractors risk management on construction project cost performance

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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.
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.
Subcontractors, Risk Management, Construction, Project Cost, Performance