Risk management formalisation and contractor performance

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Managing Risk in Construction is usually based on the skill and individual decisions made by site managers, particularly in lesser projects. Construction Site Manager should be a key individual, with a prevailing picture of being tough. This study tracks up a past study by a researcher who established that, managing construction project itself does not have such a large encouragement on the way risks are managed at a construction site. The construction site manager, as a distinct individual, is viewed as having a larger impact on the project performance related to risk. The question upraised in this study is; to what extent is risk management formalised in the Ghanaian construction industry? To answer this question, it is also vital to determine the extent to which it is possible to measure the effects of managing risk at construction site level. Average percentage score and correlation analysis were the main tools used to measure the extent of risk management formalisation, impact of risk management formalisation on project time and cost performance and determining the most prevalent techniques used in risk management. Statistical package for social sciences was used as software to run the analysis. The results showed that, risk formalisation was averagely among Ghanaian contractors. Per the scaling, companies partly make documentation as part of formal risk management system in their firm. There was weak positive correlation coefficient between risk formalisation and performance on project time and cost. Companies that agreed they have formalised risk, also indicated that, their project time completion was under schedule and vice versa. Similarly, those who agreed to risk formalisation also complete project under budget and vice versa.
A dissertation submitted to the Department Of Building Technology in partial fulfilment of the requirement for the Master of Science in Construction Management, 2014