Exploring the risk management practices of the metropolitan, municipal and district assemblies in construction project delivery

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November, 2016
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Risk management is now a readily recognised component of the management discipline; its application though is not always recognised. This usually becomes much of a problem for managers of public institutions who have the enormous task of making sure that the available scarce resources are used diligently in the most efficient and effective manner to deliver quality to the people. The aim of the study was to explore the risk management practices of the Metropolitan, Municipal and District Assemblies (MMDAs) in the execution of construction projects. The specific objectives of the study were: to find out whether MMDAs plan for risk in the execution of construction works; to identify ways the MMDAs respond to construction project risk; and to identify the difficulties involved in project risk management in the MMDAs. The primary data for the study were obtained through questionnaire, administered to the respondents. Data collected were analyzed, using frequencies, percentages and relative importance indices which were aided by Statistical Package for Social Sciences (SPSS). The results of the study indicated that misinterpretation of user’s needs, unnecessary delay in payment of retention money for contractors and evaluation panel members not qualified were risk factors most responded to by avoiding their occurrence. Inadequate/misleading information in tender documents, pollution and cash flow difficulties (Contractor) were also most responded to by ‘mitigation’. Contractor’s withdrawal of tender after closing date for opening of tenders and contractor’s refusal to go to site after taking advance payment were risk factors most responded to by ‘transfer’. Influence by political figures in deciding locations for public projects, change of government and inclement weather were best responded to by ‘acceptance’. Through this work, it has been realized that more work needs to be done especially on the development of a framework for project risk management at the MMDAs. It is thus recommended that, the local government service secretariat should organize training workshops on risk management for project actors in the MMDAs; the MMDAs should be allowed to work independently devoid of political interference; equal priority should be given to project risk management and future research efforts in risk management should be tailored towards the development of a framework for the management of project risks at the MMDAs. Key words: Risk, Risk Management, Risk register, Risk plan, Risk response strategies, Avoid, Mitigate, Transfer, Accept.
A dissertation submitted to the Department of Building Technology, College of Art and Built Environment in partial fulfillment of the requirements for the degree of Master of Science