Risk Governance and Performance of Construction Projects in Makueni County, Kenya

Abstract

With devolved government system in Kenya, there has been a rapid increment in public construction projects. Nevertheless, performance of these projects is questionable in most counties. In Makueni County, several construction projects have had their performance compromised as evidenced by their delayed completion. The inherent risk involved in the projects is among the major reasons that lead to projects performing poorly. However, none of the existing studies have assessed how risk governance influence project performance in construction projects in Makueni County. This has resulted to lack of adequate empirical insights to guide in developing strategies for enhancing performance of construction projects in Makueni County as far as risk governance is concerned. Therefore, this study investigated the interplay between risk governance and performance of construction projects in Makueni county, Kenya. Specifically, the study sought to investigate the effect of management of resource risk; budget control risk; and litigation risk on performance of construction projects in Makueni County. The research applied the descriptive research design whereby 24 projects in construction industry in Makueni County completed in year 2018/2019 were studied. The project manager, project supervisor and contractor handling each of the projects constituted the respondents. A census approach was used and thus a total of 72 respondents were targeted. To collect data, a semi-structured questionnaire was administered. Data analysis was based on descriptive and inferential statistics, and the findings tabulated and expressed in bar graphs as well as pie charts. The findings indicate that majority of the respondents agreed with the statement used to assess resource risk management in construction projects in Makueni County. However, they disagreed that financial resources were readily available and adequate for the project activities. Most of them also agreed with the statements used to assess budget control risk management and litigation risk management. It was found that resource risk management, budget control risk management and litigation risk management have a positive influence on the performance of construction projects in Makueni County. The study concluded that performance of construction projects in Makueni County is significantly affected by budget control risk management while resource risk management and litigation risk management positively affect the projects’ performance but to an insignificant extent. The study recommends that among other measures, the county government of Makueni should ensure they set aside adequate financial resources for the various construction projects to be implemented.