Influence of Risk Management Practices on Performance of Road Construction Projects in Nairobi City County, Kenya.
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Date
2021
Authors
Githere, Jimmy
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The performancez ofz roadz constructionz projectsz hasz beenz az subjectz ofz concernz inz
Kenya and more specifically in Nairobi City County (NCC). The evidence shows that most roadz
constructionz projectsz inz Kenyaz are usually not completedz in time thusz significantz costz
overruns.z Managingz constructionz projectz risksz is consideredz asz compulsoryz forz anyz
projectz toz bez successful. This studyxseeks tox determine the effectx ofx risk managementx
practicesx on performancex of roadx construction projects’x performance in the Kenyan context.
Thex research specifically sought to determine the effectx of projectx risk assessment onx
performancex of roadx constructionx projects inx Nairobi City County; to establish thex effectx
ofx projectx risk identification onx performancexof roadx constructionx projects in Nairobi City
County; examine the effectxof risk planning on performancex of roadx constructionx projects inx
Nairobi City County; and to determinex effectx ofx risk control management onx performancex
ofx roadx constructionx projects in Nairobi City County. The concepts that guided the research
were the theory of agencies, the theory of uncertainty, and the theory of stakeholders. A
descriptive design for studies was used. The target population was 614 sampled participants
using stratified sampling technique and the sample size consisted of 184 participants chosen
using simple random sampling technique. Questionnaires were used to obtain quantitative data
which was analyzed using descriptive statistics and regression analysis. The research established
that project performance had a beneficial and substantial impact on design danger, legal risk,
construction risk, and contract management risk. It was found out that project riskx assessment,x
projectx riskx identification,x projectx riskx planning,x andx riskx control managementx had a
significant and positive correlation with road project performance in Nairobi City County. The
research concludes that design impacts the execution of NCC road building projects as design
limitations restrict the variety of prospective design alternatives. Poor design is a danger engaged
in project plan planning and implementation. It is vital to build legal risk management into
project management when designing, developing and implementing building projects across the
county to guarantee governance and compliance with legislation, regulations and norms.
Building risk is highest at the earliest phases of the project beginning with the selection of
procurement route. Another efficient yet inexpensive technique of mitigating risk is to
implement a consistent contract management process. As far as risk mitigation and distribution is
concerned, this involves provisions pertaining to compensation, liability constraints and
appropriate disclaimers. The research proposes that the building department and builders need
adequate project layout, legal approval and adherence to policy demands to mitigate the hazards
involved in the project execution phase, adequate planning to guarantee that all funds are
accessible to carry out the building. County should consider concentrating on the legal secondary
hazards. If wrongly managed, this can result in costly economic losses for the county as well as
elevated leadership and personnel time expenses. Contractors need to closely evaluate the
hazards and recognize their project's potential consequences for these hazards. Stakeholders need
to monitor risk reactions, evaluate the magnitude of the danger, provide risk control policies and
handle any remaining hazards.
Description
A Research Project Submitted to the School of Business in Partial Fulfillment of the Requirement for the Award of the Degree of Masters of Business Administration (Project Management) of Kenyatta University, May, 2021
Keywords
Influence, Risk Management Practices, Performance, Road Construction Projects, Nairobi City County, Kenya