Abstract
M.Tech. (Construction Management)
Risk management is acknowledged as a key activity in project management in order to deliver successful construction projects. However, the complexity and the risk environment in which construction projects are undertaken leads to poor project performance, especially among small and medium construction enterprises (SMEs) whose contribution to the economy is substantial.
The main objective of this study was to establish the risk management practices that are tailored for the successful delivery of construction projects undertaken by SMEs. Therefore, develop a construction risk management model at project level for SMEs.
A critical review of relevant literature was conducted which was used to develop a structured questionnaire survey. The questionnaire was first pilot tested with four construction SMEs before its dissemination to construction SMEs who were conveniently sampled in the Gauteng province of South Africa. A total of 225 questionnaires were sent out, 187 were returned of which 181 were deemed usable representing approximately 80% response rate. Descriptive and inferential statistics using the Statistical Package for the Social Science (SPSS) version 23 were used to empirically analyse the data. The validity and reliability of the nine factors of the risk management model were determined using Oblimin with Kaiser Normalisation rotation. Furthermore, Kaiser’s criterion and parallel analysis were also used as measures of the nine factors as well as the forty-two variables. Multiple regression analysis (MRA) was used to establish the relationships of the risk management factors and the project performance outcome.
Empirical findings established that variations by the client, design variations, incomplete approval and inadequate program scheduling were deemed to have a high impact on project time outcome. It was further revealed that design variations had a high impact on project cost outcome followed by variations by the client, occurrence of dispute and incomplete or inaccurate cost estimates. Furthermore, project quality outcome was highly impacted by the lack of coordination between project participants, low management competency of subcontractors, design variations, and incomplete or inaccurate cost estimates. In addition, accidents due to poor safety procedure, the absence of fire safety systems on site, equipment damage and labour injuries were deemed to have a high impact on project health and safety outcome. Further exploration of the empirical findings revealed that variation by the client, design variation, incomplete approval, and unsuitable construction program planning can...