Abstract
M.Phil. (Engineering Management)
Construction projects play a major role in economic and social development. Many countries, more specifically developing countries, implement various construction projects to improve their economies. According to global studies, most construction projects experience poor performance and a high failure rate. As a result of the poor performance and the high failure rate, developing countries struggle to grow their economies. Most developing countries largely depend on foreign investment to finance their major construction projects. As a result of poor performance and a high failure rate, developing countries are struggling to attract foreign investment. One of the integral parts in project management is risk management. According to previous studies, construction projects have a bad record of risk management when compared to other industries. The aim of this research is to explore the relationship between risk management and construction projects. In addition, it examines how risk management affects project success and performance. In order to fulfil the research objectives, a literature review was conducted, focusing on construction project performance indicators and critical risk management factors. From the literature review, it was established that risk management has a direct relationship with the success and performance of construction projects. Performance indicators, cost, time and quality, are vulnerable to risk events. These indicators have a direct relationship with risk events. Research data were obtained in the form of questionnaires with dominantly Likert scale closed questions. Data were received from respondents who played the role of contractor, consultant, client and subcontractor in their previous three construction projects. The majority of respondents had more than five years’ construction project experience. The respondents were construction project risk management accounting officers, with the majority of responses coming from project engineers/agents, project managers and construction supervisors. This research has identified that construction project time/schedule, quality and budget/cost are all vulnerable to risk events. It was further realised that construction project teams neglected risk events. It is therefore evident that construction projects will continuously experience poor performance and failures if risk management is not effectively performed. The risk management and key construction project...