Abstract
No project is risk free. Every project is unique and has its own challenges in the form of uncertainties and risk, which can have either a positive or negative impact on a project. These uncertainties and risks can determine the project’s success or failure depending on how they are managed or controlled. Construction projects are regarded as the most risky projects, clustered with uncertainties and risks, than any other industry projects. Recently the South African power utility embarked on mega construction projects of new power stations to increase its generation capacity. These projects have experienced risks of schedule delay, cost escalation and inferior quality work due to some causes discussed in this research and the projects are clustered with uncertainties. This research is aimed to investigate how risk management is practiced across the South African power utility’s construction projects. The research applied survey questionnaire methodology to collect qualitative and quantitative data, which were later analysed through the following data analysis methods: spiral of analysis enlarged - combine coding, Relative Important Index (RII) and percentage data analysis methods. The analysis method for each data was chosen based on its analysis suitability to the collected data. The research results perceived that there is good risk management across the utility’s projects and there are risk causes within the utility’s projects that require attention. The research further found that there are some deficiencies within the utility’s risk management and its application that also require attention. The research recommends that the utility needs to give attention to the identified risk causes; provide improvement where it is required within, ensure compliance and proper implementation of its risk management processes, plans, strategies and measures put in place to manage risks across its projects; educate stakeholders about the project, and their roles and responsibilities to a project. This research will be useful and add value to the following personnel and industries in either the public or private sector: project managers, engineers, young professionals and graduates of any industry, who would like to practice project management or engineering; students and educators for study purposes; and industries such as engineering, construction management, manufacturing, mining, finance, marketing, retail etc. to perform either business or project risk management.
M.Phil. (Engineering Management)