Abstract
This study examines previous literature on construction risk management with the specific aim of identifying the cost incurred for poor risk management implementation in construction projects. One of the salient ways risk can be curbed is at the cost level, and standardized bodies such as corporate or government has tried to formulate remedies for high project cost of risk management. Primary findings emanating from this work reveals that past and other underground empirical studies have identified a number of important causes for poor risk management. These include the costs of procurement of equipment; technologies and safety; storage of data; quality and training of labor; equipment replacements and staff re-buildings; and failure in administration amongst others. The method adopted in this study is based on the cross analysis of inferences from structured interviews with reference to existing theoretical literature, published research, and unpublished research. This work contributed to the identification and comparison of important cost factors which contribute to poor risk management, assessed the cost risks which militate against the successful completion of construction projects, and suggested various consolidated way outs like the maximizing of the employee’s skills, avoidance of over-insurance, customer priority and application of value-chain in decision support. This theoretical research will further help the stakeholders and contractors to fix time-based cost of management processes to the barest minimum.