Analysis and management of project risks: a survey of indigenous contractors in Nigerian construction industry

Abstract

Nigerian contractors make use of intuition in allocating contingencies for risks on capital projects. Hence, this paper assesses the means of analysing and managing the inherent risks adopted by indigenous contractors under the umbrella of FOCI using simple random sampling technique in Lagos state. Information was obtained on risk analytical techniques and managing measures. Data collected were analysed using MIS and multiple regression analysis while the hypothesis was tested with regression model. The analysed data show that financial and economic risk was prominent while the analytical technique mostly adopted was Delphi method. The mechanism of managing risk was prediction and specialisation. The regression model indicated a high significant relationship. The paper conclude that indigenous contractors should adopt mathematical oriented techniques to analyse risks and recommend the combination of managing measures to pre-empt the unpredictable nature of construction environment in Nigeria.