Assessment of systematic risk management practices on building construction projects in Ghana

Abstract

The construction industry happens to be one of the key sectors of every nation’s economy by way of value creation, employment and contribution to Gross Domestic Product. However, just like other sectors of the economy, the industry is saddled with numerous risks making the achievement of project objectives elusive. The purpose of this study is to ascertain the current risk management practices prevailing in the building construction project delivery in the Ghanaian construction industry. Qualitative data were obtained through semi-structured interviews and analysed using content analysis technique. Quantitative data was obtained through survey questionnaires and analysed using fuzzy synthetic evaluation. Respondents were selected from three public Universities and construction firms in the highest building contractor financial class known as D1K1. It was found out that risk management is not implemented in a systematic, deliberate and continuous manner. However, risks are dealt with in an adhoc manner. This practice is at variance with acceptable risk management practices. The findings expose the weaknesses in the project management practice in Ghana. Project managers of large construction firms in Ghana require sound knowledge and training in internationally recognized systematic risk management practices in order to ensure achievement of value for money in construction project.