Risk management in public sector construction projects: Case studies in Lesotho

Molefi Nketekete,Fidelis Emuze,John Smallwood

doi:10.18820/24150487/as23i2.1

Molefi Nketekete, Fidelis Emuze + Show 1 more

Open Access

https://doi.org/10.18820/24150487/as23i2.1

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Abstract

Construction projects are facing problems that impede their expected performance. Time, cost, quality, and competition limitations place constraints on projects. These challenges require incisive risk-management (RM) practices. This article presents the findings of a multiple case study, which determined how and why public sector construction projects are failing in terms of contemporary RM practices that appear to be lacking in Lesotho construction. The article investigates the stakeholders’ perceptions regarding risks’ likelihoods and impacts (P-Is) on three public sector construction projects. A 5-point Likert measurement scale was used to collect data for the P-I grids. The data are analysed and presented with Scatter plots. The results obtained through cross-case synthesis show that the interviewees perceive the level of risks’ P-Is on the examined construction projects to be high. Moreover, the level of RM practice is found to be inconsistent with best practices. To enhance RM practices in Lesotho, the management of public sector construction projects should promote the use of competent project managers. Keywords: Construction, Lesotho, public sector, risk management

Highlights

The construction industry has embraced project management (PM), which entails risk management (RM) as one of its essential knowledge areas
This article presents the findings of a multiple case study, which determined how and why public sector construction projects are failing in terms of contemporary RM practices that appear to be lacking in Lesotho construction
To enhance RM practices in Lesotho, the management of public sector construction projects should promote the use of competent project managers

Summary

Introduction

The construction industry has embraced project management (PM), which entails risk management (RM) as one of its essential knowledge areas. According to Mahamid (2013: 45), construction projects are failing due to prevalent risks. Failures have escalated in the region of 6% to 7% of contract costs, with a 90% failure rate recorded in African projects (Egbu & Sidawi, 2011: 104; Van Olden, 2014: 46). RM has become a crucial area in the management of projects. Smart project managers employ risk management processes (RMP) to tackle challenges that impede their goals and objectives. They continually learn about effective RM practices by collaborating with PM professionals and RM training

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Conclusion