OCCURRENCE AND IMPACT OF CONSTRUCTION RISKS IN BAHIR DAR CITY, ETHIOPIA
Author/s
WUBIE TAYE MESFIN (MSC) AND WUBISHET JEKALE MENGESHA (DR.ENG & LLB)
Abstract
The construction industry is one of the major pillars of the nation’s economy. It contributed 3-10% of the gross domestic product (GDP). However, the industry has been performing poorly in achieving its main objectives (time, cost, and quality) due to the complexity in the management of construction projects and its stakeholders. The purpose of this paper was to investigate the occurrence and degree of negative impact of construction risks (cost, time, and quality-related) on the performance of building construction projects and the relationship of corresponding stakeholders, in Bahir Dar City, Ethiopia. Data were collected from ninety professionals working with contractors, consultants and clients through structured questionnaires and statistically analyzed using SPSS20. The frequency of occurrence, and degree of negative impact of risk factors are calculated using weighted mean and relative importance indices. The result showed that 4 out of 18 (22.22 %) risk factors often occur. In addition, seven of the risk factors (38.89%) are severely affecting the performance of building construction projects and stakeholders’ relationship. Variations in design and physical works, inaccuracies, and delays in approval of any contractual matters were the most frequently occurring and negatively affecting performance related risk factors. During the selection of contractor and consultant, priority should be given to technical capacity and working experience rather than considering least-cost based selection. Soft skill training would help to improve professionals’ ethics, knowledge, skills, and attitude so as to reduce autocracies. Every engineer should be provided and sign a code of ethics to aware themselves of what they need to do and what they need not to do. In doing so, we can minimize risks, improve performances, create transparent and conducive working environments, and build a culture of supportive relationship among construction stakeholders.