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Measuring project risk management process for construction contractors with statement indicators linked to numerical scores

Grant Kululanga (Department of Civil Engineering, University of Malawi, Chichiri, Malawi)
Witness Kuotcha (Department of Civil Engineering, University of Malawi, Chichiri, Malawi)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 6 July 2010

5706

Abstract

Purpose

There is relatively low implementation of formal project risk management methods in practice, leading to the construction industry consistently suffering from poor project performance. This study aims to ascertain the extent to which current project risk management practices are used by construction contractors in one of the countries of the sub‐Saharan region – Malawi.

Design/methodology/approach

A management process tool with statement indicators linked to numerical scores was conceived that characterised a series of steps of project risk management process. To ascertain the degree to which project risk management processes were used, a questionnaire survey was employed. Data were elicited from registered Malawian construction contractors on the elements underlining a series of steps of project risk management process as espoused by the literature. Out of 84 sampled construction contractors, 51 completed questionnaires were received.

Findings

Apart from large‐sized and more experienced construction contractors, all the small and medium‐sized construction contractors – which constitute the largest proportion of the construction industry – were characterised by a low implementation of the various required steps for the project risk management process. The application of project risk management processes was significantly influenced by the various categories of size and experience of the surveyed construction contractors at p<0.01. Furthermore, contingence planning within the series of steps of project risk management process featured highly among the surveyed construction contractors. The majority of the variables under the series of steps of project risk management process were positively and significantly linked to progression in size and experience of construction contractors at p<0.01.

Research limitations/implications

The study forms the basis for further research; replication of this study to other parts of world about how the actual implementation of the series of steps of project risk management process is undertaken could yield rich lessons for the construction industry.

Practical implications

The intentional move by industry towards measuring management processes as a precursor to uncovering the root causes that underlie project success or failure to provide quick feedback for remedial action is supported by an approach such as this.

Originality/value

The originality of this paper lies in its uniqueness for a systematic approach to quantifying the project risk management processes with the view to understanding the implementation behaviours of construction contractors in one country in the sub‐Saharan region.

Keywords

Citation

Kululanga, G. and Kuotcha, W. (2010), "Measuring project risk management process for construction contractors with statement indicators linked to numerical scores", Engineering, Construction and Architectural Management, Vol. 17 No. 4, pp. 336-351. https://doi.org/10.1108/09699981011056556

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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