Risk Management Practices and Implementation of Building Construction Projects in Kenya: Case of National Police and Prisons Service Housing Programme

Abstract

The construction sector/industry in Kenya key to the economy contributing about 7% to the national Gross Domestic Product according to the KNBS Economic Survey of 2022. Further targeted support programs in the construction sector have been adopted to expand job creation, delivery of services, industry stimulation, health care improvement, support infrastructure development, improvements in water and sanitation, urban development, affordable housing, transport, tourism, and education among other government objectives. Despite the impressive performance of the construction sector globally, several construction projects have objectives failed to realise the set objectives regarding specified quality, time, cost, scope, and client satisfaction. This has led to increase in incidences of stalled/abandoned projects, collapsed buildings, cost overruns, poor quality of works among other issues. Though modern construction projects are complex and risky in nature, studies have shown that its essential to accurately identify and appropriately respond to risks in the construction projects, and this greatly increases the chances of project success. Further it is essential to have mechanisms to monitor and evaluate effectiveness the risk response plans adopted as well as control emergence of residual risks. This study sought to evaluate the risk management practices as applied in the building construction projects in Kenya and their influence on project implementation by a case of projects in the of National Police and Prisons Service Housing Programme. The study methodology entailed a review of the literature pertaining to existing prior studies on the topic and a questionnaire-based survey of project team members, senior management, contractors, the project manager, and client representatives involved in the supervision/execution of the designated projects. A total of 112 questionnaires were issued to this target group and 91 were returned achieving a return rate of 81.25%. The SPSS was utilized to analyse the data, where by both descriptive and inferential statistics were employed. It was hoped that the findings will highlight and enhance the risk management strategies applied in the building sector/industry and impact on implementation of building construction project in Kenya. Pearson Product Moment Correlation (r) analysis revealed that risk identification practice (r =.637, p.01) had a significant influence on building construction project implementation, while risk analysis practice (r =.489, p.01) and risk response planning (r =.406, p.01) had a moderate influence. Risk management strategies (r =.318, p >.01) have a minor impact on the completion of building construction projects. The findings of Multiple Regression analysis were that risk identification practice (β1 = +.432) had the most significant (p <.001) influence on implementation of building construction projects, followed by Risk Analysis Practice (β2 = +0.219), Risk Response Planning (β3 = +0.133), and lastly Risk Monitoring Practice (β4 = -0.247). The study concluded that risk management practices have a significant influence on building construction project implementation and encouraged project managers to leverage risk management practices, of particular importance risk identification strategies, to improve project implementation. Further research was recommended on the role of human factors in risk management, such as employee training, communication, and the development of a risk-aware culture within building construction companies in Kenya.