Influence of risk management in building projects in Kenya: A case of building projects in Westlands sub - county

Abstract

The study investigated the influence of risk management in building projects in Westlands sub- County. The objectives of the study were to: identify procurement options, investigate strategies of risk process and establish policy influence on risk management. The research design presented in this research project report is a descriptive survey design. The target population for the study included clients, contractors and consultant in building projects within Westlands sub - county in Nairobi. A sample size of 32 out of 107 respondents was sampled using stratified random sampling technique. Validity and reliability of the research instrument was measured using Cronbach‟s alpha and split- half method respectively. Data was collected by self administered questionnaires to respondents. Data generated was analyzed using SPSS version 20. Crosstabulation was used to establish the relationship between independent and dependent variables. Chi-squire was used to establish the significance of the differences observed. Confidence level was set at 5%. Binary logistic regression was used to model the relationships established. The results were as follows: building projects in Westland County are procured via two contract type: design-bid-build (68%) and design build contracts (32%).The choice of contract options are determined by project duration/time, financial costs, legal issues and project actors. All the companies surveyed were exposed to a range of risks including risks associated with owners, contractors, political risks, financial risks and other risks. Projects procured via design-build contracts had a higher level of risks associated with designers. The various risks identified are under-mitigated while political risks are not mitigated. Effect of licensing procedures, laws and regulations and influence of policies on arbitrage was not significant for both design-build and design-bid-build. The local contractors and designers should be sensitized on risks mitigation strategies to improve the level of risks mitigation in the county. Additional studies should be conducted on the role of the newly created National Construction Authority with regards to risk in building projects and the role of quality control on project risk.