Influence of risk management process on the quality of construction of petrol station projects in Kenya: A case of petrol stations in Westlands constituency, Nairobi county, Kenya

Abstract

Construction of petrol stations in Kenya is marred with quite many challenges. Of particular interest to petrol station project stakeholders are the high risks to which petrol station construction and operationalization are exposed. If not managed well, these risks imply non-conformance and non-performance by petrol stations. Hence, appropriate and effective risk management should be observed throughout the project life cycle. Otherwise, the quality of such projects is highly likely to be compromised. In some cases, risk management is entirely forgotten with workers at these petrol stations not even aware of the concept of risk management and its principles. This study‟s purpose was to establish the influence of risk management on the construction of quality petrol stations in Nairobi‟s Westlands Constituency. The objectives of the study were to establish the influences of risk identification, risk assessment, risk mitigation and risk monitoring on the quality of construction of petrol stations in Westlands Constituency, Nairobi County. Simple random probabilistic sampling was used to select the sample to be used in the study. The target population was 50 people involved in the construction of petrol stations in the constituency, from whom data was collected from a sample of 35. The Krejcie and Morgan table was used to arrive at the sample size. The survey relied on questionnaires as the instrument of collecting data. Spearman‟s rank correlation was used to analyze the data to establish the relationship between the dependent and the independent variables. It was established that risk identification, risk assessment, risk mitigation and risk assessment all positively correlate with the quality of petrol station construction projects in Westlands constituency. It is recommended that stakeholders in petrol station construction projects embrace risk management strategies given the high-risk nature of petrol businesses and products. It is not enough to just identify the risk; it also pays to assess their potential impacts, design and implement mitigation measures and monitor the progress of these measures towards the achievement of risk management goals. The study established a positive correlation between all the independent variables and the dependent variable under study. It was established that the principles of risk management; risk identification, risk assessment, risk mitigation and risk monitoring influence the quality of petrol station construction projects in Westlands Constituency, Nairobi County. Further, it was established that the initial step in risk management, risk identification, is quite vital since it ensures the timely recognition of all or most of the risks likely to affect the quality delivery of petrol station projects and the operations of finished petrol stations. Risk assessment of the potential impacts of the identified risks should also be done and the most viable, appropriate countermeasures implemented. Finally, risk countermeasures should be assessed to establish their effects on the realization of risk management objectives. Following these findings, it is recommended that petrol station construction projects embrace the risk management strategies of risk identification, assessment, mitigation and monitoring to construct quality projects. Second, it is recommended that petrol station project owners and managers invest risk management strategy. Third, it is advised that regulatory agencies ensure compliance with all risk management regulations and policies on workplace environment, safety and health. These recommendations are of value considering that petrol station construction and operation are high-risk ventures.