Investigating the Impact of Risk Management on Project Performance in Construction Industry

Abstract

The construction industry is highly risky and clogged with many uncertainties especially with the continued surging of COVID-19 pandemic. Evidence abounds on the severity of the impact leading in increase in project abandonment, cash inflow and jobs losses. The purpose of the research is to examine the impact of risk management on project performance of construction industry in Nigeria. A quantitative research design was used and adopting a descriptive study for more in-depth into the risks and risk management issues in the industry. Survey questionnaires used in collecting data from 84 sample respondents. Data generated were analysed using simple linear regression model. The results revealed that risks (internal and external) and risk management significantly impacted on project performance. The research paper, therefore, presents the result of study conducted among the major stakeholders (contractors, consultants, and the client) of projects in Abuja, Lagos and Portharcourt all in Nigeria. In addition, the result revealed that the major problem of the construction industry in risk is the lack of a regulatory framework to be imbibed and implemented by the companies and firms in the industry. The framework is to be created and monitored by the Bureau of Public Procurement (BPP) and the monitoring process is to include risk audits, risk reassessment, risk technical performance, reserve analysis and status meeting. The study contributes to better management of risks in the construction industry to reduce impact on project performance.