The study of risk management in building construction projects.
Abstract
Risks are hindrances that occur on a projects and they are inevitable in the execution of the
construction works. Risks contribute 80% on the project failure if not properly mitigated
before and during the construction process. With the various types of risks, they prevent the
realization of project objectives which greatly affects the project. This therefore means that
managing risks is a real issue that has to be taken into account during the project conception
and realization during the project planning stage.
The study was therefore to address the problem on how the different risk management
techniques affect projects and contribute to their completion. The main aim of the study was
to analyze risk management practices on building construction projects in Uganda. In
achieving this goal, the risks in Uganda’s construction industry were identified and a review
on how these risks are dealt with was conducted and was followed by an assessment of the
risk management process leading to certain methods that were deemed effective and others
thought to work for Uganda. The risks and risk management practices identified during this
research were basically discovered through literature review and questionnaires issued to
various stakeholders in the construction industry.
From the findings, measures for mitigating risks and good construction practices by
contractors were observed that they can actually mitigate most of the risks in the construction
industry. However, it was discovered that financial risks, environmental risks, price
fluctuations are some of the risks that greatly affect construction of projects and therefore the
use of effective means such as the standard forms of contracts, insurance indemnities among
others helps them get access to finances and as well as to reduce the chances of financial
uncertainties. Proper measures should be adhered to, to prevent the extent of the impacts of
certain risks under the environmental risks.