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.