Investigating the role of risk management techniques in construction project abandonment mitigation in Uganda

Abstract

Project abandonment is a serious problem that impedes the construction industry in developing countries like Uganda. This can take up a nature of either temporary abandonment, prolonged abandonment, or total abandonment. Construction projects can be described as tremendously complex projects in which uncertainty might arise from various sources. These continuously change due to the rapid change in technology, environment, and many more. (Alao, 2017), (Gasper, 2011) and (Yap, E.H., 2013) in their research agree that risks are one of the major causes of project abandonment. Also (HOE, 2013) (Olalusi O. a., 2012), (Otunola, 2012) and many others recommended the use of risk management principles on the uncertainties identified as a measure to combat project abandonment, they however didn’t establish how effective it is and to which stages of construction it is most important. This study, therefore, was to emphasize the need for proper risk management as a contemporary method and solution to combat the increasing rate of project abandonment in developing countries by identifying which risks to carefully look out for in Uganda and the construction stages in which they could effectively be controlled by proper risk management to prevent project abandonment. A total of 35 risks were identified through literature review and questionnaires targeting individuals handling risks on a sample of 50 sites around Kawempe division were distributed. Out of the 31 accessed sites,12 experienced project abandonment (temporary and prolonged) which is 38.7% of the visited sites. From the analysis of field data collected, it was discovered that the major risks causing project abandonment were: Delays in interim payments, cost overruns, financial risks, inadequate feasibility studies, land related issues, failure to assess client’s financial capacity, ambiguity of specifications and drawings, faulty tender process, design errors and omissions, delayed deliveries, accidents. The results also revealed that risks are most likely to cause project abandonment in the construction phase and they are best controlled in the planning and design phase. In addition, different response strategies were identified for each risk category and risk identified.