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.