International Journal of Construction Engineering and Management 2018, 7(1): 47-52
DOI: 10.5923/j.ijcem.20180701.05
Evaluating the Awareness Level of Risk Management
amongst Construction Stakeholders in Nigeria
EOE Nnadi
1,*
, E. C. Enebe
2
, O. O. Ugwu
3
1
Quantity Surveying Department, Enugu State University of Science & Technology, Agbani, Nigeria
2
Building Department, Enugu State University of Science & Technology, Agbani, Nigeria
3
Department of Civil Engineering, Federal University Ndufu-Alike Ikwo, Abakaliki, Nigeria
Abstract Objectives: To create increase the level of risk management awareness amongst construction stakeholders in
Nigeria to enhance strong, vibrant and profitable industry. Methods/Statistical Analysis: Descriptive cross-sectional survey
design was adopted while stratified random sampling was adopted to select stakeholders. Structured questionnaire and
telephone interviews were adopted for data collection. Reliability of the instrument was established by applying split-half
method after duly validation by experts in the field. Cross tabulation and chi-square was adopted to test the data, while the test
to find out the strength of association between the variables was carried out using Phi and Cramer's V. Findings: The study
identified the level of risk management awareness among stakeholders to be relatively low at 57.25% when compares to the
colossal damages cause by risks in the industry. The finding collaborates previous work by [1] that all parties to a project
should have a comprehensive understanding of the risks involved, and risk management procedures should be implemented
throughout all the stages of a construction project. It also agrees with [2] work that surmised that risk may arise from that lack
of knowledge; as risks are gaps in knowledge which we think constitute a threat to the project. The work goes further to
ascertain the strength of association between stakeholders and their involvement in risk management which was discovered to
be very weak. Moreover, the critical value of chi-square of 0.004 gotten was lesser than the observed value of chi-square p =
0.951. This shows that there is no statistically significant relationship between stakeholders and level of involvement in risk
management hence improving previous work. Application/Improvements: The study has improved the level of risk
awareness, essence of partnership among stakeholders to enhance efficient risk management and realization of project
objectives.
Keywords Awareness level, Construction industry, Project, Risk, Risk Management, Stakeholders
1. Introduction
Risk and uncertainty often involve many participants in a
project. Each participant uses his own methods of analyzing
and managing his scope relevant risk items. For whatever
method used, it should objectify and quantify the risk in a
project and provide the measurable means of diversifying or
sharing the risk among the project participants. The
willingness of a participant to accept risks often reflects the
professional competence of that participant as well as his
tendency to risk. And, since usually each participant tries to
minimize his own risk, conflict rises between the participants
and sometimes this conflict can be detrimental to the project.
The construction industry, perhaps more than most, is
overwhelmed with risks. Thus, the industry demands
systematic risk management approach. All too often, risks
are either ignored, or dealt with in a completely arbitrary
* Corresponding author:
nadiezekiel@yahoo.com (EOE Nnadi)
Published online at http://journal.sapub.org/ijcem
Copyright © 2018 Scientific & Academic Publishing. All Rights Reserved
way. [3] iterated that, it is highly risk prone, with complex
and dynamic project environments creating an atmosphere of
high uncertainty and risk. The industry is vulnerable to
various technical, socio-political and business risks. Most of
the decisions, including the simplest ones, involve risks [4].
Risk management is an important part of the
decision-making process in construction and now widely
accepted as a vital tool in the management of projects [5].
Investigating potential risks requires the collaboration of all
disciplines contributing to the project. Technical, managerial,
financial, and administrative departments of the participating
firms need to cooperate to identify and respond to expected
risk events. This integrative process needs practical
experience to adapt the required environment [6]. Risk has
huge and visible effect on final project cost, delivery time;
quality of job done and sustainability. Nigerian construction
industry is risk prone because most construction
stakeholders rarely take adequate risk management measures.
Contracts are awarded without proper evaluation in terms of
the financial, equipment and expertise capacity of
contractors. Some clients undergo the contractual process
without sponsorship plan. These often result into poor cash