International Journal of Civil, Mechanical and Energy Science (IJCMES) [Vol-3, Issue-2, Mar-Apr, 2017] https://dx.doi.org/10.24001/ijcmes.3.2.9 ISSN: 2455-5304 www.ijcmes.com Page | 138 Evaluation of Risk Factors Affecting Cost Performance of Construction Projects in Jalingo, Taraba State Dr. Ajator Uchenna O. Associate Professor of Quantity Surveying and Cost Engineering, Department of Quantity Surveying, Nau, Awka Nigeria. Abstract — Effective management of risk is critical to the success of any construction project. The importance of risk management has grown as projects have become more complex. Contractors have traditionally used financial mark-ups to cover the risk associated with construction projects, but as competition increases and the margins become tighter, they can no longer rely on this strategy and must improve their ability to manage risk. This study has carried out an empirical evaluation of the effect of risk factors on cost performance of projects at delivery. The study is based on the analysis of primary data derived from bills of quantities for the construction/erection of hospital projects by the Ministry of Works and Housing, Jalingo in Taraba State. The obtained data was analyzed using linear regression, t-statistics, F-statistics, line and scatter graphs. The study identified the following risk variables as having significant impact on cost performance: project size, project location, project complexity, level of variations, prime cost sums and provisional sums, estimator bias, market conditions, level of competition, fraudulent practices, construction techniques, economic and political factors, construction accidents, health and safety factors. The study concludes that these factors have to be comprehensively assessed in the light of the individual projects. It recommends among others, the need for a departure from the use of traditional approach of percentage risk adjustment factor to a more comprehensive risk management system. Keywords— Taraba Projects, Cost Performance, Risk Factors, Consequential Cost, Evaluation, Management. I. INTRODUCTION In life, risks exist in everything we do. In construction, risks present in the form of events which occurrence may likely obstruct the achievement of stated project objectives where not controlled or managed. The basic objectives in construction projects are to complete within budget, schedule and specified quality. Such risk issues/events in construction impacting the realization of project objectives include among others: Project size, location, complexity, haste, level of prime cost sums and provisional sums, estimators’ bias, changing market condition, level of competition, fraudulent practices, inappropriate construction technique, health and safety, foreign exchange fluctuations, economic and political factors. Project cost and time overruns are common experiences in Nigeria construction industry. These put the competence and integrity of construction professionals who plan, predict, budget and manage costs of the projects in great doubt. To an average Nigerian, fouls play is usually suspected given the size or billions of naira cost overruns beyond what can be attributed to genuine risks. Risk is a measurable uncertainty or loss. Genuine risk is the chance of an event happening which has measurable financial consequences on the project. All investments, tasks or projects face elements of risk such as physical risk or damage to life/property, financial or funding risks, legal or statutory risks, political risks and construction risks (Ajator, 2012, 2014; Onyeador and Ukwuoma, 2006; Smith 1999). Construction related risks factors include, geological conditions landslide/unexpected site conditions, weather, accessibility, client, contractor and sub-contractor- generated risks. Plant/equipment accidents and disputes. Political risk factors include strikes, power/project promoters’ influences, labour restrictions/ civil disorder, change in Government, joint ventures risks, bilateral Government relations, tariff/taxation, high donor/lender charges and politics-induced exchange fluctuations. Indeed the characteristics of construction industry and its projects predispose projects to risk. Most projects have long life cycle, involve different professionals, participants/multiple stakeholders. It has varied labour, materials, equipment from various parts of the world and diverse sectors of the economy affected by socio-economic, political and technological changes. It requires huge capital diverse financing methods and varied costs of finances, diverse contract and procurement requirements. Risk can emanate from changes in requirements of clients, poor estimates, design errors; omissions under/overdesigns, discrepancies, divergences, poor documentation, poor co- ordinations, undefined roles and responsibilities and