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Published on: August 8, 2014
Assessment of risk factors on construction projects in gondar city, Ethiopia
Amare Tilahun Tessema1, Getachew Asefa Alene2, Natnael Melsew Wolelaw3
1Transportation Engineering, Department of Civil Engineering, Debre Tabor University, Debre Tabor, Ethiopia.
Abstract:
Construction projects are incredibly dynamic, which means a lot of dangers that could impact the success of the project in Gondar, Ethiopia. Therefore, study aimed to identify the risk factors affecting project performance, and also develop the research model representing risk factors affecting project performance. Data was collected from 26 valid responses were collected via questionnaire survey from the construction professionals. The stratified simple random sampling technique is used in the present study. A total of 26 completed and valid questionnaires were returned, yielding an 81.25 percent response rate. Factor analysis (FA) was employed to extract the factors of construction projects where seventeen independent factors (risk factors) and one dependent factor (project performance) were extracted. SPSS-23 software was used to analyze the relationship among three risk factors and their impact on project performance. The results showed that the five top-ranked risk variables with the highest magnitude of impacts, based on a quantitative risk analysis using the RII method and risk allocation number, were inflation and price increases; flawed design; poor material quality; delayed payment to the contractor, and subpar work. The five risk variables that were least important and had the least impact were labor strikes, a lack of a clear scope of work, delays in acquiring site access, and a lack of site access. Factor analysis and regression modeling were employed to determine the importance of the risk factors. The eight most significant risk variables for building projects were determined using the results of the factor analysis, and they are as follows: Construction and design risk, poor management, insufficient funding, uncertain political conditions, a lack of economics in the project budget, a lack of law and order, an unfavorable climate, and other risk factors are just a few examples of risk factors. The regression model indicates that inflation and price rises, delays in acquiring site access, and late contractor payments have a significant impact on the project's overall risk factors. The construction sector in Gondar, Ethiopia is anticipated to benefit significantly from these findings in terms of managing risk elements in construction contracts.
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