Risk Assessment in Construction Projects in three Local Governments in Ondo State Nigeria

TABLE OF CONTENTS

Title Page

Certification

Acknowledgment

Dedication

Abstract

Table of Contents

CHAPTER ONE
INTRODUCTION
1.1 Background
1.2 Statement of the Problem
1.3 Aim and Objectives of the Research Study
1.4 Justification for the Study
1.5 Limitation of the Research Study

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.2 Risks
2.3 Risk Management in Construction projects
2.3.1 Risk Communication
2.3.2 Strategies for Managing Risk
2.3.3 Risk Identification Process
2.3.4 Risk Assessment
2.3.5 Risk Classification
2.3.6 Determination of Risk
2.3.7 Risk Exposure
2.3.8 Types of Risk Factor
2.4 Critical Sources of Risk in Construction Projects
2.4.1 Risk Sharing in Ese-Odo, IIaje and Okitipupa Local Governments

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Area
3.3 The Research Sample
3.4 Questionnaire
3.5 Measurement of Variables 19-20 3.6 Method of Analysis

CHAPTER FOUR
RESULTS, ANALYSIS AND DISCUSSIONS
4.1 Introduction
4.2 Descriptive Statistical Analysis of the Risk Results
4.3 Management/non-management Employees’ Perceptions of Financial Risk Variables
in IIaje,Ese-Odo and Okitipupa Local Governments 22-24
4.4 Summary of the Analysis of Financial Risk Variables in the three local
Governments and their Pie Charts
4.5 Legal Risk Variables in IIaje, Ese-Odo and Okitipupa Local Governments
4.6 Summary of the Results of the Analysis of Legal Risk Variables
in the three Local Governments and their Pie Charts
4.7 Management Risk Variables in Ilaje, Ese-Odo and Okitipupa Local Governments
4.8 Summary of the Analysis of Management Risk Variables in three Local
Governments and their Pie Charts
4.9 Market Risk Variables in IIaje, Ese-Odo and Okitipupa Local Governments
4.10 Summary of the Analysis of Market Risk Variables in the three local
Governments and their Pie Charts
4.11 Policy/Political Risk Variables in IIaje, Ese-Odo and Okitipupa Local Governments
4.12 Summary of the Results of the Analysis of Policy/Political Risk Variables
in the three Local Governments and their Pie Charts
4.13 Technical Risk Variables in IIaje, Ese-Odo and Okitipupa Local Governments
4.14 Summary of the Results of the Analysis of Technical Risk Variables in
the three Local Governments and their Pie Charts
4.15 Environmental Risk Variables in IIaje, Ese-Odo and Okitipupa Local Governments
4.16 Summary of the Results of the Analysis of Environmental Risk Variables
in the three Local Governments and their Pie Charts
4.17 Social Risk Variables in IIaje, Ese-Odo and Okitipupa Local Governments
4.18 Summary of the Results of the Analysis of Social Risk Variables
in the three Local Governments and their Pie Charts
4.19 Construction Risk Variables in IIaje, Ese-Odo and Okitipupa Local Governments
4.20 Summary of the Results of the Analysis of Construction Risk Variables
in the three Local Governments and the Pie Charts
4.21 Transportation Risk Variables in IIaje, Ese-Odo and Okitipupa Local Governments
4.22 Summary of the Results of the Analysis of Transportation Risk Variables in the three Local Governments and their Pie Charts

CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions
5.2 Recommendations
5.3 Contributions to knowledge

REFERENCES

APPENDIX

APPENDIX

CERTIFICATION

This work has not been presented elsewhere for the award of the degree or any other purpose.

Candidate’s Name: EWETE, Felix Omolola

Signature… Date …

I certify that this work was carried out by EWETE, Felix Omolola, in the Department of Civil and Environmental Engineering, Federal University of Technology, Akure

Supervisor’s Name: Dr. E.O. Aiyewalehinmi

Signature… Date

ACKNOWLEDGEMENT

My invaluable gratitude goes to Almighty God who inspired and strengthened me throughout the academic height.

My deep appreciation also goes to my supervisor – Dr. E.O. Aiyewalehinmi who provided all academic paraphernalia and impetus to ascertain the research success. l make bold to say ‘more power to his elbow’. Similarly, l profoundly thank my former supervisor – Engr. (Dr.) L.M. Olanitori who stood as cornerstone of inspirations to me in the course of this academic pursuit.

Also, l sincerely express my appreciation to past heads of department – Professor A.M. Oguntuase, Professor J.O. Babatola and the present head of department – Professor C. Arum and other lecturers in the department, specifically: Professor S.A. Ola and Professor C.S. Okoli for their superlative efforts in moving the department to a great academic height.

My gratitude goes to Mr. Oluwatobi Owolabi – my computer tutor who trained me averagely in computer applications; my head of department in Ese-Odo local government, lgbekebo – Engr. B.O.M Babarinde for his encouragements, moral and financial supports.

l highly appreciate the encouragements and financial supports from Professor F.K. EWETE in the department of Agriculture and Forestry, University of Ibadan, who is the head of my family in ensuring this academic achievement.

Finally, l will like to thank both Engr. (Mrs.) Ifedolapo Helen Babalola who happened to be the first and only Postgraduate student of Construction Engineering option, Engr. Nkumah, Lucky David and Engr. Oluwatosin Ebinowen of the department of Electrical/Electronic Engineering for their wonderful assistance and encouragements.

Thank you all and God bless.

DEDICATION

In all sense and spirit of gratification, l sincerely dedicate this project to Almighty God for inspiring, strengthening empowering me throughout this academic period and height.

Besides, l equally dedicate this project to my father – Pa (High Chief) Jacob Erogbonaiye EWETE and mother – Madam Abigail Bosede EWETE, both of blessed memory for implanting essence of education into my life thereby making me a practicing engineer in the committee of well-meaning Nigerian Engineers.

Finally, in all spirit of love, l caringly dedicate this project to my beloved children – Christianah Oluwasinaayomi Opemipo, Elizabeth Opeyemi Angela and Christianah Opeyemi Wonder for their superlative inspirations and encouragements during this academic pursuit.

May God bless you all.

ABSTRACT

The primary aim of this research study is to investigate, asses, identify and analyses various risk categories that are inherent in building and construction projects in three selected Local Governments - Ese-Odo and IIaje (riversides) and Okitipupa Local Governments in Ondo State. A comprehensive review and assessment of previous studies was used to draft a questionnaire for risk data collection. Out of the 16 contractors presently executing building projects in the three Local Governments and some selected Local Government staffs who were contacted as participants, only 12 contractors and some selected Local Government staffs agreed to participate in the stdy while 4 contractors declined to participate. Indeed, Seventy-seven (77) risk variables were identified under ten (10) risk factors in each questionnaire. However, seventy-two (72) questionnaires were randomly distributed to seventy-two (72) participants who constituted final sample for the study as respondents for their responses. These participants were grouped into 27 management employees which include: Director of Works (3), Civil Engineers (6), Director of Finance and Supplies (3), Project Managers (6) and Directors of Legal and Environmental (9) and 45 non-management employees which include: Contractors (12), Design team (Architects/Civil Engineers) (6), Consultants (Architects) (3), Construction team (Foremen) (12) and Sub-contractors (Transport owners) (12). The procedure of filling the questionnaire involves the selection of a set of attitude statements, to which respondents are asked to indicate their agreement or disagreement to each statement along a five-point Likert scale ranging from: “not-important (1), important (2), average (3), very important (4) to highly important (5)”. Respondents’ scores were tabulated by assigning a numerical value to each of the answers ranging from ‘1’ for the alternative at one end of scale to ‘5’for the alternative at the other. Accordingly, responses were analyzed using Microsoft Excel and Descriptive Statistics involving: Mean, standard deviations, variance, range (maximum and minimum) and respondents to determine the influence of all the identified risk variables in building and construction projects in the three selected Local Governments.

Finally, the outcomes of the study indicated that most of the identified variables from questionnaires in all the risk factors were shown to have great influence in construction projects in the three Local Governments. Therefore, the research study recommends that the 10 identified risk factors: financial, legal, management, market, policy/political, social, environmental, construction and transportation should be considered, assessed and analysed during cost estimation by both Clients and Contractors in order to determine the quality of their influence in building and construction projects in the three Local Governments before being awarded.

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