RISK MANAGEMENT PRACTICES AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NAIROBI CITY COUNTY, KENYA

Faith Cherono, Samson Paul Nyang’au

Abstract


The construction industry takes the key responsibility for the construction of constructions that are occupied by millions of Kenyans. According to the ministry of housing 79.2% of all the projects implemented exhibited some degree of failure. The purpose of the study was to examine the influence of project risk management practices on the performance of construction projects in Nairobi City County, Kenya by focusing on two specific objectives; project risk identification and project risk assessment. The study was guided by prospect theory and contingency theory. The research was conducted using a descriptive research design. The target population of the study was 368 construction projects in Nairobi City, County. Simple random sampling technique was applied whereby a sample size of 192 construction projects was derived. Primary data was collected through the use of semi-structured questionnaires. Quantitative and qualitative data were generated from the closed-ended and open-ended questions, respectively. Qualitative data was analyzed on a thematic basis and the findings provided in a narrative form. Inferential and descriptive statistics were employed for the analysis of quantitative data with the assistance of the Statistical Package for Social Sciences (SPSS version 25). The study results were presented through the use of tables and figures. The study concludes that risk identification has a positive and significant effect on the performance of construction projects in Nairobi City County, Kenya. In addition, the study concludes that risk assessment has a positive and significant effect on the performance of construction projects in Nairobi City County, Kenya. The study further recommended that Project Managers should give priority to risk management practices since they influence project success.

 

Key Words: Project Risk Management Practices, Performance, Construction Projects, Project Risk Identification, Project Risk Assessment


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