INFLUENCE OF CONTRACTUAL RISK MANAGEMENT ON PERFORMANCE OF HOUSING CONSTRUCTION PROJECTS IN NAIROBI COUNTY KENYA

Francis Mugwe Wathiuru, Dr. Maurice Pedo

Abstract


A number of housing projects in Kenya have either paused or got terminated after their commencement. The housing project delays have increased to 184.7% lead to cost overruns of up to 152.3%. The general objective of this study was to investigate the influence of contractual risk management on performance of housing construction projects in Nairobi County Kenya. Specifically, the study sought to determine the influence of risk planning on performance of housing construction projects in Nairobi County Kenya, to analyze the effect of risk identification on performance of housing construction projects in Nairobi County Kenya. This study was guided by theory of change, enterprise risk management theory (ERM), uncertainty theory and prospect theory. The research used a cross-sectional survey design. The study targeted a total of 176 respondents comprising of projects managers and site engineers in charge of the seven ongoing housing construction projects in Nairobi City County. Since the target population was small, the study used census method. This implies that all the 176 respondents participated in the study. This research used a questionnaire to collect primary data. Before embarking on data collection, relevant approvals were obtained. An introductory letter from the JKUAT, introducing the researcher to relevant authorities for field data collection was first obtained. The pilot study was carried out on 18 respondents. Descriptive statistics was used to analyze the data in frequency distributions and percentages which were presented in tables and figures. Inferential statistics comprised of correlation and regression analysis. The study concludes that risk planning has a positive and significant effect on performance of housing construction projects in Nairobi County Kenya. In addition, the study concludes that risk identification has a positive and significant effect on performance of housing construction projects in Nairobi County Kenya. Based on the findings, the study recommends that the management of housing construction projects should prioritize comprehensive risk planning throughout the project lifecycle. This involves conducting thorough risk assessments early in the planning stages to identify potential threats and opportunities that could affect project timelines, costs, and quality. Further, the study recommends that the management of housing construction projects should implement a robust and proactive risk identification process.

Key Words: Contractual Risk Management, Risk Planning, Risk Identification


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References


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