| Abstract: | This research focus on the study of project risk management Practices and challenges on road
construction Projects in Addis Ababa city. The objectives of the research are assessment of
project risk management challenges, identifying the Probability of occurrence of project risk
factors in Addis Ababa city road construction projects and investigating their impact on cost,
time project goals their response method for each risk factor. A structured questionnaire survey
comprising 47 potential risk factors was distributed to a statistically representative sample of
contractors and consultants. Mean scores and ranking mechanism are used to rate the
probability of occurrence of various risks and their impact on cost and time. Based on
contractors and consultants view, the prevalent trend of attitudes towards project risk
management challenges and risk response factor is investigated, quantified and expressed as a
percentage, based on the number of respondents who selected a specific option, in relation to the
total number of respondents. This research work revealed that inflation is the highest significant
risk factor along with defective design and payment delays, which are ranked second and third
respectively. The outcomes further show that risk avoidance, risk transfer, risk mitigation, risk
acceptance and risk share are most frequently used response method for high impact risk factors.
In addition the research revealed that lack of policy and procedures, lack of proper risk models,
lack of practical experience, were the top three challenges faced in the implementation of project
risk management practice. Generally based on the findings the research concluded that risk
identification should be considered as the single most significant activity of the risk management
on a project and should be tackled in a systematic way. The identification and analysis of risks,
as well as the enhancement of the processes for managing road projects and the efficient use of
resources, are all advantages of the risk management process. in an effort to handle uncertainty
and unforeseen events efficiently and successfully complete projects, risk analysis and
management are still a key component of project management for road construction project. The
study recommended that, Periodic training programs offered by construction firms to technical
personnel to keep them informed of the latest technology available for improving the quality level
of the workforce, may yield considerable savings in time, efforts, and costs associated with the
project. Having in place a well-documented procedure for risk identification and management
should be a one stop solution to all threats that are likely to occur during project life cycle.
Implementing effective policies and programs that increase accuracy and proper identification
and management of risk can assist in risk reduction and management. |
