Risk management in Nigerian construction industry

ABSTRACT: The major requirement of every construction project is meeting client’s need of cost, quality and time. However, the construction industry is overwhelmed with risks more than any other industry due to the fact that they are present in every activity from design to completion. These risks need to be controlled early or face the possibility of cost overruns, time delays and poor quality work leading to displeasure of client and public. This study assesses the ways of managing the most occurring risk factors and improving risk management practice in Nigerian construction industry. Questionnaire survey was used as the survey method due to distance and logistical reasons. The questionnaire was distributed via email and respondents returned it through the same channel. The study identifies that the main problem of risk management application in Nigeria is knowledge. It was found that the best knowledge that will effectively manage project risks in the country is cost management and quality management. Materials price fluctuation has been identified as the most occurring risk in construction projects in Nigeria though increase in inflation rate has a higher possibility but its major effect is on the price of material which makes it the highest occurring risk factor in Nigeria. The attitude of construction participants is another problem to risk management practice. Keywords: Construction Industry, Knowledge, Nigeria, Risk Management Practice, Risk. …………………………………………………………………………………………………………………………