ABSTRACT

The multiplier effect of the construction industry to both developed and developing countries cannot be overemphasized.  The 2012 construction sector review purports that the UK construction industry has an annual turnover of more than £100 billion and accounts for 10 per cent of the country’s GDP.  In contrast Nigeria, which is urbanising at one of the fastest rates in the world, contributes only 3.2 per cent in terms of Gross Domestic Product. In turn, the population for the study was determined using stratified random method of sampling.  The units of analysis in this case study are contractual interfaces and organisational structure, of which there can be hundreds in a typical case Drawing on principles of grounded theory, interview transcripts were analysed through a combination of content analysis and graphical representation of contractual and organisational structures.  Clients and surveyors were found to be risk averse even though they claimed to have formal written procedures for risk management.  Their awareness of the importance of risk management in construction business is more of lip services. A graphical representation of the Nigerian contractual structure, supply chain and value chain was achieved. Consequently, a conceptual model is developed for enshrining risk management practices in developing countries.  The micro and macro implication of the prescribed model is subject to its testing and validation.

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Quantity surveying is concerned with controlling and managing construction projects. The Nigerian construction industry is faced with uncertainties. With construction targets not being met and high rate of abandoned construction projects, there is great need for proper risk assessment and implementation. Managing risks in construction projects have been recognized as a very important process in order to achieve project objectives in terms of time, cost, quality, safety and environmental sustainability (Mills, 2001). Project risk management is an iterative process: the process is beneficial when is implemented in a systematic manner throughout the lifecycle of a construction project, from the planning stage to completion.

Risk management has become an integral process in managing construction projects. Construction project activities are to be well calculated in-order for the deliverable to be of great use and benefit to its stakeholders. To complete most construction projects on time, minimizing cost and wastages proper risk management techniques must be employed (Tchankova, 2002). According to Mills (2001), systematic risk management is expecting the unexpected or in other words it is a tool which helps control risks in construction projects and its objective is to introduce a simple, practical method of identifying, assessing, monitoring and managing risk in an informed and structured way. 

Normally, in risk management process, the first steps will involves risk identification process which includes the prioritization process in order to identify and rank the risk based on its impact and seriousness. Risk that will have a greater impact on a project normally will be handled first and low impact risk will be handled later.