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AN APPRAISAL OF FACTORS MILITATING AGAINST THE EFFECTIVE IMPLEMENTATION OF FORMAL RISK MANAGEMENT TECHNIQUES IN PROJECT DELIVERY

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AN APPRAISAL OF FACTORS MILITATING AGAINST THE EFFECTIVE IMPLEMENTATION OF FORMAL RISK MANAGEMENT TECHNIQUES IN PROJECT DELIVERY

 

 

 

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Despite its numerous challenges, it is the Construction Industry that shapes the development parameters of any nation (Zeiss, 2007). So a firm grasp of the nature and effects of key issues affecting the Industry is always the beginning of developmental wisdom. The construction industry is bedeviled with global climate change, aging infrastructure, shrinking workforce, declining productivity and information island (Akintoye and Macleod, 1997; El-sayeh, 2008; Smith, 1999 Zeiss, 2007; Hillson, 2002; Wang et al., 2004). Gandu and Musa-Haddary (2007) in their work mentioned high risks and uncertainties as additions to these problems.

In Nigeria, in particular, experts on management studies have lamented the complete neglect of formal risks management principles in the management of most construction projects (Akintoye and Macleod, 1997; Smith, 1999; Kartam and Kartam, 2001; Aina and wahab, 2011). Why most firms opt for the use of informal principle to the detriment of the formal and most beneficial ones is a puzzle that requires an organized study. In an assessment of some special challenges facing the Nigerian construction industry, Odonkor (2011) ranked poor risk understanding and management as the most unappreciated. The nature of this risk challenges as Odonkor (2011) partly observed lies in the failure to employ formal Risks Management Techniques available. 

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