RISK MANAGEMENT STRATEGIES INFLUENCE ON ROAD CONSTRUCTION PROJECT PERFORMANCE: IMPLEMENTER INSIGHTS OF KENYA NATIONAL HIGHWAY AUTHORITY (KENHA), COAST REGION PROJECTS
Dominic Kumina Kirira - Catholic University of Eastern Africa, Kenya
Dr. Bethwell Owuor - Catholic University of Eastern Africa, Kenya
Cornelia N. Liku - Catholic University of Eastern Africa, Kenya
Dr. Johnson N. Mavole - Catholic University of Eastern Africa, Kenya
ABSTRACT
Road construction projects environment is one of the most challenging and dynamic industries in Kenya. Traditionally risk management performed in the road construction sector has been intuitive or series of hit and miss oftenly with risks either ignored or handled in an arbitrary way. Because of the complex nature of road construction projects, this approach has resulted to delays in projects delivery, litigation and cost overruns. This study focused on examining the influence of risk management strategies on road construction project performance with specific focus on KeNHA Coast Region. The main goal was to validate the influence of risk identification, implementer perception of risk appraisal, implementer risk mitigation perspectives and implementer risk control and monitoring insights on road construction project performance. The study was guided by the risk management theory and agency theory. Introspective survey design was used in this study. The target population of the study were key persons involved in selected nine (9) construction projects undertaken in KeNHA Coast Region in the last ten years since the year 2007. Stratified random sampling technique was used to select the sample. The sample size of 159 was obtained by use of Morgan and Krejcie (1970) model. Data was collected from the identified respondents using questionnaires. To ascertain their validity a pilot testing was conducted using 16-questionnaire, representing 10% of the sample size, and random sampling method was used to select the pilot group. Data was then analyzed using Statistical Package for Social Sciences (SPSS Version 25.0). Multiple regression analysis was used to establish the relations between the independent and dependent variables. The study found that risk identification, implementer perception of risk appraisal, implementer risk control and monitoring insights and implementer risk mitigation perspectives influence the Performance of KeNHA road construction projects in the Coast Region greatly, positively and significantly. The study concluded that risk identification had the greatest influence on performance of KeNHA road construction projects in the Coast Region followed by implementer perception of risk appraisal then implementer risk mitigation perspectives while implementer risk control and monitoring insights had the least influence on the performance of KeNHA road construction projects in the Coast Region. The study recommends that the project managers should increase engagement in capacity building activities in risk management and construction project management in general. There should also be a higher level of involvement of construction sector professionals charged with offering expert advice and assistance on implementation of risk management strategies. In a nutshell the study concluded that Risk Management is a very important aspect that greatly determine the performance of construction projects in Coast Region, KeNHA and the Construction industry in general.
