Influence of Risk Management Practices on Performance of Roads Construction Projects: Case of Kenya Urban Roads Authority, North Rift Region, Kenya

Abstract

Globally, there in tremendous growth within the road construction industry, which out paces that of global Gross Domestic Product (GDP) with major concentration in China, the United States and India? In developing countries, 80% of the unsuccessful projects fail as a result of poor scope management. Road projects in Kenya have been facing various challenges, which include delay in completion and cost overruns. The current study sought to establish risk management practices influencing performance of road construction projects. The specific objective of the study was to establish; influence of risk identification on performance of roads construction projects, influence of risk assessment on performance of roads construction projects, influence of risk response on performance of roads construction project and influence of risk monitoring on performance of roads construction projects. The study adopted stakeholder theory. The descriptive design was used since the study gathered quantitative and qualitative data. The target population was 128 employees in Kenya Urban Roads Authority, North rift region. The respondents were 96 employees selected from various departments; procurement, finance and administration and design and construction. Questionnaires was the main instrument for data collection. A pilot study was conducted among the employees in Kenya Rural Roads Authority, Uasin Gishu County the questionnaires was analyze for reliability using Cronbach's alpha, a coefficient of 0.83 was obtained which confirmed reliability of the instruments. The questionnaires were presented to the supervisors from University of Nairobi for their advice.   Data was analyzed using descriptive statistics; frequencies and percentages. Regression analysis was conducted to establish the influence of risk management practices on performance of road construction project. The study findings indicate that the firm uses various techniques to identify possible risks. KURA undertakes risk analysis in order to understand the magnitude of the risk, risk assessment is undertaken through; undertaking scenario analysis, use of decision tree, using PERT diagrams and risk maps, using the opinion of the experts and basing on the records of similar projects. The firm has set up contingency plans to respond to risks, taking mitigation measures, undertaking due diligence to prevent risks, changing design and outsourcing. The firm undertake risk reassessment at every stage of the project, the firm undertake risk audit to ensure proper mechanisms is put in place to avoid risk and uses previous data to monitor the performance of the current similar projects. The multiple regression analysis indicated that risk identification, risk assessment, risk response and risk monitoring significantly affect road construction project performance. The study recommend that the firm employ the use of modern technologies such as computer modeling software's to in risk assessment.