RISK MANAGEMENT EFFECTIVENESS IN HOUSING PROJECTS: A COMPARATIVE EVALUATION IN SELECTED PROCUREMENT METHODS IN AKWA IBOM STATE

Purpose: The knowledge and understanding of risk management is critical in achieving project objectives in terms of time, cost, quality and safety. The study aimed at providing insight into how procurement methods could influence the effectiveness of risk management practices of housing projects in Akwa Ibom State. The objectives of the study were to evaluate the effectiveness of risk management methods of traditional, direct labour, and labour only procurement methods with a view to enhancing construction projects delivery in Akwa Ibom state and Nigeria in general. Design/methodology/approach: A cross-sectional survey approach was used for the study. Ninety-nine (99) questionnaires were retrieved from purposively selected contractors operating in the study area. Data collected were analysed using mean item score and Kruskal Wallis was used to test the hypotheses.Findings: The results indicate that Consulting with experts, past experience and brainstorming were the most moderate effective risk identification techniques employed by the respondents across the three procurement methods while risk analysis was rarely done. Risk response techniques shows 93.75% moderate effectiveness, with avoidance/prevention, transfer and mitigation were mostly employed, while risk retention was never used. Risk assessment was ineffective, while risk monitoring was of moderate effectiveness. Furthermore, the findings of the study revealed that there is no significant variation in the level of effectiveness of risk management methods among risk identification, response, monitoring among the delivery systems, but a significant variation in risk assessment. The study concluded that there is a general lack of knowledge of structured risk management practice by the respondents in housing projects.Research limitations/implications: The limitations include the use of only perception of contractors purposively selected from companies in Akwa Ibom state and only selected procurement methods. The contribution to knowledge is that this study has established the current level of effectiveness of risk management in some procurement methods in the study area.Practical implications: It is recommended that there is need for advanced formal and informal training in the characteristics and fundamentals of various procurement methods for adequate assessment of their inherent risks in the study area. There should be an iterative and systematic risk management approach that consider the specific risk factors and their assessment in the procurement practices.Originality/value: The study revealed the effectiveness level of sub processes of risk management among risk identification, assessment, response and monitoring, as well as the variation among the procurement methods.