Effective management of risk factors associated with public investment projects in Ghana

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Date
2021-06-17
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Abstract
Risk management is an important part of the decision-making process in construction project management particularly regarding the project’s integration, scope, time, cost, quality, human resources, communications, and procurement. Effective risk management in public investment projects requires a comparison between the potential risk and the possible return or future profits on the project. This study explored the effective management of risk factors in public investment projects in Ghana. The study was carried out along the tenets of a preliminary literature review and followed by a survey using a structured questionnaire. Fifty-nine (59) questionnaire were distributed by purposive sampling, and 50 completed questionnaires representing 85% were considered valid for the analysis. The data collected were analysed using Relative Importance Index (RII) and standard deviation. The study reveals that, change of government, changes in management ways, lower quality of work, change of government policy, new governmental acts or legislation, poor communication between parties involved, resource management, Ambiguous planning due to project complexity, changes in design, legal disputes during the construction phase among the partners, gaps between the Implementation and the specifications due to a misunderstanding of drawings, delayed disputes resolutions, undocumented change orders are the major risk factors that affect public investments projects in Ghana. Considering the mitigation techniques, planning for alternative methods as stand-by, transfer or share risk to/with other parties, referring to previous and ongoing similar projects for accurate, utilize quantitative risk analyses techniques for accurate time, consciously adjust for bias risk premium to time estimation, depend on subjective judgment to produce a proper program and Produce a proper schedule by getting updated project information are the major risk mitigation techniques. Finally, it was recommended that investors working in the public sector have to be aware of the fact that, change of government and change of government policies have a major risk on public investment and as such they should always bear in mind and also have alternatives as a stand-by
Description
A thesis submitted to the Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirement for the Award Degree of Master of Science in Project Management
Keywords
Risk, Managemen, Preliminary, mitigation
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