ASSESSMENT OF RISK MANAGEMENT MATURITY LEVEL OF ROAD PROJECTS CONTRACTORS AND ITS RELATION WITH PROJECT SUCCESS

Abstract

Road construction projects are a technique of achieving development goals in Ethiopia, a developing nation. Yet, the issues of delay, cost overrun, and low productivity of local contractors continue to pose a threat to the accomplishment of road projects. This study sought to determine the association between project success and the risk management maturity level of road project contractors using the risk management maturity model. Also, this research validates the level of risk management maturity by using a case study. For the elements affecting the success of construction projects, the maturity of risk management, and demographic data, quantitative data were gathered through questionnaires. The construction risk maturity assessment model was used to assist the data gathering process and determine the project success elements and level of risk management maturity. Pearson correlation was used to examine the relationship between project performance and the sample's maturity level for risk management attributes. All metrics of project success and project risk management maturity score were found to be statistically significant (p .05) and to have a strong positive association (Pearson's ranging from 0.513 to 0.656). The level of risk management attribute maturity (an independent variable) and project success (a dependent variable) were both measured using the multiple regression approach, together with the Statistical Package for the Social Science. Using a mean score, the contractors' levels of maturity were evaluated. The outcome indicated that the contractors' overall degree of risk management maturity is level 2. It also provided additional information to validate the results and displayed the maturity levels of the contractors on several Risk Management Capability criteria. By evaluating the project maturity in a specific area of risk management attributes that focuses in establishing the strength and weakness to target the improvement method, the research findings may improve the knowledge of project risk management among contractors in Ethiopia and SNNPR. The most important factors for project success predictability are also the integration of risk management practices with other management tasks and risk responses. Due to the lack of practice in contractors' risk management processes, the allocation of budget and time for risk management most needs improvement. Key words: Road projects, Risk Management Capability; Risk Management Maturity Models, road Contractors, Attributes. 1 CHAPTER ONE: INTRODUCTION 1.1 Introduction Construction projects carried out in the nation are a key factor in its economic development. It is evident that a project's performance is crucial, and a project is deemed successful when the project's schedule, cost, and quality restrictions are met (Sinesilassie et al., 2019). The effective completion of road projects, which were designed to increase rural area accessibility, reduce transportation costs, and open new areas for development activities, is how Ethiopia achieves its development strategies. Many initiatives were developed in the road sector to assure project success as a result of the huge volume of capital expenditure in road projects (Weldegebriel, 2018). Risk exists in all situations that can be identified, including natural, design, resource, financial, legal, and regulatory hazards as well as construction-related concerns. Every construction project involves risks, and taking precautions to reduce those risks leads to project success (Pintardi, 2015). Effective risk management benefits include increased profit, reduced delays, bid winning percentages and greater overall customer satisfaction (Hurtado et al., 2017). Effective risk management results in more revenue, fewer schedule delays, higher bid success rates, and overall higher customer satisfaction. Organizations in the construction sector constantly strive to enhance their risk management strategies since doing so boosts customer happiness, the chance of future business with the client, and the knowledge that building projects demonstrate. The level of risk maturity, which is determined by organizational insights and practices with regard to identifying, analyzing, and managing construction risk, is one way that construction firms ca