THIS INDEPENDENT PROJECT SUBMITTED TO THE FACULTY OF CIVIL ENGINEERING, ARBA MINCH INSTITUTE OF TECHNOLOGY, SCHOOL OF GRADUATE STUDIES, ARBA MINCH UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ENGINEERING IN CONSTRUCTION TECHNOLOGY AND MANAGEMENT

Abstract

Effective risk management in construction projects is widely recognized as essential for meeting objectives related to time, cost, quality, safety, and environmental sustainability. This study aims to investigate the current practices of risk management within construction projects and to suggest strategies for enhancing these practices. The research utilizes a descriptive approach, focusing on gathering information from contractors. A purposive sampling method was employed, with data collected through literature reviews and surveys. The analysis of the data incorporated Likert scaling using the mean index formula along with risk matrix evaluation. The results indicate that while there is an acknowledgment of the importance of risk management, its application remains inconsistent. Although formal risk management procedures exist and are considered a continuous process, several areas need enhancement. For example, team members are frequently left out of the risk identification process, and there is often no specific group assigned to oversee risk management activities. Decision-making tends to rely on subjective approaches, such as personal experience, rather than utilizing more sophisticated methods like mathematical modeling. While some level of planning for risk management is present, not all team members participate, and there is a notable absence of clearly defined strategies for responding to risks. Furthermore, the monitoring and control of risks often do not comply with established standards, which can worsen risks or complicate their mitigation. In conclusion, risk management is applied in a fragmented and inconsistent manner rather than being fully integrated into the project management process. The study suggests that risk management practices should adhere to established standards, and it is crucial to create a clear strategy along with a dedicated team to effectively manage risks