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European Journal of Applied Sciences – Vol. 11, No. 5

Publication Date: October 25, 2023

DOI:10.14738/aivp.115.15726

Buertey, J. I. T., Doe, D. A., Atsrim, F., & Sarfo, F. (2023). Managing Construction Project Constraints: Towards an Integrated Risk

Management Hub for Efficient Project Delivery. European Journal of Applied Sciences, Vol - 11(5). 373-392.

Services for Science and Education – United Kingdom

Managing Construction Project Constraints: Towards an

Integrated Risk Management Hub for Efficient Project Delivery

Joseph Ignatius Teye Buertey

Department of Built Environment,

Pentecost University College, P. O. Box KN1739, Accra, Ghana

David Amedegbe Doe

Department of Building Technology, Accra Technical University

Felix Atsrim

Department of Built Environment,

Pentecost University College, P. O. Box KN1739, Accra, Ghana

Francis Sarfo

School of Engineering,

Accra Institute of Technology, Private Mail Bag, Accra, Ghana

ABSTRACT

Construction plays a key role as an economic booster in every economy across the

globe. Construction projects globally are however plagued by the challenge of

systemic risk associated with the project constraints. These varying risks are either

overlooked or taken for granted by most project professionals. This research

sought to explore project professionals' perceptions of risk management and

examine the extent to which they are integrated into the various processes of

construction project management in Ghana. As a quantitative based study,

structured questionnaires distributed to the built environment received a response

rate of 81%. The data obtained was analysed, using univariate statistical analysis.

It was established from the survey that 73% of the respondents did not undertake

risk identification and profiling at the initiation stage of the project. It can therefore

be held that the concept of risk management being an integral aspect of project

planning has therefore not caught up well with the project teams. It was therefore

not surprising that even though 81% of the projects included a risk management

plan, over 47% of risks unforeseen surfaced during the execution stage. This

undoubtedly shows the reason why 91.1% of the projects experienced varying

forms of risk during the execution stage. The study again revealed that even though

most government-awarded projects (86%) have the challenge of meeting the key

project objectives due to scope creep, resulting in schedule overruns and delays in

interim payment, most project participants were more particular about delivering

the project within budget and governments honoring their payment on time.

Although most respondents were aware of the possibility of risk management on

the project, the systematic knowledge of managing risk and the forthright

application of risk management techniques on construction projects was lacking.

This study therefore proposed an all-inclusive risk objective management

framework woven around risk education, integration of risk management

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European Journal of Applied Sciences (EJAS) Vol. 11, Issue 5, October-2023

techniques and broader stakeholder consultation on the subject of risk to equip

industry professionals on the subject for the successful delivery of projects.

Keywords: risk management, risk tools, risk management phases, deliverables, cost,

schedule

INTRODUCTION

Construction globally is the largest contributor to the GDP of most economies. Construction

ranks number two in the amount of economic activity contributed to the gross national product

(GNP) of the United States. The construction industry is a vital element of every economy and

has a significant effect on the efficiency and productivity of other industry sectors. One cannot

think of widespread investment in manufacturing, agriculture, or service sectors unless

construction results of infrastructure facilities are in place. In most developing countries, the

growth rate of construction activity surpasses that of population and the GDP [1]. However,

cost overrun, scheduling slippage and low quality are very common phenomena, and the

majority of projects in the construction industry face these problems. The most common is the

cost overrun where the variance between the final and the baseline cost estimates are widely

negative usually due to scope creep or failure to promptly honor payment by constructional [2].

The reason for these varying phenomena is that construction projects are usually characterized

by many varying risks that need a critical watch. The ability of the project team to manage these

risks throughout the construction process is an important and central element in preventing

unwanted consequences and thereby positioning firms strategically amongst contemporary

competitors in the construction industry. In this study, risk is placed as the hub for managing

construction projects where surprises take place, things happen, and important decisions are

taken. Similarly, risk management is also decisive for achieving a good final result with security

within the economy of every company [3]. Risk is intrinsic in construction projects and has

traces in all the construction phases.

Risk can be postulated as an uncertain event or condition that has a positive or negative effect

on one or more project objectives (scope, schedule, cost and quality) when it occurs [2]. The

objective of risk management is to increase the probability of positive events and decrease the

probability and impact of negative events in the project. Amid the current economic slowdown

and difficulties in raising funds, putting further strain on both the private and the public capital

project owners, there is a clear consensus that organisations will reap benefits by managing

their construction projects in a coordinated manner, using a structured risk management

framework. It is therefore research justifiable that this study seeks an integrated, tailored and

dynamic risk management strategy that hinges “all-inclusive risk-objective” framework to

maximize the achievement of proportionalities through enhancing positive likelihood events

for achieving construction project objectives of scope, cost, schedule and quality.

EMPIRICAL REVIEW

The PMI [2] defines a project as a temporary endeavour undertaken to create a unique product,

service, or result. [4] states that a project is a unique endeavour, to produce a set of deliverables

within clearly specified time, cost, and quality constraints. The PMI emphasizes the

temporariness of the project to indicate a definite beginning and end. Projects are subdivided

into phases where extra control is needed to effectively manage the completion of a major