| Abstract: | The construction industry exposed to more risk and uncertainty than many other businesses. Subsequently, effective risk management has turned out to be the main problematic area that challenges the building construction sector. Thus, the aim of the research is, to assess building constructing project risk management in Addis Ababa towards consulting and constructing firms. Participants of the study, located in Addis Ababa, were grade-one contractors and consultants. To achieve its objective, in this study, mixed method research approach deployed. Descriptive Research Design also implemented for describing situations and facts to research questions. Survey questionnaire implemented for collecting data. Simple Random Sampling Technique used, which ensures representativeness of the sample to the population. The collected data analyzed with Descriptive Analysis using Statistical Package for Social Science /IBM SPSS 24/through statistical tools such as frequency, percentage, mean, and standard deviation, etc. and the results are presented using tables, graphs and charts, etc. The research findings indicated that five critical risk factors identified based on an assessment of their probability of occurrence in building construction projects. These were “high inflation rate”, “delayed payment by clients”, “poor resource management”, “risk of corruption”, and “economic instability” that have influence on project objectives. Financial risk is, as the most significant risk category recognized by participants. Due to unexpected nature and changes that occur during implementation of building construction projects, risk becomes a prevalent phenomenon. Hence, the two critical possible risks identified were time overrun and cost overrun. It also indicated that for effective risk alleviation, risk transfer and risk reduction measures were the major strategies recognized by participants. In this study, lack of knowledge and practice of risk management, which needs to be improved, revealed from further investigation of opinions of participants. Hence, managing risk in constructing projects recognized as a very important practice for realizing project objectives. The study concluded that a complete understanding and identifying of risk factors could enable the practitioners to execute early responses to possible risks. Therefore, consultants and contractors, including other stakeholders, should work together as a team on projects to systematically identify critical risk factors, analyze and respond to risks with appropriate strategy to achieve project objectives of time, cost, & quality. |
