Assessing Risk Management in Construction Companies: Case Study of Real Estate Companies in Ethiopia

Abstract

This research is designed to assess the practice of Risk Management in Construction Companies: case study of real estate companies in Ethiopia. It’s well known that construction industries experience risks throughout their project life cycle and they need to be able to manage those risks effectively and efficiently as possible through the practice of risk management process. Therefore this research aims at studying if a gap exists between the theoretical risk management process and the current risk management practice of the real estate projects. This is achieved by investigating two real estates: Noah real estate and at Elilta real estate. In this research descriptive and explanatory research design were used to describe and explain the research issue. Accordingly purposive (judgmental) sampling have been applied to select key informants. Data is collected both from primary and secondary sources. Primary data is collected through questionnaires and the collected data is analysed by using SPSS version 20, the analysed data result found from the SPSS software are provided through tables, percentages and charts. And the secondary data is collected from internet, magazine, and books. The research findings shows that even though real estate projects are very risky industry risk management is not being implemented properly, risk management practice exists but it’s not that much properly practiced in the projects. And also not much is being done to develop project team members’ awareness and perception towards risk and its management in the real estate projects. It is recommended that the real estate projects should upgrade their risk management practice by pre planning risks, identifying risks at the very early stage of the project, and by developing project team members’ awareness towards risk and its management by conducting different training programs and experience sharing.