COMPARATIVE STUDY ON PROJECT RISK MANAGEMENT PRACTICE OF LOCAL CONTRACTORS AND CHINESE CONSTRUCTION COMPANY: CASE ON SELECTED BUILDING CONSTRUCTION PROJECTS IN ETHIO – TELECOM.

Abstract

Effective project risk management is essential for the successful completion of construction projects, particularly in dynamic and complex environments. This study conducts a comparative analysis of project risk management practices between local Ethiopian contractors and Chinese construction companies, focusing on selected building construction projects under Ethio-Telecom. The research aims to identify the specific risk management techniques employed by both groups and assess their effectiveness in influencing project outcomes, such as completion time, budget adherence, and quality of work. The study utilizes a mixed-methods approach, combining quantitative data from 79 respondents out of 94 distributed questionnaires and qualitative insights from interviews with Ethio-Telecom engineers and project managers. The findings reveal that Chinese contractors employ more structured and technologically advanced risk management practices compared to local contractors. These practices include comprehensive risk identification, detailed risk analysis, systematic risk response planning, and rigorous risk monitoring and control. As a result, Chinese contractors achieve better project outcomes in terms of cost efficiency, adherence to schedules, quality maintenance, and safety performance. The study highlights the significant differences in risk management approaches between the two groups and suggests that local contractors could benefit from adopting the advanced practices of their Chinese counterparts to enhance their project management capabilities and improve overall project success in Ethiopia's construction industry. Based on the findings, the study recommends that local contractors enhance their risk identification and analysis techniques, improve risk response planning, and strengthen risk monitoring and control mechanisms. By adopting these practices, local contractors can improve their project performance and align more closely with the successful strategies employed by Chinese contractors.