Study on Risk Management Practice in Selected Addis Ababa 10/90 & 20/80 Condominium Projects

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Addis Ababa University


The research deals with the assessment of risk management practice in selected Addis Ababa 10/90 and 20/80 condominium projects. The objectives of the research was to identify risk management practice in Addis Ababa condominium projects, to identify the key risks causing cost overrun, time overrun and quality deviation in Addis Ababa condominium housing projects and to assess appropriateness of risk allocation practices based on feedbacks from stakeholders Different literatures were assessed and reviewed to indicate risk management is important management practice for the success of the project. Questionnaire and unstructured interview were taken from construction companies and consulting firms whom performed on selected Addis Ababa 10/90 and 20/80 condominium projects. Also the client, Addis Ababa Housing Development is surveyed through questionnaire and unstructured interview. The research findings indicate most of the parties performed in Addis Ababa condominium projects acknowledged the benefits of risk management but still there is lack of formal risk management. The method used to deal with risks in Addis Ababa condominium projects is informal way which is highly dependent on individual judgment and past experience. This is mainly because of lack of awareness, familiarity and knowledge about risk management among the professionals in the industry. It was also observed the top ten risks causing time overrun, cost overrun and quality deviation in Addis Ababa condominium projects are construction, finance, political and logistics related risks. In addition, the research revealed the consequence of the risks because of inadequate management and planning should not be the contractor’s risk only since most of construction materials are provided by the client. It is also believed by the majority of parties involved in Addis Ababa condominium projects that formal risk management can reduce the consequence of risks. In response to the finding recommendation is raised to implement well established risk management system by the stakeholders so that the objectives will be attained, materials for the construction Works to be provided by the contractor due to the vastness of the projects, the owner or the government bodies to aid research and development centers so that the centers will discover cost reducing construction materials so that the imported construction materials will be reduced.



Condominium, Risk, Management, Project and Objectives