Study on Risk Management Practice in Selected Addis Ababa 10/90 & 20/80 Condominium Projects
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Date
2019-11
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Addis Ababa University
Abstract
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.
Description
Keywords
Condominium, Risk, Management, Project and Objectives