Assessment of the practices of risk management in building construction projects: the case of selected real estates in Addis Ababa
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Date
2024-10
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Addis Ababa University
Abstract
Construction firms are known industry to face risks at every stage of a project's life cycle, necessitating effective and efficient management through the risk management process. Due to the frequent issues of budget overruns, delays, and changes in the original project scope, it is crucial to manage and control the risks causing these problems to meet project objectives. This study aims to examine the application of risk management practices in selected real estate projects to assess whether they are being theoretically applied correctly. A descriptive research design is employed to describe the research issue, and a mixed method research approach is utilized for this study. Data were collected from selected real estate companies: projects owned by Pluto, Enyi, Phison, and Afro Sweden real estate. The study used a census technique. Primary data was collected through interview and survey questionnaires and was analyzed using SPSS statistical software, utilizing tables, percentages, charts, and using thematic analysis. Secondary data was gathered by referring articles and researches. The study's findings revealed that risk management practices exist but they are not implemented to the necessary extent. In real estate projects efforts to enhance project team members' awareness of risk and its management are lacking. Additionally, risk management practices tended to be undocumented, unstructured, and not supported by comprehensive policies and guidelines. Real estate projects are recommended to enhance their practices regarding the management of risk by improving project team members' awareness through various training programs and experience sharing initiatives, to establish clearly defined policies and processes for managing unexpected uncertainties and to implement more structured and formalized risk management practices.
Key words: Risk, Risk management, Real estate