Assessment of Project Risk Management Practices in Real Estate Projects in Addis Ababa
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Date
2017-06-04
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Addis Ababa University
Abstract
Real estate projects experience more risks and need to manage them as effectively and efficiently
as possible. As many of these projects completed with a budget overrun, a schedule delay and a
change in the original scope, managing the risks that cause these problems seems the way to
tackle them and attain objectives. This study is conducted with an objective of examining risk
management practices among selected real estate projects to find out if risk management is
being practiced as it should be theoretically. This is achieved by investigating three real estate
projects: Mexico site and Abware site projects that are owned by Flintstone homes and
Alemgena site project that is owned by Hassenias real estate. The study uses purposive or
judgmental sampling to select respondents that have adequate knowledge and significant role in
the projects' risk management practice. Primary data was gathered through interview and
survey questionnaires and analyzed using SPSS statistical software by employing tables,
percentages and charts. The findings show that, despite the risky nature of real estate projects,
risk management is not being implemented and practiced to the level needed and a huge gap is
seen between what should be theoretically applied and what is being practiced in the projects. It
is also found that project risk management plan is not integrated to the parent organizations'
corporate strategic plan and little is being done to develop team members' awareness to risk and
its management. It is recommended that real estate projects should improve their risk
management practice by identifying risks earlier in the project and planning for them in
advance, by integrating risk plan with other organizational and project plans and by developing
employees' awareness on risk and its management.
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Keywords
Project management, Real estate, Risk, Risk management