Assessment of the Relationship between Risk Allocation and the Performance of Building Infrastructural Projects in Nigeria


Risk in building infrastructural projects is the exposure of construction activities (related to building) to economic loss, due to unforeseen events or foreseen events for which uncertainty was not properly accommodated. With building infrastructural projects becoming increasingly complex and dynamic in nature as well as the introduction of new procurement methods, many stakeholders are interested in an approach that will enhance project performance within their organizations. The study assessed the relationship between risk allocation and performance of building infrastructural projects. A total of one hundred and eighty copies of questionnaire (180) were administered on randomly selected stakeholders (comprising construction clients, consultants and contractors and insurance companies), out of which one hundred and fifty (150) was found valid and applicable for this study, and this constituted 86.6% of the sample size. Statistical techniques employed for data analyses were percentage of Relative Importance Index (%RII), Cronbach’s alpha reliability scale Test, T- test and Spearman’s rho correlation analysis. The analyses revealed that clients, consultants, contractors and insurance firms risk allocation affect project performance. Risk elimination by management was ranked first among the tools used to minimize construction projects risk. All the results of the Cronbach’s alpha reliability test were above 0.5 which indicated that the items were reliable for the measurement of risk allocation and risk factors. An average Spearman’s rho correlation coefficient of 0.6912 showed that risk allocation among stakeholders was significant and directly related to project performance at 0.05 level of confidence. The Paired samples T-test on risk allocation and project performance revealed that there was no significant difference between risk allocation and project performance. It was concluded that there was a positive relationship between building infrastructural risk allocation and project performance. The study therefore recommended that building infrastructural stakeholders should triangulate and use multiple models during the feasibility and viability planning stage of building infrastructural projects in order to reduce pit hole at the construction stage.

Keywords: Building infrastructural projects., Project Performance, Risk Type, Risk allocation

Article Review Status: Published

Pages: 46-62 (Download PDF)

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