Global risk factors affecting performance of construction firms in Abuja, Nigeria
The study assessed the Global Risk Factors (GRFs) affecting performance of Nigerian construction firms, with a view to identifying the most severe and appropriate risk response techniques. In order to achieve this aim, the severity of GRF across different categories of firms, and the risk response techniques most suitable for each GRF were examined. A total of 105 questionnaires were administered out of which a total of 49 were fully completed and returned. Descriptive statistics was used to analyse the data collected using Likert scales, while Analysis of variance was used to evaluate the similarities/differences in the views of different categories of construction firms. The findings show that most construction firms consider payment delays (mean = 2.65), poor project scope (mean = 2.40) and inadequate design information (mean = 2.39) as the most severe GRF affecting the performance of Nigeria construction firms. It was also discovered that, despite the high likelihood and impact of GRF such as; payment delays, design changes, and inflation/bank Interest rates amongst others, most firms still opted to “accept” them. On the other hand, poor project scopes, strikes, failure to meet clients need and all factors related to unethical practices were “avoided”, while all legal related risk factors were “mitigated”. It is hoped that these findings will help construction firms in developing countries such as Nigeria to be more aware of the effect of GRF in order to be able to assess them effectively before embarking on construction projects.
Keywords: Global Risk Factors, Probabiity-Impact Metrix, Negative Risk, Risk Management, Semi-Quantitative Technique