CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCE

Abstract The construction industry is extremely complex, with dynamic project environments creating an atmosphere of high uncertainty and risk. For that reason, risks in construction project have become an inevitable feature and the industry is susceptible to numerous business, socio-political a...

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Main Authors: ABDARAHIM SALEM, Eric SIMPEH, Julius Fapohunda
Format: Article
Language:English
Published: UJ Press 2020-09-01
Series:Journal of Construction Project Management and Innovation
Subjects:
Online Access:https://journals.uj.ac.za/index.php/JCPMI/article/view/192
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author ABDARAHIM SALEM
Eric SIMPEH
Julius Fapohunda
author_facet ABDARAHIM SALEM
Eric SIMPEH
Julius Fapohunda
author_sort ABDARAHIM SALEM
collection DOAJ
description Abstract The construction industry is extremely complex, with dynamic project environments creating an atmosphere of high uncertainty and risk. For that reason, risks in construction project have become an inevitable feature and the industry is susceptible to numerous business, socio-political and technical risks that negatively influence project delivery. This study therefore investigated the causes of risks in construction project delivery and the effect on project and organisational performance so that efficient control measures can be designed to minimise its occurrence. A quantitative research design was adopted, and the sample comprised of randomly selected contracting firms and construction professionals in the Western Cape Province. The data was statistically analysed using descriptive and inferential analyses. The salient findings revealed that socio-political-related risk factors are the major causes of risks during construction project delivery, these factors include labour strikes and disputes due to union issues, excessive influence by government on court proceedings regarding construction project disputes, and constraints on the availability and employment of expatriate staff. In addition, the study revealed the impact of construction risks on projects and organisational performance, and it was found that cost overrun was ranked the most significant on project performance and disputes between parties to the contract was ranked the most significant on organisational performance. It is also worth mentioning that the opinions of construction professionals do not vary significantly with regard to the detrimental effect of risks on project performance. Key words: Construction project, cost overrun, project performance, risk management socio-political risk.
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spelling doaj-art-e2f81877ae28498281c57b3c38aaae862025-08-20T01:48:20ZengUJ PressJournal of Construction Project Management and Innovation2223-78522959-96522020-09-0110110.36615/jcpmi.v10i1.192CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCEABDARAHIM SALEM0Eric SIMPEH1Julius Fapohunda2a:1:{s:5:"en_US";s:7:"AFRICAN";}Cape Peninsula University of TechnologyCape Peninsula University of Technology Abstract The construction industry is extremely complex, with dynamic project environments creating an atmosphere of high uncertainty and risk. For that reason, risks in construction project have become an inevitable feature and the industry is susceptible to numerous business, socio-political and technical risks that negatively influence project delivery. This study therefore investigated the causes of risks in construction project delivery and the effect on project and organisational performance so that efficient control measures can be designed to minimise its occurrence. A quantitative research design was adopted, and the sample comprised of randomly selected contracting firms and construction professionals in the Western Cape Province. The data was statistically analysed using descriptive and inferential analyses. The salient findings revealed that socio-political-related risk factors are the major causes of risks during construction project delivery, these factors include labour strikes and disputes due to union issues, excessive influence by government on court proceedings regarding construction project disputes, and constraints on the availability and employment of expatriate staff. In addition, the study revealed the impact of construction risks on projects and organisational performance, and it was found that cost overrun was ranked the most significant on project performance and disputes between parties to the contract was ranked the most significant on organisational performance. It is also worth mentioning that the opinions of construction professionals do not vary significantly with regard to the detrimental effect of risks on project performance. Key words: Construction project, cost overrun, project performance, risk management socio-political risk. https://journals.uj.ac.za/index.php/JCPMI/article/view/192Construction project, cost overrun, project performance, risk management socio-political risk.
spellingShingle ABDARAHIM SALEM
Eric SIMPEH
Julius Fapohunda
CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCE
Journal of Construction Project Management and Innovation
Construction project, cost overrun, project performance, risk management socio-political risk.
title CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCE
title_full CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCE
title_fullStr CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCE
title_full_unstemmed CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCE
title_short CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCE
title_sort construction stakeholders perspective on external related risk factors influencing construction project performance
topic Construction project, cost overrun, project performance, risk management socio-political risk.
url https://journals.uj.ac.za/index.php/JCPMI/article/view/192
work_keys_str_mv AT abdarahimsalem constructionstakeholdersperspectiveonexternalrelatedriskfactorsinfluencingconstructionprojectperformance
AT ericsimpeh constructionstakeholdersperspectiveonexternalrelatedriskfactorsinfluencingconstructionprojectperformance
AT juliusfapohunda constructionstakeholdersperspectiveonexternalrelatedriskfactorsinfluencingconstructionprojectperformance