Abstract: The construction industry in Kenya and the world at large faces more risks and uncertainty than many other sectors. The process of project execution from initial investment appraisal, completion and final use is complicated and involves time-consuming ground investigations, design and production processes. These processes are highly specialized and are spearheaded by qualified and licensed civil engineering consultants. Each of the processes in construction carries with it a measure of risk factors ranging from cost overruns, quality of the final product, litigations, time overruns, and riots, among others. Thus, the main objective of this study is to determine the effect of project risk management practices on performance of civil engineering consultants practicing in Nairobi County. The specific objective was to examine effect of risk identification practices, determine effect of risk monitoring and control practices and to establish effect of risk response practices on performance of consulting civil engineers. The study focuses on registered consulting civil engineers practising in Nairobi County either as individual consultants or as registered engineering firms. The study was informed by prospect theory and enterprise risk management theory. The study employed descriptive cross-sectional study. The study targeted 256 registered consulting civil engineers in Nairobi County. Simple Random sampling was used to select a representative sample consulting civil engineers practising in Nairobi County for purposes of this research. The research data was collected by use of questionnaires. Data was analysed by use of SPSS version 23. Data analysis was done by use of descriptive statistics including means, standard deviation, percentages and frequency tables and inferential statistics with multiple regression analysis. This study will be significant to engineering fraternity, the general public, engineering students and the consulting engineering firms’ regulators as it will offer valuable contributions from both a theoretical and practical perspective. The findings show that risk identification does not have a significant effect on project performance, β1= 0.012, p = 0.777. Furthermore, risk monitoring has a positive and significant effect on project performance, β2= 0.150, p = 0.018. Risk response has a positive and significant effect on project performance, β3= 0.347, p < 0.001 while risk governance has a positive and significant effect on project performance, β4= 0.478, p < 0.001. Given the gaps identified through this study, there is need to further enhance the processes of risk identification by strengthening already existing practices and investing more in risk identification resources. There is more need for more investment in control systems and ensure they are effective and stakeholder participation in decision making. In addition, the consultants need to class the risks they have failed to identify as being tolerated without knowledge, they need to involve all in deciding to pass the risk or costs of the impact outside the organization in case of a risk and they need to accept the risk and its impact as it stands, that is self-insured or decide to cover any losses. Finally, there is need to enhance the knowledge of project main risk operations, project risk competence, identification of the risks posed by entrants, new products and services as well as competitors, main processes of the project and ensuring the board exhibits diversity in terms of project risk would enhance project performance.
Keywords: Project Management, Risk management, Project Performance.
Title: Effects of Project Risk Management Practices on Performance of Consulting Civil Engineers: A Case of Nairobi County
Author: Silas Mugendi Nguru, Dr. Muchelule Yusuf
International Journal of Civil and Structural Engineering Research
ISSN 2348-7607 (Online)
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