Abstract:
The study sought to assess the perception of project risk, project risk
management practices in the Ghanaian construction industry and its effect on
project performance. It employed a mixed approach using an exploratory
sequential design. Contractors, quantity surveyors, and project managers were
interviewed and given questionnaires. The responses analysed using descriptive
statistics, structural equation modelling and thematic analysis. The study found
that the construction industry perceived risk as an event with a negative outcome
and risks inherent in the industry included financial risk, safety and human risk,
political risk and weather conditions. The study also found that the main
response to the various risks is in the industry was risk reduction. Project risk
had a 52% significant negative effect on project performance. Measuring risk
in the project lifecycle, risks at project initiation, planning and execution had
negative effect on project performance. However, risks at project closure phase
did not have any significant effect on project performance. The study concluded
that firms in the construction industry perceived that risk had damaging effect
on their performance. Also, the industry adopted risk reduction strategies and a
backup (contingency) to manage risks. The study recommended that though
risks are mostly negative outcomes, some event have positive outcomes hence
a proper risk assessment can improve project performance in the construction
industry. Also, more resources should be allocated to manage risk since it
accounts for more than half of project performance. Continuous monitoring of
risks should be done in all phases of the project lifecycle to avoid escalation of
risk
