Management Of Contracting Risks On Performance Of Construction Projects In Kilifi County, Kenya

ABSTRACT

Construction projects in Kenya are facing challenges in performance where there has been loss of funds due to increased construction cost, delayed project completion, compromised health and safety of employees and therefore expected economic growth has not been realized as envisaged. Although there is empirical evidence that construction is not performing to standards, there is absence of consensus in research on management of various contracting risks on performance of construction projects in Kenya. The main objective of this study was therefore to establish the influence management of contracting risks on performance of construction projects in Kenya. Specifically the study aimed to establish the influence of management of financial risks, technical risks, scheduling risks and health & safety risks. The study used four theories in understanding and justifying contracting risks namely; agency theory, theory of constraints contingency theory and prospect theory. The population of the study comprised of seventy three construction projects drawn from KURA, KERRA, KENHA and CGK. Stratified random sampling technique was used to select a sample into strata based on the technical staff from respective organization overseeing construction projects. Primary data was collected using a semi structured questionnaire self-administered to thirty six respondents in respective organizations. Cronbach’s alpha will be used to determine the degree of data reliability with a coefficient of 0.70 and above implying the data was reliable. Quantitative data collected was analysed by use of descriptive statistics and inferential statistics. The study established a positive and significant relationship between management of financial risks, technical risks, scheduling risks and health and safety risks on project performance. According to findings there was a relationship between health & safety risks and performance (4.859, p