AN ASSESSMENT OF CONTRACTOR’S RISKS EXPOSURE WITHIN SOME STANDARD FORMS OF BUILDING CONTRACT IN NIGERIA.
AN ASSESSMENT OF CONTRACTOR’S RISKS EXPOSURE WITHIN SOME STANDARD FORMS OF BUILDING CONTRACT IN NIGERIA.
No Thumbnail Available
Date
2012-11
Authors
OBAJU, BIODUN NATHANIEL
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Construction projects are subjected to several risks due to different activities involved.
The activities are performed by several parties under different circumstances. Among
the various stakeholders the Contractor has been identified to be the party that carries
the highest number of risks. They are mostly exposed to contractual risks which occur
as a function of contract provisions and clauses. This research work identified and
assessed the risks which Contractors are exposed to within some Standard Forms of
Contract in Nigeria. It further determined the likelihood of occurrence of the identified
risks, impact on the risks on Contractors and the level of risks. Data were collected
through questionnaires distributed to some Contractors around Abuja and analysed
using qualitative risk analysis technique. The research identified 35 potential risk
factors with 54% of the risks emanating from the Clients, 31% from the Architect, 6%
from the Quantity Surveyor, 6% from the Project Managers and 3% from the
government agents. It also found out that failures to write instructions regarding
variations and documents which are not issued on time are the major potential risk
factors with high likelihood of occurrence while the other risk factors have moderate
likelihood of occurrence. Thirteen (13) potential risk factors were found to have high
impact on Contractors and fifteen (15) are high degree of risk. It concluded that
Contractors must understand the nature of risks, their source and the extent of
exposure so as to pay attention to dealing with such risks in present and future
projects. The study therefore recommended that Contractor should pay attention to
risks with high likelihood of occurrence so as to reduce their impact, should protect
themselves against risks by contingency, warn parties of potential delays and its
implications, negotiate construction schedule with client and allow for buffer time, the
contractor should ensure working with carefully prepared and coordinated drawings,
establish clear line of communications for receiving and responding to instructions and
collaborative effort from all the participants of the project.
Description
A thesis submitted to the Post Graduate Studies, Ahmadu Bello University, Zaria
In Partial Fulfillment of the Requirements for the Award of Masters Degree in Project
Management.
Department of Quantity Surveying, Faculty of Environmental Design, Ahmadu Bello
University, Zaria.
NOVEMBER, 2012
Keywords
ASSESSMENT,, CONTRACTOR’S,, RISKS EXPOSURE,, WITHIN SOME STANDARD FORMS,, BUILDING,, CONTRACT,, NIGERIA.