Allocation of Risk Factors and its Impact on Construction Projects in Sudan (Khartoum state as a Model )

Abstract

Construction is a risky industry compared to many other industries where it requires proper application of business practices. The Sudanese construction sector is characterized by many small and large projects and high labor intensity .The basic problems facing the Sudanese construction projects are the risk factors that affect construction project performance. The main objectives of this research include identifying the risk factors affecting the performance of Sudanese construction projects .The study aims also to investigate the usage of risk preventive and mitigative methods. The objectives of this research have been achieved through data collection questionnaires in Khartoum city. The results obtained from the data analysis where interpreted and discussed thoroughly. The output concluded that the most important risk factors are: poor / defective supply of materials, natural disasters, awarding the design to unqualified designers, shortage of human resources/ machinery and material resources, instability of currency exchange, delays in resolving disputes, gaps between the implementation and the specifications and poor resource management. The results show that there are many risk factors which could not be allocated to any party. Such risks should be predetermined in the project plan.The study findings show that the contractors, consultants and the owners suffer from lack of innovative methods to prevent or mitigate risks. The results of this study recommended that there is an essential need for more standardization and effective forms of contracts, which address issues of clarity, fairness, roles and responsibilities, allocation of risks, dispute resolution and payment. Owners, consultants and contractors are advised to identify the possible risk factors that could confront their projects and to allocate them contractually. The recommendations of this research are useful for the policy makers to establish legislations towards the welfare of the industry.