Evaluating The Impact Of Risk Managrment On Time And Costperformance Of Construction Projects In Khartoum State

Abstract

Risk management is an important field and consider relatively a new field of construction industry. so it requires more attention to bring high benefit of construction industry. Construction projects are facing a number of risks which have negative effects on project objects such as time, cost and quality. The main objective of this research is to know how risk management is practiced in Sudanese construction project, also identify risk factors and evaluate their impact on (time and cost) performance and known Risk Responses strategies which were implemented in construction project on Khartoum state. The research objectives have been achieved through closed questionnaires surveyon Khartoum state. The result obtained from data analysis were interpreted and discussed thoroughly. And this was then complemented by an industry survey, where (92) participants took part in a stratified sample comprising (35) consultants, (50) contractors and (7) projects owner. The data was analyzed calculating, frequency of occurrence, relative importance index and Cronbach's Alpha coefficient. The output that were directed to respondents concluded that there is lack of knowledge about analysis and evaluation of risk factors and Risk Responses strategies. also the output concluded that the most risk factors which have highest effect on time performance in construction projects are: Decrease in productivity of workers, Financial failure of the contractor, Delay from consultant to approve executed works,poor communication between involved parties,Complex of design, Delay in payment from client, client required are not clarified, not completing information at the tender stage, Financial inflation andExchange rate fluctuation. And the most risk factors which have highest effect on cost performance in construction projects are: the scope of work for the contractor is not well defined,Poor resource management,client required are not clarified,Change of Scope by Owner,not completing information at the tender stage,Financial inflation, Exchange rate fluctuation. also the output concluded that the most preventive actions which were implemented in Sudanese construction projects are: Depend on subjective judgment on produce a proper program and Refer to previous and ongoing similar projects for accurate program. And the most Mitigative actions were: Change the sequence of work by overlapping activities,Coordinate closely with subcontractors andClose supervision to subordinates for minimizing abortive work. The result of this study recommended that Contracting companies should compute and adding cost reserves contingence to quotation and schedule reserves to time estimation. This trend has to be supported by organizations like Sudanese Contractors Union, and other organizations concerned about the construction industry, Expert techniques such as @Risk system, which integrates with time schedules and spread sheets software, should be learned and applied obtain adequate risk estimation. Assign responsibility for risk mitigation activities, and monitor progress through a formal tracking system