Risk Management in Construction Projects in Sudan

Abstract

Construction is a risky industry compared to many other industries where it requires proper application of business practices and plays a major role in the economy via its significant share in the Sudanese Growth Domestic Product (GDP). The main objective of this research is to gain understanding of some risk factors that could be applied in managing construction projects in Sudan. The study aims also to investigate the effectiveness of risk preventive and mitigative methods. Moreover, the usage of risk analysis techniques is addressed. The research objectives have been achieved through a comparative study of closedended questionnaires and a case study in Khartoum State – Omdurman locality. The results obtained from the data analysis where interpreted and discussed thoroughly. The output that were directed to respondents 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 contractors and owners could not allocate them on the party that should bear these factors’ consequences. The research results show that the respondents 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 contract, which address issues of clarity, fairness, roles and responsibilities, allocation of risks, dispute resolution and payment should be adopted for all the projects in Sudan instead of the consequential disorder that was a result of applying different types of contracts. Owners 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.