LEVEL OF RISK MANAGEMENT PRACTICE IN NIGERIA CONSTRUCTION INDUSTRY- FROM A KNOWLEDGE BASED APPROACH

LEVEL OF RISK MANAGEMENT PRACTICE IN NIGERIA CONSTRUCTION INDUSTRY- FROM A KNOWLEDGE BASED APPROACH

This paper discourses the problems associated with risk management practice in Nigeria construction projects with the use of knowledge-based approach, and proposes a methodology based on a one-fold arrangement which includes the modelling function of the risk management, its evaluation, comparative effectiveness, desired quality and the availability of a best practices model. One-fold approach is part of a research effort that is still in progress.  A major preliminary conclusion of this research is the fact that risk management in construction projects is still ineffective and low practices in developing countries like Nigeria as a case study.  The main cause of this research is the lack of knowledge. It is expected that the application of the proposed approach will allow clients, contractors and consultants to develop a project’s risk management function based on best practices, and also to improve the performance of this function. In order to improve effectiveness of construction project, it should become part of a strategic plan of the organization.

___

  • Aibinu, A., & Jagboro, G. (2002). The effects of construction delays on project delivery in Nigerian construction industry. International journal of project management, 20(8), 593-599.
  • Al-Ghassani, A. M., Anumba, C. J., Carrillo, P. M., & Robinson, H. S. (2005). Tools and techniques for knowledge management. Knowledge management in construction, 83-102.
  • Bajaj, D., Oluwoye, J., & Lenard, D. (1997). An analysis of contractors' approaches to risk identification in New
  • South Wales, Australia. Construction Management & Economics, 15(4), 363-369. Baloi, D., & Price, A. D. (2003). Modelling global risk factors affecting construction cost performance.
  • International journal of project management, 21(4), 261-269. Banaitienė, N., Banaitis, A., & Norkus, A. (2011). Risk management in projects: peculiarities of Lithuanian construction companies. International Journal of Strategic Property Management, 15(1), 60-73.
  • Carrillo, P., & Chinowsky, P. (2006). Exploiting knowledge management: The engineering and construction perspective. Journal of Management in Engineering, 22(1), 2-10.
  • Carrillo, P. M., Robinson, H., Al-Ghassani, A., & Anumba, C. J. (2004). Knowledge management in UK construction: strategies, resources and barriers.
  • Darroch, J. (2003). Developing a measure of knowledge management behaviors and practices. Journal of knowledge management, 7(5), 41-54.
  • Del Cano, A., & de la Cruz, M. P. (2002). Integrated methodology for project risk management. Journal of
  • Construction Engineering and Management, 128(6), 473-485. Egbu, C., Hayles, C., Anumba, C., Ruikar, K., & Quintas, P. (2004). Getting Started in Knowledge management:
  • Concise Guidance for Construction Consultants and Contractors. Partners in Innovation Project (CI 39/3/709), Department of Trade and Industry, UK. El-Sayegh, S. M. (2008). Risk assessment and allocation in the UAE construction industry. International journal of project management, 26(4), 431-438.
  • Forbes, D., Smith, S., & Horner, M. (2008). Tools for selecting appropriate risk management techniques in the built environment. Construction Management and economics, 26(11), 1241-1250.
  • Heijden, W. (2006). Risicomanagement in de aderen? : een onderzoek naar het invoeren en inbedden van projectrisicomanagement binnen NS ProjectConsult.
  • Hopkinson, M. (2011). The Project Risk Maturity Model. Measuring and improving risk management capability.
  • Surrey, England: Gower Publishing Limited. Hsu, S.-H., & Shen, H.-P. (2005). Knowledge management and its relationship with TQM. Total Quality
  • Management and Business Excellence, 16(3), 351-361. Kamara, J., Augenbroe, G., Anumba, C., & Carrillo, P. (2002). Knowledge management in the architecture, engineering and construction industry. Construction Innovation: Information, Process, Management, 2(1), 53-67.
  • Kartam, N. A., & Kartam, S. A. (2001). Risk and its management in the Kuwaiti construction industry: a contractors’ perspective. International journal of project management, 19(6), 325-335.
  • Korbel, A., & Benedict, R. (2007). Application of the Project Management Maturity Model to drive Organisational
  • Improvement in a State Owned Corporation. Paper presented at the proc. of AIPM Conference. Lee, C. C., & Yang, J. (2000). Knowledge value chain. Journal of management development, 19(9), 783-794.
  • Lee, C. C., Yang, J., & Yu, L. M. (2001). The knowledge value of customers and employees in product quality.
  • Journal of management development, 20(8), 691-706. Lin, H.-F., & Lee, G.-G. (2004). Perceptions of senior managers toward knowledge-sharing behaviour.
  • Management Decision, 42(1), 108-125. Luko, S. N. (2013). Risk Management Principles and Guidelines. Quality Engineering, 25(4), 451-454.
  • Lyons, T., & Skitmore, M. (2004). Project risk management in the Queensland engineering construction industry: a survey. International journal of project management, 22(1), 51-61.
  • Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization science, 5(1), 14-37.
  • Nonaka, I., Takeuchi, H., & Takeuchi, H. (1995). The knowledge-creating company: how Japanese companies create the dynamics of innovation. 1995. New York, NY.
  • Ojo, G. (2010). An assessment of the construction site risk-related factors. Paper presented at the Proceedings of the 40 th Annual General Meeting/Conference of the Nigerian Institute of Building.
  • Olsson, R. (2007). In search of opportunity management: is the risk management process enough? International journal of project management, 25(8), 745-752.
  • Ooi, K.-B. (2009). TQM and knowledge management: Literature review and proposed framework. African Journal of Business Management, 3(11), 633-643.
  • Ooi, K.-B., Teh, P.-L., & Chong, A. Y.-L. (2009). Developing an integrated model of TQM and HRM on KM activities.
  • Management Research News, 32(5), 477-490. Perera, J., & Holsomback, J. (2005). An integrated risk management tool and process. Paper presented at the Aerospace Conference, 2005 IEEE.
  • PMBoK, A. (2000). Guide to the project Management body of knowledge. Project Management Institute, Pennsylvania USA.
  • Schieg, M. (2006). Risk management in construction project management. Journal of Business Economics and Management, 7(2), 77-83.
  • Serna, E. (2012). Maturity model of Knowledge Management in the interpretativist perspective. International
  • Journal of Information Management, 32(4), 365-371. Smith, E. A. (2001). The role of tacit and explicit knowledge in the workplace. Journal of knowledge management, 5(4), 311-321.
  • Visser, K., & Joubert, P. (2008). Risk assessment modelling for the south african construction industry. Paper presented at the Management of Engineering & Technology, 2008. PICMET 2008. Portland International Conference on.
  • Yeo, K., & Ren, Y. (2009). Risk management capability maturity model for complex product systems (CoPS) projects. Systems Engineering, 12(4), 275-294.