Factors and Impact of Risk Management Practice on success of Construction Projects of Housing Developers, Kathmandu, Nepal

Abstract

Risk Management is set of activities concerned with identifying the root causes of risks and to trace their consequences through the comprehensive and systematic way of identifying, analysing and responding to risks to achieve the project objectives. The use of risk management is essential from the early stages of a project, where major decisions such as selection of site, construction methods and procurement methods can be influenced. This research is conducted to identify significant factors of risk and the impact of Risk Management Practice on success of construction projects of Housing Developers in Kathmandu Valley. It was revealed that housing developers of Kathmandu valley are quite aware regarding Risk Management (more than 80%) and are practising it in their project  someway (more than 65%) whereas only 45% of the developers are practicing using formal techniques . Risk factors related to time overrun, cost overrun, quality, project scope, design and specification, contract, finance and economy, health safety and environment, organisation and leadership were found to be the ten significant factors. These ten risks are taken as success criteria for hypothesis testing. Out of thirty three hypothesis testing to find impact, only 6 hypotheses were not accepted and impact was not seen. For the remaining twenty seven hypotheses, significant impact was found to exist between the variables. Those 27 hypotheses are Risk Identification, Risk Assessment and Risk Response on Project Success, Scope well defined, Technical Specifications  Compliance, Planned budget, Quality, Time, Contractual Risks, Financial and economic Risks, Safety, Health and Environmental Risks, Leadership Risk and Organizational Risk.

Thus from this study, it can be said that significant impact exists between risk management practice and success of projects for the housing projects in Kathmandu valley. And thus from this study, it can be said that significant impact exists between risk management practise and success of projects for the housing projects in Kathmandu valley.