An assessment of factors affecting risk management in the South African construction industry

Abstract: Purpose The research aims to assess and evaluate the techniques used in managing risks in South African construction projects, the effectiveness of risk management techniques that are currently in use and the factors that influence the use of risk management by contractors in their projects. Methodology The data used in this paper were derived from both primary and secondary sources. The primary data was obtained through the use of a structured questionnaire survey. This was distributed to Contractors operating in Gauteng province. One hundred and eight structured questionnaires were used for the survey. Out of the 108 questionnaires sent out, all were received back representing 100% response rate, these formed the basis of the analysis for the paper. The secondary data for the study was derived from the review of literatures. Findings The empirical studies have identified that risk management in the South Africa construction is mostly influenced and affected by the size of company, education and experience of construction company and managers. The study also revealed that the majority of South African contractors are aware and make use of the structured process of risk management. Value The study contributes to the body of knowledge the use of risk management in the South African construction industry