ASSESSMENT OF RISK RESPONSE TECHNIQUES FOR CONSTRUCTION PROJECTS UNDER DESIGN BID BUILD AND DESIGN & BUILD PROCUREMENT METHODS IN ABUJA

ABSTRACT

The non-implementation of risk management techniques constitutes a lot to most of the project failures encountered nowadays. This leads to variations, incessant claims due to time loss by the contractor and loss of significant stakeholder’s value. This study assessed risk response techniques for construction projects under Design Bid Build and Design & Build (DBB and DB) procurement methods in Abuja, with a view to enhancing the level of understanding and implementation of risk management in DBB and DB procurement methods. Data were collected from 150 respondents who are professionals working under companies registered with Federation of Construction Industry (FOCI). Tools used for data analysis were Relative Importance Index (RII) and Mean Item Score (MIS). Findings from the study revealed six (6) major risk response techniques that are often practiced on construction projects with average RII of 0.71. The most effective risk response techniques in construction projects are “Risk mitigation/Reduction” and “Risk Acceptance” (MIS = 3.94 and 3.60 respectively). “Insurance” is the most effective risk sharing technique for DBB procurement method (RII = 0.81). On the average, the risk sharing techniques for DBB procurement method are effective in construction projects procurement (average RII = 0.70). The most effective risk sharing technique under the DB procurement method is “Warranty” (RII = 0.71). On the average, the risk sharing techniques under the DB Procurement method are effective in construction projects procurement (average RII = 0.61). It was concluded that the risk sharing and response techniques under the Design Bid Build (DBB) and Design and Build (DB) procurement methods are effective. However, the techniques for the sharing and responding to risks in construction projects under the DBB procurement method are more effective than the risk sharing and response techniques under the DB procurement method in Abuja, Nigeria. It was therefore recommended that stakeholders should consider the use of DBB procurement method for procuring projects in order to respond to risks in construction projects more effectively.