Potential risk factors affecting cost and schedule performance in the case of construction projects in Dire Dawa city administration and Harari region, Ethiopia
Abstract
Construction projects are inherently fragmented and complex, influenced by various risk factors that can significantly affect both costs and schedules. Identifying and prioritizing these risk factors is crucial for enhancing project management and achieving successful outcomes. This research aimed to identify the most significant risk factors affecting construction projects in terms of cost and schedule performance within the Dire Dawa City Administration and Harari Region, considering the perspectives of contractors, clients, and consultants to provide actionable insights for risk mitigation. A comprehensive literature review and pilot survey initially identified 41 risk factors, which were refined through an iterative process to select 42 factors for a detailed questionnaire survey. Additionally, semi-structured interviews were conducted to gather qualitative insights. Data analysis employed mean ratings to identify the top ten risk factors, utilizing Probability Impact (P-I) Matrix and regression techniques to assess each factor’s significance. The results highlighted six critical risk factors among the ten identified as most impactful: inflation, increases in material prices, exchange rate fluctuations, payment delays, poorly coordinated design, and material delays. The findings indicated strong positive correlation values (R = 0.800 and R = 0.840) in both models, suggesting that as one variable increases, the other tends to increase as well. These insights provide valuable guidance for project managers, emphasizing the need to focus on these critical risk factors to improve cost and schedule management, ultimately enhancing project outcomes and minimizing cost overruns in the region.
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