An assessment of risk impact on road projects in Osun State, Nigeria

Abstract

PurposeRoad projects have been characterized by risk factors impacting project objectives. Thus, this paper focused on evaluating the effect of risk on cost and time performance of some selected road projects.Design/methodology/approachUsing the theory of two-dimensional nature of risk, a questionnaire was used to collect data from 146 stakeholders involved in road projects in Osun State, Nigeria. Secondary data regarding cost and time performance of 40 selected road projects were also collected. The data collected were used to determine significant risk factors and also to develop multi-linear regression models for evaluating risk impact on cost and time performance of road projects.FindingsResults showed that scope creep and design issues are major risk factors occurring on road projects and those political and economic factors provide higher order of impact. It further demonstrated the possibility of modelling risk impact on cost and time performance of road projects using significant risk factors.Practical implicationsThe knowledge of the identified significant risk factors provides invaluable information to stakeholders regarding what risk variables to focus attention on in road construction. The developed models are also potential practical tools for decision-making.Originality/valueThe study provides a veritable tool for risk assessment that potentially helps with predicting risk impact on cost and time performance of road projects.