CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
In recent years, intensive research and development has been done in the area of project risk management. It is widely recognised as one of the most critical procedures and capability areas in the field of project management. Voetsch, Cioffi, and Anbari found a statistically significant relationship between management support for risk management processes and a reported project success. However, shortcomings and improvement opportunities in this field have been identified. Some of the shortcomings are related to the ever increasing complexity of projects. Subcontracting is expanding since many companies are focusing solely on their core businesses which results in more complex project networks and greater numbers of project participants. The scarcely studied viewpoint in the project risk management field is related to this complexity. Although the interaction between project actors occurs at many different levels, research done to study how networks act in preventing or mitigating risks is moderate.
Construction projects are characterized as very complex projects, where uncertainty comes from various sources. Construction projects gather together hundreds of stakeholders, which makes it difficult to study a network as a whole. But at the same time, these projects offer an ideal environment for network and risk management research. Additionally, construction projects are frequently used in management research, and several different tools and techniques have already been developed and especially for this type of project. However, there is a gap between risk management techniques and their practical application by constructioncontractors6. This study tries to find reasons for this gap and works to decrease it. Special applications for construction projects are discussed in the literature review.
This study is based on the assumption that by understanding better both the relationships in a project network and risks related to the network structure, project risk management can be more effective. It has already been recognized that a clear understanding of the risks born by each participant leads to better risk allocation.
STATEMENT OF PROBLEM
The contribution with which the products emanated from Julius berger consruction company Nigeria Plc made toward the progress and the development of Nigerian economy cannot be overemphasized. This is the reason, it is highly imperative to delve into the process and procedure by which the company manage the risks that is peculiar to their company and to suggest, if any, other way of improvement in a cost effective manner.
However, the mistake that is often made in most of the organization which often culminated into various problems is that: