Table 1 shows the response of respondents on severity of selected risks
in the construction business. The result presented has Delayed Payment
Challenge, Financial Risk and Design risk coming 1st,
2nd and 3rd respectively as major
risks in road construction business.
It is important to note that some other researchers have done similar
work on this in different countries and have also found delayed payment
challenge or financial challenge ranking first among other risks
associated with construction business in Nigeria. For instance,
Alaghbari et al , (2007) examined the factors that cause delay in
construction projects in Malaysia and found financial factors to be the
most common cause of delays. Again, Sambasivan and Soon (2007) concludes
that Clients finance is an important of delay and risk in construction
industries in Malaysia. Other risks identified by Sambasivan and Soon
(2007) include: Design changes, shortage in materials, labor shortages,
equipment availability and failure, contractor’s poor site management
and inexperience, problems with subcontractors and equipment
availability and failure.
Furthermore, Koushki et al (2005) found major risks in Kuwait to
include: Owner’s financial constraints and changing designs. These
findings show similarity with what is obtainable in the south east
geopolitical zone of Nigeria which also may not differ across Nigeria.
Going by the already set values for this study, it is important to note
that all factors outlined in table 1 (excluding volcanic eruption and
landslides which fall below 3.0) were accepted by respondents as risks
affecting construction business in Nigeria. The study area is not known
to experience volcanic eruptions and landslides and hence it is not
surprising why it is not seen as risks by the respondents.