Assessment of financial risk management in construction projects in Tanzania: the case of construction companies - Dar es Salaam region
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Date
2013
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Publisher
The university of Dar es Salaam
Abstract
This study assesses the management of financial risks in construction projects in Tanzania. Data for the current study were obtained by using questionnaires and interviews. Forty six questionnaires were distributed; out of these 46 questionnaires 87% was returned. 10 responsible people in addressing financial risk in construction projects were interviewed from selected registered contractors in Dar es Salaam Region. The findings revealed that common financial risks mostly faced by contractors in Tanzania are unavailability of fund, cash flow problem, late payments from clients and inadequate payments for variations, default of sub-contractors and slippage of the work. It was also found that contractors use different techniques to manage financial risks, namely collecting fund from contractors association of Tanzania and use of work breakdown structure on managing cash flow problem. Moreover, the findings showed that lack of time to carry out all steps in risk handling process, lack of familiarity with the techniques for risk analysis and risk management, and absence of guideline on the standard procedure of managing risks are the challenges that contractors face when addressing the financial risks. It is recommended that contractors have to make sure that they get familiar with all techniques used in financial risk management and make sure that people employed have knowledge with the techniques to be used. Also, National Construction Council should help out contractors by providing standard procedures to conduct risk management as the available procedures do differ according to contracts.
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Available in print copy
Keywords
Assessment of financial risk management, Tanzania, construction companies
Citation
Leonard, L.(2013). Assessment of financial risk management in construction projects in Tanzania: the case of construction companies - Dar es Salaam region. Master dissertation, university of Dar es Salaam. Available at (http://41.86.178.3/internetserver3.1.2/search.aspx?formtype=advanced)