Development of a risk management model for civil engineering contractors in Tanzania

Construction projects in Tanzania are performed in a complex environment often associated with risks. Contractors attempt to manage risks; however, this is not done systematically resulting in uncertainty of achieving project objectives. This study seeks to establish the extent to which risk management is practiced by civil engineering contractors in Tanzania. Extensive literature review was performed and questionnaire-based opinions were obtained from 36 respondents in Dar es Salaam. These were civil engineering contactors in Class I-V according to the Contractors Registration Board (CRB) classification. The study questionnaires aimed at identifying key priority risks in the delivery of civil engineering projects, basic risk management tools and the levels of their application and risks management practice by contractors. The research established ten (10) key priority risks for delivery of a civil engineering project. The study also established that knowledge of risk management tools was very low, with the respondents having less than 50 percent awareness and 25 percent utilisation of the tools, as well as the absence of risk management policy and framework for risk management. The study concluded that Contractors did not apply systematic risk management due to lack of knowledge of formal risk management tools and techniques and that the level of risk management practice by contractors was very low. The study recommends that the contractors should systematically manage project risks that fall in their domain, starting gradually until the environment for rigorous risk management is fully established in their firms. A simple risk management model based on the findings of the study has been developed to assist the contractors in systematic risks management.