Investigation of Factors Influencing Risk Management of Small & Medium Construction Companies In Abuja

Abstract

This study investigates factors influencing risk management practices among small and medium construction companies (SMCCs) in Abuja. The construction sector faces recurring challenges such as cost overruns, delays, and safety issues, particularly among SMEs with limited resources. The study focuses on financial, contractual/legal/regulatory, human resource, and supply chain factors. A mixed-methods design was adopted using structured questionnaires, on-site observations, and semi-structured interviews. Data from 100 respondents were analysed using descriptive statistics, Relative Importance Index (RII), correlation, and multiple regression to test hypotheses and assess factor influence on risk management. The findings indicate that financial stability, regulatory compliance, managerial competence, and efficient supply chain coordination play significant roles in enhancing risk management practices. These factors collectively contribute to improved project delivery and reduced exposure to construction risks. The study concludes that strengthening financial planning, enhancing contractual compliance, improving managerial competence, and optimising supply chain coordination will significantly enhance risk management among SMCCs. It recommends the institutionalisation of structured risk management frameworks and increased stakeholder support to improve project performance and sustainability.