Abstract:
In general little emphasis has been put on correlation between the risk handling
strategies and project planning especially for contractors. Hence, this study aimed to
assess of the application of the risk handling strategies in project planning by
building contractors in Tanzania. The specific objectives were to examine the risk
handling strategies applied in project planning in Tanzania, to asses as to what extent
the strategies are used, to identify challenges faced in applying the strategies and to
suggest measures that will enhance application of the strategies. Literature review
defined key terms on project planning, building contractors and risk handling
strategies. According to our research the population is divided into three strata which
are:-High class (class 1, 2& 3), Medium class (class 4 & 5),Lower class (class 6 &7).
Research approach used is the pragmatic approach (mixed approach) and the
research design used is in case of descriptive and diagnostic research studies. The
sampling design adopted was both stratified sampling and systematic sampling
design under the complex random sampling (mixed sampling designs). Data
collected through questionnaires and Interview. Questionnaire data collected was
analyzed through SPSS (Version 20) and the interview data was analyzed through a
deductive approach.
The findings revealed that, most contractors do not use the project managers for
organizing and coordinating operation planning process while the rest few remaining
use project managers; Building contractors experienced risks during project planning
at a severe level. All strategies (avoid, transfer, mitigate and accept) are used by the
building contractors. The order of preferred strategies by contractors in descending
manner is transfer, mitigate, accept and avoid respectively. Risk handling strategies
are used at a very low extent. Building contractors experienced challenges while
applying risk handling strategies during project planning.
The study recommends that general framework of project planning and risk handling
strategies should be formulated for reference in implementation by contractors in
Tanzania. All contractors in Tanzania should involve project managers in project
planning. Contractors should adhere to proper risk handling strategies to specific
risks during project planning. More emphasis is needed to boost the application of
Risk handling strategies during project planning. All suggested measures are very
important and they should be used so as to improve the application of risk handling
strategies during project planning
