Assessing the Application of Risk Handling Strategies in Project Planning by Building Contractors in Tanzania

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