Vital Importance of Risk Assessment in Construction Project Procurement Method Selection

Abstract

At the outset of any project, every client's primary goal is to attain value for their investment by securing a top-quality structure completed on schedule and within budget. Consequently, this study is devoted to the identification and prioritization of crucial risk factors that influence the choice of procurement methods in construction projects within the local government areas (LGA) of Nassarawa (NSR), Dala (DAL), and Kano Municipal (KMC) in Kano state. The methodology utilized entails surveying 146 participants, including both contractors and consultants. To assess the likelihood of these risks, the Relative Importance Index (RII) and the sign test were applied using Statistical Package for Social Science (SPSS) version 26. The results unveiled that factor associated with the client, project timeline, and cost exert the most profound influence on the choice of procurement method in the three LGA’s in Kano state. The most influential factors among these include the client's financial capability, competition in pricing, constraints on project time, and procurement policies. In conclusion, a significant recommendation is for clients and consultants to enhance their procurement method oversight by involving skilled procurement specialists. This measure is essential for making informed choices, facilitating the attainment of a favourable return on investment, and guaranteeing the achievement of quality, timely, and budget-compliant project results.