RISK MANAGEMENT STRATEGIES AND IMPLEMENTATION OF

CONSTRUCTION PROJECTS IN PUBLIC HOSPITALS AND DISPENSARIES IN

MOMBASA COUNTY, KENYA

CHARITY CHARO

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT FOR THE

REQUIREMENT FOR THE AWARD OF DEGREE OF MASTER OF ARTS

PROJECT PLANNING AND MANAGEMENT OF THE UNIVERSITY OF NAIROBI.

2022
 DECLARATION

I declare that this research proposal is my original work and has not been presented to any other

institution for examination or any other award.

Signed………………………… Date………………………..

Charity Charo

(Registration number)

This research proposal has been submitted for examination with my approval as the

university supervisor.

Signature………………………. Date…………………………

Dr. Isaac Abuya, PhD

Department of Management Science & Project Planning

Faculty of Business and Management Science

University of Nairobi

i
 DEDICATION

I dedicate this research proposal to my husband Mr. ………...for his encouragement and great

support that he gave me to undertake this study.

ii
 ACKNOWLEDGEMENT

Firstly, I would like to take this opportunity to the Almighty Lord granting me perseverance,

strength, and protection to come this far. Secondly, I would like to acknowledge my supervisor

Dr. Isaac Abuya for his invaluable support, guidance, availability, and direction during this

research proposal generation. I also appreciate my family for their financial support and

encouragement during my studies. Finally, I salute my very reliable friend Mr. Amiani who is a

role model and a source of inspiration to my life.

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Declaration…………………………………………………………………
……………………. i

Dedication ………………………………………………………………………………………. ii

Acknowledgement………………………………………………………………………………. iii

Table of Contents…………………………………………………………………………………iv

List of tables……………………………………………………………………………………….vi

List of figures……………………………………………………………………………………. vii

Abstract…………………………………………………………………………………………...viii

CHAPTER ONE: INTRODUCTION.........................................................................................1

1.1 Background to the study............................................................................................................1

1.2 Statement of the Problem...........................................................................................................4

1.3 Objectives of the study...............................................................................................................5

1.3.1General Objectives…..............................................................................................................5

1.3.2 Specific Objectives.................................................................................................................5

1.4 Research Questions....................................................................................................................6

1.5 Significance of the Study...........................................................................................................6

1.6 Scope of the Study…................................................................................................................7

1.7 Limitations of the study............................................................................................................7

1.8 Organization of the study...........................................................................................................8

CHAPTER TWO: LITERATURE REVIEW.............................................................................9

2.1 Introduction................................................................................................................................9
2.2 Theoretical Review....................................................................................................................9

2.2.1 Enterprise Risk Management…..............................................................................................9

2.2.2 Network Theory…................................................................................................................10

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2.2.4 Expectancy Theory..............................................................................................................11

2.3 Empirical Literature Review…..................................................................................................9

2.3.1 Risk Management Strategies and Performance of Construction projects..............................9

2.3.2 Risk Avoidance Strategy and Performance of Construction Projects…..............................11

2.3.3 Risk Reduction Strategy and performance of Construction projects….................................13

2.3.4 Risk Transfer Strategy and performance of Construction projects…..................................15

2.3.5 Risk Retention Strategy and performance of Construction projects…................................17

2.4 Summary of Literature Review and Research Gaps…............................................................19

2.5 Conceptual Framework…........................................................................................................22

CHAPTER THREE: RESEARCH METHODOLOGY.........................................................23

3.1 Introduction..............................................................................................................................23

3.2 Research Design.......................................................................................................................23

3.3 Target Population.....................................................................................................................23

3.4 Sampling Procedures and Sample Size....................................................................................24

3.5 Data Collection Instruments....................................................................................................25

3.6 Validity and Reliability of Research Instruments....................................................................25

3.6.1 Validity of Research Instrument…......................................................................................25

3.6.2 Reliability of Research Instruments......................................................................................25

3.7 Data Collection Procedures…..................................................................................................26

3.8 Data Analysis and Presentation...............................................................................................27

3.9 Ethical Considerations.........................................................................................................…27

References………………………………………………………………………………………...28

Appendix 1: Letter of Introduction……………………………………………………………….31

Appendix I1: Questionnaire………………………………………………………………………32

Appendix 1II: Proposed Budget…………………………………………………………………..39

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Appendix 1V: Proposed Schedule………………………………………………………………..40

LIST OF TABLES

Table 2.1 Summary of Research Gaps……………………………………………………………….20

Table 3.1: Distribution of the Target Population…………………………………………………….24

Table 3.2: Sample Size……………………………………………………………………………….25

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 LIST OF FIGURES

Figure 2.1 Conceptual framework……………………………………………………………….22

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 ABSTRACT
Stakeholders are concerned about the implementation of construction projects in Kenya. Many of

these projects have suffered delays and cost overruns that have negatively impacted their performance.

Construction projects are highly susceptible to risk, which can have a significant impact on their

performance in terms cost, time and quality. The ability to manage risks throughout construction has become

an important part of avoiding the negative effects of risk as construction projects grow in size and

complexity.

The general purpose of this study is to examine the impact risk management strategies have on

construction projects in hospitals and dispensaries in Mombasa County, Kenya. This study aims to determine

whether risk avoidance strategy or risk reduction strategy, as well as risk transfer strategy and risk retention

strategies, have any effect on construction projects in Mombasa County’s public hospitals and dispensaries.

Network theory, Enterprise Risk Management theory, and Expectancy theory will guide the study.

This study will use descriptive research design, while judgmental or purposeful sampling techniques will be

used to select Mombasa County public hospitals and dispensaries to participate in the study.

The study will use primary data which will be gathered by administering questionnaires. The data

will then be summarized and annotated using descriptive and inferential statistical methods. Inferential

statistics will use regression analysis to analyze quantitative data. Descriptive statistics will use frequency

tables’ mean, mode, and standard deviation.

The findings of the study will be presented the form of tables, frequencies, percentages, pie charts to

ease interpretations and understanding. Analysis of the data will be performed with the help of SPSS

software where regression analysis will be performed to determine the relationship between independent and
viii
the dependent variable.

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CHAPTER ONE: INTRODUCTION

1.1 Background of the study

Construction projects are quite risky, thus the individuals working on them must accept failures like

completion delays, cost overruns, and not bidding to quality, which has led to poor project performance.

Several metrics, including cost, health, client contentment, time, consumer modifications, and company

performance safety, might influence whether the project is implemented (Kibet 2016). Construction project

delays and cost overruns are widely recognized as a worldwide problem. Only 32% of construction projects

were successfully completed on time, according to the CHAOS report 2016, which was published by the

chairman of the Standish Group in the USA. Of the remaining 44%, challenges were raised since the projects

were not completed on time and the budget was exceeded.

In Africa, failure of construction projects in education sector generates a cycle of rising expectations

and unfulfilled promises. Most of the construction projects in Nigerian construction sector are faced with the

problem of project delay. In their study, Ogunsemi and Jagboro (2016) found that construction projects in

Nigeria are facing a serious challenge of cost overrun. In their study, Aibinu and Odenyinka (2016)

assessed causes delay in construction projects in Nigeria. They evaluated nine factors which include;

contractor, service engineer, architect, client, supplier, quantity surveyor, external factors, sub-contractor and

structural engineer. The findings of their study identified ten overall delay factors which include;

contractors’ financial difficulty, incomplete drawing by the architect, slow mobilization by the contractor,

inadequate fund by a client, late delivery of materials by suppliers, problems of planning, scheduling by the

contractor, breakdown of the machines and late delivery by suppliers. The authors concluded that poor risk

management strategies lead to project delay which results in a poor performance of construction projects.

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 In their study, Farida and El-sayegh (2016) discovered that inadequate leadership, inadequate

supervision, a lack of adequate skills, a change in the project's scope, poor site management, a lack of

equipment, and inadequate site management all contribute to project delays in the United Arab Emirates,

which leads to subpar project execution. Oditi (2014) discovered that cost overruns and project delays affect

all industries, not only the building trades. Additionally, they said that the rate of national growth is

negatively impacted by cost overruns and delays in development projects. Mbachu and Nkado (2014) claim

that cost overruns occurred during project delivery on the majority of construction projects. Due to the issue

of not meeting costs, clients' trust has been lost, and many investors have stopped funding construction

projects.

Wafula (2011) conducted research on public construction projects in Kenya. According to the study's

findings, 38 percent of 100 projects had cost overruns that led to subpar implementation, while 73% of

projects did not finish on time. Additionally, Mbada (2016) found the same results in a study he conducted

for both commercial and public construction projects. Cost overruns and delays will lead to poor

implementation since resources will be wasted. According to a researcher's preliminary, informal analysis,

the majority of the construction projects in Mombasa County face significant difficulties. In actuality, the

majority of projects have been poorly implemented since they have not been finished on time and within

budget, while others have stalled or been abandoned risk management strategies,

Risk is the uncertainty that exists as to the occurrence of the event which causes economic value or

loss (Green 1968). Gorrods (2017) defined risk management as an ongoing process that continues throughout

the project life. Risk management is a process in which an organization identifies hazards affecting it and

chooses the most suitable strategy for dealing with such exposures Redja (2018). An organization that

actively identifies and manages risk is always in a better position to grab opportunities.

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 Several different risk management approaches, including transfer, retention, reduction, and avoidance

of risk, can be utilized, according to Dorfman (2017), depending on the amount of risk. In order to avoid

danger, one must refrain from engaging in potentially risky behaviors. This may be viewed as the answer to

all risks, but on the other hand, it could also mean passing up an opportunity that might have been possible

had the risk been accepted. According to Dorfman, risk aversion is the most productive (2017). The

possibility of a loss happening is decreased by risk reduction. By entering into a contract, purchasing

insurance, passing legislation, or through another method, one party assumes the risk while another party

receives the liability. Accepting the benefit of gain or loss when the risk is present is known as risk retention.

This strategy can be used when the cost of insuring risk is greater over time than total losses incurred.

Risk management process suggested by Mabel (2018) can heavily be applied in construction projects.

Mabel identifies a process of risk management that involves four steps namely; risk identification of likely

loss, assessment of likely losses, and selection of potential methods for dealing with losses and finally

implementation and for the administration of risk management program. Risk management is the ability of a

human to recognize risk, assess risk and develop the methods to mitigate and manage it using managerial

resources. In short risk management process enables an organization to prepare for survival and reduce its

exposure to the risk.

1.2 Statement of the problem

Projects are susceptible to risks and uncertainties which failure to manage them appropriately can

result in serious problems. In their study, Carvalho and Junior (2017) surveyed risk management strategies in

various industrial sectors in Brazil. The finding of the study showed that embracing the best risk

management strategies had a positive result on the success of a project. Rubio, Ferrada, Serpella, and

Howard (2013) surveyed construction projects in Chile and the findings revealed that failure to use risk
3
management practices in construction projects resulted in negative results. In Kenya, Ngugi and Odhiambo

(2014) contended that effective risk management treatment resulted in the success of the projects as it lowers

the chances of occurrence of the undesirable risk and reduces the risk impact when it occurs. Wachuru

(2013) surveyed twenty- four constituency development funds (CDF) in Kiambu county. The findings of the

study project success were limited due to a dismal application of risk management practices.

The above citations suggest that strategies of risk management have proved to enhance the

implementation of a project. But, the applicability of these strategies has not been tested and empirically

studied in the case of construction projects in a hospital set up. For instance, it is not even clear whether

using certain risk management strategies has quantifiable effects on implementation of construction projects

in public hospitals. Numerous studies on effects of risk management strategies on the performance of

projects have been conducted in other sectors but, little has been done in case of construction projects in the

medical sector in Kenya. It is in this perspective this research examines influences of risk management

strategies and implementation of construction project in public hospitals and dispensaries in Mombasa

County, Kenya.

1.3 Objectives of the study

The objectives below will guide this research;

1.3.1 General objective

To investigate the influence of risk management strategies and implementation of construction

projects in public hospitals and dispensaries in Mombasa County, Kenya.

1.3.2 Specific Objectives

The study will look into the following specific objectives.

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 i. Assessing the influence of risk avoidance strategy on the implementation of construction

projects in public hospitals and dispensaries in Mombasa County, Kenya.

ii. Investigating the influence of risk reduction strategy on the implementation of construction

projects in public hospitals and dispensaries in Mombasa County, Kenya.

iii. Examining the influence of risk transfer strategy on the implementation of construction

projects in public hospitals and dispensaries in Mombasa County, Kenya.

iv. Determining the influence of risk retention strategy on the implementation of construction

projects in public hospitals and dispensaries in Mombasa County, Kenya.

1.4 Research questions

The research will be directed by the questions below;

i. How does risk avoidance strategy influence the implementation of construction project in

public hospitals and dispensaries in Mombasa County, Kenya?

ii. To what extent does risk reduction strategy have an influence on the implementation of

construction project in public hospitals and dispensaries in Mombasa County, Kenya?

iii. In what ways does risk transfer strategy influence the implementation of construction project

in public hospitals and dispensaries in Mombasa County, Kenya?

iv. Does risk retention strategy have an influence on the implementation of construction project

in public hospitals and dispensaries in Mombasa County, Kenya?

1.5 Significance of the Study

The research will empirically test the effects of risk management strategies and implementation of
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construction project in public hospitals and dispensaries in Mombasa County, Kenya. Moreover, this

research will determine the connection between risk management strategies and implementation of

construction project in public hospitals and dispensaries in Mombasa County, Kenya. The research will also

produce literature which can be very useful to future researchers who might use it to further studies so as to

solve future problems in the society. Furthermore, the stakeholders of community and government can use

research findings in future development projects and determine how the established effect of risk

management strategies can be improved in order to enhance the success of the construction projects.

1.6 Assumptions of the Study

The study based on the following assumptions:

i) That there are identifiable risk management strategies that influence implementation of

construction projects

ii) That the respondents in the selected hospitals are free and hence provided honest, reliable

and accurate responses as required.

iii) Also it is assumed that the theoretical foundation of the study was sound and an accurate

reflection of the phenomena being studied.

1.7 Scope of the Study

The study will be done to assess the influence of risk management strategies on implementation of

construction project in public hospitals and dispensaries in Mombasa County, Kenya. The study will be

carried out in the whole County and in sample 3 hospitals and dispensaries in each Sub-County which will

be selected through purposive sampling. The study will limit itself to construction projects done for the last

10 years.

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1.8 Limitation and Delimitations of the Study

The first constraint expected will be apathy of hospital heads towards giving information

with respect to financial matters due to their conservative nature. Another limitation is that some

respondents will fear the administration and they may be unwilling to give information. The purpose

of this study will be explained by the researcher in order to overcome this problem and

confidentiality will be guaranteed to respondents. Errors of biases may be another limiting factor

especially when filling questionnaires. To overcome this problem the researcher will explain the

purpose of carrying the study and urges the respondents to be as honest as possible. Another

limitation is time constraint – the period within which this study is expected to be completed (two

and a half months) may not fully be sufficient. The researcher thus will have to work within a very

constrained time period and also involved field research assistants.

1.9 Definitions of significant terms used in the Study

Implementation : This is the action or process of carrying out or accomplishing an action

Public Hospitals and : These are the hospitals and dispensaries that are funded and operated
Dispensaries by the government.

Project : The ability of a project to meet the requirements set at the initiation
Implementation
stage. These requirements include budget, duration of the project,
quality, and customer satisfaction among others
Risk : Is the potential of threat harm, misfortune or negative event that is
caused by outside or interior vulnerabilities and has an effect on
them set objectives of the project
Risk Avoidance : Refers risk management strategy that avoids the actions that may cause
certain risk. It entails changing the project to avoid the risks changing
scope, objectives, etc

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 Project Management : Is a process in which an organization recognizes loss exposures
affecting it and chooses the most suitable strategy for dealing with
such exposures. It is a continuous procedure that continues throughout
the project life
Risk Reduction : Refers to risk management strategy that minimizes the probability or
outcome of the risk to an acceptable level. It can be done by
increasing precautions or limiting the amount of risky activity.
Risk Retention : Refers to the handling of risk by bearing outcome or impact of risk, as
opposed to utilizing different strategies for dealing with it. It happens if
the cost of transferring risk is greater than the cost of retaining and
paying losses.
Risk Transfer : Refers to risk management strategy that involves the contractual shifting
of a risk to another party that is able to manage it effectively.
It does not eliminate it, but it simply shifts responsibility.

1.10 Organization of the Study

The research project is organized into five chapters. Chapter one comprises background of the study

on implementation of construction projects in public hospitals and dispensaries in Mombasa County,

problem statement, research objectives, research questions that the research purpose to answer, the

significance of the study, study limitation, scope of the study and organization of the study. Chapter two

discusses literature reviews on risk management strategies and implementation of construction projects in

public hospitals and dispensaries. These discussions are based on objectives of the research. Moreover, this

chapter also discusses the theoretical review, empirical review of the literature, summary of the chapter and

conceptual framework. Chapter three outlines the research design, sample size, and sampling method, target

population, data collection instruments, ethical consideration, reliability, and validity. Chapter four discusses
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findings of the study, data analysis using SPSS software and interpretations of the findings. Finally, chapter

five discusses summary of the findings, conclusion and recommendations of the study.

CHAPTER TWO LITERATURE REVIEW

2.1 Introduction

This chapter examines the body of research on risk management techniques and how it relates to the

execution of building projects. The chapter also discusses the conceptual foundation and theoretical review.

2.2 Theoretical literature review

Turner (2018) asserts that the theoretical review has some connection to abstract concepts that allow

the researcher to take a stance on philosophy. The choices taken during the research process are influenced

by the theoretical framework.

2.2.1 Enterprise Risk Management Theory

Enterprise Risk Management (ERM), according to Jankensgard (2019), is a risk management

philosophy that argues for the measurement and management of significant risks affecting a particular

institution as a whole rather than the management of each risk separately. Its fundamental objective is to

integrate the many risk management silos inside a business into a single, all-encompassing framework.

Senior corporate executives and staff should actively participate in the risk management process of assessing

and responding to a wide variety of company hazards, according to the ERM risk management framework of

managing risk (Bogodistov and Wohlgemuth, 2017).

This idea supports participation in risk management by all members of the company, not just a select

9
few. The ERM also emphasizes how crucial it is to manage risks with defined procedures and guidelines.

The theory also states, in accordance with Olson and Wu (2015), that if businesses adopt written policies that

specify risk appetite, strategic goals, tolerance, and standardized processes, they will be better able to detect,

analyze, and manage risks. The idea also emphasizes the development of a culture of risk management in

which all stakeholders are given the authority and responsibility to control risks. ERM methods, according to

Cormican (2017), may boost an organization's competitive advantage, stakeholder trust, and long-term

survival. Despite being created for the control of corporate risks, the ERM theory has gained popularity in

project management methodologies. According to Drumll (2001), applying the ERM concept in the

construction industry is a smart move since it is applicable to sectors with a high rate of failure. Our idea is

pertinent to this research since these failures arise from a failure to recognize, manage, and control risk

throughout the whole organization.

2.2.2 Network Theory

An idea that helps explain the composition and operation of social frameworks is network theory.

Fang, Marle, Zio, and Bocquet (2017) assert that this theory views social frameworks, such as organizations

or projects, as a network with nodes and linkages connecting these nodes. For instance, in a specific project,

the nodes may include the project team members, the task administrator, suppliers, the project owner, and

the project financiers. These nodes are connected in a variety of ways, including supplier-buyer

relationships, financial ties, legal links, and professional connections.

The idea is commonly applied to risk management in order to explain and instruct the process of risk

analysis. Furthermore, Zingrand (2017) asserts that this theory emphasizes the necessity to use a systematic

approach when assessing and comprehending risk rather than focusing on the risk effects as a single project

component. It exhorts the project team to think about how various project components are interconnected
10
and how impediment in one component may affect other project components.

This point of view of investigating risk empowers managers of the project to think of a more

reasonable and all-encompassing evaluation of the effect of specific risk. This theory recommends that in

order to judge the success of project management strategies the researcher should establish the extent at

which this strategy holistic and comprehensive making this theory relevant to this research.

2.2.3 Expectancy Theory

Vroom created the expectancy theory of motivation (1964). According to the theory, an individual's

motivation is affected by how they perceive the link between their actions and rewards. Expectancy, valence,

and instrumentality are the three divisions of the theory. Expectancy is the belief that an effort at one level

will result in performance at another. Value depicts the importance to a person of a particular outcome.

Instrumentality refers to the relationship between a second-level consequence, such as a raise, and a first-

level outcome, such as a promotion. Vroom expectation theory model was examined by Lloyd and Mertens

(2018) in the context of the construction business, and they discovered that the theory addresses variances in

performance in terms of the effort that an employee is willing to put out to complete a task. According to

Thomas (2017), the result performance could be observed based on efficiency, effectiveness, quality of

work, innovation, profitability and productivity.

In order for employees to grasp what managers are looking for, Sanchez (2017) contends that

managers should ascertain the outcomes of each employee's values and define acceptable and good

performance in terms that are observable and quantifiable. In the construction industry, project managers

should also make sure that the desired level of performance is actually possible; they should link the

outcome that the employees are looking for to a specific performance. This theory is relevant to the

11
execution of building projects because it will assist all stakeholders, including hospital directors and project

managers, in creating measurement guidelines that may provide employees with critical feedback, so

enhancing the execution of the projects.

2.3 Empirical Literature Review

According to Kendrick (2019), risk treatment or management plan is a stage that comprises choosing

and putting into practice strategies to reduce the biggest risks that a particular project is expected to

experience. It was discovered that the effectiveness of the risk analysis process determines the success of the

risk management plan (Luppino, Hosseini & Rameezdeen 2014). Li (2017) argues that there is no "one size

fits all" approach to risk management and that the context and the nature of the risk both affect how well it is

managed. In his study, he looked at certain hazards that may harm oversee development projects and

suggested the best risk management techniques. According to Hillson (2018), without effective risk

management techniques, risk identification and analysis are useless. He also noted that many construction

projects do not have action plans for implementing strategies and structured strategies of responding to risks.

2.3.1 Risk Management Strategies and Implementation of Projects

A review of the literature reveals that building projects are prone to flaws that hinder their success

and eventual execution. The complexity and magnitude of projects have grown over time, and as a result,

risk management skills have become increasingly important in averting unintended outcomes (Maytorena et

al. 2007). Forbes (2018) claims that during the past 40 years, research into risk management in the

construction industry has increased dramatically. This is due to the fact that building projects have high risk

from the moment they are conceived since it includes several stakeholders, including designers, owners, and

contractors.

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 Most projects end up costing more than expected and taking longer than expected to finish, which has

an adverse effect on how well they are implemented overall in both for-profit and nonprofit businesses

(Jones 2018). The possibility to improve project implementation is provided by project risk management. It

helps us gain a better awareness of potential dangers and openings that can complicate the execution of a

project. Furthermore, it enhances the likelihood of success while decreasing the likelihood of failure and

ambiguity, so attaining the corporate goals.

Findings from the research conducted by Cheng and Rahman (2017) showed that major risks in

construction projects are time and financial risk due to poor planning and frequent late payment that affect

the implementation of projects in the construction industry. They concluded that both risks affect

construction implementation in terms of cost, quality and time.

According to Ayub et al. (2017), projects are implemented differently when hazards are ignored

throughout the project lifetime. This is the reason, according to Kuotcha and Kululanga (2019), that the

majority of organizations seek to identify the best risk management strategy in order to guarantee successful

project execution. In fact, according to Tang (2017) and Ali and Siang (2018), managing risk must be

viewed as a core component of project management in order to accomplish successful implementation. This

means that in order to create project standards levels that are sustainable, effective risk management must be

used. This value is attained through avoiding unforeseen and extra expenses, precise forecasting, selecting

the appropriate candidates for the job, and making sure that all estimations are justified.

Rasli and Masri (2018) stated that while it is reasonable to use the usual standards of time, quality,

and cost to judge the success of a project during construction, quantifying the project implementation

performance is not a simple process. Therefore, it is crucial to concentrate on time performance since

postponing a project would result in project failure, which will diminish productivity and cause cost overruns
13
in a construction firm (Atkinson, 2019). According to Ahsan and Gunawan (2020), measuring the gap

between actual and planned time is the best way to gauge how well a project was implemented. A project is

deemed successful if it is carried out in the intended manner and within the allotted time frame.

2.3.2 Risk Avoidance Strategy and Implementation of Projects

Avoiding risk is not taking it or taking any action to make sure it won't happen (Dorfman, 2017).

Project goals should be reviewed, and if a risk were to negatively affect the entire project, the appropriate

course of action would be to either cancel the project altogether or change its scope (Pott 2018).

According to Cooper et al. (2016), a variety of measures, such as operation reviews, more thorough

planning, safety and protection systems, substitute methods, work permits, training and skill development,

changing procedures, regular inspections, and preventative maintenance, may all help to lessen or eliminate

hazards. Mhetre, Konnur, and Landage (2016) assert that implementing the project along a novel course

while putting special emphasis on accomplishing the project's objectives would help to lower the risk. They

also claimed that risk avoidance includes having a backup plan in place to eliminate a threat.

Ahamed and Azhar (2014) investigate current risk analysis and management practices used by

Florida's contractors and compare Florida's construction industry to other states' construction industries,

which are considered to be highly profitable and modern. With an 85 percent response rate, the study's

findings show that risk avoidance is the most common risk management strategy adopted by contractors in

Florida. According to the report, most companies minimise their risks by either not placing a bid on the work

or placing a very high bid. The risk avoidance strategy was found to be one of Florida's most widely used

risk management strategies, despite the respondents' claims that this tactic can lead to projects being delayed,

of poor quality, and with low productivity.

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 Risk avoidance is the proactive choice to reject projects that have a high likelihood of failing,

according to Ploywarin and Song (2014). They claim that although risk cannot entirely be eliminated in a

construction project, it can be diminished to the point that it is less likely to materialize and cause damage.

Ploywarin and Song's study included an examination of risk response based on a railway construction project

in Thailand. The research's conclusions suggested that contractors do not consider risk aversion in

government building programs since the improvements in terms of likelihood are not as significant.

According to the report, there are actually a number of risk factors that contractors overlook because they

think the risk is unlikely to happen or is even remote.

Wanyonyi (2015) conducted a survey on the impact of risk management tactics on the productivity of

a few Nairobi-based international development organizations. The results of the study appear to support

Merna's (2004) theory that risk avoidance entails adjusting the project plan to safeguard the project's

objectives from risk-related consequences by removing the trigger conditions. The results of the study

demonstrate that there is a statistically significant relationship between risk avoidance and project

performance. The use of risk-avoidance measures, such as contingency plans, work plans for project

implementation, safety plan execution, and routine inspection to guarantee no unforeseen circumstance

develops that may interfere with implementation, clearly demonstrated this.

2.3.3 Risk Reduction Strategy and Implementation of Projects

Risk reduction refers to lowering the likelihood that a loss may occur. Gorrod (2017). Additionally,

risk mitigation may eventually need resources, presenting a trade-off between doing nothing and the expense

of doing so. 2012's first edition of the Scalable Project Risk Management Handbook

Bhoola, Hiremath, and Mallik (2014) evaluated the risk management techniques used in Indian

15
software development projects. 302 project managers from various IT companies were participating. The

study's findings showed that the technique for risk reduction in software development projects had the

greatest degree of success. Other risk management tactics, such as avoidance, transference, and acceptance,

only showed themselves in the form of open dialogue with stakeholders.

Some risk reduction techniques are recognized by Tesch et al. (2017) as risk reaction arrangements.

The authors suggest elevating risk situations to higher administration as a risk reduction strategy. The

authors advise both the administration and the client to collaborate when there is a lack of commitment on

their parts in order to understand the driving forces behind the lack of care.

Roque and Carvalho (2017) evaluated the effect of risk management on the execution of projects in

Brazil in their study. The primary goal of the study was to comprehend how risk assessments affected IT

adoption. The survey was conducted in 415 distinct projects across a range of industrial sectors in different

Brazilian states. The study's findings demonstrated that using risk management controls could lessen the

likelihood of a risk factor

The impact of a cost-benefit analysis on project hazards is discussed by Laurentiu and Gabriela

(2016). They also advise doing an affectability assessment to identify risk factors that might influence how

the project develops, how long it will be in operation, and if it will fail at different stages of its life cycle.

Finances are crucial because they enable risk-reduction activities and give the framework the ability to

resume its regular operation (Hecker, 2002). Intermittent risk appraisal findings disclosure, as suggested by

Goble and Bier (2017), can reduce project risk. Additionally, they proposed that risk assessments serve as

both a communication tool and chance analyses of structured data. Consequently, the reasonable utilization

of risk appraisal 25 apparatuses with sufficient communication can reduce risk very much (Veil & Husted,

2012).
16
 According to Alexandra-Mihaela and Danut (2017), internal communication is a very significant

factor for project management success. Therefore, managers of the project adopt internal communication to

ensure the project is delivered in an expected manner.

Adding a cost that will have long-term advantages to a project is one method of lowering risk. Some

individuals engage an expert to manage extremely dangerous endeavors or they may invest in enterprises

where they are certain of their success. These experts could find answers that the project team has not

thought about (Darnall & Preston, 2010). In order to reduce risk to levels that are acceptable, it is important

to identify the risks that might prevent the project from achieving its goals. Using a contingency plan can

help with risk reduction approach.

2.3.4 Risk Transfer Strategy and Implementation of Projects

According to Mhetre, Konnur, and Landage (2016), risk transfer requires finding a third party who is

willing and able to assume managerial control and financial obligation in the event of a risk. Additionally,

they contended that transferring risk does not eliminate it because the danger will still remain even though it

is controlled and owned by a different person. In fact, they contend that the best way to manage risk

exposure is to reduce it. The major goal of risk transfer, according to Mhetre, Konnur, and Landage, is to

ensure that it is owned and managed by the best party. The optimum course of action, in Beard's opinion

(1982), is to allocate risk to the party that will be able to manage and foresee dangers. These parties must be

prepared to take risks and have sufficient financial means to bear any resulting costs (Abednego &

Ogunlana, 2006). Rahman and Kumaraswamy (2012) agreed that some risks must be managed efficiently

with the cooperation of the parties to the contract. In fact, they grouped relational contractual ideas under the

heading of shared risk management. The alliance of projects and joint ventures are two examples of diverse

enterprises where these ideas are crucial (Jones 2008).

17
 According to Pott (2018), this risk can be shifted to parties who can effectively handle it. He claims

that depending on the nature of the risk, liability can be shifted to a variety of parties, including the client,

subcontractor, contractor, designer, and insurance. He said that this can mean more effort and a larger

premium, which is the term used to describe the expense.

When risk cannot be handled by the project management team, transferring risks is the only option,

according to Darnall and Preston (2016). There are instances when circumstances include unforeseen

disasters that are unusual under specific circumstances. Since unpredictable catastrophes are uncontrollable

by the environment, they should be transmitted through insurance coverage (Winch 2018).

In his study on risks shared and assigned by clients and contractors in Dutch Project Alliances,

Koolwijk (2015) found that the majority of risk items are challenging to foresee at the planning and design

stage of construction. In order to effectively control some risks, he also noted that several contracting parties

must work together. Additionally, they discovered a list of 16 dangers that may be managed together. In two

distinct project partnerships, Koolwijk (2015) also looked on the risks that were shared between a client and

a contractor. The results of the analysis revealed that the risk factors and those mentioned by Kumaraswamy

and Rahman were strikingly comparable.

In their 2017 study, Ahamed and Azhar evaluate the most modern risk assessment and management

techniques used by contractors in the Florida construction sector. More than 55% of respondents in Florida

who participated in the survey chose the risk transfer approach as their method of risk management,

according to the study's findings. Findings also show that Florida contractors shift risks to speciality

subcontractors when the estimated loss is larger than they do when the risks are transferred to financial

instruments like insurance. The study also shows that risk transfer can occasionally result in subpar work,

low output, and project delays.

18
 Renault and Agumba (2016) connected the idea of risk and risk management in the construction

business in their study. They stated in their study that managing risk entails recognizing, assessing,

prioritizing, and deploying capital to limit the impact of risk in order to meet project objectives.

Additionally, risk management may have a number of benefits, such as boosting the probability that the

project will succeed and identifying viable alternatives to the current course of action. The study's findings

also showed that before risk can be reduced or minimized, it must be identified. The study also identified

risk avoidance, risk reduction, risk retention, and risk transfer as frequent risk management strategies.

The greatest way to transfer risk in the construction business, which can have the impact of

minimizing expensive and contentious conflicts, is through the use of construction contracts and design,

according to Bryan and Shapiro's (2016) article. They contend that this does not necessarily result in an

effective risk management approach since the stronger party has a tendency to transfer undesirable risks that

it does not like to bear on the weaker side. In addition, poor risk allocation can have an impact on both

stronger and weaker parties. Bryan and Shapiro also support the idea that assigning risk to the party best able

to handle it would lead to more lucrative, successful projects and, as a consequence, enhance the

performance of construction projects.

2.3.5 Risk Retention Strategy and Implementation of Projects

When the risk cannot be transferred or avoided, this is the choice. However, it has to be in check in

order to lessen its influence (Potts, 2018). Thomas (2019) claims that retention may also be the sole option

when other risk management techniques are not viable financially. Risk retention entails acknowledging the

presence of certain risk circumstances, developing serious solutions to allow the relevant degree of risk, and

refraining from taking any special measures to reduce it (Kerzner, 2013). Similar to retained risk, any

estimate of potential loss over the insured sum.

19
 Additionally, if there is little chance of a large loss or if the expense of insurance is excessive enough

to conflict with organizational objectives (Gorrod, 2017). Due to a lack of decision-making, ignorance, or

negligence, passive evaluation happens. For instance, the risk during the tendering phase has not been

decided, thus the contractor conducting the job must suffer the repercussions.

While the active retention strategy is a deliberate management action plan following the sobering

analysis of potential losses. Ploywarin and Song (2014) examined risk response based on a railroad

construction project in Thailand in their survey. There are two types of risk retention: passive and active. In

contrast to passive risk retention, which project managers are aware of and prepared to handle, active risk

retention refers to the risk that has been identified purposefully and in a planned manner. They also

discovered that risk retention in engineering construction is mostly caused by errors in risk identification or

analysis, and they suggested that risk management employees should make every effort to lower these errors

Ploywarin and Song also recommended that risk management staff members make risk judgments and

promptly put them into action in order to complete significant and massive construction projects. The survey

also indicated that risk retention measures account for 53.49 percent of all risk management techniques.

2.4 Summary of Literature Reviewed and Research Gaps

Table 2.1 presents summary of research gap. Most of the reviewed literature showed that risk

management strategies enhance the implementation of construction projects.

20
Table 2.1: Summary of Research Gaps

Author Major Findings Knowledge Gap Focus of the current

Study
Wanyonyi The goal of the study was to Wanyonyi (2015) This study will focus
(2015) determine how risk management proposed doing on influence of risk
practices affected the success of comparative studies management
particular international across multiple strategies on
development organizations with sectors to ascertain implementation of
headquarters in Nairobi. The how risk influences construction projects
study's conclusions demonstrated project success. in public hospital and
that using risk management dispensaries in
techniques helps international Mombasa County.
development organizations
operate better.

Nyakundi The study's goal was to There have been many This study will fill the
(2011) ascertain how risk management studies on the impact empirical gap by
tactics affected the success of of risk management investigating the
youth programs in Nyamira measures, but there is influence of risk
County. The study's conclusions little information in the management
revealed that the majority of literature about how strategies on
project teams had knowledge of these tactics affect the Implementation of
risk management and were success of building construction projects
capable of handling risks projects in the in public hospitals and
correctly. education sector. dispensaries in
Mombasa County.

Lagat The study's goal was to identify The study does not This study will focus
(2015) the variables that affected the adequately explore on influence of risk
completion of building projects how risk plays a role in management
at the public secondary factors. strategies on
hospitals in the Bomet county. performance of
The study discovered that construction projects
stakeholders' engagement in public hospitals and
affects how building projects in dispensaries in
secondary hospitals perform. Mombasa County.

21
2.5 Conceptual framework

In research, a conceptual framework is crucial since it aids in conceptual differentiation and idea

organization. Risk management techniques are an independent variable in this study, and they have an

impact on the dependent variable, project performance. Risk reduction, risk avoidance, transference and

retention are the main independent factors. Impacts of risk management techniques on project performance

were identified based on the conceptual framework that was given.

22
 Independent Variables
Risk Management Strategies

Risk avoidance Dependent Variable

 Safety systems
 Contingency plan
 Safety inspections
 Detailed work plan
 Training

Risk Reduction
 Risk reduction Implementation of
 Quality assurance Construction Projects
 Signed agreement  Cost
 Contingency plan  Duration
 Technology  Quality
 Scope
Risk Transfer  Delivery
 Use of the insurance policy
 Transferring risk to the third
party using legal agreements
 Outsourcing

Risk retention
 Self-insurance
 Contingency plans
 Taking no action on risk
perceived

Figure: Conceptual Framework

Source: Researcher 2022

23
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents the Research design, the target population, the procedure that was used

to sample and the size of the sample. The chapter also describes instruments that were used in the

study, techniques used to collect data, techniques used to analyze data, time plan and budget of the

expenditure used carry the research.

3.2 Research Design

The descriptive research design will be used in this investigation. In other words, this strategy

collects information about people's beliefs, attitudes, and societal problems in order to quantify

characteristics that already exist organically. In order to characterize the thoughts and attitudes of study

participants on the impact that risk management techniques have on the execution of building projects in

hospitals and dispensaries in Mombasa County, this approach was employed in the research. Kirumbi (2018)

contends that a study design should be highly trustworthy and impartial. Descriptive surveys are necessary

because they guarantee that respondents stay anonymous, leading to the production of trustworthy and

accurate data.

3.3 Target Population

The Target population is 29 public hospitals and dispensaries in Mombasa County which

included 6 hospitals in Kisauni, 5 hospitals in Likoni, 7 hospitals in Mvita, 5 hospitals in Jomvu and

6 hospitals in Changamwe South Sub-County. Table below shows the distribution of the target

population.

24
 Table 3.1: Distribution of the Target Population

S/NO Sub-County Hospitals

1 Kisauni 6
2 Likoni 5
3 Mvita 7
4 Jomvu 5
5 Changamwe 6
TOTAL 29

Source: Department of Health, Mombasa County

3.4 Sampling Procedures and Sample Size

The hospitals and dispensaries necessary for this study will be sampled using a judgmental or

purposive sampling approach. This method will be used to select cases with specific data. 20 public

hospitals and dispensaries will be chosen through a purposeful sampling process, or four hospitals in

each sub-county that have undergone construction during the last ten years. According to (Tuovila,

2020), the sample has to be big enough to include important traits from the entire population. This

indicates that there were 20 Medical Superintendents, 20 Board Chairpersons, 20 Accountants, 1

SCMO, and 1 SCQASO in the sample. In reality, a sample should be small enough to be cost-, time-,

and data-analysis-efficient (Tuovila, 2020). Table 3.2 below shows distribution of the sample size.

25
 Table 3.2: Sample Size

Description Population Percentage Sample

Superintendents 29 68% 20

Board Chairpersons 29 68% 20

Accountants 29 68% 20

SCEOs 5 20% 1

SCQASOs 5 20% 1

Total 97 62
Source: Researcher (2022)

3.5 Data Collection Instruments

For this project, structured questionnaires will be utilized to gather data. The best tool is a

questionnaire since it offers a high level of data uniformity and generalization. They are very simple

to manage and collect. Tuovila (2020) claims that administering, scoring, and analyzing

questionnaires is straightforward. In order to allow respondents ample time to respond, the surveys

will include both open-ended and closed-ended questions. The questions' main goal is to gather

information on how risk management techniques affect the execution of projects in Mombasa

County's public hospitals and dispensaries.

3.6 Validity and Reliability of Research Instruments

Validity and reliability of the instruments are assessed as discussed in this section.

26
3.6.1 Validity of the Instruments

How successfully a test measures what it is intended to measure is a measure of an

instrument's validity. In other words, validity is the correctness and significance of conclusions

drawn from study results (Tuovila, 2020). With the supervisor's assistance, the supervisor verified the

instruments' content validity by assessing how each question related to the study's goal. By doing

pilot tests, ambiguities of the research instruments will also be identified. The pilot test will then be

analyzed, and changes will be made as needed. Ten percent of the survey participants will participate

in the pilot test.

3.6.2 Reliability of the Instruments

Pre-testing surveys will be used to gauge the reliability of the data gathering tools. These will

be given out, and the test's findings will be utilized to determine the reliability coefficient. Internal

consistency will be assessed using Cronbach's alpha and will be determined by the correlation of

several test items. The reliability of quantitative data will be checked using the Cronbach's Alpha

reliability coefficient for the Likert-type scales test. After the test has been run, findings that are more

than 0.7 will be regarded as trustworthy.

3.7 Data Collection Procedures

To receive study permission from the Mombasa County, Department of Health, one must

present an identification letter obtained from The University of Nairobi. To introduce the researcher

to various study participants, a transmittal letter will be employed. In order to gather the primary data

for this study, respondents will be given printed structured questionnaires. A variety of research

participants will get questionnaires through hand delivery.

27
3.8 Data Analysis and Presentation

The collected data will be analyzed and interpreted both quantitatively and qualitatively.

Statistical Package for Social Scientists (SPSS) will be used to sort out data collected from the study.

Then the data will be summarized and analyzed using descriptive and inferential statistics.

Descriptive statistics involve use of frequency tables standard deviation, mean, and mode. Inferential

statistics include the use of regression analysis to analyze quantitative data. Inferential statistics will

be used to determine the relationship between the predictor variable and the variables tested in the

experiment. In addition, content analysis will also be done to statistically estimate the correlation

between patterns. Qualitative data will be analyzed and described and summarized using qualitative

statistical techniques. Finally, the data will be presented in form of tables, frequencies, percentages,

and pie charts to ease interpretations and understanding. The regression formula that will be used is

Y= α + β1 (R.Avd) +β2(R.Rdn) + β3(R.Tsnf) + β4(R.Rtn) + Ɛ, where The is the implementation of the

construction projects, α is constant (intercept coefficient) where β1, β2, β3, and β4 are Beta

coefficients, R. Avd= risk avoidance, R.Rdn = risk reduction, R. Tsnf= risk transfer and R.Rtn= risk

retention whilrepresentssent error terms.

3.9 Ethical Considerations

By enabling respondents to fill out the questionnaire in private and making sure that the surveys don't

include any information that may be used to identify them, privacy and confidentiality will be upheld. The

research will guarantee that the information is kept secure, that it is protected, and that permission was

obtained before disclosing any information to anybody else. Finally, informed consent will be requested

before survey administration.

28
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communication process project management; Annals of the University of Oradea,

Economic Science Series, 22(1).

Dorfman, M.S. (2017). Introduction to Risk Management and Insurance, (9ed.). Englewood

Cliffs, N.J: Prentice Hall.

Douglas, H. (2009). The failure of risk management: Why It's Broken and How to fix it.

New York: John Wiley and Sons.

Fang, C., Marle, F., Zio, E., & Bocquet, J. (2017). Network theory-based analysis of risk

interactions in large engineering projects. International Journal of Project Management,

19 (1), 157- 169.

Goble, R., & Bier, V. M (2017). Risk assessment can be a game-changing information

technology but too often it isn't; Risk Analysis: An International Journal; 33 (11), 1942-

1951. Javed, A. A.; Lam.

Gorrod, M (2017). Risk Management Systems: Technology Trends (Finance and Capital

Markets). Basingstoke: Palgrave Macmillan. ISBN 1-4039-1617-9.

Gwaya, A. (2014). Development of appropriate project management factors for the construction

industry in Kenya. International Journal of Soft Computing and Engineering (IJSCE)

ISSN: 2231-2307, Volume-4, Issue-1, March 2014: Blue Eyes Intelligence Engineering &

Sciences Publication Pvt. Ltd.

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Junior, R., & Carvalho, M. (2017). Understanding the impact of project risk management on

project performance: An empirical study. Journal of Technology Management &

Innovation, 8 (1), 64- 78.

Kerzner, H. (2013). Project Management; A Systems Approach to Planning, Scheduling and

controlling. USA: John Wiley and Sons.

Kumaraswamy, M.(2012). Conflicts, claims and disputes in construction engineering.

Construction and Architectural Management, 4(2): 66-74.

Langat, D. K. (2015).Factors influencing completion of construction projects in public

secondary hospitals in Bomet East sub-county, Bomet county, Kenya (Doctoral

dissertation, University of Nairobi).

Mbachu J.I.C. & R.N. Nkado. (2014). Reducing Building Construction Costs; the Views of

Consultants and Contractors. COBRA

Mbachu, J.; Nkando, R. (2017).Factors constraining successful building project implementation

in South Africa, Construction Management and Economics 25(1): 39 54.

Mbada, P. K. (2016): Cost and Time Overruns, Building Projects in Kenya, University of Ghana,

M.A. Thesis (unpublished).

Odhiambo, E., & Ngugi, P. (2014).Influence of portfolio risk management on project success

among commercial banks in Kenya. International Journal of Social Sciences

Management and Entrepreneurship, 1 (3), 57- 75.

Oditi, K. (2015). Effects of Risk Management Practices on Performance. A case study in small-

scale business. University of Nairobi, M.A Thesis (unpublished).

Potts, M (2018). Risk management, chaos theory, and the corporate board of directors. Paper

Presented at Loyola University of Chicago academic conference themed "corporate

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 boards: sources of risks, managers of risk.

Rahman M, Kumaraswamy M. (2012). “Risk management trends in the construction industry:

moving towards joint risk management”, Engineering Construction and Architectural

Management, vol. 9, no. 2, pp. 131-151

Roque, R. & de Carvalho, Y. (2017). Impact of project risk management, assessment of risks on

project performance in Brazillian Vendor companies. International Journal of Project

Management, Vol. 21 No 2, pp. 97-105.

Serpella, A., Ferrada, X., Howard, R., & Rubio, L. (2013).Risk management in construction

projects: A knowledge-based approach. Social and Behavioral Sciences, 119 (19), 653-

662.

Wachuru, S. (2013). The role of risk management practices in the successful performance of

constituency development fund projects: A survey of Juja constituency Kiambu, Kenya.

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Wafula, G. P.(2011). Building Contract Performance - A Case Study of Government Projects.

Moi University, M.A Thesis (unpublished).

Winch, G., (2018). “Managing construction projects, and information processing approach”.

Oxford: Blackwell Publishing.

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153- 159.

31
 APPENDIX 1: Introduction Letter

University of Nairobi,
Hospital of Business,
P.O Box 83732-80100,
Mombasa.

Dear Respondent,

RE: ASSISTANCE WITH STUDY FOR MASTERS RESEARCH PROPOSAL

I am a student at University of Nairobi, Mombasa Campus. I am carrying out a research project

on risk management strategies and implementation of construction projects in public

hospitals and dispensaries in Mombasa County, Kenya. This project is a requirement for my

Master of Arts Project Management and Planning degree qualification. I kindly request you to

give me an opportunity to conduct the research in your institution. The information gathered

will be used exclusively for purposes of this study and shall be kept confidential and used only

for academic purposes. A copy of all the findings will be made available to you on request.

Thank you in advance for your kind support.

Yours Sincerely,

Charity Charo

32
 Appendix II: Questionnaire

The main objective of this questionnaire is to collect data that will be very useful in establishing

the effects risk management strategies and performance of construction projects in public

hospitals and dispensaries in Mombasa County. The information you give will be private and

confidential and will only be used for academic goals. Respond to every question by placing a

tick (√ ) where necessary. Do not write you’re your name.

SECTION 1: Demographic Data

1. What is your position in the Hospital?

Superint Board Chairperson Accountant

endent

SCEO SCQASO

2. For how long have you worked in your position?

0-2 years 3-5 years 5-6 years

7-8 years 9-11 years over 11 years

3. What is your gender? Male

Female

4. What is your highest level of education?

Certificate Diploma PhD

Degree Masters
33
 SECTION B: Risk Management Strategies

Risk Avoidance strategy

This part seeks your opinion on how the hospital utilizes the strategy of avoiding any

circumstance that may delay and lower quality of construction project. Please tick (√) on one box

on what extent you agree or disagree with the statements below.

Strongly Agree Neutral Disagree strongly

Agree Disagree

5 4 3 2 1

5 The hospital has installed safety

systems against any occurrences that
may delay construction project
6 The hospital advocates use of
alternative plan or contingency plan to
avoid any circumstances that result to
project delay and poor quality.
7 The hospital regularly inspects
construction projects to ensure no issue
arises that may cause project delay.
8 The hospital encourages the use of
detailed work plan to ensure that no
event that will arise that may delay
construction project.
9 The hospital has a programme of
training project team to ensure that
project run within the schedule.

34
 Risk Reduction Strategy

This part seeks your opinion on how the hospital minimizes chances of occurrence of any

circumstance that may delay and lower quality of construction project implemented by you.

Please tick (√) on one box on what extent you agree or disagree with the statements below.

Strongly Agree Neutral Disagree strongly

Agree Disagree

5 4 3 2 1

10 The hospital holds crisis meeting

regularly with project management
team to identify and solve any issue
that may cause project delay
11 The hospital adopts quality assurance
techniques to eliminate any situation
that may cause the delay of the
construction project.
12 The hospital obeys signed agreements
and contracts on issues that may affect
duration and quality of construction
projects.
13 The hospital advocates use of
alternative plan or contingency plan to
avoid any circumstances that result to
project delay and poor quality.

Risk Transfer Strategy

This part seeks your opinion on how the hospital transfers any circumstance that may delay of

the construction project to another party. Please tick (√) on one box on what extent you agree or

disagree with the statements below.

35
 Strongly Agree Neutral Disagree strongly
Agree Disagree
5 4 3 2 1
14 The hospital purchases insurance
premium on some of the construction
items to ensure no circumstance will
cause the delay of construction
projects.
15 The hospital signs legal agreements
mostly to any event that may result in
delaying the construction project.
16 The hospital outsources those
construction functions that may cause
delay when performed by the project
team.

Risk retention strategy

This part seeks your opinion on how the hospital retains events that that may delay and lower
quality of construction project as implemented by you. This is either because this event cannot be
avoided or it is not beneficial to mitigate them because the cost of mitigating them is very high.
Please tick (√) on one box on what extent you agree or disagree with the statements below.

Strongly Agree Neutral Disagree strongly

Agree Disagree
5 4 3 2 1
17 The hospital adopts self-insurance
against any circumstances that may
cause project delay
18 The hospital advocates use of
alternative plan or contingency plan
to avoid any circumstances that result
to project delay.
19 The hospital sometimes takes no
action to identified risks despite the
fact that they may affect the duration
of the construction project, as it is
beneficial
not to deal with them.
36
37
SECTION C: Project Implementation

This section contains statements related to the implementation of construction projects in

terms quality expected and meeting the schedule. Tick one box accordingly.

Strongly Agree Neutral Disagree strongly

Agree Disagree

5 4 3 2 1

21 In my own point of view, risk

avoidance leads to timely completion
of construction projects.
22 In my own point of view reduction of
risk lead to the timely completion of
projects.
23 In my own point of view transferring
risk to third-party lead to the timely
completion of projects.
24 In my own point of view, retention risk
lead to timely completion of projects
25 In my own opinion, I have successfully
completed construction projects on
time.

26. In your own opinion, do you think risk management strategies improve project

performance?

Yes No No

27. In your opinion, what other factors affect the performance of construction project in your

hospital?

i)…………………………………………………………………………………

38
ii)…………………………………………………………………………………

iii…………..………………………………………………………………………

iv)…………………………………………………………………………………

END

THANK YOU

39
APPENDIX IV: PROPOSED
BUDGET
DESCRIPTION PROJECTED PROJECTED TOTAL COST
ITEM/ACTIVITY QUANTITY COSTPER UNIT

Secretarial services Proposal typing 50 pages 20/- per page 1,000

Printing 70 pages (5/- per page) 350
Photocopying 6 copies (210/-per copy) 1,260
Project typing 90 pages (20/- per page) 1,800
Printing 90 pages (5/- per page) 450
Project 6 copies (270 per copy) 1,620
photocopying
Binding 6 copies (250per copy)
1,500
Field research Fare and 10 days @2,000 20,000
travelling accommodation
Consolidation of Travelling to 30 days @1500 45,000
literature libraries

Sub total 72,980

Contingences 10% of the total 7,298
expenditure
GRAND TOTAL KSH. 80,278

40
 APPENDIX IV: TIME SCHEDULE

Activity July August September October November December

Development of

the research topic

Proposal writing

and presentation

Pilot study

Data collection

Data analysis

Report writing

and submission

41