Risk identification in megaprojects and its impacts on project management constraints in civil engineering and construction companies

Abstract

The South African megaprojects are facing a challenge to meet their objectives concerning time, cost, and quality. Most megaprojects projects often experience time delays, cost overruns, and poor quality. In the case of the public sector megaprojects particularly, time delays, cost overruns, and inferior quality result in additional expenses on the part of the government which uses taxpayers’ money to fund these projects. This results in large amounts of funds being lost, considering that megaprojects are costly to develop. To deal with the problems facing the delivery of megaprojects, significant risks must be identified and mitigated. Therefore, this study aimed to investigate the risks that are affecting the successful delivery of megaprojects concerning time, cost, and quality. To achieve this aim, this research study used a quantitative research method coupled with a questionnaire. A total of 22 risk factors associated with megaprojects were gathered from the literature review and presented in a questionnaire. The questionnaire was administered to construction professionals working for clients, consultants, and contractors involved in the development of megaprojects in South Africa. These professionals were purposely selected due to their experience and involvement in megaprojects. The data collected were analysed using the Mean Item Score (MIS). The MIS was calculated based on the impact that each risk factor has on the objectives of time, cost, and quality. The calculated MIS values were used to rank the significant risk factors affecting time, cost, and quality of megaproject development. The findings of this research study highlighted that the critical risk factors affecting the time constraints of megaprojects were delayed supply of material and equipment, the financial condition of the main contractor, the client’s slow decision-making, incomplete drawings, design errors, unavailability of labour, materials and equipment, delay in obtaining preliminary drawings, labour strikes, late issue of instructions, and unforeseen ground conditions. The critical risk factors affecting the cost constraints of megaprojects were the financial condition of the main contractor, incorrect cost estimate, design errors, unforeseen ground conditions, incomplete drawings, poor planning and scheduling, unavailability of labour, materials, and equipment, client’s slow decision-making, inappropriate equipment and material quality, and increase in material cost. The risks affecting the quality constraints of megaprojects were inappropriate equipment and material quality, shortage of skilled labour, poor planning and scheduling, deviations between specification and implementation, incomplete drawings, supply of faulty materials, design errors, the financial condition of the main contractor, unavailability of labour, materials and equipment, as well as project complexity. The findings also revealed that the financial condition of the main contractor, design errors, incomplete drawings, and unavailability of labour, materials, and equipment affect all the project management constraints of time, cost, and quality. This study also found that there are mitigations to minimize these identified critical risks. Moreover, the findings revealed that the common risk identification tools used in the South African construction industry are brainstorming, expert judgement, checklists, root-cause identification, and flow charts.