ASSESSMENT OF RISKS ASSOCIATED WITH SUPPLY CHAIN MANAGEMENT PRACTICE ON CONSTRUCTION PROJECTS IN ABUJA-NIGERIA

Abstract

The construction industry is one of the sectors that contribute meaningfully to every sector of the global economy and social development. However, the construction industry is often associated with poor performance such as time and cost overruns, poor quality and safety performance, product defects and high wastage due to lack of systematic and strategic approach to manage its supply chain. This paper therefore seeks to assess risks associated with Supply Chain Management (SCM) practice in construction sector in Nigeria with a view to improve project delivery. This paper adopt a quantitative research approach using questionnaires to sourced relevant information from respondents (Construction supply chain stakeholders). Simple random sampling technique was employed to select individual respondents within the selected study area. Data collection was done using questionnaire survey via self-administered questionnaires to construction stakeholders. Data was analyzed using descriptive statistics such as relative importance index. The study revealed risks associated with SCM practice amongst stakeholders in the study area, among risks identified was financial risk, ineffective collaboration and coordination, operatonal risks and inadequate risk management. Supply chain management practice is a management tool that aid smooth flow of material which aid project delivery. This study recommend that to achieve effective project delivery, it requires optimal knowledge on financial risk, effective collaboration and coordination, operatonal risks and adequate risk management to effectively manage the adoption of SCM practice in the construction projects in Abuja, Nigeria.