Insurable and non-insurable risks in complex project deals: case of the Ghanaian construction industry

Owusu-Manu, D.-G. and Ghansah, F.A. and Darko, A. and Asiedu, R.O. and Edwards, D.J. (2020) Insurable and non-insurable risks in complex project deals: case of the Ghanaian construction industry. Journal of Engineering, Design and Technology. ISSN 1726-0531

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Official URL: https://doi.org/10.1108/JEDT-10-2019-0265

Abstract

Purpose
The purpose of this study is to investigate the insurable risks that impacted the operations on complex construction projects in developing countries using Ghana as a case study.

Design/methodology/approach
In this study, structured questionnaires were used to collect relevant information from the top management of construction and insurance firms in Ghana, comprising 50 industry professionals. The study adopted the χ2 and independent samples’ t test to interpret the responses from participants.

Findings
The study revealed the major risks that severely impacted the operations on complex construction projects, including strikes and labour disputes, long waiting time for approval of test samples, damages to property during construction, delay in payment to contractor for work done, poor construction method, pressure to deliver project on an accelerated schedule, labour shortage, permits delayed or take longer than expected, inaccurate materials estimating, change in weather pattern, low productivity of subcontractors and inadequate contractor experience.

Practical implications
The study is expected to contribute to increase in the awareness of the insurable risks and policies that project participants are exposed to, which will serve as a decision-making tool for contract formation.

Originality/value
This study assists in managing construction and insurance firms to note the major risk in managing a complex construction project. In addition to knowing the major risks identified, the study investigates the insurable risk by managing both construction and insurance firms.

Item Type:	Article
Identification Number:	DOI: 10.1108/JEDT-10-2019-0265
Dates:	Date Event 15 April 2020 Accepted 4 May 2020 Published Online
Uncontrolled Keywords:	Risk management, Ghana, Construction industry, complex construction project, Insurable risk, Non-insurable risk
Subjects:	CAH13 - architecture, building and planning > CAH13-01 - architecture, building and planning > CAH13-01-04 - planning (urban, rural and regional)
Divisions:	Faculty of Computing, Engineering and the Built Environment > College of Built Environment
Depositing User:	Euan Scott
Date Deposited:	03 Jun 2020 07:47
Last Modified:	20 Jun 2024 11:45
URI:	https://www.open-access.bcu.ac.uk/id/eprint/9297