Abstract:
Road construction sector is one of the key economic sectors and is the main force motivating Ethiopian national economy. However, it suffers from a number of problems that affect time, cost and quality performances. On the other hand, Risk management increase level of control over the whole project and is more efficient problem solving process. This research aimed to investigate risk management practice affecting project deliverables in road construction projects under Ethiopian Road Authority, Jimma district and recommend remedial measures. Road construction projects prone to delay in the past ten years have been identified and the risk management practice of project stakeholders has been assessed in comparison with standard risk management plan on literatures using questionnaire and case study. Findings of the investigation tools proved that risk management is not practiced in road projects in a structured way but some of its components exist in terms of Environmental Impact Assessment (EIA), Social Impact Assessment (SIA), Quality Management System and insurance. However, the proper practice of risk management having its own structure is crucial to avoid failures in achieving project objectives. Therefore, the research has made recommendations for the road construction industry, to develop risk management manual that would be prepared including basic theoretical information as well as ready-to-use guidance for each risk management process to be an effective tool for project managers in setting priorities and showing places of success and failure to maximize profit.
