Analyzing Risk Management in Procurement Processes: A Case Study of Chinsali-Nakonde Road

Abstract

During the entire construction phase, road construction companies face numerous hazards in the procurement process. Risk affects many aspects of operations, profitability, and reputation in the supply chain. These risks can include bad logistics, supplier defaults, natural disasters, or unstable geopolitical events. The main objective of this study was to analyze risk management in project procurement options used on the Chinsali-Nakonde road construction project. Primary data was gathered using a semi-structured questionnaire with both closed- and open-ended questions. Statistical Package for the Social Sciences (SPSS) version 26 was used for data entry and statistical analysis. Graphical presentation of descriptive statistics was done using Microsoft Excel 365. Chi-square was used for inferential statistics in order to determine the relationships between the variables. The study highlights significant challenges related to cost overruns in construction projects, with 69.7% of respondents frequently encountering this issue, and a strong statistical correlation between educational background and the frequency of cost overruns, as indicated by a Pearson Chi-Square value of 25.109 (p < 0.001). Supplier failure emerged as a critical concern, rated as "very significant" or "extremely significant" by over 74% of participants, while supplier delays were reported as a lesser issue, with 79% of respondents rarely experiencing them. Quality control measures were recognized as essential to project success, with 66.7% of respondents acknowledging their contribution.