Journal of Economics and Sustainable Development

Abstract

Whereas, building construction involves several professionals, tradesmen, unskilled labour and use of various equipment and materials, in unpredictable climates, risk management remains an integral part of any successful construction project. To mitigate the occurrence of risks on construction sites, builder’s risk insurance policies are statutorily provided for construction processes. The study, therefore, aimed at assessing construction professionals’ compliance to the compulsory builder’s risk insurance in Akwa Ibom State, Nigeria. Data were primarily collected using a questionnaire. Respondents were selected based on their direct involvement in the delivery of construction projects in Akwa Ibom State, Nigeria. The study adopted a random/probability sampling technique and involved two hundred and fifty-two (252) respondents that consisted of 69 Architects, 38 Builders, 47 Quantity Surveyors and 98 Engineers. From the results obtained, it was concluded that construction professionals are highly aware of the builder’s risk insurance, but their levels of compliance to the builder’s risk insurance is moderate. The implication of these findings is that the building construction industry might continue to experience losses accruing from not maximizing the builder’s risk insurance. Thus, ensuring a high level of compliance to the builder’s risk insurance policy in building construction projects will help mitigate potential losses and disputes on construction sites, and avoid time and cost overruns.