An investigation into the risk management strategies employed to minimise time and cost overruns in public sector investment projects: A case of the Ministry of Higher and Tertiary Education

Abstract

Project time and cost overruns are recognised as the most common problems facing the Zimbabwean construction industry. Public sector investments projects, which are of a construction nature, have not been spared either. The primary objective of this study was to collect information so that an investigation of the risk management strategies being used to minimise project time and cost overruns in the Ministry of Higher and Tertiary Education can be determined. Literature reviews showed that risk management is one of the critical knowledge areas that determine whether a project will conform to the quality standards, maintains its schedule baseline and remains within its budgetary allocation. It is therefore important for project implementing teams to enforce risk management strategies that work in order to achieve the project’s primary objectives. The project teams have to re-align the project’s objectives with the risks prevailing so that negative impacts are reduced. A case study of the Ministry of Higher and Tertiary Education public sector investment projects was used in this study where simple random sampling was used to select 180 potential respondents.Out of the 180 targeted respondents, only 130 responded thereby giving a response rate of 84%. A self – administered and structured questionnaire was used to collect data which was quantitatively analysed. The study’s major findings are that those involved in public sector investment projects are generally aware of the risks encountered in the projects and have been employing risk response strategies especially through contract clauses. Effective risk management strategies have been found in this study, to minimise time and cost overruns in public sector projects. The study recommended that the Ministry of Higher and Tertiary Education should put in place a formal risk management system, implement joint risk management, increase risk awareness in projects implementation and impart knowledge and skills on how to manage risks.