RISK FINANCING OPTIONS AND PROJECT SUCCESS: EVIDENCE FROM BUILDING CONSTRUCTION COMPANIES IN LAGOS STATE, NIGERIA

Abstract

Risk financing is a critical element of a business future. its indispensable metrics in safeguarding the structural and economic image of construction firms. Therefore, this study assessed the relationship between risk financing options and project success, with specific reference to the perceptions of selected construction firms in Lagos State, Nigeria. The study adopted a cross- sectional survey research design; with combination of both judgmental and convenience sampling techniques. The study population consisted of sixty-nine (69) registered building construction firms in Lagos State. Thus, a structured questionnaire was adopted in the distribution and data collection processes. Eight-seven (87) were used as sample size and in the data analytical procedure. The statistical technique employed was simple regression. This result confirmed the nexus between risk financing options and project success of selected construction firms in Lagos State. While risk retention options proved a positive relationship with project success at a p value of 0.043, risk transfer options confirmed a positive relationship with project success at a p value of 0.017. the study recommended that more risk retentive capacities should be built by building contractors in a bid to handle small proportions of their risks possibly by creating a risk management department. Government should also be dutiful in their regulatory oversight of monitoring the compulsory purchase of builders’ liability insurance and thus, ensure that buildings under construction are covered for under a contractor’s all-risk insurance policy.