Abstract:
More risk and uncertainty exist in the construction industry than in many other industries.
Consequently, the primary area posing hurdles to construction project performance has been
identified as effective risk management. The study focused on the effect of project risk
management practices on project performance of EEIG construction projects. This study
adopted the case study concern to assess the effect of risk management on the performance of
construction management practices of grade one Ethiopian contractors limited to Debre Berhan
city in EEIG only that include the phase one project in Debre Berhan University. this study
applied the explanatory and descriptive types of research design and also used a qualitative and
quantitative (mixed) research approach. The researcher used questionnaires and focus group
discussion for primary data collection. The questionnaire implements 180 total sample
respondents, which constitute the study’s target population and the focus group discussions, are
conducted with stockholders and consultants in order to provide additional information for the
questionnaire. And the researcher used secondary data, like document reviews, to obtain
secondary data regarding the effect of risk management practices on the performance of the
DBU construction project and measurements of project performance. The analysis of the study
was done using SPSS software. It conducts mainly descriptive, correlation, and multiple linear
regression analyses. The analysis of the study shows that project performance has a positive
relationship with four independent variables: risk planning, risk identification, risk analysis, and
risk response. But according to this study, project performance has a negative relationship with
risk monitoring and execution. According to the research findings, EEIG Construction uses all
risk management practices, which helps maximize the performance of the project. Finally, the
study found that project risk management practices have an effect on project performance.
