Critical Risk Management Performance Indicators for Construction Projects in Ghana: A Confirmatory Factor Analysis Approach

There has been minimal consideration given to the identification of critical risk management performance benchmarks for determining the success of construction projects in Ghana. This study aims at identifying the critical risk management performance metrics for analyzing the accomplishment of Ghanaian construction projects. This was realized by developing a confirmatory factor analysis model based on the responses of professional construction industry stakeholders in Ghana. A positivist philosophy and deductive methodology based on quantitative survey was espoused. A review of literature was conducted in order to find risk management performance indicators that could be used to evaluate the overall performance of construction projects in Ghana. A total of seven grouped critical risk management performance indicators were identified from literature which served as a foundation for generating a survey questionnaire. A questionnaire was designed based on the identified risk management performance indicators and distributed to respondents through emails, Google forms and in person for their responses. Data from the questionnaire responses were analyzed and modeled using descriptive statistics and confirmatory factor analysis model. The study reveals that all the seven identified risk management performance indicators discovered in literature have an effect on how well Ghanaian construction projects perform. Nevertheless, the most critical ones are “stakeholders (clients, consultants, contractors, customers, end-users, investors, etc.) satisfaction (FCRMPI2)”, “completion within budget (cost) and schedule (time) (FCRMPI3)”, “satisfaction of environmental sustainability, quality, scope, and health and safety requirements (FCRMPI6)” and “employees’ job satisfaction (FCRMPI7)”. Only construction industry stakeholders in the public sector were used for the study. The findings were limited to public construction projects in Ghana through quantitative research design and therefore the results could be different for private construction projects using the same or different research design. Contribution to knowledge has been made by identifying the key metrics of performance for risk management that Ghanaian construction projects could use to measure their success. The study's findings would serve as a benchmark for project stakeholders in demonstrating their commitment to achieving performance excellence in construction projects in Ghana.