*5.2.1 Internally generated risk factors*

This project's risk factors are attributable to the actions and inactions of the project initiation department. More often, projects are initiated without proper planning regarding finances earmarked for the project and coordination with other departments who are also beneficiaries of the project under construction. This often leads to cashflow challenges and delaying payments to contractors. Again, the lack of coordination among the concerned departments led to unnecessary variations to the project scope and ballooning the project cost, making it difficult to get additional funding for the changes made, resulting in a delay in project completion. Likewise, unexpected budget cut for projects was also a significant issue within the department. As a result of budgetary constraints, project funds are reduced without any notice, leading to payment problems for work

### **Figure 3.**

*Internal and external sources of project risk factors.*





#### *Risk Factors Affecting Public Infrastructure Projects DOI: http://dx.doi.org/10.5772/intechopen.112002*

Again, some risk factors were attributable to internal project managers of the departments in charge of the project and appointed consultants. May project managers need to gain more knowledge about project contracts, and thus, they cannot effectively enforce the contract's terms and conditions during project execution, resulting in poor project management. This phenomenon usually leads to poor contractor practices that affect work quality without punitive action against contractors. Likewise, project managers usually start the project with unfinished designs, perhaps due to pressure from their superiors, leading to scope changes and additional costs. It was identified that a lack of risk management culture within a projects department is also a threat. There are no risk management guidelines that project managers must follow to ascertain possible risk events that could affect the project adversely. Thus, challenges that could have been easily identified through effective risk management exercises emanate during project execution and delay the project duration. In the view of Adeleke [48], there is a substantial correlation between following laid down rules and regulations and construction risk management. Therefore, how project managers follow guidelines concerning effective project management has implications for the project outcomes.

Corruption-related project risk factors were also categorised under internal risk factors. It was identified that department procurement managers engage in corrupt activities by appointing unqualified contractors and inflating contract prices. These actions led to poor workmanship among contractors appointed to execute projects, causing the department further expenditure. Political interference in the contract award also contributes to risk for the case study province. The interference from political elites in the contractor, consultants, and labour engagement often results in the appointment of cronies who need more technical skills and knowledge to execute the project, causing project failures in most cases. Mansfield et al. [49] state that political elites and government can invoke their powers to influence the project outcome; thus, political leadership actions are crucial in national development. Likewise, Thomas and Martin [50] suggest that projects are subject to numerous influences, including political ones; therefore, construction managers should consider the political aspect that can derail the project's success.

### *5.2.2 Externally generated risk factors*

These risk factors are outside the internal actions of the project departments in the Northern Cape. These risks include community actions, appointed contractors' actions, materials used for the construction and unforeseen events during the project execution. Communities where projects are executed often disrupt implementation, citing department and project managers' lack of consultation and involvement. This leads to project stoppages, resulting in project delays. In some instances, groups from the province would come to the project site demanding a portion of the contract amount to be allocated to them before the project could continue. This leads to disruptions and further delays in the project implementation. The issue of groups within a community has been identified in Nigeria. A study by Engobo [51] identified that militants often kidnap foreign construction workers, demanding a ransom before releasing them. Again, unemployed community youth demand illegal fees, usually known as "settlement", from contractors. All these practices by project community groups delay project execution by weeks and months as construction activities must be halted until the issues are resolved.

Again, it was identified that workers from the community usually demand other incentives from the government and contractors that are not part of the contract. Failure to adhere to their demands results in strike action, delaying the project.

Another external factor identified is the construction materials issues. In some instances, materials take much work to come by within the communities where the project is taking place, forcing the contractor to import materials from the capital city and other provinces. This situation also usually delays the construction process. Again, materials suppliers often need to deliver the ordered materials on time, causing financial challenges to the contractor. According to Almeida et al. [52], purchase obligations are part of contracts with suppliers and are used in construction procurements. Thus, the procurement of materials needed for the project must be a priority of the procurement agent to prevent delivery delays.

Contractor-related risk factors were very profound from the narratives of the participants. These risk factors emanated from the contractors' actions. Contractors were found to submit inaccurate tender prices for projects often and needed help to execute the project successfully upon appointment. As a result of low tender prices, contractors engaged unskilled workers to maximise their profit, leading to poor work quality. The inability of contractors to secure sufficient funding for the project leads to the liquidation of these firms when payment delays for work done. This was attributed to the malpractices in the procurements process where the financial capacities of contractors are overlooked, thereby appointment unsuitable contractors for project execution.

Likewise, because of poor tender pricing, contractors were found to be wanting in compliance with occupational health and safety regulations at the project site. This issue arises because of their inability to procure the necessary safety gadgets for their workers due to the lack of effective pricing of tender documents. Odeh and Battaineh [53] suggest that it is an arduous task for project managers and contractors to predict the financial viability of a project within an unstable economic environment. Thus, Oladapo and Olotuah [54] advise that an accurate estimate for local and international projects is necessary for successful project delivery. Unforeseen events were also attributed to external factors. Projects are often halted due to land acquisition challenges between the government and the traditional leaders, leading to delays. Likewise, unforeseen site events such as soil conditions and environmental impact assessment issues delay project implementation and, at times, increase the project budget. The issue of environmental challenges being a threat to construction was adduced by Hughes (1989), who advised project managers to be conscious of tackling environmental challenges before the project execution.
