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CONSTRUCTION STAKEHOLDERS’ PERSPECTIVE ON EXTERNAL RELATED RISK FACTORS INFLUENCING CONSTRUCTION PROJECT PERFORMANCE

Abstract 
The construction industry is extremely complex, with dynamic project environments creating an atmosphere of high uncertainty and risk. For that reason, risks in construction project have become an inevitable feature and the industry is susceptible to numerous business, socio-political and technical risks that negatively influence project delivery. This study therefore investigated the causes of risks in construction project delivery and the effect on project and organisational performance so that efficient control measures can be designed to minimise its occurrence. A quantitative research design was adopted, and the sample comprised of randomly selected contracting firms and construction professionals in the Western Cape Province. The data was statistically analysed using descriptive and inferential analyses. 
The salient findings revealed that socio-political-related risk factors are the major causes of risks during construction project delivery, these factors include labour strikes and disputes due to union issues, excessive influence by government on court proceedings regarding construction project disputes, and constraints on the availability and employment of expatriate staff. In addition, the study revealed the impact of construction risks on projects and organisational performance, and it was found that cost overrun was ranked the most significant on project performance and disputes between parties to the contract was ranked the most significant on organisational performance. It is also worth mentioning that the opinions of construction professionals do not vary significantly with regard to the detrimental effect of risks on project performance. 
Key words: Construction project, cost overrun, project performance, risk management socio-political risk.