Selection of Risk Management Strategies in Informal Construction Sector

Abstract

The informal construction sector is unregulated and operates in a risky environment, thus the need for adoption of appropriate risk management strategies for its survival is essential. Therefore, the aim of this study was to examine methods used in choosing appropriate risk response strategy in informal construction sector in Tanzania. The study involved construction workers in informal sector in Dar es Salaam and Mwanza in Tanzania. Dar es Salaam and Mwanza are among big cities in Tanzania having more informal construction workers. Questionnaires were prepared in English, translated Kiswahili and administered by research assistants on informal construction workers. Workers were purposively selected. Out of 1,000 questionnaires distributed 849 questionnaires were fairly filled equating to 84.9%. The collected data were coded and analysed using descriptive statistics mainly frequencies cross tabulation and Chi-square tests. The study established that majority of informal construction workers choose risk response strategies by using common sense followed by previous experience. Within the location, the methods significantly differ whereby Dar es Salaam was dominated by common sense and Mwanza dominated by previous experience. Likewise, use of common sense among respondents was significantly different between gender, age group, level of education and experience. This study implies that apart from formal process of choosing risk response strategies, the informal construction sector has its own surviving strategies. The issue of location, gender and experience are essential for risk management in informal construction sector.