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Evaluation of Risk Management Practices in the Tendering Process within the Construction Industry in Mozambique By: Kelly Cabral Pereira de Lima Student ID: 19127260 Programme: MSc. in Management th Submitted to the National College of Ireland on 19 August 2020 Abstract Risk management is one of the nine areas of project management introduced by the Project Management Institute (2013). Risk management is a combination of techniques to identify, analyse, evaluate, respond and control risks. Thus, the knowledge of risk management techniques enable companies to achieve their goals, improve success rates and enjoy financial savings by managing risk more efficiently. Moreover, risk management is described as being associated with construction project success in terms of three major aspects such as project cost, time and quality. For this aim, this study aims to understand how risks are managed in the tendering process in the construction industry in Mozambique. 10 senior managers from seven construction companies operating in Mozambique were interviewed, and 47 respondents who directly work in Commercial/Tender Departments in Construction Companies participated in the online survey. The companies selected have in their portfolios a wide variety of projects such as buildings, roads, bridges, railways, tunnels, water supply, sewers, telecommunications and electrical infrastructures, and so on. The findings show that risk management practices applied by the construction firms in the tendering process in Mozambique, slightly differ from the risk management theories studied in this research paper. Some of these companies follow their own practices and stabilised routines. Others affirmed that they never considered risk costs while tendering for a project, even though some scholars believe that risks are one of the most significant expenses of a construction project. Keywords: Construction, tendering process, risk, risk management. i National College of Ireland Research Students Declaration Form Submission of Thesis and Dissertation Name: Kelly Cabral Pereira de Lima Student Number: 19127260 Degree for which thesis is submitted: MSc in Management Material submitted for award (a) I declare that the work has been composed by myself. (b) I declare that all verbatim extracts contained in the thesis have been distinguished by quotation marks and the sources of information specifically acknowledged. (c) My thesis will be included in electronic format in the College Institutional Repository TRAP (thesis reports and projects). (d) Either *I declare that no material contained in the thesis has been used in any other submission for an academic award. Or *I declare that the following material contained in the thesis formed part of a submission for the award of MSc in Management at National college of Ireland. (State the award and the awarding body and list the material below) Signature of research student: Date: 19.08.20 ii Acknowledgements Firstly, I would like to give special thanks to my supervisor Dr Ciara Deane for her support throughout this research and all my lecturers for their guidance that turned it possible to achieve this award. I would also like to thank all the respondents who participated in the survey and shared experience and invaluable insights during the interviews. Above all, I thank my parents, Orlando Pereira de Lima and Maria Cabral, who believed in my capabilities to reach my goals and for their always supported me in pursuing my academic career. iii
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