Insurable and non-insurable risks in complex project deals: case of the Ghanaian construction industry

De Graft Owusu-Manu, Frank Ato Ghansah, Amos Darko, Richard Ohene Asiedu, David John Edwards

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)


Purpose: The purpose of this study is to investigate the insurable risks that impacted the operations on complex construction projects in developing countries using Ghana as a case study. Design/methodology/approach: In this study, structured questionnaires were used to collect relevant information from the top management of construction and insurance firms in Ghana, comprising 50 industry professionals. The study adopted the χ2 and independent samples’ t test to interpret the responses from participants. Findings: The study revealed the major risks that severely impacted the operations on complex construction projects, including strikes and labour disputes, long waiting time for approval of test samples, damages to property during construction, delay in payment to contractor for work done, poor construction method, pressure to deliver project on an accelerated schedule, labour shortage, permits delayed or take longer than expected, inaccurate materials estimating, change in weather pattern, low productivity of subcontractors and inadequate contractor experience. Practical implications: The study is expected to contribute to increase in the awareness of the insurable risks and policies that project participants are exposed to, which will serve as a decision-making tool for contract formation. Originality/value: This study assists in managing construction and insurance firms to note the major risk in managing a complex construction project. In addition to knowing the major risks identified, the study investigates the insurable risk by managing both construction and insurance firms.

Original languageEnglish
Pages (from-to)1971-1995
Number of pages25
JournalJournal of Engineering, Design and Technology
Issue number6
Publication statusPublished - 28 Oct 2020


  • Complex construction project
  • Ghana
  • Insurable risk
  • Non-insurable risk
  • Risk management
  • construction industry

ASJC Scopus subject areas

  • General Engineering


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