Factors influencing the adoption of insurance as a risk treatment tool by contractors in the construction industry

Akinradewo, Opeoluwa; Aghimien, Douglas; Aigbavboa, Clinton; Onyia, Michael E.

doi:10.1080/15623599.2020.1797986

Cited by 19 publications

(16 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In Nigeria, some authors who carried out research on general insurance and PII include Ajemunigbohun et al. (2020), Akinradewo et al. (2020), Okongwu et al.…”

Section: Review Of Past Studiesmentioning

confidence: 99%

“…A related study to this research evaluated the factors influencing the adoption of insurance as a risk treatment tool by contractors in the construction industry (Akinradewo et al. , 2020).…”

Section: Review Of Past Studiesmentioning

confidence: 99%

“…These studies include those of Cane (1989), Donald (1973), Kanchana and Jayalath (2020), Morgan and Hanrahan (2017). In Nigeria, some authors who carried out research on general insurance and PII include Ajemunigbohun et al (2020), Akinradewo et al (2020), Okongwu et al (2021), Tom et al (2012). All these studies had varying themes on PII and no consideration was given to adoption of PII among estate surveying firms either locally or globally.…”

Section: Review Of Past Studiesmentioning

confidence: 99%

See 2 more Smart Citations

Adoption of professional indemnity insurance among estate surveying and valuation firms in Oyo State, Nigeria

Ekpo,

Oladokun

2023

View full text Add to dashboard Cite

PurposeErrors or negligence are inherent parts of professional services, thus necessitating the adoption of professional indemnity insurance (PII) as a risk management tool to protect professional interest. This paper sought to examine the adoption of PII among Estate Surveying and Valuation firms in Oyo State, Nigeria.Design/methodology/approachThe quantitative research methodology was adopted, and primary data were collected via questionnaires distributed to 84 purposively selected Estate Surveyors and Valuers (ESVs) who are mostly principal partners or branch managers in the study area. Sixty-three questionnaires representing 75.0% were returned and found useable. Data collected were analysed with the aid of descriptive statistics of percentages and relative importance index (RII).FindingsThe study found that the influence of foreign investors as well as the requirements of PII by the professional body as a basis for annual license renewal were responsible for higher level of awareness among the practitioners. However, about average of the firms had adopted PII with few taking professional insurance policy of as low as ₦500,000 per annum. The study recommends that NIESV/ESVARBON should sensitize, monitor and enforce the adoption of PII by ESVs as a means to increase public confidence and credibility of valuers while rendering professional services to clients.Research limitations/implicationsThe current study was limited in coverage to Ibadan thus necessitating a study with wider area of coverage of national status.Practical implicationsThe study has major implications on real estate education and practice in Nigeria. There is an urgent need for the professional body to devise means of enforcing compliance with the adoption of PII so as to be able to get the confidence of their teeming clients for subsequent patronage.Originality/valueThe paper is one among the scanty studies that provides a useful guide to real estate practitioners in developing countries towards adopting PII to shield the company from unnecessary negative exposure and financial loss.

show abstract

“…In Nigeria, some authors who carried out research on general insurance and PII include Ajemunigbohun et al. (2020), Akinradewo et al. (2020), Okongwu et al.…”

Section: Review Of Past Studiesmentioning

confidence: 99%

Section: Review Of Past Studiesmentioning

confidence: 99%

Section: Review Of Past Studiesmentioning

confidence: 99%

See 1 more Smart Citation

Adoption of professional indemnity insurance among estate surveying and valuation firms in Oyo State, Nigeria

Ekpo,

Oladokun

2023

View full text Add to dashboard Cite

show abstract

“…The Insurance Act of 1601 defines insurance as having three objectives: (a) to distribute the losses of a few among many; (b) encourage those who are reticent to take risks before securing compensation; and (c) summoning younger people to be entrepreneurs (Akinradewo, Aghimien, Aigbavboa, & Onyia, 2020). Thus, one can see the crucial ex-ante incentive instrument for reducing transaction costs whose terms echo even today (Tzirulnik, 2015), and several authors pointed out the positive and relevant character of the insurance market in economic and social dynamics (Hansell, 1996;Pradhan, Arvin, Nair, & Bennett, 2020).…”

Section: Context -Surety Bond (Sb) Context -Surety Bond (Sb)mentioning

confidence: 99%

Surety Bond in Infrastructure in Brazil: Transaction Costs and Agency Theory Perspectives

2022

View full text Add to dashboard Cite

Context: infrastructure projects assume the use of intensive capital and the participation of several actors, where the institutional environment influences their respective contractual arrangements. A financial instrument for project governance is surety bond (SB), whose purpose is to ensure compliance with the contracted object. However, research involving SB in the context of emerging countries such as Brazil is still incipient. Objective: this study aims to understand the use of SB in Brazil and proposes a conceptual model for analyzing transactions. It contributes to the literature by investigating the relationship between the actors and transactions involved in SB using the transaction costs theory and agency theory perspectives. Methods: this study adopts a qualitative methodology using primary data collected with 10 in-depth semi-structured interviews with market professionals with substantial experience in SB. In addition, it uses secondary data based on debate and a specific lecture on the topic involving the reality and the use of SB. Results: the findings indicate that the agency problem and the high transaction costs in Brazil prevent the development of this risk coverage market, giving rise to targeted public policies. Conclusion: the proposed conceptual model reflects the various specific transactions in the use of SB, the underlying phenomena and the validation of propositions related to market failures, and the institutional environment’s influence.

show abstract

“…The importance of finance to TEBP cannot be over-emphasized because construction work is risky for all parties involved. Akinradewo et al (2020) opined that construction projects are susceptible to uncertainty and corresponding financial implications. The major challenge of construction projects, including building projects, is hinged around time, cost and quality.…”

Section: Impacts Of Risk Factorsmentioning

confidence: 99%

Success criteria-based impacts of risk factors on education building projects in southwestern Nigeria

Adedokun

Egbelakin

Adedokun

et al. 2021

JEDT

View full text Add to dashboard Cite

Purpose Despite the huge capital outlay in tertiary education building projects (TEBP), these projects undoubtedly failed in meeting the set objectives of cost, time and quality, among others. Therefore, rather than the impacts of risks on the overall project performance, which is common in the construction management literature, the purpose of this study is to assess the impacts of risk factors on the criteria for measuring the success of public TEBP. Design/methodology/approach The paper adopted a quantitative research method where the data collection was via a questionnaire survey. The researcher administered 452 questionnaires to the client representatives, consultants and contractors involved in building projects across five public tertiary education institutions in Ondo State, Nigeria. Of 452 questionnaires, 279 were retrieved and suitable for the analysis, translating to a 61.73% response rate. The reliability analysis of the research instrument showed 0.965 and 0.807, via Cronbach’s alpha test, indicating high reliability of the instrument used for data collection. Findings The study found different risk factors affecting the criteria for measuring the success of TEBP. For instance, the environmental risk factor significantly impacted completion to cost, while financial and political risk factors significantly impacted completion to time. In addition, while environmental, legal and management risks significantly impacted end-user satisfaction, safety performance was significantly impacted by logistic, legal, design, construction, political and management risks. Besides, the logistic, legal, design, construction, financial, political and management risk factors impacted profit. However, despite profit being one of the criteria for measuring the success of building projects, it recorded the highest risk impacts amounting to 41% variance. Research limitations/implications The findings are limited to the public tertiary education building projects procured via competitive tendering; therefore, the results might differ when considering other procurement methods. Practical implications The practical implication is that rather than focusing on all risk factors, the project stakeholders could give adequate attention to the significant risk factors impacting each of the parameters for measuring the success of education building projects. Originality/value The study revealed specific risk factors impacting the criteria for measuring the success of TEBP, which extend beyond the use of the overall project performance approach.

show abstract

Factors influencing the adoption of insurance as a risk treatment tool by contractors in the construction industry

Cited by 19 publications

References 15 publications

Adoption of professional indemnity insurance among estate surveying and valuation firms in Oyo State, Nigeria

Adoption of professional indemnity insurance among estate surveying and valuation firms in Oyo State, Nigeria

Surety Bond in Infrastructure in Brazil: Transaction Costs and Agency Theory Perspectives

Success criteria-based impacts of risk factors on education building projects in southwestern Nigeria

Contact Info

Product

Resources

About