Institutional Risk Factors and the Sustainability of Construction Projects: Empirical Evidence from Awka, Anambra State, Nigeria

Abstract

The main objective of this study is to assess institutional risk factors and the sustainability of 
construction projects in Awka, Anambra State, Nigeria. The construction industry in developing 
countries faces severe socio-political and institutional challenges that threaten project 
sustainability. The study specifically examined the effect of insecurity, policy inconsistencies and 
regulatory enforcement on project sustainability. Drawing on the Triple Bottom Line framework, 
the study adopted a descriptive survey research design. Primary data were collected through a 
structured Likert-scale questionnaire administered to 317 construction professionals (project 
managers, site engineers, quantity surveyors) selected via random sampling from construction 
firms. Data were analysed using descriptive statistics, Spearman’s rank correlation, and Ordinary 
Least Squares (OLS) multiple regression. The results revealed that both risk factors have 
significant negative effects on project sustainability. Insecurity has a significant negative effect on 
the sustainability of engineering projects (β = -.231, p < .001). Policy inconsistencies and 
regulatory enforcement also have a significant negative effect (β = -.168, p < 0.001). The full 
model explained 92.2% of the variance in sustainability outcomes (R² = 0.922). These findings 
confirm that such institutional risk factors have become central threats to the economic, 
environmental, and social sustainability of engineering projects in the South-East region. The 
study concludes that the identified risk factors collectively and individually affect the sustainability 
of engineering projects in Awka. The study recommends site-specific security protocols, policy 
stability advocacy, and strengthened regulatory enforcement.