Sadeq J. Alkhalifah, Firas M. Tuffaha, Laith A. Al Hadidi and Ahmad Ghaithan
The oil and gas construction projects in Saudi Arabia are commonly impacted by the frequent occurrence of change orders. Therefore, this study aims at determining the factors…
Abstract
Purpose
The oil and gas construction projects in Saudi Arabia are commonly impacted by the frequent occurrence of change orders. Therefore, this study aims at determining the factors influencing change orders in the oil and gas construction projects in Saudi Arabia.
Design/methodology/approach
Firstly, the factors are extracted by examining the literature and further refined through experts' feedback. Twenty-one factors were identified in this manner. Thirdly, the factors are prioritized using a questionnaire survey. Responses from 162 professionals have been collected through surveys and ranked using the significance index. The correlation between factor rankings between classes is assessed using Spearman's correlation coefficient. Lastly, using principal component analysis, a change order-related factors conceptual model is developed.
Findings
The five most significant factors were identified and ranked in a general manner or per the category involved. Four main types were involved: project management team (PMT), consultants, contractors and clients. Moreover, a change order-related factors model is proposed. The factors are grouped under four main groups: project definition and planning factors, project stakeholder-related factors, project execution-related factors and project performance and control factors.
Originality/value
Despite the vast factor-related literature in Saudi Arabia. Nevertheless, there has never been a study that investigates the factors influencing change orders in oil and gas projects in Saudi Arabia before. This study not only identifies the change order-related factors but also proposes a model that captures the importance of these factors. This model can aid project professionals in mitigating the impact of the most critical factors encountered during the various phases of the project.
Details
Keywords
Firas M. Tuffaha, Sadi Assaf, Yasar Zakaria Zaben and Laith A. Hadidi
In this work, a framework for assessing construction contractors' performance in Saudi Arabia is developed. Usually, a contractor's assessment is based on financial aspects, which…
Abstract
Purpose
In this work, a framework for assessing construction contractors' performance in Saudi Arabia is developed. Usually, a contractor's assessment is based on financial aspects, which are lagging indicators in nature, and can ignore other nonfinancial aspects. Hence, a more detailed contractors' assessment framework is needed for the construction industry in Saudi Arabia. A framework that integrates financial and nonfinancial aspects in one model will enable contractors to better benchmark their performance to the rest of Saudi Arabia's construction industry.
Design/methodology/approach
Initially, the literature is reviewed and the most commonly used key performance indicators (KPIs) are identified and surveyed through contractors’ feedback to ensure their proper alignment with Saudi Arabia’s construction industry. The adopted set of KPIs will be further prioritized through the relative importance index (RII) method based on the surveyed contractors’ perceptions. Furthermore, the important set of KPIs will be factored into various groups using principle component analysis (PCA). Finally, the findings are validated through expert judgment.
Findings
All key performance indicators (KPIs) have proven to be significant, except for the environmental factor, which happens to be nonsignificant and hence has been omitted from further consideration. The remaining KPIs have been factored through the principle component analysis method. Five generic dimensions were identified: Performance, Satisfaction, Actual Metrics, Estimated Metrics and Compliance. The model has been validated by expert feedback, and it was found to be reliable.
Originality/value
The proposed model establishes an assessment framework to aid building construction contractors in assessing their performance in real time, in addition to postconstruction assessment for business development and retrofitting purposes.