scholarly journals Analysis of Cost Overruns in Saudi Arabia Construction Projects: A University Case Study

2020 ◽  
Vol 10 (1) ◽  
pp. 84-101
Author(s):  
Majed Alzara ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi ◽  
Abdulrahman Al-Tassan
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Common Factor ◽  
Project Performance ◽  
University Campus ◽  
Cost Overruns ◽  
Change Orders ◽  
Public Projects ◽  
Procurement System

Public projects in Saudi Arabia have been experiencing low construction project performance for the past decade. Studies have identified the low-bid delivery method as an important factor in causing such delays. In addition, low bids for contracts have not reflected the actual project cost. A case study was conducted at a university campus in northern Saudi Arabia in which the actual project costs for four projects were examined. The study found that all four projects’ costs were higher than the original bid. In addition, a large survey was conducted of 804 classified contractors and universities representatives who identified change orders as the most common factor causing cost overruns in Saudi Arabia. Previous studies showed that some contractors aim to submit low bids for winning the competition then change orders to reduce their losses. Consequently, low bids also lead to cost overruns. In a comparison using the result of a case study and the results of the Performance Information Procurement System (PIPS), Saudi Arabia’s delivery system was identified as a potential cause of project performance issues.

scholarly journals Improving the Current Procurement System in Saudi Arabia: A University Case Study

2020 ◽  
Vol 9 (2) ◽  
pp. 63-78 ◽  
Author(s):  
Majed Alzara ◽  
Mohammed Algahtany ◽  
Jacob Kashiwagi ◽  
Abdulrahman Al-Tassan ◽  
Dean Kashiwagi
Keyword(s):  
Saudi Arabia ◽  
Project Performance ◽  
University Campus ◽  
Performance Information ◽  
Past Performance ◽  
Public Projects ◽  
Best Value ◽  
Procurement System ◽  
Level Of Agreement

Public projects in Saudi Arabia have faced performance issues. The primary procurement system used in Saudi Arabia (low-bid) does not consider the contractors’ performance. A case study conducted at a university campus in northern Saudi Arabia showed low project performance. The current procurement system was analyzed and modified to utilize the concepts of the Best Value Performance Information Procurement System (BV PIPS). BV PIPS has demonstrated high levels of project performance in previous tests. A large survey was conducted of 761 classified contractors and 43 universities’ representatives. Survey respondents were asked to quantify their view regarding the current procurement system, rate their level of agreement regarding Best Value principles, and rate their level of agreement with the newly proposed procurement system which integrates Best Value principles. The results of the survey show that both, clients and contractors, are dissatisfied with the current procurement system, and agree with the new procurement system. The survey also suggests that respondents agree with Best Value principles suggesting that contractors’ performance should be tracked, and procurement should be conducted using both price and past performance information. The authors recommend that the newly proposed procurement model should be implemented in more projects in Saudi Arabia to further validate the Best Value system and improve the performance of projects in the country.

scholarly journals Important Causes of Delayed Projects in Saudi Arabia vs. PIPS: A University Campus Case Study

2016 ◽  
Vol 8 (1) ◽  
Author(s):  
Majed Alzara ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi ◽  
Abdulrahman Al-Tassan
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
University Campus ◽  
Performance Information ◽  
Literature Research ◽  
Public Construction ◽  
Procurement System ◽  
Causes Of Delays ◽  
The University

Saudi Arabia has been facing issues with completing construction projects on time and on budget. It has been documented that 70% of public construction projects are delayed. A case study was performed, at a University campus in northern Saudi Arabia, identifying the major causes of project delays. The University was experiencing delays from 50% to 150%. The delay factors were gathered from the University Projects Director and five engineers. The University delay factors were then compared to delay factors experienced on Saudi construction projects, identified by performing a literature research. The comparison identified nine causes of delays that both studies documented. The study also proposes a solution to minimize the nine major delay factors. A literature research identified one construction management method, the Performance Information Procurement System (PIPS), has documented multiple times its ability to improve project performance and minimize delays.

scholarly journals Upgrade the Saudi Arabian Procurement System Delivery Method

2015 ◽  
Vol 7 (1) ◽  
pp. 146
Author(s):  
Ahmed Alofi ◽  
Yasir Alhammadi ◽  
Dean Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Public Procurement ◽  
Saudi Arabian ◽  
The Public ◽  
Public Projects ◽  
Potential Risks ◽  
Low Performance ◽  
And Performance ◽  
Procurement System

Saudi Arabia has had many issues in delivering mega construction projects, such as delays, high costs, and low customer satisfaction. Some studies show that around 70% of public projects in Saudi Arabia are delayed. One factor that might be causing these performance issues is the traditional low bid contracting system in Saudi Arabia, or the Saudi procurement system. In Saudi Arabia, owners select contractors based only upon the lowest price. This paper researched ways to modify the current Saudi procurement system and show quick and simple modifications that can be done to improve the low performance. This research proposes that by adding the clarification phase from the Performance Information Procurement System (PIPS) to the Saudi traditional procurement process could greatly improve construction performance. The clarification phase requires the selected contractor to submit a project scope, detailed and milestone schedule, potential risks that they do not control, and performance measurement before a contract is awarded. The PIPS system is one of the most successful systems around the world, which shows success rate of 98% in six different countries with risk and cost reduction up to 30%. The clarification phase has been identified as the most important step in the PIPS to ensuring a successful project. This paper conducted a survey among construction professionals in Saudi Arabia, including 157 engineers, 33 consultants 9 owners, 5 vendors, 13 academics, and 28 architects, in order to develop the public procurement system in Saudi Arabia. The participants work in government sectors with an interest in the Saudi Arabian procurement system. The survey confirmed that professionals in the Saudi construction industry believe that the procurement system should be changed and that the inclusion of the clarification phase to the procurement system is a way to improve the procurement system.

FACTORS AFFECTING COST OVERRUN IN CONSTRUCTION PROJECTS

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Mohammed Algahtany
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Factors Affecting ◽  
Public Projects ◽  
Low Performance ◽  
Major Factors ◽  
Public Construction ◽  
The Cost

Public construction projects in Saudi Arabia have been suffering from low performance for the past decade. Cost overrun is one of the most important issues in project’s performance and is nearly associated with most of public projects. The aim of this study is to identify and assess the major factors leading to cost overruns in education construction projects in the Northern Province of Saudi Arabia to minimize the risks’ effects in future projects. The research methodology started by identifying cost overrun factors through literature review, project’s documentations, and experts’ interviews. Professionals who worked at the construction projects undertook a questionnaire survey to investigate the importance of the cost overrun factors. The top factors of cost overrun were identified through the analysis of the factors’ occurrence and severity. The study main results included the top causes of cost overrun which are delay in contractors’ progress payment by client, difficulties in financing project by contractor, delays in sub-contractor’s work, additions of quantities such as excavation, backfill, and concrete works, and bid award for lowest price. The investigated risks in the study should be evaluated and mitigated in future projects to minimize their effects and enhance the industry performance.

scholarly journals Investigating Rework: Insights from the Malaysian Construction Industry

2021 ◽  
Vol 14 ◽  
pp. 1-9
Author(s):  
Jeffrey Boon Hui Yap ◽  
Shi Min Tan
Keyword(s):  
Quality Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Project Performance ◽  
Statistical Techniques ◽  
Cost Overruns ◽  
Delivery Performance ◽  
Communication Design ◽  
Design Changes

Construction practitioners recognise that rework is undesirable due to the detrimental effects. While rework literature has examined rework causation factors in construction projects, the problem continues to plague the industry resulting in poor delivery performance. To better understand this phenomenon and given the scarcity of Malaysian-based rework study, a questionnaire survey involving 130 Malaysian construction practitioners (consultants, contractors and clients) were undertaken to obtain feedback about nature, implications, causes and solutions for rework. Data were analysed using descriptive statistical techniques to prioritise the variables studied. From the analyses, rework is a causal factor for delays and cost overruns, higher wastage and productivity inhibitor. The findings revealed the leading causes of rework are poor quality management, improper planning, lack of communication, design changes and poor subcontractor management. Some practical rework minimisation approaches are also suggested to better manage and prevent rework towards enhanced project performance.

BIM in the Saudi Arabian construction industry: state of the art, benefit and barriers

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdullah Al-Yami ◽  
Muizz O. Sanni-Anibire
Keyword(s):  
Saudi Arabia ◽  
Construction Industry ◽  
Construction Projects ◽  
State Of The Art ◽  
Pilot Project ◽  
Lessons Learned ◽  
Information Modeling ◽  
Perceived Benefits ◽  
Content Type

Purpose Although there is a boom in the construction industry in the Kingdom of Saudi Arabia (KSA), it is yet to fully adopt building information modeling (BIM), which has received a lot of attention in the US, UK and Australian construction industries. Thus, the purpose of this paper is to provide the current state of the art in BIM implementation in Saudi Arabia, as well as perceived benefits and barriers through a case study. Design/methodology/approach A broad overview of BIM, the construction industry in KSA and the research and implementation of BIM in KSA was presented in this study. The research further established the perceived benefits and barriers of BIM implementation through a case study of a local AEC firm. A questionnaire survey was used to obtain lessons learned from the BIM team of the pilot project and was further analyzed using the RII approach. Findings The study’s findings include the lack of policy initiatives in KSA to enforce BIM in the construction industry, as well as the lack of sufficient research in the domain of BIM in KSA. Furthermore, the case study also revealed that the most important benefit of BIM adoption is “detection of inter-disciplinary conflicts in the drawings to reduce error, maintain design intent, control quality and speed up communication,” whereas the most important barrier is “the need for re-engineering many construction projects for successful transition towards BIM.” Originality/value The study provides a background for enhanced research towards the implementation of BIM in Saudi Arabia and also demonstrates the potential benefits and barriers in BIM implementation.

scholarly journals Exploring Project Complexity Relations to Scope Changes in Construction Projects: A Case Study of NEC Projects in South Africa

2021 ◽  
Vol 21 (2) ◽  
Author(s):  
Themba Lukhele ◽  
Brink Botha ◽  
Sijekula Mbanga
Keyword(s):  
Construction Projects ◽  
Case Study Research ◽  
Project Performance ◽  
Complex Nature ◽  
Initiation Phase ◽  
Execution Phase ◽  
Planning Approach ◽  
Project Complexity ◽  
Multiple Case

Construction projects are of very complex nature, and subject to circumstances of high uncertainties and risks due to the interdependences of activities and processes in the project performance.  As a result of the dynamic complexities inherited in construction projects, changes in the scope of work are inevitable. Of particular concern is that, when scope changes are introduced in a project, contractors follow a systematic procedure in managing the changes, but with poor planning and implementation thereof because the project complexities that underpin the scope changes are not fully understood. Therefore, despite that complexity is an inherent and defining feature of construction projects, studies in the literature have failed to grasp and present the dynamics of project complexity which underlie the scope changes in the delivery of construction project. The TOE (Technical Organizational Environmental) framework was adopted and applied on a multiple-case study research design in order to explore and denote project complexity relations to scope changes in construction projects. Through a content analysis procedure, six key elements of project complexities that relate to scope changes in the construction projects has emerged. Understanding these complexity elements could enable the project management team to apply a front-end planning approach in the initiation phase of the projects in order to better manage scope changes in the execution phase of the project, and eventually to improve the project performance.

scholarly journals Building Information Modelling Technology in Mitigating Cost Overruns and change orders in Construction Projects

2021 ◽  
Vol 4 (1) ◽  
pp. 50-64
Author(s):  
Ja’far A. Aldiabat Al-Btoosh
Keyword(s):  
Construction Industry ◽  
Cost Estimation ◽  
Construction Projects ◽  
Information Modeling ◽  
Cost Overruns ◽  
Change Orders ◽  
Significant Difference ◽  
Project Costs ◽  
Building Information ◽  
And Control

Variation order (VO) is one of the main issues faced by the construction industry in Jordan. Many researchers had investigated on the causes of VO and proposed procedures to minimize and control this issue; however, the VO is affecting the construction industry badly even at moment. Building Information Modeling (BIM) is a powerful management system that can make a significant difference in the project costs. However, BIM has not been examined as a tool to minimize the VO in Jordan. The main target of this study is to utilize BIM applications in reducing the effect of VO on the governmental projects in Jordan. In order to achieve this target, the researcher has designed a questionnaire to gather data related to VO causes and the BIM capability to solve this problem. The data collected from the questionnaires were analyzed statistically. The result from the analysis found that the consultant initiated the highest VO of 50% followed by the clients and the contractors of 20% and 10% unforeseen variation respectively. Moreover, it is found that BIM Design Applications, Facility Operations Simulation, Exploration Design Scenarios, BIM Design Detection and BIM Quantity Take-off and Cost Estimation were significantly capable of minimizing VO. The results show positive relationship with the application of BIM in minimizing VO in the construction industry in Jordan. © 2018. JASET, International Scholars and Researchers Association

scholarly journals The Influence of Risk Management on Construction Project Performance: A Case Study.

2018 ◽  
pp. 936-942
Author(s):  
Mazurina Mohd Ali ◽  
Sakinah Zahra Norman ◽  
Erlane K. Ghani ◽  
Noor Hasniza Haron
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Practices ◽  
Management Practice ◽  
Methodological Approach ◽  
Construction Project ◽  
Project Performance ◽  
Time Cost ◽  
Schedule Delay

Risk Management is recognized as an important exercise that creates value to a project and improves project performance. Time, cost and quality are the primary measures of a project performance in this industry. The success or failure in any construction project can be monitored through the attainment of these primary measures. Notably, Malaysian construction industry is considered as one of the important industries that positively contribute to the increase of Gross Domestic Product and subsequently the growth of the country’s economic development. Unfortunately, this industry suffers poor performance in which it leads to failure in accomplishing effective time, cost and quality performance. Most construction projects face a schedule delay, cost overrun and are poor in product quality. Thus, the aim of this study is to determine the influence of risk management on construction project performance of Malaysian companies based on these three primary measures. The degree of diffusion of risk management practice in the chosen construction project in Malaysia is also examined. The methodological approach exploited in this study is a case study approach involving analysis of documented data and face-to-face interviews with key players that hold different roles and responsibilities. They include a director, project managers, finance managers, contract managers and quantity surveyor managers. The results demonstrate that adopting effective risk management practices positively impacts project performance thus leading to project success. Nevertheless, the lack of knowledge and poor communication of risk management practices in construction projects contribute to the weak implementation of an effective and systematic risk management practices in Malaysia.

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