scholarly journals Procedures and Issues within the Contractors Classification System in Saudi Arabia

Author(s):  
Saud Almutairi ◽  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Mohammed Algahtany ◽  
Kenneth Sullivan

Research has shown that construction projects in Saudi Arabia have exhibited poor performance for the past three decades. The Saudi construction environment lacks many of the best practices found in more developed countries, such as prequalification, bonding, and 3rd party insurance. The government’s construction relies on the low bid delivery method and prequalified contractors using the Contractors’ Classification System (CCS). However, the current CCS does not accurately represent contractors’ capabilities and performance. This paper reviews all of the parts of the Saudi CCS, including the workflow and the evaluation criteria. This paper proposes to analyze the current classification system and identify the issues incorporated in the CCS regulations and classification process. This paper summarizes the authors’ critical review through interviews that have been carried out with key persons in the CCS. Several issues with the CCS are identified, such as no performance feedback, complexity of the system, and high resource requirements. The findings identify that the current CCS must be modified to be able to accurately reflect contractor capability and performance.

Author(s):  
Alfredo Rivera ◽  
Nguyen Le ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi

This paper presents a literature research assessing the performance and issues of delivering construction services worldwide, by exploring reasons for delays and increased construction costs. The study shows a comparison of the performance of the construction industry between different continents and countries. Multiple research databases were looked through and performance information was taken from over 95 publications. The results reveal that although the construction industry is growing throughout the world, there are many of the same problems being experienced in delivering construction projects in developing countries and developed countries. The literature reveals that all countries and continents are experiencing the same issues. On average, 72% of projects are delayed with 38% increase in original contracted duration, also, 63% of projects experienced cost overruns with 24% increase in original contracted cost. Additionally, rework is also a factor that affects performance and accounts for 6% increase in total project costs. Customer satisfaction on projects is low, and 90% of all major issues causing non-performance are due to people. A best value approach was identified as a potential solution to overcome the poor performance on construction projects with the following results: tested over 1900 times, totaling over $6B of procured services, a 94% on time and 97% on budget, and 98% customer satisfaction.


Author(s):  
Ahmed Alofi ◽  
Yasir Alhammadi ◽  
Dean Kashiwagi ◽  
Kenneth Sullivan

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.


Electronics ◽  
2021 ◽  
Vol 10 (23) ◽  
pp. 2958
Author(s):  
Timotej Knez ◽  
Octavian Machidon ◽  
Veljko Pejović

Edge intelligence is currently facing several important challenges hindering its performance, with the major drawback being meeting the high resource requirements of deep learning by the resource-constrained edge computing devices. The most recent adaptive neural network compression techniques demonstrated, in theory, the potential to facilitate the flexible deployment of deep learning models in real-world applications. However, their actual suitability and performance in ubiquitous or edge computing applications has not, to this date, been evaluated. In this context, our work aims to bridge the gap between the theoretical resource savings promised by such approaches and the requirements of a real-world mobile application by introducing algorithms that dynamically guide the compression rate of a neural network according to the continuously changing context in which the mobile computation is taking place. Through an in-depth trace-based investigation, we confirm the feasibility of our adaptation algorithms in offering a scalable trade-off between the inference accuracy and resource usage. We then implement our approach on real-world edge devices and, through a human activity recognition application, confirm that it offers efficient neural network compression adaptation in highly dynamic environments. The results of our experiment with 21 participants show that, compared to using static network compression, our approach uses 2.18× less energy with only a 1.5% drop in the average accuracy of the classification.


1976 ◽  
Vol 20 (15) ◽  
pp. 304-311 ◽  
Author(s):  
Stover H. Snook ◽  
James J. Dolliver

This study investigated the effectiveness of auditory stimulation and performance feedback as fatigue countermeasures. Two types of auditory stimulation were used: (1) specially programmed music and (2) recordings of current news events. Two types of performance feedback came from (1) lateral position tracking and (2) speed tracking. It was hypothesized that each of the four countermeasures would significantly improve driver performance by reducing driver fatigue. Ten subjects were required to complete a series of three hour test sessions driving an automobile simulator. Each subject completed six control sessions without any of the countermeasures, followed by six experimental sessions utilizing one of the four countermeasures. Some subjects continued on with additional groups of six experimental sessions, each group with a different countermeasure. Dependent variables included lateral position error, speed variation, steering reversals, heart rate, and subjective fatigue. The results show that lateral position feedback was the only countermeasure that resulted in a consistent and significant improvement in driver performance. The results also suggest that early indications of speed variation and steering reversals are possible predictors of one's susceptibility to fatigue and poor performance during long distance driving, although further research is necessary.


2019 ◽  
Vol 21 (2) ◽  
pp. 79-90
Author(s):  
Nova Sepadyati

Purpose -- The purpose of this qualitative study is to find out how companies manage their relationship with different suppliers to ensure their performance. The aim of the research is to understand how supplier portfolio affects companies’ decision both in selecting and managing the relationship with their suppliers.Design/methodology/approach -- A case study approach is employed to undertake the research, where data collected from semi-structure interviews and companies’ reports.Findings -- Presents indications from a study of three MNCs in FMCG sector in Indonesia regarding their practices in managing risks involved in supplier portfolio. Supplier evaluation criteria still limited on operational criteria, and supplier selection is influenced by politics and buyer’s previous experience. Key risks perceived by companies mainly regarding unperformed suppliers as expected and supplier’s opportunistic behavior, and unstable economic/political condition. Using portfolio model, current relationship with their suppliers is mapped. Most of the companies have not aligned the type of their relationship with the appropriate type of contract and performance measurement. Moreover, a formal supplier rating has not found in all companies, let alone supplier development initiativesResearch limitations -- There are several limitations of the research approach including researcher’s personal bias, limited access to companies and time constraints.Practical implications -- The research findings highlight the implications of applying relationship portfolio model in a practical setting. As well as identifying the key risks in the relationship, the research highlights strategies such as periodic bidding, gaining updated information about suppliers, and setting median price.Originality -- There have not been any studies regarding risk management in a buyer-supplier relationship in MNCs from developed countries operating in emerging country, particularly in Indonesia. The findings have given the first explanation of what companies perceived as key risks in managing their supplier portfolio in the specific context.


Author(s):  
Ahmed Alofi ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi

Saudi Arabia (SA) has the largest construction market in the Middle East. However, the use of the traditional procurement system in SA has been identified as one of the causes for poor performance in the delivery of construction. The system has been identified as a major risk to the SA government due to consistent increased costs and delays of up to 70% on projects. A survey was conducted with 1396 participants including engineers, buyers, contractors, consultants, academics, and architects. The purpose of the survey was to identify the validity of the recent claims that the procurement system in SA is broken. The participants work in both the private and government sectors. The survey results showed that the procurement system is a major risk to projects, affects construction projects negatively, and is in need of improvement.


2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Osama Salim Al Adawi ◽  
Hussin Yahia

Cost overrun is a common phenomenon in construction projects of any country, be it in developing or developed countries. This issue is a critical issue that impacts a project's success. It, therefore, needs serious attention from all the participants in the construction project to keep the projects in safe mode, to be completed within its limited cost, time, and performance. Cost overrun has a negative impact on construction project performance, which is because the construction industry is vast and complex. Any difficulty occurring during the project's life cycle leads to other problems in various parts of the project. Studies by many researchers’ cost overruns by literature review, and according to their studies suggested the most cost overrun causes. The aim of this study is to identify the most critical factors leading to cost overruns on road projects in Oman, and then provide suggestions to resolve them.


Author(s):  
Mohammed Algahtany ◽  
Dean Kashiwagi ◽  
Kenneth Sullivan ◽  
Jacob Kashiwagi ◽  
Majed Alzara

Research has shown that public construction projects in Saudi Arabia have exhibited poor performance for the past three decades. Recent studies have identified the ownership of parties who cause risks and lead to low performance in the Saudi construction industry. These studies identified that contractors are not the main party that cause risks as owners, consultants, and other parties have the major share of causing risks in the industry. The aim of this study is to assess the current risk management and performance measurement practices applied by contractors to minimize risk out of their control (caused by other parties) through conducting a questionnaire survey. The questionnaire survey was sent to contractors who work in public construction projects in Saudi Arabia. The assessment included the contractors’ practices in the identification of projects activities and risks, contractors’ practices in mitigating other parties’ activities and risks, and contractors’ practices in measuring the performance of all project parties. The study identified that contractors’ current risk management and performance measurement practices are not effective in minimizing projects risks caused by other parties and ineffective in measuring performance of all parties. The study recommends a proactive risk management approach that can help contractors to minimize risks caused by other parties and can measure the performance of all parties in projects.


1994 ◽  
Vol 2 (3) ◽  
pp. 61-82 ◽  
Author(s):  
Uğur Yavaş ◽  
Doğan Eroğlu ◽  
Sevgin Eroğlu

Joint ventures predominate in business formats used by multinational corporations in developing countries. It is believed that joint ventures in these countries suffer more conflicts and performance problems than joint ventures in developed countries. However, there is little empirical research into understanding the nature of joint venture problems in less developed countries. Furthermore, what little research exists examines the issue from the perspective of the parent company at the expense of the local partner's point of view. The study reported here is intended to fill this void. Specifically, the study examines severity of various conflicts in Saudi-U.S. joint ventures operating in Saudi Arabia from the perspective of Saudi partners. Three critical sources of conflict are identified and analyzed in detail. The discussion concludes by recommending a dynamic approach to conflict management with a special emphasis on developing communication capabilities.


Author(s):  
Mohammed Algahtany ◽  
Kenneth Sullivan ◽  
Dean Kashiwagi ◽  
Jacob Kashiwagi

Research has shown that public construction projects in Saudi Arabia have exhibited poor performance for the past three decades. Recent studies have identified that contractors are not the main party that cause risks as owners, designers, and other parties have the major share of causing risks in the industry. The traditional risk management practices have been ineffective at helping contractors deliver projects on time and within budget while meeting quality expectations. The aim of this study is to develop a risk mitigation model for the contractors to mitigate risks out of contractors’ control (caused by other parties). The developed model is validated through identifying contractors’ perceptions who work in public construction projects in Saudi of the new approach through conducting a questionnaire survey. The developed model focuses on increasing accountability of project parties through mitigating parties’ activities and risks, measuring the activities and risks deviations (time and cost), and identifying sources of deviations. Transparency is utilized in the model through sharing weekly updates of the activities and risks combined with updated information of performance measurements of all project parties. The analysis of the study results showed that project risks will be minimized and performance of projects can be increased if contractors shift their focus using the new model from only managing their own activities and risks to managing all project parties’ activities and risks.


Sign in / Sign up

Export Citation Format

Share Document