Assessment of Risks Management Perception and Practices of Construction Contractors in Saudi Arabia

1

• Assessment of Risks Management Perception and
  Practices of Construction Contractors in Saudi
  Arabia
• Done By
• Ali A. Al-Salman
• Presented by
• Abdallah M. Al-Mahasheer
• December 2004

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Outline

• Risk Definition
• Introduction
• Previous Studies
• Objectives
• Research Scope and Limitations
• Research Methodology
• Literature Review
• Data Analysis Results
• Conclusions Recommendations
• Questions Answers

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Risk Definition

• What is Risk?
• Risk is the possibility of loss or injury
• Risk identification by financial statements, flow
  chart, questionnaire and checklist or a
  combination of them
• Risk administration by either the contractor
  agency or an outside agency

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Introduction

• Construction process is one of the most risky and
  challenging industries
• Risk in construction cannot be eliminated but can
  be managed
• No single universal or systematic approach to
  follow
• Study attitude of the typical construction
  contactor in the Eastern Province of Saudi Arabia
  towards construction risks

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Previous Studies

• There are no studies on the researcher domain,
  but there is a research was done and presented on
  Kuwait State

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Objectives

• Present the views and attitudes of the typical
  construction contractor in the Eastern Province
  of Saudi Arabia towards construction risks
• Compare the views of the typical local
  construction contractor towards allocation of
  construction risks to the common practice of
  allocating these risks

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Research Scope Limitations

• The results and conclusions can be applied to the
  construction industry in other areas of Saudi
  Arabia because of the similarities of the rules,
  regulations and business environment
• Medium to large construction contractors
• Construction contractors in the Saudi Arabia
• General Lump Sum Contractors Type

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Research Methodology

• Comprehensive Literature Review
• Definition of Risk Parameters
• Questionnaire
• Data Collected Compiled
• Analyzing Collected Data
• Results Summarized Presented
• Conclusions, Recommendations Suggestions
  Incorporated

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Literature Review

• Comprehensive review of the available work
  reported
• Adjust available risk management approaches
  (umbrella, ostrich, brut force etc.)
• Risk identification classifications
• Risk analysis

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Data Analysis Results

• Respondents classifications
• Risk allocation from contractors, owner, or both.
• Importance of risk category to parties
• Effect of each risk category on the construction
  project budget, safety, schedule and quality
• 25 selected risk categories
• Quality versus Weather Conditions

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Conclusions

• Risk assessment is a new concept to the
  construction contractors in Saudi Arabia
• Construction contractors in Saudi Arabia and the
  common practice of allocating the surveyed 25
  risk categories are determined by this study
• Quality of work is the most important risk while
  an adverse weather condition is the least
  important risk
• The surveyed risks have the highest impact on the
  schedule of a project while the same risks
  affect the safety of the project least
• Construction contractors in Saudi Arabia want
  owners to accept and share more risks with them.

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Recommendations

• All concerned contractors in the Eastern Province
  of SA are encouraged to consider the study
  results
• All construction industries in the EP of SA are
  advised to consider trends of allocation,
  importance and effect of important risk
  categories
• The results and conclusions can be applied to the
  construction industry in other areas of Saudi
  Arabia

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Questions Answers

• Thank you !