Academic journal article American Academic & Scholarly Research Journal

Recognize the Latent Menaces in Construction Projects: An Empirical Study in Construction Sector in Jeddah, KSA

Academic journal article American Academic & Scholarly Research Journal

Recognize the Latent Menaces in Construction Projects: An Empirical Study in Construction Sector in Jeddah, KSA

Article excerpt

Abstract. This paper seeks to highlight the potential menace in construction projects in Jeddah, KSA, and its influence on project objectives in terms of time, cost, quality, safety and environmental sustainability. The researcher used a total of 25 key risks, which were determined based on a comprehensive assessment of their probability of occurrence and magnitude of consequence on project objectives in China and Australia. Herein the researcher test the magnitude effect of each factor upon the project objectives mentioned above. with an assortment of menaces consequence on project elements: Clients, design, government bodies, contractors and subcontractors, and suppliers, This study concluded that 92.3% of the respondents believe that price inflation of construction materials has a high effect on project construction. Moreover, The results show that there are factors have a high load, which are: Variations by the client, Project funding problems, Suppliers' incompetency to deliver materials on time, and excessive procedures of government approvals, the study recommended that, the enterprise should review and rewords their clients contracts to clear identification of project scoop and payments arrangement. Besides, selecting subcontractors based on specific standards to insure they will add value to the project. Obtain and maintain talent to manage government and public relations.

Keywords: risk management, construction project management.

1 INTRODUCTION

The rapid growth of the Saudi Arabian economy calls for enormous development of infrastructures and assets. While this brings opportunities to project stakeholders, utilizing effective RM techniques to control risks associated with variable construction activities, which led to manage the projects with high grade of effectiveness and efficiency, considering the project objectives including time, cost, quality, safety and environmental sustainability.

Effective RM methods can help to understand not only what kinds of risks are faced, but also how to manage these risks in different phases of a project. Owing to its increasing importance, risk management has been recognized as a necessity in almost all sectors today, and a set of techniques have been developed to control the influences brought by potential risks (Baker and Reid, 2005).

Compared with many other industries, the construction industry is subject to more risks due to the unique features of construction activities, such as long period, complicated processes, abominable environment, financial intensity and dynamic organization structures (Smith, 2003).

In this study researcher selected the 25 key risk factors, which had been used to study the potential risks might be affect the construction sector in China an Australia. The paraphrase of the survey questionnaire from English into Arabic was carefully fulfilled and checked by the researcher to guarantee the consistence between the two versions. All sample members selected were practitioners, questionnaire had distributed and data collected with 65% of respond. Data collected entered into SPSS program for statistical and social sciences package Ver.16. Then variables coded, labeled and treated. The study reveals that 92.3% of the respondents believe that price inflation of construction materials has a high effect on project construction. Besides, the results show that there are (seven factors) have a total load (68.2%). These Seven factors include: Variations by the client, Project funding problems, Suppliers' incompetency to deliver materials on time, excessive procedures of government approvals, Low management competency of subcontractors, Contractors' poor management ability, Unavailability of sufficient professionals and managers. Researcher recommend for more investigation and further study to determine the prober strategies to come over those risk.

2 BACKGROUND AND RELATED PAST RESEARCHES

Risk management may be described as "a systematic way of looking at areas of risk and consciously determining how each should be treated. …

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