Research Article | OPEN ACCESS
Causes of Contractors' Failure in Industrial Projects in Saudi Arabia
1Sadi Assaf, 2Mohammad A. Hassanain and 1Salman Al-Zahrani
1Construction Engineering and Management Department, King Fahd University of
Petroleum and Minerals, Box 680, Dhahran 31261, Saudi Arabia
2Architectural Engineering Department, King Fahd University of Petroleum and Minerals, Box 541, Dhahran 31261, Saudi Arabia
Research Journal of Applied Sciences, Engineering and Technology 2015 3:158-164
Received: February 18, 2014 | Accepted: March 08, 2014 | Published: January 25, 2015
Abstract
The study aims at identifying and assessing the main causes of contractors’ failure in industrial projects in Saudi Arabia. 24 causes were identified from the literature for assessment by owners, contractors and subcontractors. These causes were classified under five categories, namely managerial causes, financial causes, growth causes, environmental causes and uncontrollable causes. A survey of 36 participants was conducted. Data was collected from 15 owners, 11 contractors and 10 subcontractors. The results indicated that lack of experience in the business field, war, poor project management, poor cost estimation, unavailability of stationed project leader at site, neglect and type of the contract are the most severe causes behind contractor’s failure in construction projects. The rank correlation coefficient indicated that there is a high level of agreement among owners, contractors and subcontractors on the severity of the different failure causes. The research provides a severity of the ranking of the different causes of failure so that mitigation measures could be developed to avoid them or lessen their effects.
Keywords:
Causes of failure, contractor, industrial projects, owner, subcontractor, Saudi Arabia,
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Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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