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Recent studies have identified that contractors in the Saudi construction industry are not the main party that cause risks as owners and other parties have the major share of causing risks. However, with the identification that risks out of contractors’ control are a leading cause of low performance, there is

Recent studies have identified that contractors in the Saudi construction industry are not the main party that cause risks as owners and other parties have the major share of causing risks. However, with the identification that risks out of contractors’ control are a leading cause of low performance, there is a lack of efficient risk mitigation practices in Saudi to manage these risks. The main aim of this dissertation is to assess the current practices applied by contractors to minimize risk out of their control and develop a risk mitigation model to manage these risks. The main objectives of the study are: investigating the risks that are out of contractors’ control, assessing the contractors’ current risk mitigation and performance measurement practices, and finally developing and validating a risk mitigation model to minimize risks out of contractors’ control and measure performance of involved project parties. To achieve the study aim, a mixed methodological approach was adopted. Theoretical approaches were utilized to review previous research and to develop a conceptual risk mitigation framework followed by a practical approach that is considered with collecting data from contractors. The quantitative method was mainly used to meet the study objectives through distributing a survey in the form of a questionnaire. As a consolidation of the study findings, the top ranked risks that are out of contractors’ control were identified. Furthermore, the results identified that the 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 developed model focuses on increasing accountability of project parties through mitigating project parties’ activities and risks with measuring the deviations 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 study results showed that project risks can be minimized and projects’ performance can be increased if contractors shift their focus using the developed model from only managing their own activities and risks to managing all project parties’ activities and risks.
ContributorsAlgahtany, Mohammed (Author) / Sullivan, Kenneth (Thesis advisor) / Kashiwagi, Dean (Committee member) / Badger, William (Committee member) / Arizona State University (Publisher)
Created2018
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Description
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. Studies have identified the low-bid delivery method as an important factor in causing such delays. The procurement system (low-bid) ignores contractors’ performance, and

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. Studies have identified the low-bid delivery method as an important factor in causing such delays. The procurement system (low-bid) ignores contractors’ performance, and that is reflected in projects’ performance. A case study was performed, at a University campus in northern Saudi Arabia, identifying the major causes of project delays and cost overruns. The University was experiencing delays from 50% to 150%. Also, the actual project costs for four projects were examined and found that all four projects’ costs were higher than the original bid. The delay and cost overruns factors were gathered from the University engineers. A literature research identified one construction management method, best value performance information procurement system (BV PIPS), has documented multiple times its ability to improve project performance. In a comparison using the result of a case study and the results of (BV PIPS), Saudi Arabia’s delivery system was identified as a potential cause of project performance issues. The current procurement system was analyzed and modified to adapt with the (BV PIPS). The proposed procurement system using BV PIPS, which can be implemented in Saudi Arabia, was created with owner side. A large survey was conducted of 761 classified contractors and 43 universities’ representatives who rated causes of delay factors and cost overruns. The delay factors were then compared to delay factors experienced on Saudi construction projects, identified by performing a literature research. The comparison identified 14 important causes of delays. Moreover, the survey showed that classified contractors and universities’ representatives unsatisfied with low-bid, and they agreed with BV PIPS which selecting vendors based on performance with price. The proposed model required a submitted level of experience (LE), risk assessment (RA), and value added (VA). Besides, project managers of vendors should be interviewed during the clarification phase. In addition, venders should submit the project’s scope, technical schedule, milestone schedule, and risk management plan. In the execution phase, vendors should submit a weekly risk report (WRR) and director’s report (DR).
ContributorsAlzara, Majed (Author) / Kashiwagi, Dean (Thesis advisor) / Kashiwagi, Jacob (Committee member) / Al-Tassan, Abdulrahman (Committee member) / Arizona State University (Publisher)
Created2016
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Description
A roofing manufacturer wants to differentiate themselves from other roofing manufacturers based on performance information. However, construction industry has revealed poor performance documentation in the last couple of decades. With no current developed performance measurement model in the industry, two roofing manufacturers approached the research group to implement a warranty

A roofing manufacturer wants to differentiate themselves from other roofing manufacturers based on performance information. However, construction industry has revealed poor performance documentation in the last couple of decades. With no current developed performance measurement model in the industry, two roofing manufacturers approached the research group to implement a warranty program that measures the performance information of their systems and applicators. Moreover, the success of any project in the construction industry heavily relies upon the capability of the contractor(s) executing the project. Low-performing contractors are correlated with increased cost and delayed schedules, resulting in end-user dissatisfaction with the final product. Hence, the identification and differentiation of the high performing contractors from their competitors is also crucial. The purpose of this study is to identify and describe a new model for measuring manufacturer performance and differentiating contractor performance and capability for two roofing manufacturers (Manufacturer 1 and Manufacturer 2) in the roofing industry. The research uses multiple years of project data and customer satisfaction data collected for two roofing manufacturers for over 1,000 roofing contractors. The performance and end-user satisfaction was obtained for over 7,000 manufacturers' projects and each contractor associated with that project for cost, schedule, and quality metrics. The measurement process was successfully able to provide a performance measurement for the manufacturer based on the customer satisfaction and able to identify low performing contractors. This study presents the research method, the developed measurement model, and proposes a new performance measurement process that entities in the construction industry can use to measure performance.
ContributorsGajjar, Dhaval (Author) / Kashiwagi, Dean (Thesis advisor) / Sullivan, Kenneth (Thesis advisor) / Kashiwagi, Jacob (Committee member) / Arizona State University (Publisher)
Created2016