Factors influencing change orders in oil and gas construction projects in Saudi Arabia

• Published in: Built environment project and asset management 2023-05, Vol.13 (3), p.430-452
• Main Authors: Alkhalifah, Sadeq J, Tuffaha, Firas M, Al Hadidi, Laith A, Ahmad Ghaithan
• Format: Article
• Language: English
• Subjects: Construction industry; Consultants; Contractors; Correlation coefficient; Correlation coefficients; Investigations; Oil; Principal components analysis; Project engineering; Project management; Questionnaires; Success; Surveys
• ISSN: 2044-124X; 2044-1258
• DOI: 10.1108/BEPAM-06-2022-0081

PurposeThe oil and gas construction projects in Saudi Arabia are commonly impacted by the frequent occurrence of change orders. Therefore, this study aims at determining the factors influencing change orders in the oil and gas construction projects in Saudi Arabia.Design/methodology/approachFirstly, the factors are extracted by examining the literature and further refined through experts' feedback. Twenty-one factors were identified in this manner. Thirdly, the factors are prioritized using a questionnaire survey. Responses from 162 professionals have been collected through surveys and ranked using the significance index. The correlation between factor rankings between classes is assessed using Spearman's correlation coefficient. Lastly, using principal component analysis, a change order-related factors conceptual model is developed.FindingsThe five most significant factors were identified and ranked in a general manner or per the category involved. Four main types were involved: project management team (PMT), consultants, contractors and clients. Moreover, a change order-related factors model is proposed. The factors are grouped under four main groups: project definition and planning factors, project stakeholder-related factors, project execution-related factors and project performance and control factors.Originality/valueDespite the vast factor-related literature in Saudi Arabia. Nevertheless, there has never been a study that investigates the factors influencing change orders in oil and gas projects in Saudi Arabia before. This study not only identifies the change order-related factors but also proposes a model that captures the importance of these factors. This model can aid project professionals in mitigating the impact of the most critical factors encountered during the various phases of the project.