In the sprawling landscape of Saudi Arabia’s construction industry, a persistent challenge has been lurking beneath the surface: poor cost and schedule performance. This issue has been a thorn in the side of project stakeholders, leading to financial losses and delays that ripple through the sector. However, a recent study published in the journal ‘Advances in Civil Engineering’ (Advances in Civil Engineering) sheds new light on the problem, offering insights that could reshape how universities and other major clients approach construction projects.
Led by Khaled Medath Aldossari from the College of Engineering, the study delves into the cost and schedule performance of construction projects at a public university in Saudi Arabia over a decade. The findings are stark: vertical projects, such as buildings, experienced more cost and schedule overruns than horizontal projects, like roads and infrastructure. “We found that 80% of both vertical and horizontal projects exceeded their planned budgets by an average of 5%,” Aldossari explains. “Even more concerning, about 95% of these projects were completed behind schedule, with an average delay of 160%.”
The implications for the energy sector are significant. Construction projects in this field often involve complex vertical structures, such as refineries and power plants, which are now known to be particularly susceptible to cost and schedule overruns. These delays can lead to increased operational costs, missed revenue opportunities, and even penalties for late project delivery.
So, what’s behind these persistent issues? The study identifies several key factors. Owner-related issues, such as change orders, payment delays, design errors, and inaccurate quantity estimates, play a significant role. Contractor-related problems, like delays in material approvals and inadequate planning, also contribute to the problem. Additionally, labor-related challenges, including shortages of workers and unavailability of skilled laborers, exacerbate the situation. Government-related challenges, such as taxes, visa restrictions, and localization requirements, further complicate the landscape.
Aldossari’s research suggests that universities and other major clients can take proactive steps to mitigate these issues. “By understanding the key factors contributing to cost and schedule growth, project stakeholders can develop strategies to address them,” he says. This could involve improved project planning, better communication between stakeholders, and more accurate cost and schedule estimates.
The study also highlights the need for policy changes. Government regulations, such as visa restrictions and localization requirements, can significantly impact project performance. By addressing these issues, policymakers can create a more conducive environment for construction projects.
As Saudi Arabia continues to invest heavily in infrastructure and energy projects, the findings of this study are particularly timely. They offer a roadmap for improving project performance, reducing costs, and minimizing delays. For the energy sector, this could mean more efficient operations, increased revenue, and a more sustainable future.
The research published in ‘Advances in Civil Engineering’ (Advances in Civil Engineering) not only provides a comprehensive analysis of the current state of construction project performance in Saudi Arabia but also offers a glimpse into the future. By addressing the identified challenges, stakeholders can pave the way for more successful projects, benefiting not just the construction industry but the broader economy as well. As Aldossari puts it, “The future of construction in Saudi Arabia is bright, but it requires a concerted effort from all stakeholders to overcome these challenges.”