Abdallah M. Al-Mahasheer Assessment of Risks Management Perception and Practices of Construction Contractors in Saudi Arabia Done By Ali A. Al-Salman Presented by Abdallah M. Al-Mahasheer December 2004

Outline Risk Definition Introduction Previous Studies Objectives Research Scope and Limitations Research Methodology Literature Review Data Analysis & Results Conclusions & Recommendations Questions & Answers

Risk Definition What is Risk? Risk “is the possibility of loss or injury” Risk identification by financial statements, flow chart, questionnaire and checklist; or a combination of them Risk administration by either the contractor agency or an outside agency

Introduction Construction process is one of the most risky and challenging industries Risk in construction cannot be eliminated but can be managed No single universal or systematic approach to follow Study attitude of the typical construction contactor in the Eastern Province of Saudi Arabia towards construction risks

Previous Studies There are no studies on the researcher domain, but there is a research was done and presented on Kuwait State

Objectives Present the views and attitudes of the typical construction contractor in the Eastern Province of Saudi Arabia towards construction risks Compare the views of the typical local construction contractor towards allocation of construction risks to the common practice of allocating these risks

Research Scope & Limitations The results and conclusions can be applied to the construction industry in other areas of Saudi Arabia because of the similarities of the rules, regulations and business environment Medium to large construction contractors Construction contractors in the Saudi Arabia General Lump Sum Contractors Type

Research Methodology Comprehensive Literature Review Definition of Risk Parameters Questionnaire Data Collected & Compiled Analyzing Collected Data Results Summarized & Presented Conclusions, Recommendations & Suggestions Incorporated

Literature Review Comprehensive review of the available work reported: Adjust available risk management approaches (umbrella, ostrich, brut force etc….) Risk identification & classifications Risk analysis

Data Analysis & Results Respondents classifications Risk allocation from contractors, owner, or both. Importance of risk category to parties Effect of each risk category on the construction project budget, safety, schedule and quality 25 selected risk categories Quality versus Weather Conditions

Conclusions Risk assessment is a new concept to the construction contractors in Saudi Arabia Construction contractors in Saudi Arabia and the common practice of allocating the surveyed 25 risk categories are determined by this study Quality of work is the most important risk while an adverse weather condition is the least important risk The surveyed risks have the highest impact on the “schedule of a project” while the same risks affect the “safety of the project” least Construction contractors in Saudi Arabia want owners to accept and share more risks with them.

Recommendations All concerned contractors in the Eastern Province of SA are encouraged to consider the study results All construction industries in the EP of SA are advised to consider trends of allocation, importance and effect of important risk categories The results and conclusions can be applied to the construction industry in other areas of Saudi Arabia

Questions & Answers Thank you !