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

Alkhalifah, S J; Tuffaha, F M; Al Hadidi, L A and Ghaithan, A (2023) Factors influencing change orders in oil and gas construction projects in Saudi Arabia. Built Environment Project and Asset Management, 13(3), pp. 430-452. ISSN 2044-124X

Abstract

Purpose: The 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/approach: Firstly, 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. Findings: The 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/value: Despite 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.

Item Type: Article
Uncontrolled Keywords: change management; change order; oil and gas construction projects; project control; project management
Index terms: oil and gas, project control, project management, principal component analysis, construction project, methodology, questionnaire, project performance, project stakeholder, project management team, change management, change order, critical factor, survey, Saudi Arabia
Subjects: project management theory and practice, Geography, contractual condition, production management, research methods, management, statistical analysis, industry analysis, sociology, control systems, risk assessment, profession, data collection methods
Topics: Organizational Design, Contract Administration, Stakeholder Management, Roles and Professions, Risk Management, Project Management, Geographical Context, Research Practice
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here