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Theoretical review on critical risk
factors in oil and gas construction
projects in Yemen
Mukhtar A. Kassem, Muhamad Azry Khoiry and Noraini Hamzah
Faculty of Engineering and Built Environment, Department of Civil Engineering,
Universiti Kebangsaan Malaysia, Bangi, Malaysia
Abstract
Purpose –The oil and gas construction projects are affected negatively by the drop in oil price in recent years.
Thus, most engineering, procurement and construction (EPC) companies are opting to optimize the project
mainly to mitigate the source of risks in construction to achieve the project expectation. Risk factors cause a
threat to the project objectives regarding time, cost and quality. It is additionally a vital component in deviating
from the client’s expectation of productivity, safety and standards. This research aims to investigate the causes
of risk in the oil and gas construction projects in Yemen.
Design/methodology/approach –A comprehensive literature review from various sources including
books, conference proceedings, the Internet project management journals and oil and gas industry journals was
conducted to achieve the objectives of this study. This initial work was predicated strictly on a literature review
and the judgments of experts to develop the risk factor framework for the oil and gas construction projects
in Yemen.
Findings –The authors found a few studies related to risk factors in oil and gas construction projects and
shared a similar view about general construction projects. However, only a fraction of the factors accepted
have included the variances of other studies on a regional basis or specific countries, such as the Yemen
situation, due to the differences between the general construction industry and oil and gas industry.
Moreover, the factors of these attributes were still accepted due to their applicability to the oil and gas
industry, and no significant variances existed between countries. Research has indicated that 51 critical
factors cause risks in the oil and gas construction projects in Yemen. Such risk factors can be divided into
two major groups: (1) internal risk factors, including seven critical sources of risks, namely client, contractor,
consultant, feasibility study and design, tendering and contract, resources and material supply and project
management; and (2) external risk factors, including six sources of critical risk factors, namely national
economic, political risk, local people, environment and safety, security risk and force-majeure-related risk
factors. A risk factor framework was developed to identify the critical risk factors in the oil and gas
construction projects in Yemen.
Research limitations/implications –This research was limited to the oil and gas construction
projects.
Practical implications –Practically, this study highlights the risk factors that cause a negativeeffect on
the success of oil and gas construction projects in Yemen. The identification of these factors is the first
step in the risk management process to develop strategic responses for risks and enhance the chances of
project success.
Social implications –The identification of risks factors that cause the failure of construction projects helps
develop response strategies for these risks, thereby increasing the chances of project success reflected in the oil
and gas sector, which is a main tributary of the national economy in developing countries.
Originality/value –This research is the pioneer for future investigations into this vital economic sector.
Given the lack of resources and studies in the field of construction projects for the Yemeni oil and gas sector, the
Yemeni government, oil companies and researchers in this field are expected to benefit from the results of this
study. The critical risk factors specific to the oil and gas construction projects in Yemen should be further
investigated with focus only on Yemen and its oil and gas industry players.
Keywords Construction project, Oil and gas, Yemen, Risk factors
Paper type Literature review
1. Introduction
Risk is defined as the potential for complications and problems with respect to the completion
of a project and the achievement of project objectives according to (Houston, 2004), the other
ECAM
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934
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0969-9988.htm
Received 22 March 2019
Revised 16 June 2019
24 July 2019
22 December 2019
7 February 2020
Accepted 10 March 2020
Engineering, Construction and
Architectural Management
Vol. 28 No. 4, 2021
pp. 934-968
© Emerald Publishing Limited
0969-9988
DOI 10.1108/ECAM-03-2019-0123
definition of risk is an uncertain future event or condition with an occurrence rate between
0 and 100%, which can affect at least one of the project components (scope, schedule, cost or
quality). Construction projects are initiated in complex and dynamic environments resulting
in circumstances of high uncertainty and risk (Adedokun et al., 2019;Rui et al., 2017a).
Uncertain events and risks are inherent in all construction works regardless of the project size
(Tah and Carr 2001a,b).
Like other developing countries, Yemen is also facing a severe issue of risks in the
construction industry (Alrashed et al.,2014;El-Sayegh et al., 2018;Issa et al.,2015;Jayawardane
and Gunawardena, 2010;Sambasivan and Soon, 2007). Moreover, according to (Niven, 2015),
regarding investigation of the recent Ernst and Young report on 365 oil and gas companies’
capital projects, Spotlight on Oil and Gas Megaprojects, revealed that 73% of oil and gas
companies’large capital projects fell behind schedule, 64% came in over budget and an
average of 59% exceeded the original budget plan. According to (Ahmad et al.,2013), results
show that 47% of completed projects in Yemen had time overrun, while 40% of total projects
were overrun by costs in Yemen. Construction risk has become a major concern for investors,
in particular in the petroleum and gas sector, which needs proper consideration and extensive
research to resolve this issue because of its close connection to operations and production
processes.
Yemen’s economy depends heavily on oil and gas income; however, the oil and gas
industry faces major administrative and technical challenges (World Bank, 2015;EITI, 2014).
According to (U.S. Energy Information, 2013;Salisbury, 2011), shipments of liquefied natural
gas (LNG) from Yemen to South Korea and the United States originally intended to begin in
December 2008 have been delayed until at least August 2009, resulting in costly penalties for
the export company, Yemen LNG (YLNG), and more than US$100m in lost revenue for the
Republic of Yemen Government.
Factors in the ongoing start-up delay include the Republic of Yemen Government’s
(ROYG) lag in providing adequate coastal defense for the liquefaction plant at Balhaf, a
dispute with the upstream ROYG gas provider, tribal unrest during the pipeline construction
phase and the Ministry of Oil’s insistence that YLNG hires unqualified local tribesmen to
operate advanced machinery. These headaches may scare away much-needed foreign
investment in oil and gas industry. Another instance, the construction project of the central
production facilities (CPF) in the sector S2 of OMV oil company in Yemen failed to achieve
objectives on time, which began in 2010 and was supposed to end in 2014, according to (World
Bank, 2015), while the project did not exceed 50% of the project progress until 2019 due to
several risk factors.
The identification of risk factors is an iterative process that involves the project team
stakeholders, other managers affected by or who affect the project and outside expert
individuals who can comment on the completeness of the risk identification on the basis of
similar experiences (Wysocki, 2003). Thompson et al. (1992) established the identifying risks
at the early stage of planning a construction project or a tender to assess their relative
importance. Hence, the project manager can modify the strategies to mitigate the risks and
allocate resources to the parties likely to control risks or absorb them should they occur.
Studies should be carried out early in the life of a project, well before decisions are made to
proceed with the project.
Mills (2001) offered that systematic risk management helps identify, assess and rank risks,
making the risks explicit. Systematic risk management focuses on the significant risks of a
project and helps make informed decisions on the provision for adversity, for example,
mitigation measures; minimizes potential damage in the event of the worst scenario; controls
the uncertain aspects of construction projects; clarifies and formalizes the roles of the
company and others in the risk management process; and identifies the opportunities to
enhance project performance. Accordingly, the oil and gas construction projects in Yemen
Risk factors in
oil and gas
construction
935
face considerable risks that can cause adverse impacts on project implementation. Moreover,
proper risk management studies on oil and gas project management are urgently needed.
Hence, this research aims to determine the significant risks affecting the oil and gas
construction projects in Yemen as the first step in the project risk management process.
2. Literature review
Construction in oil and gas projects poses a challenge and increases the risk because the
majority of construction projects in third world countries, such as Yemen, are surrounded by
risks in many ways. If the professional management of these risks is absent, then these
projects will likely fail and incur excess losses in a specific cost and time. Latham (1994)
confirmed that construction projects always have risks, and such risks can be controlled,
managed, minimized, shared and reallocated, transferred or accepted, but they cannot be
neglected. Furthermore, Roger (1993) offered that construction projects are likely exposed to
more risk and uncertainty than any other industry sector.
Construction projects involve many stakeholders, partners and project contributors;
the long duration of the project and an open production system entail significant
interactions between the internal and external environments. Risk assessment is a
controversial issue (Baloi and Price, 2003). However, it is considered the most valuable part
of the risk management process (Smith et al., 2006). Zou et al. (2007) determined that these
types of projects with organizational and technological complexities generate remarkable
risks. Consequently, project managers are obliged to rely on the results of subjective
probabilities (Winch, 2003). Thus, given that a probabilistic approach is unsuitable for
quantifying risks, specific knowledge, experience, expert judgment and the rules of thumb
must be structured to facilitate the risk assessment (Dikmen et al.,2007). Quantitative
risk has been the usual focus of construction management (Tah and Carr 2001a,b) despite
the obstacles in obtaining accurate and objective prospects for construction projects,
wherein assignments are often one-off and the same risks are unrepeated in all corporate
projects.
Tah and Carr (2001a,b) used a hierarchical risk classification structure to categorize
risks in construction projects and explain the basis for such groupings within the project.
The hierarchical risk allocation structure divides the risk affecting the project into internal
and external risks. External risks are uncontrollable and unpredictable factors, such as
high rates of inflation, material price fluctuation, currency exchange and force majeure
event or disaster. Given their uncontrollable nature, continuous surveying, studying and
forecasting of these risks and defining the strategy of the company for managing the
effects of external forces on the project are necessary. Internal factors are controllable and
vary between projects depending on the size and importance of the project. The examples
of internal risk factors include the level of resources available, the amount of experience in
the type of business, the location and size of the project and the agreed terms of the
contract.
2.1 Related studies in Yemen construction projects
Issa et al. (2015) had developed construction risk structure in Yemen based on a field survey;
the researcher has divided the structural risks that the project is subjected to hierarchically to
several levels from the first level to the internal and external risks within each of which there
are several subrisks. Further, each main risk has secondary risks and the researcher had
examined a large number of risk factors, which he put in a questionnaire to investigate the
importance of these risks in the implementation of construction projects and how to
redistribute among the stakeholders in the project.
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Ahmed and Othman (2013) reported that due to complex and dynamic climates, projects in
Yemen, like other developing countries, are highly vulnerable. This environment also creates
a situation of uncertainty and risk. Therefore, this will affect both the time and cost of the
design. The author conducted research of the threats posed by public projects in Yemen, in
particular. These risks were divided into an external project risk and internal risk, each
divided into subsections, and a questionnaire and case study were conducted on a number of
troubled projects in Yemen.
The results of the study revealed that the delays in the supply of materials to the project
site, the uncertainty of the political situation of the world, the persistent variations in the
prices of goods, the increase in inflation and the lag in the completion of the work of the
subcontractor were identified as higher risk factors affecting the project timeline and leading
the project to go beyond that. There are several risk factors for construction projects that are
rated highly in terms of both construction time and cost. In addition, the study results showed
that approximately 47% of the total projects faced time delays from the project schedule,
while approximately 40% of the total projects faced cost overruns in Yemen.
Moreover, a case study by Gamil et al. (2017) revealed that the majority of failure causative
factors are due to the government policies and the lack of the accreditation systems of
stakeholders. Yemen is in dire need of a national system of codes, standards and contractual
guidelines. Thus, additional studies should be carried out to explore opportunities for
improving the Yemeni construction industry. This case study included the following large
projects supervised by the Yemeni government:
(1) Construction of the Sana’a International Airport. The total cost of this project is
US$500m. The project started in 2006 and was supposed to end by 2009. However,
this project was a failure because only 40% of the total work project was
accomplished during the termination of the contract.
(2) Construction of the Parliament Complex. This project was planned in two phases. The
initial phase of the project cost US$24m and started in early 2006. This project was a
failure because only 50% of the work was accomplished by 2016.
(3) Construction of the Sana’a–Sa’dah highway project. The total cost of the project was
US$16m. It started in 2000, but only 50% of the work was accomplished at its
termination.
Therefore, this study is simultaneously useful and vital to the Yemeni government and
companies operating in Yemen for explaining the causes of failure of projects and the means
of developing plans for early response risks.
2.2 Related studies in oil and gas construction projects
Van Thuyet et al. (2007) conducted an in-depth study on the risks of construction projects in
the Vietnamese oil and gas sector and interviewed and surveyed companies working in this
area. The top ten significant risks were as follows: (1) bureaucratic government system and
lengthy project approval procedure, (2) poor design, (3) incompetence of project team, (4)
inadequate tendering, (5) late internal approval process from the owner, (6) inadequate project
organization structure, (7) improper project feasibility study, (8) inefficient and poor
performance of constructors, (9) improper project planning and budgeting and (10) design
changes.
The other essential study in the oil and gas sector focused that on cost and schedule
overruns in the front-end loading of Alberta mega oil sand projects was conducted by
Minassian and Jergeas (2009). The risks was divided into four main categories, namely:
“unrealistic or overly optimistic original cost estimates and schedules”with 12 risk factors;
Risk factors in
oil and gas
construction
937
“incomplete scope definition or inadequate front-end loading and poorly completed front-end
deliverables, including milestone schedule slippage”with two risk factors; “inappropriate
project strategies for the mega oil sand environment”with six risk factors; and
“Mismanagement of the construction phase”with ten risk factors. Jergeas and Ruwanpura
(2010) developed this study, leading to the reclassification of such factors into five groups,
namely “misplaced optimism,”“misguided objectives,”“misaligned strategies,”“misdirected
execution”and “missing links.”The findings of the two studies illustrate the challenges in
delivering oil sand megaprojects and highlight the primary role of planning, scheduling and
controlling as the leading causes of project delays. However, these studies have focused on
the operational and technical challenges.
Another study that presented the most recent findings on the oil and gas construction
projects in Oman was conducted by Ruqaishi and Bashir (2013). This study identified
the seven significant causes of delay. The factor “poor interaction with vendors in the
engineering and procurement stages”is considered unique in oil and gas studies. The
emphasis of this study was based on the duties of the contractor, which was the link between
“problems with subcontractors”and “project failure”as the regular claim in many
construction projects. Although the delays in oil and gas construction projects are a
continuing concern, these studies are significant representations that have thoroughly
investigated this problem. Similarly, Subaih (2016);Berends and
~
A (2007) and Salama et al.
(2008) analyzed the problem of delay in oil and gas construction projects and reported similar
findings.
Fallahnejad (2013) investigated the risk causes in the Iranian gas pipeline projects. The
study identified ten major factors, namely imported materials, unrealistic project duration,
client-related materials, land expropriation, change orders, contractor selection methods,
payment to contractor, application for permits, suppliers and contractor cash flow.
Consequently, the literature has focused on the lengthy approval procedures, poor
planning and scheduling, environmental difficulties, fatigue and human error, low quality
of imported materials, design change and poor communication among project parties.
Further research on these risk factors should be conducted because of their high potential to
be the root causes of failure. Moreover, the handling of these factors will lead to positive
results for owners and contractors and the project as a whole.
2.3 Identifying the categories of risk factors in construction projects
Baloi and Price (2003) published a study entitled “Modeling global risk factors affecting
construction cost performance,”which reviewed some studies on risk factors and made
collection for that, which include the majority of essential factors, such as risks related to
labor skills and availability, material delivery and quality, equipment reliability and
availability and management efficiency. The study provided a general classification of the
risk group by listing several subrisks and allowing the possibility of the inclusion of new
classifications under major groups, thereby indicating that the investigation was
comprehensive and did not accurately prioritize those risks possibly due to the subject of
the research in the redistribution of parameters to different project parties.
Ghosh and Jintanapakanont (2004) categorized risks into the following major classes:
(1) financial, (2) contractual and legal, (3) subcontractors, (4) operational, (5) safety, (6) design,
(7) force majeure, (8) physical and (9) delay. However, Wiguna and Scott (2005) classified
the construction risk factors into the following significant categories: (1) external and
site conditions, (2) economic and financial risks, (3) technical and contractual risks and
(4) managerial risks.
Tables 1 and 2 show that the majority of studies have divided the main risks into the two
main groups of internal and external risks, and although a difference exists in the contents of
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No. Researchers
Risk categories
Client Contractor Consultant
Feasibility and
design
Tendering and
contract
Resources and
material
Project
management
1. Dikmen et al. (2007) UU U U
2. Tah and Carr (2001a,b) UU U
3. Baloi and Price (2003) UU U U
4. Sultan and Kajewski (2004) UU U U U
5. Wang et al. (2004) UU U U U U
6. Ghosh and Jintanapakanont
(2004)
UU U U
7. Wiguna and Scott (2005) UU U
8. Assaf and Al-Hejji (2006a,b,c) UU U U U U
9. Van Thuyet et al. (2007) UU U U
10. Enshassi et al. (2008) UU U U U U
11. Salleh (2009) UU U U
12. Zuofa and Ochieng (2011) UU U U U
Table 1.
Previous studies about
internal risk
Risk factors in
oil and gas
construction
939
the two groups in previous studies, the focus has been on the risks related to the subject
matter of the study in the field construction projects in the oil and gas sector.
The reviewed literature included articles, conference proceedings and published books
linked to the related research area. Apart from interviewing managers, engineers and experts
in the oil field, the identification of all risk factors that may be faced in oil and gas construction
projects will be subjected to a detailed review. These factors range from those essential in
construction projects and their management to those related to the stakeholders, physical,
social, material source, security and environment.
3. Methodology
The research methodology was based on the verification of previous studies that included
risk factors in the construction industry, especially in the oil and gas sector. These factors
were evaluated by adapting them to the situation in the oil sector of Yemen and then
presenting the preliminary list of risks obtained from the literature review of four experts in
Yemeni oil and gas projects and assessing these factors on the basis of the determinants and
criteria developed (Figure 1).
This study was based solely on the literature review and critical assessment of experts.
The scope of the article search was limited between 2000 and 2018. The state of the literature
on the risk factors and effects of construction project success, including cost and time
overruns, could be depicted by reviewing the academic journals published within this period.
A total of 256 articles were retrieved. Despite this rigorous search rule, some of the retrieved
publications appeared irrelevant to this study. Therefore, the article search process was
divided into two stages. In the first stage, publications that do not contain specific keywords
in their titles and abstracts were screened out. In the second stage, the less relevant and
irrelevant papers were excluded after a brief review of their contents. The majority of the
selected 106 articles were published between 2008 and 2018. These studies covered the
perspectives of various managing stakeholders toward risks, focused on the interests and
influences of risk factors and identified and investigated the factors affecting the construction
projects in the oil and gas sector. Figure 2 presents the taxonomy of the literature review.
No. Researchers
Categories
Economic Political
Local
peoples
Environmental
and safety Security
Force
majeure
1. Tadayon et al. (2012) UU UU
2. Rezakhani (2012) UU U
3. Banaitiene (2012) UUU U
4. Barlish et al. (2013) UUU
5. Ghahramanzadeh
(2013)
UUUUU
6. Aziz (2013) UU UU
7. Renuka et al. (2014) UU U UU
8. Issa et al. (2015) UUU
9. Van Thuyet
et al. (2007)
UUU U UU
10. Haupt (2015) UU U U
11. Chaher and Soom
(2016)
UUUU
12. Raykar and Ghadge
(2016)
UUU U U
13. Ahmed (2016) UU UU
Table 2.
Previous studies about
external risk factors
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The second stage of the literature review was adopted in recent scientific articles between
2008 and 2018. Such studies discussed the subject of risks in construction projects, and the
majority of factors affecting the success of projects were limited by the articles (Figure 3).
In total, 61 risk factors were obtained from the literature review and sent to four experts in
Yemeni construction projects in oil and gas. The experts have more than 25 years of
experience in this field. After the discussion and review, we determined the final list of
modified risk factors, which included 51 instead of 61 factors. Table 3 lists the details on the
judgments of experts.
4. Results and findings
4.1 Related risk factors in previous studies
One of the essential studies on risk conducted by Wang et al. (2004) for construction projects
in developing countries has found that 28 critical risks are directly related to the risks of
Literature
review
•Risk factors in construction projects around the world .
•Risk fac tors in construction projects in devel oping countries.
•Risk factors in Yemen Construction projects.
•Risk factors in Oil and Gas construction projects.
Primary
Framework
•Develping of initial risk factors list from litrature reviews contain most risks effects
on project success (61 risk factors).
•Concentrate on the factors have high i mpact in project success with high probability
of accurancein oil and gas construction projects.
Evaluate
•E valuate risk factors framework through four expert's working i n oil and construction
projects i n Yemen.
Expert's
Judgements
•Selection criteria
•1- DO the risk factor has high impact on the projects and high prbability of occures
during project life cycle.
•2- DO the risk factor effect on cost, time and qualityof the project.
Final
Framework
•By analyzing of expert's responses, the final framework of risk factors in oil and gas
construction projects was developed (51 risk factors)
Figure 1.
Methodology
flowchart
Risk factors in
oil and gas
construction
941
states in the sample of construction projects in developing countries. These critical risks were
identified and categorized into three primary hierarchical levels (country, market and project-
related risks). In total, 22 critical or extensive critical ratings were obtained on the basis of the
seven-degree rating in the Antigen system as a measure of questionnaire analysis. The top 11
critical risks were approval and authorization, constant change in the law, lack of promotion
of justice, weak creditworthiness risk of local partners, lack of stability in the country,
planned costs of the project, extent of corruption and bribery, increasing inflation and interest
rates, government policies, influence of the government on interparty disputes and
termination of service.
The study was carried out on 22 construction projects in Indonesia and found that the
most critical risk factors affecting project time, cost and project quality were similar. The
most important of which are the following: high inflation/increase in prices of materials,
continuous change of design by the owner, defects in designs, delayed payments to contract
contractors by the owner, weather and faulty construction work during implementation.
Moreover, most of these risk factors cannot be controlled or managed professionally by
contractors. The researchers of this study noted that contractors generally tended to accept
Figure 2.
Taxonomy of the
literature review
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942
most of these risks, and no in-depth study has been performed to solve or reduce such risks.
This research recommended that all stakeholders in the construction projects seek to divide
the risks and redistribute them to minimize their impacts.
Although Assaf and Al-Hejji (2006a,b,c) limited the construction risk factors to
construction delays, after analyzing the data collected from the field registrar, they reached
out to companies and contractors in Saudi Arabia on the basis of frequency, severity and
importance. A total of 76% of the surveyed contractors indicated that the time overrun
ranged from 10 to 30% of the original duration, and 56% of the consultants identified the
7
9
11
8
11
10
8
10
11
9
12
02468101214
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
NUMBER OF ARTICLES
YEAR
Demographic characteristic Frequency %
Age
41–50 3 0.75
51 and above 1 0.25
Experience in the construction industry
20–30 years 3 0.75
More than 30 years 1 0.25
Job title
Construction manager –oil and gas sector 2 0.5
Project manager –oil and gas sector 2 0.5
Oil company work for
Petro Masila –oil sector 1 0.25
YLNG –gas sector 1 0.25
Total –oil sector 1 0.25
OMV –oil sector 1 0.25
Figure 3.
Number of relevant
articles published
yearly from 2008
to 2018
Table 3.
Demographic
characteristic analysis
for the experts
Risk factors in
oil and gas
construction
943
same ratio. However, 25% of the consultants indicated that the average time the project
exceeded ranged from 30 to 50%. While the research considered that the most significant risk
in the construction process was the delay in implementation as the overall result of many of
the factors examined in the field. The field conditions and environment of neighboring
countries Yemen and Saudi Arabia are similar. Hence, construction projects located in both
countries can benefit from this study because they have similar risk factors.
Enshassi and Abu Mosa (2008) elaborated and categorized approximately 44 risk factors
and classified them into the following groups: (1) physical, (2) environmental, (3) design, (4)
logistics, (5) financial, (6) legal, (7) construction, (8) political and (9) management risks. The
authors recommended that contracting companies should calculate and seriously consider
the risk factors continuously by adding the cost of risking, the quotation and estimating the
time during bidding. Training courses and ongoing qualifications should be provided to
engineers and project managers on how to deal with, manage and mitigate the risks in
construction projects. Entrepreneurs must also seek to prevent financial failure and loss by
managing stable cash flows and reducing the reliance on bank loans to finance the projects.
Contractors should learn the means of sharing and transferring different risks through
recruitment, specialized staff with experience in dealing with risks or specialized
subcontractors.
(1) Client-related risk factors –CL
The most important stakeholder is the owner or client of the project, who not only sets out
project requirements, conditions and quality of work but also supervises contracts and
designs; client satisfaction is the target of the project (Fallahnejad, 2013). However, the owner
or his action toward the project causes many risks to the project. The oil sector in Yemen has
two parties representing the client of the project: the Yemeni government as the final official
owner of the oil sectors in Yemen and the oil company, which operates, manages the sector.
Oil companies are usually foreign-owned and directly responsible for the management of
projects, contracts, designs and quality. Therefore, the risk of the owner here will be divided
into the risks from the Yemeni government as a client and from the company that manages
the sector (see Table 4).
(2) Contractor-related risk factors –CO
No. Risk factors References
1. Government delay in
decision-making
Mahamid et al. (2015);Issa et al. (2015);Assaf and Al-Hejji (2006a,b,c);Al-
Momani (2000);Aziz (2013);Emam et al. (2015);Awodele (2012);Asrilhant
et al. (2004);Van Thuyet et al. (2007)
2. Unstable of government
(main client)
Rui et al. (2017a);Awodele (2012);Olawale and Sun (2010);Vu et al. (2016);
Enshassi and Abu Mosa (2008)
3. Government interference in
projects
Edwards and Bowen (1998);Issa et al. (2015);Reddy (2015);Iqbal et al.
(2015)
4. Oil company interventions Badiru and Osisanya (2013);Van Thuyet et al. (2007);Sinan (2014);
Carrillo (2004)
5. Changes during
construction process
Zadeh et al. (2016);Korneeva et al. (2016);Yana et al. (2015);Abusafiya
and Suliman (2017);Emam et al. (2015);Derakhshanalavijeh et al. (2017);
Sultan et al. (2017)
6. Delay payment of
contractor’s dues
Marzouk and El-Rasas (2014);Sweis et al. (2018);Kazemi et al. (2018);
Doloi et al. (2012a,b);Ghahramanzadeh (2013);Mahamid et al. (2015)
Table 4.
Client-related risk
factors in the
previous study
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944
The wrong choice of contractor during the tender process may cause project failure because
contractors are a source of critical risk if they do not have the competence and experience in
the implementation and management of the work site to achieve the highest percentage of
completion. This procedure of selecting qualified and experienced contractors owning the
necessary equipment is the most essential step in the preconstruction stages, thereby
indicating the success or failure of the project. The risks may occur during the project due to
poor organization and coordination between the parties or the inefficiency, lack of experience
and lack of qualified professional staff and modern equipment of the contractor (see Table 5).
(3) Consultant-related risk factors –CN
The third category of stakeholders in the project comprises consultants, who may be
individuals or use foreign specialized companies to carry out the tasks of consulting and
supervising projects. The risk lies in this group due to delayed follow-up and quality control
(Famiyeh et al., 2017). The consultant may not have qualified staff in this field. The adoption
of foreign companies to carry out this task affects the project logistically in terms of the
difficulty of moving to the site in a short time and likely leads to delays in the solution of
structural problems. Moreover, the poor management of contracts by the consultant and the
lack of familiarity with the nature of the responsibilities of the parties have a significant
impact on the identification of deficiencies in project completion (see Table 6).
(4) Feasibility study- and design-related risk factors –FD
The feasibility study and design preparation of the project is a crucial stage during the life
cycle of the project and may be considered a source of critical risk factors that later affect the
execution of the project or increase the cost (Asrilhant and Meadows, 2004). The lack of
necessary information and survey data from the field may lead to design errors that
No. Risk factors References
1. Lack of contractors experience Sidawi (2012);Hamzah et al. (2012);Rahman et al. (2013);Mahamid
(2013);Dhimmar and Scholar (2016);Issa et al. (2015);Kazemi (2013);
Doloi (2012);Zou and Zhang (2009);Wang et al. (2016)
2. Execution errors Malekela et al. (2017);Doloi (2012);Assaf and Al-Hejji (2006a,b,c);
Randhawa and Ahuja (2017);Al-Fadhali et al. (2017);Abbasi et al.
(2005)
3. Inadequate coordination
among contractors
Doloi (2012);Aziz (2013);Ahmad et al. (2013);Riazi and Lamari (2013);
Chileshe et al. (2016);Al-Fadhali et al. (2018)
No. Risk factors References
1. Insufficient consultant’s
experience
Mahamid (2011);Assaf and Al-Hejji (2006a,b,c);Famiyeh et al. (2017);
Petrovic (2017);Asrilhant and Meadows (2004);Aziz (2013);Harris et al.
(2006);Tawil et al. (2013)
2. Delays review and approval
of design
Alkaf and Karim (2011);Hamzah et al. (2012);Tavakolan and
Mohammad (2015);Doloi (2012);Olawale and Sun (2010);Chang (2002);
Subaih (2016);Ruqaishi and Bashir (2013);Alaghbari et al. (2007);
Enshassi et al. (2010)
3. Poor contract management Aziz (2013);Karimi (2017);Ayoola (2006);Rejment and Dziadosz (2014);
Sultan and Kajewski (2004);Memon (2013);Olawale and Sun (2010);Xu
et al. (2018);Riazi and Riazi (2014)
Table 5.
Contractor-related risk
factors in the
previous study
Table 6.
Consultant-related risk
factors in the
previous study
Risk factors in
oil and gas
construction
945
negatively affect the implementation of the project, whereas the incorrect calculation of the
schedule and cost of the project is a risk that directly affects the success of the project. Studies
and designs of projects in the Yemeni oil sector are usually performed by international
companies, which send engineers to visit the field once and take notes. The engineers rely on
these notes at all the preparation stages of studies and designs (see Table 7).
(5) Tendering- and contract-related risk factors –TC
Improper bidding and unclear contract terms and conditions to be followed by the contractors
may be a cause of risks, which affect the construction project in the Yemeni oil sector. The
published studies shown in Table 8 indicate the most important risk factors that affect the
success of the project. Moreover, corruption is a potential risk that can lead to the selection of
incompetent contractors with lacking expertise required to implement the project. Van
Thuyet et al. (2007) stated that tendering is crucial in project procurement because it helps
select appropriate contractors for project implementation; however, poor tendering practice
causes many problems in achieving the objectives of the project. The tendering system
proves effective in lowering costs, improving quality and shortening the completion time of
construction projects (Chen and Wang, 2009).
(6) Resource and material supply risk factors –RM
No. Risk factors References
1. Improper project feasibility
study
Kansal and Sharma (2012);Dosumu (2018);Raykar and Ghadge
(2016);Van Thuyet et al. (2007);Gebrehiwet and Luo (2017);Islam
and Nepal (2016);Mahamid et al. (2015)
2. Lack of data accuracy and
survey information
Assaf et al. (2001);Rui et al. (2017b);Haron (2013);Tran et al. (2014);
Shane et al. (2009);Dubas and Pasławski (2017)
3. Frequent change of designs Ayeni Omini (2017);Alinaitwe et al. (2013);Zou and Zhang (2009);
Abbasi et al. (2005);Lokhande et al. (2015)
4. Wrong project cost estimation Sohrabinejad and Rahimi (2015);Mukuka et al. (2014);Karunakaran
et al. (2018);Bordat et al. (2004);Mulla and Waghmare (2015);Saidu
and Shakantu (2017);Famiyeh et al. (2017);Al-Hazim et al. (2017)
5. Wrong project time schedule
estimation
Raykar and Ghadge (2016);Alsharif and Karatas (2016);Hu et al.
(2013);House et al. (2013);Yannis et al. (2000);Kartam and Kartam
(2001);Al-najjar (2008);Fallahnejad (2013);Reddy (2015);Ortiz-
Gonz
alez et al. (2014)
No. Risk factors References
1. Inadequate tendering Sweis et al. (2018);Banihashemi et al. (2017);Harris et al. (2006);Raykar
and Ghadge (2016);Hwang and Ng (2013);Issa et al. (2015);Hakami et al.
(2016)
2. Lack of detailed items Ramabodu and Verster (2010);Oberlender (2000);Rahman and
Kumaraswamy (2005);El-Shehaby et al. (2014);Banaitiene et al. (2012);
Sears et al. (2015);Lee et al. (2009)
3. The terms of the contract are
unclear
Kerkhove and Vanhoucke (2016);Assaf and Arabia (2007);van Weele
(2013);Kerzner (2010);Haupt (2015);Aljarosha (2008)
4. Corruption accompanying
tenders
Banihashemi et al. (2017);Roach (2011);Zou and Zhang (2009);Wang
et al. (2004);Memon et al. (2014);Wu et al. (2017);Ayoola (2006)
Table 7.
Feasibility study and
design-related risk
factors
Table 8.
Tendering and
contract-related risk
factors
ECAM
28,4
946
Ruqaishi and Bashir (2013) identified the delay in the supply of materials as another
important cause of project delay. This factor can influence the construction project but is
compounded in oil and gas projects by transportation problems due to the remote location of
construction sites in the desert with little or no transport infrastructure in Yemen and by
complications in the project buyout management because the majority of materials required
for these types of projects are usually imported from overseas. Sambasivan and Soon (2007)
and Zou et al. (2007) also identified this factor as a cause of project delay (see Table 9).
(7) Project-management-related risk factors –MR
Although the task of project management is to pursue the project objectives successfully, it
may be one of the reasons that affects the project negatively; inefficient project management,
the absence of regulation and the lack of management in communication among the project
stakeholders and the existence of quality management during implementation may pose
risks to project implementation. Rahman and Kumaraswamy (2005) suggested that
establishing a team that includes owners, consultants, contractors, subcontractors and
suppliers might improve the management of the schedules of contractors. Ruqaishi and
Bashir (2013) offered that clearly defined and documented roles, responsibilities
and communication channels among project stakeholders and sound planning and
monitoring are the requirements for the effective management of contractor schedules,
while Sambasivan and Soon (2007) also identified that poor management of the schedules of
contractors is a significant cause of project delay (see Table 10).
(8) National-economy-related risk factors –EC
As mentioned earlier, the importance of oil and gas and its projects in the national economy is
also inversely related to the impact of the economy of Yemen on construction projects in the
oil and gas sector. For instance, economic crises and low oil prices could lead to the disruption
of certain projects and the cancellation of plans. Future investments of oil companies and the
instability of the local currency have a negative impact on the prices of construction
materials. When a country is economically stable, the risks faced by the projects will be less,
as mentioned in previous studies; in the following table the most significant risks are listed.
Adeleke et al. (2016) stated that political, economic and technological factors help the
No. Risk factors References
1. Delay in delivery of
materials to site
Gebrehiwet and Luo (2017);Mahamid et al. (2015);Issa et al. (2015);
Sidawi (2012);Doloi (2012);Assaf and Arabia (2007);Dosumu (2018);
Marzouk and El-Rasas (2014);Fallahnejad (2013);Alaghbari et al. (2007);
Al-Fadhali et al. (2018);Ruqaishi and Bashir (2013)
2. Fluctuations in the
material’s cost
Ahmad et al. (2013);Rahman et al. (2013a);Marzouk and El-Rasas (2014);
Derakhshanalavijeh et al. (2017);Shane et al. (2009);Subaih (2016);
Ahmed and Othman (2013);Sambasivan and Soon (2007)
3. Poor quality of construction
materials
Gebrehiwet and Luo (2017);Enshassi et al. (2010);Mahamid (2011);
Gładysz et al. (2015);Kasim (2008);Al-najjar (2008);Wang et al. (2018);
Tam et al. (2018);Zou et al. (2007)
4. Shortage of modern
equipment
Kazemi et al. (2018); Hamzah et al. (2012);Aziz (2013);Al-Fadhali et al.
(2017);Memon and Rahman (2013);Jarkas (2015);Ammar (2012);
Mahamid et al. (2015);Harris et al. (2006)
5. Shortage and low
productivity of labor
Ghahramanzadeh (2013);Al-Fadhali et al. (2017);Samarghandi et al.
(2016);Riazi and Lamari (2013);Princy and Shanmugapriya (2017);
Laryea and Hughes (2006);Sidawi (2012);Tawil et al. (2014)
Table 9.
Resources and material
supply risk factors in
the previous study
Risk factors in
oil and gas
construction
947
construction companies reduce the probability of risks occurring during the construction
activities (see Table 11).
(9) Political-risk-related risk factors –PO
In developing countries, such as Yemen, politics plays a significant role in their economic and
social aspects, and the political instability usually results in a negative impact on the
economy, especially for multinational corporations. Political unrest causes the departure of
oil workers to their countries, and the majority of projects are discontinued. Khodeir and
Mohamed (2015) established that political unrest is always associated with economic unrest
and the decrease in investments; such a decrease severely affects the currency prices that, in
turn, have significant effects on imported materials or the fees of foreign consultants. Basel
Sultan and Alaghbari (2018) stated that the Yemeni construction industry during the current
troubled political instability is associated with severe conditions of uncertainty and
challenging conditions. Table 12 lists the most important political factors.
(10) Local-people-related risk factors –LP
No. Risk factors References
1. Inappropriate organizational
structure
Jergeas (2009);Kazemi (2013);Al-Najjar (2008);Rezakhani
(2012);Sambasivan and Soon (2007);Famiyeh et al. (2017);Lind
et al. (2015);Odeh and Battaineh (2002)
2. Ineffective management Adeleke et al. (2016);Ghoddousi and Poorafshar (2015);Badiru
and Osisanya (2013);Bari and Karim (2015);Hashim et al.
(2012);Mustafa (2014);Xiong et al. (2014);Emam et al. (2015);
Sidawi (2012)
3. Poor planning and controlling for
scheduling and budgeting
Sweis et al. (2018);Mahamid et al. (2015);Chin and Hamid
(2015);Sidawi (2012);Kazemi et al. (2018);Rahman et al. (2012);
Assaf and Al-Hejji (2006a,b,c);Gerges et al. (2016);Minassian
and Jergeas (2009);Ayeni Omini (2017)
4. Lack of effective communication and
coordination
Dhimmar and Scholar (2016);Yana et al. (2015);Pidomson
(2017); Raykar and Ghadge (2016);Badiru and Osisanya (2013);
Barlish et al. (2013);Challal and Tkiouat (2012);Tafazzoli
(2017);Salazar-Aramayo et al. (2013)
5. Lack of effective quality control
management
Ghahramanzadeh (2013);Hussain et al. (2018);Alkaf and Karim
(2011);Harris et al. (2006);Qing et al. (2014);Fallahnejad (2013);
Harison (2015);Njogu (2015b)
No. Risk factors References
1. Economic and financial crisis Van Thuyet et al. (2007);Choudhry and Iqbal (2013);Joukar (2016);
Hossen et al. (2015);Dakhel (2013);Karunakaran et al. (2018);Iqbal
et al. (2015);Dumbrav
a (2013)
2. Foreign currency fluctuation Issa et al. (2015);Maznah et al. (2015);Liu et al. (2016);Wang et al.
(2004);Abd El-Karim et al. (2015);Romeli et al. (2016)
3. Higher insurance and transport
prices to Yemen
Perera et al. (2008);Liu et al. (2007);Awodele (2012);Kang et al.
(2015);Karimi (2017);Hanna and Swanson (2007);Kajewski (2014);
Westland (2006)
4. Lack of infrastructure projects Kazemi et al. (2018);Otairu et al. (2014);Tanaka (2014);Andi (2006);
Akhund (2018);Al-Fadhali et al. (2017)
Table 10.
Project-management-
related risk factors in
the previous study
Table 11.
Country-economy-
related risk factors in
the previous study
ECAM
28,4
948
Many of the studies have stated that the community surrounding the projects has a high
impact, especially on the sustainable sectors, such as the oil and gas sector. In Yemen, oil
companies have responsibilities and obligations toward the community, and this is
considered a type of compensation for the potential environmental impacts resulting from the
operations of oil and gas exploration. The stability of the society adjacent to the oil sector
substantially assists in the smooth execution of projects without objections or impediments.
Moreover, in Yemen, oil companies use a specific proportion of area near the oil sector, and
certain service projects are implemented as part of their responsibilities toward the
community. The neighboring society may be a source of critical risk if companies neglect to
deal with them as development partners (see Table 13).
(11) Environment- and safety-related risk factors –EN
Environment- and safety-related critical risk factors in oil and gas projects and the
noncompliance of security, safety and environmental standards may lead to the suspension
of projects at different periods. These interruptions adversely affect the achievement of
project objectives on the basis of cost and schedule. Van Thuyet et al. (2007) determined that
environmental and social impact assessments are required for infrastructure projects to not
only satisfy regulatory requirements but also maintain productivity and competitiveness
throughout the life of the project (see Table 14).
(12) Security-risk-related risk factors –SE
Security risks in unstable countries, such as Yemen, represent a significant impediment to
development and the completion of construction projects, especially in the oil and gas sector.
The lack of a secure environment hinders the multinational companies from continuing their
investments and sending employees to unsafe areas. Hence, security is a major risk priority
No. Risk factors References
1. Political instability Awodele (2012);Issa et al. (2015);Baloi (2012);Samarghandi et al. (2016);
Sultan et al. (2017);Ahmed and Othman (2013);Hossen et al. (2015);
Maznah et al. (2015);Sultan and Alaghbari (2018)
2. Change regulations and law Kazemi et al. (2018);Van Thuyet et al. (2007);Miller and Lessard (2000);
Doloi et al. (2012a,b);Lokhande et al. (2015);Eybpoosh (2010);Potts et al.
(2008);Malekela et al. (2017)
3. Country conditions during
construction
Liu et al. (2016);Khair et al. (2016);Eybpoosh et al. (2011);Dakhel (2013);
El-Sayegh and Mansour (2015);Halari (2010)
4. Illegal support and nepotism Van Thuyet et al. (2007);Elsayah (2016);Sultan and Kajewski (2006);
van der Ploeg and Vanclay (2017);Vu et al. (2016);Badiru and Osisanya
(2013);Sultan and Alaghbari (2014)
No. Risk factors References
1. Responsibility toward society Shen et al. (2010);Alia and Mohamad (2017);van Weele (2013);
Eik-Andresen et al. (2015);Kirat (2015);Awange and Sholarin
(2015);Çelik et al. (2017)
2. Recruitment of local peoples Awodele (2012);Song et al. (2012);Wang et al. (2004);Kadir et al.
(2005);Jarkas (2015);Haupt (2015)
3. Different language and culture with
the local community
Otobo (2016);Dumas (2011);Serpell et al. (2015);Wang et al.
(2004);Jelodar et al. (2016)
Table 12.
Political-risk-related
risk factors in the
previous study
Table 13.
Local-people-related
risk factors in the
previous study
Risk factors in
oil and gas
construction
949
affecting the progress of construction projects. Alsharif and Karatas (2016) investigated the
delaying factors of nuclear power plant projects and confirmed that these projects were
categorized as modifications, maintenance, engineering and facilities. Moreover, nuclear
power plants also have particular security and safety procedure stipulations that require
special in- and out-processing for all personnel working inside the plant. Table 15 lists the
primary security factors that may affect the construction projects in the Yemeni oil and gas
sector. Such factors include the border length of the oil sector and the threat of armed groups.
(13) Force-majeure-related risk factors –FM
Alaghbari et al. (2007) identified that force majeure risk is considered as the third general
category of delays of the projects. These delays are commonly called “acts of God”because no
party can be held liable for their occurrence. However, the majority of contracts allow the
contractor to obtain an extension of time for excusable delays, but no additional money is
involved. Studies on oil and gas contain force majeure as an essential risk factor affecting the
projects. The Yemeni construction industry faces the challenging economic and technical
problems of low productivity, management difficulties, delays and extra costs. Political
instability and civil war have a direct negative impact on the national economy and the social
and economic development of the nation (Alaghbari and Sultan, 2018). The ongoing war in
Yemen since 2014 has led to the interruption of all projects in the oil and gas sector, the
departure of oil companies operating in Yemen and the interruption of production, which are
all reflected in the economy of the country. Table 16 lists these factors.
4.2 Related risk factors as per expert judgment
An initial list of 61 risk factors affecting the success of construction projects in the Yemeni oil
and gas sector was presented by the authors; this list was sent to four field experts from four
different companies operating in this sector in Yemen; this list has been identified as the test
criterion for the related risk factors. The frequency of occurrence and the impact of risk and
No. Risk factors References
1. Pressure of environmental
protection groups
Hwang and Ng (2013);Çelik et al. (2017);Van Thuyet et al. (2007);
Samarghandi et al. (2016);Famiyeh et al. (2017);Gupta et al. (2015);
Awodele (2012);Kartam and Kartam (2001)
2. Health and safety Kerzner (2010);Hwang and Ng (2013);Baloi (2012);Korneeva et al.
(2016);Karimi (2017);Çelik et al. (2017);Is
¸ik (2009);Otobo (2016)
3. Waste treatment Awodele (2012);Akram et al. (2014);Ogunlana et al. (1996);
Aboelmaged (2018);Badiru and Osisanya (2013);Banaitiene et al.
(2012);Loosemore et al. (2015)
No. Risk factors References
1. Length of oil sector
border
Van Thuyet et al. (2007);Dewhurst et al. (2016);Aper (2015);Ghandi and Lin
(2014);Alhajeri (2011)
2. The threat of armed
groups
Myakenkaya et al. (2014);Commission (2015);Dumbrav
a (2013);Bari and
Karim (2015);Bigliani (2013);Gupta et al. (2015)
3. Unsafe transportation
routes
Chen (2017);Gerges et al. (2016);Chen and Leu (2014);Wang et al. (2015)
Table 14.
Environmental and
safety-related risk
factors
Table 15.
Security-risk-related
risk factors
ECAM
28,4
950
its influence on the key project elements of time, cost and quality are the criteria of evaluation
from experts.
According to their experience in this field, Table 17 presents the responses of expert
judgment on the list and identifies the most critical factors that can be considered risks
No. Risk factors References
1. Inclement weather, flood,
fire, landslip
Banaitiene et al. (2012);Perry and Hayes (1985);Smith et al. (2006);
Loosemore et al. (2015)
2. Unforeseen circumstances Hwang and Ng (2013);Tawil et al. (2014);Karimi (2017);Dziadosz et al.
(2015);Haupt (2015);Banaitiene et al. (2012);Jarkas (2015);Reddy (2015)
3. The war in country Mousa (2015);Njogu (2015a);Van Thuyet et al. (2007);Awodele (2012);
Choudhry and Iqbal (2013);Patel et al. (2013)
No. Risk factors
Expert
one
Expert
two
Expert
three
Expert
four
Yes No Yes No Yes No Yes No
1. Delay in decision-making UUUU
2. Unstable of government UUUU
3. Government interference UU ✗U
4. Client interventions UUUU
5. Change during construction process U✗UU
6. Delay in payment of contractor’s dues UUUU
7. Request additional works ✗U✗U✗U
8. Lack of contractors experience UUUU
9. Execution errors UUUU
10. Inadequate coordination among contractors UUUU
11. Damage to work by third party ✗✗✗U
12. Insufficient consultant’s experience UUUU
13. Slow approval of major changes ✗✗✗✗
14. Delay in review and approval of design UUUU
15. Poor contract management U✗UU
16. Improper project feasibility study UUUU
17. Lack of data accuracy and survey information ✗UUU
18. Unused of advanced engineering programs U✗✗✗
19. Unqualified of design team ✗U✗✗
20. Frequent change of designs UUUU
21. Wrong project cost estimation UUUU
22. Wrong project time schedule estimation UUUU
23. Inadequate tendering ✗UUU
24. Lack of detailed items UUUU
25. The responsibilities are not defined accurately ✗✗✗✗
26. The terms of the contract are unclear U✗✗✗
27. Lack of experts to write contracts UUUU
28. Corruption accompanying tenders UUUU
29. Shortage and low productivity of labor UUUU
30. Delay in delivery of materials to site UUUU
31. Fluctuations in the material’s cost UUUU
32. Poor quality of construction materials UUUU
33/ Shortage of modern equipment U✗UU
(continued )
Table 16.
Force-majeure-related
risk factors in the
previous study
Table 17.
Risk factors evaluation
by experts
Risk factors in
oil and gas
construction
951
affecting the success of the construction project in the oil and gas sector. This list needs field
investigations in the field of oil project management in future studies.
The experts identified 51 risk factors, and their responses varied from ten other factors.
None of the experts suggested other additional factors.
5. Conclusion
This initial study is based solely on a review of the literature and assessment by experts. The
findings determined the causes of construction risk factors, which were categorized into two
major groups. First, internal risk factors include seven primary critical sources of risks,
namely client, contractor, consultant, feasibility study and design, tendering and contract,
resources and material supply and project management. Second, external risk factors include
six critical sources of risks, namely country economic, political risk, local people, environment
and safety, security and force majeure, which are related to risk factors as per the framework
shown in Figure 4.
The results of the research showed that all main sources contain risk factors up to 51
factors, which require further research, examination and testing via questionnaires,
interviews or case studies to prove their impact on the success of construction projects in
No. Risk factors
Expert
one
Expert
two
Expert
three
Expert
four
Yes No Yes No Yes No Yes No
34. Inappropriate organizational structure UUUU
35. Ineffective management UUUU
36. Poor planning and controlling for scheduling and
budgeting
UUUU
37. Lack of effective communication and coordination ✗UUU
38. Lack of effective quality control management UUUU
39. Economic and financial crisis UUUU
40. Foreign currency fluctuation UUU ✗
41. Higher insurance and transport prices to Yemen UUUU
42. Lack of infrastructure projects UUUU
43. Routine at customs clearance of materials ✗✗✗✗
44. Political instability UUUU
45. Change regulations and low UUUU
46. Country conditions during construction U✗UU
47. Illegal support and nepotism UUUU
48. Responsibility toward society UUUU
49. Strikes and disorders ✗✗U✗
50. Recruitment of local peoples UUUU
51. Different language and culture with the local
community
UUUU
52. Environmental protection pressure of their groups UUUU
53. Health and safety UUUU
54. Pollution ✗✗✗U
55. Waste treatment UUUU
56. Length of oil sector border UUUU
57. The threat of armed groups UUUU
58. Unsafe transportation routes UUUU
59. Inclement weather, flood, fire, landslip ✗UUU
60. Unforeseen circumstances UU ✗U
61. War in country UUUU
Table 17.
ECAM
28,4
952
the Yemeni oil and gas sector. The new list only highlighted the unique causes of risk from the
initial literature review. The source of critical risks specific to the construction phase in oil
and gas projects in Yemen should be investigated further with the focus only on the Yemeni
Figure 4.
Critical risk factors
framework for oil and
gas construction
projects in Yemen
Risk factors in
oil and gas
construction
953
projects and industry players. The findings of this study will help further investigate the
other aspects of risk (effects and mitigation plan for the risks) in the construction phase of oil
and gas projects in Yemen.
Successful project management cannot start the project execution or even determine
project cost and schedule without clarifying the potential risk factors of the project. Strategies
must be developed to respond to such risk factors. Risk factors directly and negatively impact
the success of construction projects by influencing the main components of the project cost,
time and quality. Therefore, the importance of this research lies in the development of a
roadmap for risk management for construction projects in the Yemeni oil and gas sector.
In addition to reviewing many studies, which included more than 250 risk factors in
construction projects, 51 risk factors similar to the Yemeni situation were identified. Such
factors, which directly impact the success of the projects, were defined and presented to four
experts in oil and gas projects in Yemen. After the discussion, a practical framework
containing the most critical elements likely to occur during the life cycle of construction
projects was developed. The result of this study is expected to be of great value to the Yemeni
government, oil companies, engineers and researchers working in this sector in Yemen and
developing countries in general.
There are many reasons to reduce the risk factors to 51 due to the similarity between the
factors while some factors have little influence on the success of projects and also the
probability of them occurring during the implementation of projects is not high, and
therefore, the researcher saw that deleting some of these factors after using expert judgment
will be useful in approaching deeply to the essence of the research problem and thus focused
on the most important factors affecting the success of construction projects in the oil and gas
sector in Yemen.
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Corresponding author
Mukhtar A. Kassem can be contacted at: mukhtarkas@gmail.com
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