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     Research Journal of Applied Sciences, Engineering and Technology

    Abstract
2015(Vol.9, Issue:3)
Article Information:

Causes of Contractors’ Failure in Industrial Projects in Saudi Arabia

Sadi Assaf, Mohammad A. Hassanain and Salman Al-Zahrani
Corresponding Author:  Sadi Assaf 
Submitted: February 18, 2014
Accepted: March 08, 2014
Published: January 25, 2015
Abstract:
The study aims at identifying and assessing the main causes of contractors’ failure in industrial projects in Saudi Arabia. 24 causes were identified from the literature for assessment by owners, contractors and subcontractors. These causes were classified under five categories, namely managerial causes, financial causes, growth causes, environmental causes and uncontrollable causes. A survey of 36 participants was conducted. Data was collected from 15 owners, 11 contractors and 10 subcontractors. The results indicated that lack of experience in the business field, war, poor project management, poor cost estimation, unavailability of stationed project leader at site, neglect and type of the contract are the most severe causes behind contractor’s failure in construction projects. The rank correlation coefficient indicated that there is a high level of agreement among owners, contractors and subcontractors on the severity of the different failure causes. The research provides a severity of the ranking of the different causes of failure so that mitigation measures could be developed to avoid them or lessen their effects.

Key words:  Contractor’s failure, contractor’s failure, industrial projects, owner, subcontractor, Saudi Arabia,
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Cite this Reference:
Sadi Assaf, Mohammad A. Hassanain and Salman Al-Zahrani, . Causes of Contractors’ Failure in Industrial Projects in Saudi Arabia. Research Journal of Applied Sciences, Engineering and Technology, (3): 158-164.
ISSN (Online):  2040-7467
ISSN (Print):   2040-7459
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