Outline

1. 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

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

3. 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

4. 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

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

6. 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

7. 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

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

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

10. 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

11. 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.

12. 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

13. Questions & Answers Thank you !