Abdulaziz A. Bubshait

Incentive/disincentive contracts and its effects on industrial projects

Abstract Project delays and cost overruns are becoming major problems in many projects, especially industrial projects. The present economic situation has forced owners to establish time and cost reduction programs to control expenditure. The main objectives of this study are to study the perceptions of owners and contractors about incentive/disincentive (I/D) contracting. A questionnaire was used to gather the required data for the study. This was distributed among owners and contractor companies working in petrochemical plants, power plants, and refineries. The findings of the study support the use of I/D provisions in contracts. In addition, the use of I/D contract provisions ensure that contractors do their utmost to manage and control factors that influence labor productivity, project duration and/or project cost.

Evaluating the general conditions of a construction contract

Abstract International construction contractors are often faced with the situation of working in an unfamiliar construction environment. One potential source of risk is the contractual requirements embodied in the general conditions of contracts. The paper presents a simple quantitative method for evaluating the general conditions of a construction contract. 11 attributes were used in this evaluation: clarity, conciseness, completeness, internal and external consistency, practicality, fairness, effect on quality, cost, schedule, and safety. The procedure can also be used to assess the risk level associated with the general conditions.

The management of construction company overhead costs

Abstract This paper investigates the overhead cost practices of construction companies in Saudi Arabia. Although overhead costs are extremely important in construction estimation, they can be easily overlooked. Neglecting overhead has forced some contractors out of business, because these costs constitute a significant portion of the total construction cost. The practices of 61 large building construction contractors were investigated via questionnaire. The questionnaire has three parts covering the construction firms, overhead costs in general, and company overhead costs. Results show that average overhead cost is slightly higher than the ratio reported in the literature. The average percentage of company overhead costs to project direct cost is greater than 10%. Causes of increased company overhead costs include delayed payments, shortage of new projects, cost of inflation and governmental regulations. Factors affecting company overhead costs include the following: automobile and equipment costs, head office expenses, labor related costs and financing costs. The unstable construction market makes it difficult for contractors to decide on the optimum level of overhead costs that enables contractors to win and efficiently administer large projects.

Use of microsilica in concrete construction : Reviews state-of-the-art silica fume concrete and discusses the influence silica fume has on the various properties of concrete and the effect on the bond between parent concrete and new concrete

The advantages of using microsilica can be considerable as it reduces thermal cracking caused by the heat of cement hydration and can improve durability to attack by sulphate and acidic waters. The advantages and applications are reviewed and a number of test core illustrations are included.

Performance Evaluation of International Contractors in Saudi Arabia

AbstractInternational construction contractors are practitioners operating in a complex environment of uncertainty. To be successful, they must learn to effectively execute projects in multiple regions and societies with multinational/multiethnic teams. This paper compares the performance of international and local construction contractors in the context of the Saudi Arabia construction industry as an example of international construction practices. The research statistically quantifies the effects of company ownership upon thirteen project performance indicators. It concludes by pointing out that international contractors have not only overcome the common challenges of delivering projects outside their resident country, but seem to have found success in the unique Saudi Arabian construction environment.

Role of Communication and Coordination in Project Success: Case Study

AbstractCommunication and coordination are key issues for successful project management. Coordination is specifically a challenging task for industrial projects where a number of interdependent role players are needed to achieve the desired project outcomes. In this context, a two-stage case study of construction phase delay control for an oil and gas industrial project is presented. A process improvement methodology was carried out in the first stage and the root causes for the delays were identified. The investigation results revealed that the scope of one item of work, piping, dominated a large portion of delays. It was found that piping packages were not processed smoothly due to four main causes: incomplete testing, frequent piping modifications, incomplete as-built drawings, and incomplete punch listing. Seventy percent of the delays were caused by incomplete testing activities and incomplete as-built drawings. The improvement study suggested establishing a new unit for piping test package control a...

Project procurement systems for mechanical, electrical and piping projects in Saudi Arabia: An empirical assessment

Purpose The purpose of this paper is to investigate the empirical relationship between mechanical, electrical, and piping (MEP) project procurement systems and project performance in the context of the Saudi Arabian construction industry. The study plans to expand the understanding of the relationship of design-bid-build (DBB) and design-build (DB) performance with respect to change order rate, cost growth, and schedule growth. Design/methodology/approach The paper statistically analyzed 207 MEP projects. It investigates the relationship of project procurement systems and three project performance indicators. Hypotheses testing was used to assess the relationship. Findings The results show that projects using the DB procurement system are more likely to have less cost overrun and experience a lower change order rate compared to DBB for pricing and selection methods, yet neither procurement system had an advantage over the schedule duration based on the study’s sample. Research limitations/implications The lack of information identifying the cause of contract change orders limits the interpretation of the findings. Sample sizes in some of the test criteria were statistically small, thus limiting the reliability or confidence level of the analysis for those samples. Caution should be used when interpreting the results as representative of the Saudi Arabian construction industry as a whole; due to the owner’s project execution policies, procedures, and standards, the level of enforcement of those practices may differ from other owners. Originality/value The paper fulfills and identified the relationship between the project procurement system and MEP project performance in the context of the Saudi Arabian construction industry.

Design and maintenance criteria for Saudi bituminous concrete mixes

Abstract Premature rutting has occurred on a number of highways recently built in Saudi Arabia. The Ministry of Communications, in an effort to solve the problem, has initiated a number of studies and started to replace affected pavements. The aim of this study is to identify possible factors which may relate to rutting and to recommend maintenance and repair criteria for existing rutted pavements. The study covers nineteen sections of eleven major highways. Results indicate a direct relationship between rutting and the percentage of air voids; the percentage of voids in mineral aggregate; the percentage of voids filled with asphalt, resilient modulus at 25°C; and bitumen viscosity. These properties were used as bases for maintenance criteria as well as criteria for the design of mixes to resist rutting on Saudi roads.

Planning and scheduling concrete repair work — A case study: Case study of contractors' errors in scheduling concrete repairs, exemplar for overcoming slippage

In this case study the authors demonstrate the importance of recording and studying the details of concrete repair work to enable future projects to be carried out more efficiently with less slippage in the time schedule and therefore less financial damage over the time plants, such as kilns, are shutdown. In this case study, the distress in the concrete pier was apparently due to the twisting of the platform as a result of tortional stress, as well as to diagonal shear cracks in the walls.