Saudi Arabian aviation construction projects: identification of risks and their consequences.
Baghdadi, Ahmad Mohammadhasan A.
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BAGHDADI, A. and KISHK, M., 2015. Saudi Arabian aviation construction projects: identification of risks and their consequences. In: M. HAJDU and M.J. SKIBNIEWSKI eds. Creative Construction Conference 2015 Proceedings. 21-24 June 2015. Budapest: Diamond Congress Limited. Pp. 154-159.
Airport projects are considered to be very complex, as they face a number of challenges which inevitably expose them to risks. In Saudi Arabia, the aviation sector is considered an important sector due to the fact that Saudi Arabia is the first destination for Muslims on an annual basis. As a result, the Saudi government has allocated a significant amount of its general budget to this sector through the General Authority of Civil Aviation (GACA). However, it has been found that these projects are still delivered with a significant number of time and cost overruns. These consequences are typically generated from the risks involved in the projects. Thus, the aim of this paper was twofold: first, to identify risks associated with aviation construction projects in Saudi Arabia and, second, to evaluate the consequences of these risks on a number of GACA projects. Critical literature reviews of common risks associated with aviation projects have been carried out. These were followed by 13 semi-structured interviews with expert project managers, including clients, contractors and consultants who have been involved in GACA projects. As a result, 54 new risks have been identified and classified into three levels: internal, external and force majeure. Results have confirmed the existence of time and cost overruns for GACA projects. The significance of the identified risks is currently being assessed and will be reported in a further paper.