The allocation of risks in the Saudi Arabian domestic and regional aviation construction projects.
Baghdadi, Ahmad Mohammadhasan A.
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BAGHDADI, A.M.A. 2017. The allocation of risks in the Saudi Arabian domestic and regional aviation construction projects. Robert Gordon University, PhD thesis.
Airports projects, amongst other construction projects, are considered very complex as they face a number of challenges that inevitably cause them to become exposed to risks. In Saudi Arabia, the sector of aviation is considered an important sector owing to the fact that, on an annual basis, it is recognised as the first destination for Muslims. However, it has been found that projects continue to be delivered with a significant number of time and cost overruns. Moreover, the absence of a risk allocation framework has been identified. Hence, the aim of the research underpinning this thesis is to develop a framework detailing how such risks can be allocated properly in the specific context of aviation construction projects in Saudi Arabia. A robust methodology that been designed and outlined in the research—which notably includes the use of semi-structured interviews and questionnaires with highly experienced senior project managers representing GACA, their contractors and consultants. The aim of conducting the interviews was twofold. Firstly, to identify risks associated with GACA construction projects. Secondly, to examine the risk allocation practice that is been carried by GACA. While, the questionnaire method was adopted to identify the importance of the risks identified, based on quantifying each risks’ probability of occurrence and impact. In addition, to test the perception of risk allocation within GACA construction projects. As a result, Fifty-four risks are associated with the construction of aviation projects in Saudi Arabia, with the decision on such an allocation of risks within GACA found to be based on a number of criteria that are subjective in nature, such as the authority of project managers, experience from different projects and so on, coupled with the absence of well-defined principles of risks allocation. Importantly, a number of risks have been found to have undecided allocation, with no allocation on any risk found to be shared amongst parties. A framework of risk allocation was developed in an effort to replace the current practice applied within GACA and their projects. This framework is presented in flow chart to make it easy to follow its steps. It incorporates a well-defined strategy that imposes GACA, as a client, to perform a solid risk management practice, taking into consideration the best practice of risk- allocation principles. It further allows GACA contractors to make their decision on whether the allocation made by GACA should be accepted, or alternatively whether to withdraw from the bidding otherwise. As a means of validating the framework, a number of interviews were carried out with professionals representing GACA, contractors and consultants. The research is the first of its nature to focus on an existing problems of risk allocation practice within the aviation sector in the country and accordingly solving these problems by introducing a framework for a proper allocation of risks. In this sense, the study is believed to make a contribution to knowledge as it provides a tool from which GACA can benefit with regards their current issue of risks-allocation.