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A Kassem, M, Khoiry, M A and Hamzah, N (2020) Assessment of the effect of external risk factors on the success of an oil and gas construction project. Engineering, Construction and Architectural Management, 27(09), 2767–93.

• Type: Journal Article
• Keywords: Construction projects; External risk factors; Oil and gas projects; PLS-SEM; Structural equation modeling;
• ISBN/ISSN: 0969-9988
• URL: https://doi.org/10.1108/ECAM-10-2019-0573
• Abstract:
  Construction projects in the oil and gas sector are greatly affected by external risk factors, especially those related to the economy, politics, security and stability factors. Hence, this research aimed to investigate the fundamental relationship between the external risk factors and their effects on the construction project success using Structural Equation Modeling method and PLS-SEM approach. Data collected through a structured survey distributed to projects teams in the oil and gas sectors in Yemeni companies involved in mega construction projects. A hierarchical model for assessing causative external risk factors and their effects on project success was developed and analyzed using Smart PLS 3 software of SEM. The findings showed that economic, political, force majeure and security-related risk factors had a strong effect on project success. Besides, the Coefficient of Determination (R-squared value) equals 0.743, represented the proportion of variation in the dependent variable(s), which can be explained by one or more predictor variable. Moreover, the predictive relevance value Q2 is 0.375 above zero, which indicates that the conceptual model can predict the endogenous latent constructs. The calculated Goodness of Fit (GoF) Index of the model was 0.699, which shows that the developed model had substantial explanatory power to represent the relationship between the cause of external risk factors to and the effect on construction project success. This research was limited to the oil and gas construction projects in Yemen as case study. Practically, this study highlights the external risk factors that cause a negative effect on the success of oil and gas construction projects in Yemen. The research model of these factors is the first step in the risk management process to develop strategic responses for risks and explain the relationship between cause and effect on project success. The model of external risks factors that cause the failure of construction projects helps develop response strategies for these risks, thereby increasing the chances of project success reflected in the oil and gas sector, which is a main tributary of the national economy in developing countries. There is a need to improve the planning of economic and security performance as well as to mitigate political risk factors effects on project success and other risk factors discussed in this study, which effect on construction project success according to their priorities.

Adabre, M A and Chan, A P (2020) Towards a sustainability assessment model for affordable housing projects: the perspective of professionals in Ghana. Engineering, Construction and Architectural Management, 27(09), 2523–51.

Ahmadu, H A, Ibrahim, A D, Ibrahim, Y M and Adogbo, K J (2020) Incorporating aleatory and epistemic uncertainties in the modelling of construction duration. Engineering, Construction and Architectural Management, 27(09), 2199–219.

Akanmu, A, Olayiwola, J and Olatunji, O A (2020) Musculoskeletal disorders within the carpentry trade: analysis of timber flooring subtasks. Engineering, Construction and Architectural Management, 27(09), 2577–90.

Almatroushi, H, Hariga, M, As'ad, R and Al-Bar, A (2020) The multi resource leveling and materials procurement problem: an integrated approach. Engineering, Construction and Architectural Management, 27(09), 2135–61.

Amos, D, Au-Yong, C P and Musa, Z N (2020) Developing key performance indicators for hospital facilities management services: a developing country perspective. Engineering, Construction and Architectural Management, 27(09), 2715–35.

Chiu, W Y B and Lai, J H (2020) Building information modelling for building services engineering: benefits, barriers and conducive measures. Engineering, Construction and Architectural Management, 27(09), 2221–52.

Edwards, D J, Rillie, I, Chileshe, N, Lai, J, Hosseini, M R and Thwala, W D (2020) A field survey of hand–arm vibration exposure in the UK utilities sector. Engineering, Construction and Architectural Management, 27(09), 2179–98.

Farajmandi, M, Ali, M, Hermann, R and AbouRizk, S (2020) A decision support tool for planning module installation in industrial construction. Engineering, Construction and Architectural Management, 27(09), 2615–41.

Hsu, P, Aurisicchio, M, Angeloudis, P and Whyte, J (2020) Understanding and visualizing schedule deviations in construction projects using fault tree analysis. Engineering, Construction and Architectural Management, 27(09), 2501–22.

Karamoozian, A and Wu, D (2020) A hybrid risk prioritization approach in construction projects using failure mode and effective analysis. Engineering, Construction and Architectural Management, 27(09), 2661–86.

Liu, H, Song, J and Wang, G (2020) Development of a tool for measuring building information modeling (BIM) user satisfaction – method selection, scale development and case study. Engineering, Construction and Architectural Management, 27(09), 2409–27.

Liu, J, Cui, Z, Feng, Y, Perera, S and Han, J (2020) Impact of culture differences on performance of international construction joint ventures: the moderating role of conflict management. Engineering, Construction and Architectural Management, 27(09), 2353–77.

Luo, L, Zhang, L and He, Q (2020) Linking project complexity to project success: a hybrid SEM–FCM method. Engineering, Construction and Architectural Management, 27(09), 2591–614.

Ma, L and Fu, H (2020) Exploring the influence of project complexity on the mega construction project success: a qualitative comparative analysis (QCA) method. Engineering, Construction and Architectural Management, 27(09), 2429–49.

Maqsoom, A, Hamad, M, Ashraf, H, Thaheem, M J and Umer, M (2020) Managerial control mechanisms and their influence on project performance: an investigation of the moderating role of complexity risk. Engineering, Construction and Architectural Management, 27(09), 2451–75.

Moon, S, Ham, N, Kim, S, Hou, L, Kim, J and Kim, J (2020) Fourth industrialization-oriented offsite construction: case study of an application to an irregular commercial building. Engineering, Construction and Architectural Management, 27(09), 2271–86.

Nasirzadeh, F, Kabir, H D, Akbari, M, Khosravi, A, Nahavandi, S and Carmichael, D G (2020) ANN-based prediction intervals to forecast labour productivity. Engineering, Construction and Architectural Management, 27(09), 2335–51.

Sezegen, A and Edis, E (2020) Product innovation types: a discussion considering building facade products. Engineering, Construction and Architectural Management, 27(09), 2379–408.

Sinoh, S S, Othman, F and Ibrahim, Z (2020) Critical success factors for BIM implementation: a Malaysian case study. Engineering, Construction and Architectural Management, 27(09), 2737–65.

Tran, D H (2020) Optimizing time–cost in generalized construction projects using multiple-objective social group optimization and multi-criteria decision-making methods. Engineering, Construction and Architectural Management, 27(09), 2287–313.

Tran, D Q, Harper, C M, Smadi, A M and Mohamed, M (2020) Staffing needs and utilization for alternative contracting methods in highway design and construction. Engineering, Construction and Architectural Management, 27(09), 2163–78.

Viswanathan, S K and Jha, K N (2020) Risk mitigation modelling of international construction projects executed by Indian firms: a structural equation modelling approach. Engineering, Construction and Architectural Management, 27(09), 2687–713.

Wang, P, Wu, P, Wang, X, Chen, X and Zhou, T (2020) Developing optimal scaffolding erection through the integration of lean and work posture analysis. Engineering, Construction and Architectural Management, 27(09), 2109–33.

Wu, J, Liu, H J, Sing, M C, Humphrey, R and Zhao, J (2020) Public–private partnerships: implications from policy changes for practice in managing risks. Engineering, Construction and Architectural Management, 27(09), 2253–69.

Wuni, I Y and Shen, G Q (2020) Critical success factors for management of the early stages of prefabricated prefinished volumetric construction project life cycle. Engineering, Construction and Architectural Management, 27(09), 2315–33.

Zhang, H and Yu, L (2020) Dynamic transportation planning for prefabricated component supply chain. Engineering, Construction and Architectural Management, 27(09), 2553–76.

Zhang, H, Yu, L and Zhang, W (2020) Dynamic performance incentive model with supervision mechanism for PPP projects. Engineering, Construction and Architectural Management, 27(09), 2643–59.

Zhang, S B, Chen, J and Fu, Y (2020) Contract complexity and trust in construction project subcontracting. Engineering, Construction and Architectural Management, 27(09), 2477–500.