1. Abdallah M. Al-Mahasheer
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 !