Research Article

Risk Factors for Time and Cost Overruns of Pipeline Projects in Saudi Arabia

Table 1

Causes of risk factors leading to time and cost overrun.

GroupRisk factorReferences

Design riskDefective design[24]
Design change due to change orders[21]
Delay in drawing approval[25]

Health, safety and environmentForce majeure (earthquake, pandemics, etc.)[19]
Night work (poor visibility, slip, and trip)[26]
Exposed existing pipelines during construction[22, 27]
Inadequate site safety procedures
Government permit approval delay
Accidents (human, vehicle, etc.)
Geological factors like soil movement and landslides

Security & SocialTerrorism and sabotage[22, 27]
Reduction in the productive capacity of labor and machinery[19]
Labor strike[17]

Supply riskSupplying invalid materials[19]
Materials monopoly by suppliers[19]
Delays in materials and equipment supply[21]

Financial riskFinancial failure/bankruptcy[19]
Inflation and interest rate increase[25]
Increase in tax regulation[25]
Increase of contractor project cost (Cost overruns)[25]

Construction riskThe discrepancy between implementation requirements and specifications[19]
Variation orders[17]
Poor pipeline material quality[18, 28]
Corrosion of pipeline during its life cycle time[22, 27]
Weakness in identifying and monitoring dangers.
Operational errors (human error and equipment failure)
Unforeseen site circumstances (differing site conditions)[24, 25]