Identifying and Ranking the Root Causes of Schedule Delays in Oil and Gas Pipeline Construction Projects

Abstract

Delays in completing the construction of oil and gas projects impact the production, sustainability, reliability, and revenues of the company, which result in market share losses in the long term. This research aimed to determine, evaluate, and rank the root causes of schedule delays in oil and gas pipeline projects in Saudi Arabia. Forty-seven different causes were identified firstly from a wide-ranging literature review and then finalized through conducting interviews with two local experts. These causes were ranked by distributing and analyzing questionnaires on the topic. Client-related materials, delays in materials and equipment delivery, permit approval, delays in subcontractor work, and delays in preparing and approving engineering drawings were found to be the top five major causes affecting oil and gas pipeline construction projects. From the initial analyses, it was observed that an adversarial relationship was apparent as the results indicated that the parties tended to blame each other for the delays. The sub-causes of the initial five causes were identified and root cause analysis was performed. A delay in the material and equipment delivery category had the most weighted sub-causes; hence, it is of high importance to mitigate it. Further recommendations were made for different delay causes.

1. Introduction

Oil and gas pipeline construction projects are crucial to world development. Delays in construction in this type of project have direct negative impacts on this development. With 10% of the global market share, the Kingdom of Saudi Arabia is a major supplier of oil and gas to the world. Inside Saudi Arabia, oil and gas are at the core of contemporary life; they are considered the main sources of energy and used to fuel water desalination in this desert country. As pipeline networks are the means of transporting oil and gas inside the KSA, the construction of these pipelines is of paramount importance. Delays in this type of construction project lead to direct negative impacts on the economy and people’s quality of life. Delays are part of most construction projects around the world. A better understanding of the root causes of such delays will help in finding appropriate solutions to mitigate their negative impact.

The objective of this research was to investigate the root causes of delays in the construction of oil and gas pipelines in Saudi Arabia. In order to develop appropriate recommendations and solutions, a comprehensive review of the literature was carried out to identify all possible causes of schedule delay affecting this type of project around the world. Then, local experts from the oil industry were interviewed to refine the causes to be specific to Saudi Arabian projects. Next, a survey was distributed to different parties who are involved in constructing this type of project to evaluate the impacts of each cause. Finally, the outcomes of this survey were analyzed in order to rank the most important causes. Furthermore, to determine the root causes, further investigation was conducted via a survey querying local experts to explain why these were the top-contributing causes and asking them to rank them utilizing the Relative Importance Weight or Index (RII). According to this analysis, recommendations were developed for ways to mitigate delays in this type of project.

2. Literature Review

Construction projects worldwide are suffering from schedule delays. Accordingly, many studies have been conducted to identify the causes of delays in oil and gas industry projects. In one such research conducted in Malaysia [1], the author identified and listed different delay causes in the oil and gas projects. In this review, 47 causes are identified and grouped into six categories: client, external, engineering, resources, project, and contractor. This research was based purely on a literature review, comparison of similar cases, benchmarking, and critical judgment.

Gomam and Pongpeng [2] used confirmatory factor analysis to determine the delays produced by contractors, which include seven different causes: weak site supervision and management, shortage of laws and safety rules, bad communication, bad procurement system administration, supplier payment lateness, poor project planning and scheduling, and imperfect components and errors occurred in the overall construction. The delays caused by suppliers stemmed from the late delivery of material, low-efficiency equipment, unqualified and unskilled people, low-quality materials, delays in the supply of workers, and price increases.

Kasemi and Katebi [3] categorized delay causes into four groups: owner, consultant, contractor, and other. The major causes leading to schedule delays that were associated with owners were related to change orders and changes in scope. Consultant delays often stemmed from document review, whereas the major causes of delays by contractors were insufficient experience and knowledge, and mistakes made during construction. The authors also identified the low productivity of laborers as a key cause in delaying a project. All conclusions were drawn from a literature review.

Fallahnejad [4] identified 10 key delay causes: land expropriation, client-related materials, unrealistic project duration, contractor selection, contractor payment, change orders, permits, suppliers, imported materials, and contractor cashflow. The study was based on 24 executed pipeline projects. The author obtained a 43-item list of causes after discussions with 10 experts from different disciplines. These were then ranked using data obtained from a questionnaire survey, producing the final list of 10 causes.

One study relevant to GCC countries [5] researched delay causes in Omani construction processing facilities of oil and gas. Ruqaishi and Bashir distributed a questionnaire and collected information from fifty-nine project managers of various oil and gas organizations in Oman. Seven delay causes were found to be the most major: delays in material delivery, conflicts with subcontractors, insufficient contractor planning, poor management of contractors’ schedules, contractors’ weak site management and supervision, ineffective communication between project stakeholders, and weak communication with vendors in the procurement and engineering phases. The primary six delay causes were considered general, whereas the last was explicit to the oil and gas industry because these construction projects are characterized by the use of advanced technology and made-to-order products. Similarly, Mohammad and Sulaiman [6] found that both contractor- and owner-related causes were ranked high in affecting the cost and duration of oil and gas pipeline construction projects in Bahrain. Insufficient project budgeting, planning, and scheduling; late materials delivery; and scope variation were the highest-ranked causes.

Sivapornpunlerd [7] evaluated the performance of materials suppliers using the analytical hierarchy process, finding the most important measures when evaluating the performance of suppliers of pipeline materials to be quality, delivery, service, and flexibility. Ahmadian and colleagues [8] highlighted the importance of considering site material transportation time during project planning, as well as its effect on the overall performance of project. The research proposed a framework for estimating transportation duration according to the transport mode, size, and weight of the material.

Kpamma and Adjei-Kumi [9] examined the process for obtaining construction permits and its impact on activities flow, conducting interviews with the different agencies responsible for permit issuance. The research indicated that a lack of integrated process steps and delays in issuance and processing were obstacles to a project’s continuous flow.

With regard to subcontractor delays, Yoke-Lian et al. [10] reviewed subcontracting practices in construction projects and industry and found the most common types of subcontractors, problems frequently faced, and best-practice solutions. Risks to the construction project, project delays, and subcontractor safety were all identified as problems with subcontracting. Usdiken et al. [11] studied strategies for and the limitations of construction subcontracting, investigating possible deterrents to subcontracting for construction firms.

Chin [12] conducted a root cause analysis in an effort to first identify and then eliminate the delay causes in the preparation and approval of drawings by engineering consultants. The author found that the root cause of lengthy engineering reviews is inadequate and vague data, rather than the availability and ability of reviewers. As for the COVID-19 pandemic on the oil and gas construction industry, Abdelrassoul and Bin Abdul Rahim [13] found that low productivity due to frequent disruption and the late delivery of material and equipment due to border restrictions were the major causes of delay. The research developed some mitigation strategies to overcome the delay including a change in mindset and leadership, and adopting new cultural principles.

Moreover, as indicated by Andersen, B [14] the problem can be resulted from more than a single cause. The author also revealed that the problem can be categorized into three; “Symptoms”; “First-level causes”; and “Higher-level causes”. It is worth it to note that as revealed in the literature organization should also be able to manage uncertainty [15].

A study was conducted in Saudi Arabia [16] which identified causes of time and cost overrun. The authors identified thirty-eight causes through a literature review and grouped them into the following categories: consultant/designer-related causes, all parties-related causes, contractor-related causes, contract-related causes, external-related causes, resource-related causes, and owner-related causes. Then, forty-eight professionals were asked to assess the importance of the causes on which bases they were highly ranked. The most significant causes for time overrun were: poor project planning and scheduling, insufficient comprehension of work scope during the bidding stage, and changing of scope and design by the owner in the construction phase, and finally, design errors.

Sweis, Moarefi, Amiri, Moarefi, and Saleh [17] performed a root cause analysis to identify, rank, analyze, and categorize the delay causes of Iranian oil and gas construction projects. The top five causes are: political situation, cash flow financial difficulties faced by all parties, planning and scheduling insufficiencies, the competence and experience of all parties, technical staff availability, material procurement, payment delay by the owner to the contractor, and finally, the long acceptance process (an example is a delay in getting permits), and a Pareto analysis showed that these causes represent 84.7% of all delays.

Basak, Perrons, and Coffey [18] performed a systematic literature review and identified causes of schedule overruns in liquefied natural gas projects and ranked them according to their frequency. The top five risks are: contract modification; usual variation/change orders issued by the owner; delay of material delivery and procurement; change in design due to complexities, omission, or errors; poor quality of material; long lead times on imported items; slow inspection and decision-making process; and delay in progress payment to the contractor.

Aljamee, Naeem, and Bell [19] researched the major causes of project delays in Iraqi petroleum projects. The research was conducted by distributing questionnaires to the Basra Oil Company. The questionnaire revealed project delay as the vital problem in Iraqi petroleum construction projects. The respondents were asked about the root causes of the project delay. There were twenty causes which were ranked according to their significance. The most significant root causes were accepting the lowest bidder as a contractor, the contractor’s financial condition, use of traditional paperwork, unofficial and official holidays, and poor planning of the project.

Zarei, Sharifi, and Chaghouee [20] used semantic network analysis (SNA) to identify and rank the causes of delay in oil, gas, and petrochemical projects. This study not only identified and ranked delay causes but also analyzed their interrelationships. The causes of delays were grouped into contracting processes, initial negotiations, and control and planning process. The most significant causes of delay across the groups were wrong estimation or inaccuracy of costs in initial negotiation, and the time delay in the process of confirming suggestions or reviewing by engineering procurement (EP) in the planning and control process.

Pham and Hadikusumo [21] conducted a research investigating the delay causes in engineering, procurement, and construction (EPC) petrochemical projects in Vietnam. The research was performed by interviewing management-level officers from three EPC projects. A cross-case analysis was utilized to identify the most frequent and unique delay causes. The research revealed that the construction phase was responsible for most of the delay caused, followed by the engineering phase. In the construction phase, the top causes for delay were poor coordination and communication by the contractor, inadequate control procedure, and poor planning and scheduling. In the engineering phase, the top causes for delays were shop drawing delay and sample material approval delay by the owner, change in specification and project scope by the owner, and lack of input data by the contractor. The authors also mentioned that land acquisition is also a significant delay cause.

Alhajri and Alshibani [22] conducted another study in Saudi Arabia which identified significant factors for construction delays in Saudi Arabia. The authors initially identified delay factors through a literature review and interviewing local experts. Then, working professionals were asked to assess the severity of the identified factors, and the responses were then ranked using the Frequency Adjusted Importance Index (FAII). The top five delay causes were “Delay in equipment and material delivery”, “Delay in getting work permit”, “Poor site management and supervision by the contractor”, “Poor project planning and scheduling by the contractor”, and “Delay in decision making and approvals by the owner”.

Abdellatif and Alshibani [23] studied the causes of delays in industrial and manufacturing projects in Saudi Arabia. The methodology followed a similar pattern as [24] to identify and assess initial delay causes. The causes were analyzed in two categories—namely, the impact they cause, and their frequency of occurrence. The top impactful causes were “financing issues by contractor and manufacturer”, “late material procurement and delivery”, “delay in progress payment”, and “delay in design approval”. The top frequent causes were “delay in progress payment”, “financing issues by the contractor and manufacturers”, “delay in decision making”, “delay in material procurement”, and “delay in design approval”.

Basak, Coffey, and Perrons [25] investigated technical risks (TRs) and non-technical risks (NTRs) which cause schedule overruns in upstream natural gas projects, and investigated interactions between TRs and NTRs. Most of the factors discussed previously fall under TRs, where NTRs relate to socio-economic aspects. Firstly, the authors conducted a literature review and interviewed experts to arrive at 52 TRs and 18 NTRs. After these questionnaires were distributed to assess the TRs and NTRs, analysis was then performed on the data received using structural equation modelling. In terms of frequency, TRs were ranked much higher than NTRs, and the top-ranked delay causes were “Changes in the scope of the work by the client”, “Unclear cost estimation and unrealistic scheduling”, “Poor organizational structure of client and involvement of multi-level decision-making bodies”, and “Increasing in the complexity of projects”, respectively. All of these are TRs. However, in terms of rank, TRs were far higher than NTRs, with the highest NTRs being “Volatile oil prices” at 12th. However, NTRs were more impactful as they can cause, by themselves, a delay or trigger and amplify the TRs.

Most of previous studies were discussing the causes of delays in the construction of oil and gas projects in different countries. This paper puts the spotlight on construction project delays in one of the largest oil and gas production countries (the Kingdom of Saudi Arabia) and identifies the challenges that are not found in other countries. It also investigates the root causes of delay in the construction of oil and gas pipelines, evaluates delay causes, ranks them accordingly, and proposes practical solutions to overcome them.

3. Research Methodology

The research methodology developed in the study is described below and illustrated in Figure 1, and can be summarized as follows:

• A literature review was conducted to identify and list all possible causes of scheduling delays in oil and gas pipeline projects.
• Local experts in the field were interviewed to determine any causes not identified in the literature review and eliminate any causes unrelated to oil and gas pipeline construction projects in the Kingdom of Saudi Arabia.
• Based on the updated list, a questionnaire survey was developed and distributed to professionals and experts to specify, in their judgement, the degree of impact of each factor on a project schedule.
• Data were gathered from the survey to rank the level of importance of each factor.
• After identifying the top five causes of delays, further investigation was carried out by interviewing a specialist on each subject and researching related publications to determine the root causes of these causes.
• A questionnaire survey was prepared and distributed to clients, consultant contractors, and construction contractors.
• The data were analyzed using the (RII) to rank the level of importance of the root causes.
• Recommendations and solutions were developed.
• Conclusions were drawn from the results obtained.

4. Identification and Analysis of First-Level Causes of Delay

4.1. Identification

Here, the causes that may lead to schedule delays in the construction of oil and gas pipelines are identified. These conclusions are based on an extensive literature review. A total of 52 causes are listed and briefly explained as illustrated in

Table 1. Delay Causes List.

Delay Causes List
S/n	Description	Remarks	Category	Source
1	Client-related materials	Most of the materials are supplied by the client to control the quality and cost in bulk orders.	Client	1
2	Financial problems of the owner	Difficulties in getting banks loans; however, this factor is shortlisted by the interviewed experts as it is not one of the causes in KSA	Client	1
3	Delays in project financing	Delays due to the lengthy approval procedure to finance the project	Client	4
4	Shortage of experienced and qualified engineers	Having non-qualified engineers from the client side might result in misleading work and mistakes in the construction.	Client	1
5	Slowness in process of making a decision	Slowness in making decision due to the different personnel involved in the decision making and the uncertainty linked with the decision	Client	1&4
S/n	Description	Remarks	Category	Source
6	Change orders	In an advanced stage of the project, change orders have a negative impact on the project schedule and cost	Client	3
7	Cash flow and financial difficulties faced by contractor	Financial problems of contractors will directly impact the contractor-supplied material delivery, and labor productivity.	Contractor	1
8	Contractor communication	Miscommunication and slowness in processing the information between different departments, or language barriers between employees and labor.	Contractor	1
9	Delay in subcontractor’s work	Subcontractor’s work is directly managed by the main contractor; the selection of weak subcontractors or poor management might cause delays in the project.	Contractor	1
10	Incompetent site management and supervision	Not having the minimum required skills in managing the site	Contractor	1
11	Ineffective ways of monitoring and providing feedback	Improper monitoring and feedback could be time consuming and give faulty information to management	Contractor	1
12	Lack of experience and knowledge of contractor technical staff	Experienced contractor technical staff is facing and solving everyday problems of the project by looking at alternative solutions. On the hand, having less experienced staff might lead to mistakes and rework.	Contractor	1&3
S/n	Description	Remarks	Category	Source
13	Laborer low productivity	The labor is taking more than the planned and normal time to execute the job	Contractor	3
14	Defective components	Defective materials supplied by the contractor	Contractor	2&3
15	Planning and scheduling deficiencies	Weakness in defining the job responsibilities, method of construction, assigning resources and time for the project activities.	Contractor	1
16	Poor contractor performance	Contractor deliverables and performance in general	Contractor	1
17	Inadequate quality assurance/control	Failing to meet the quality requirement set by the client	Contractor	4
18	Delay in performing inspection and testing	Different inspections and testing are done after each activity of the project; each activity cannot proceed without performing and getting the required testing results.	Contractor	4
19	Unfamiliarity with government regulations and laws	Usually, new foreign and unexperienced contractors are not familiar with government regulations and laws.	Contractor	4
20	Supply of low-efficiency equipment	Equipment with lower productivity than planned, and lower reliability with high number of breakdowns.	Contractor	2
S/n	Description	Remarks	Category	Source
21	Poor coordination of subcontractors	The main contractor failing to manage the different subcontractors working under the contract	Contractor	1
22	Delay in preparation and approval of drawings	Each engineering package is going through preparation phase by designer, and then approval and review by designer, supervision, and management, and by the client as well.	Engineering	4
23	Delay in approving major changes in scope of work	Long hierarchy of approval	Engineering	1
24	Methods of construction and constructability	Selecting the appropriate construction method and reflecting the constructability constraints on the design of the project	Engineering	1
25	Re-engineering of different units caused by poor design package	Re-issuance of the design package due to large number of mistakes. If the re-engineering occurs during the construction phase, it causes big losses in schedule and cost	Engineering	4
26	Poor interaction with vendors in the engineering and procurement stages	Weak communication between vendors, suppliers, and consultant contractors during the design stage is resulting in delays of materials or failure to provide the service in the scheduled time.	Engineering	1
27	Delay in reviewing of documents	Reviewing of the engineering, quality procedures, and updated standards documents	Engineering	3
S/n	Description	Remarks	Category	Source
28	Escalation in material prices	Increase of the material prices with time; however, this factor has negligible effect on the project since the major and most expensive materials are provided by the clients in KSA	External	1&2
29	Permit approval—local and central government	A permit to work is given to the construction contractor by the client to work at the site on daily basis to ensure that the work is being done in safe environment. Moreover, a permit is given to the contractor by central government to allow the contractor working inside the country	External	1
30	Support from other sectors	Getting support from the other governmental sectors	External	1
31	Uncertainties of large projects	Project with multiple outcomes	External	1
32	Virtual communication method	Communication online, via phone or e-mails	External	1
33	Regional differences based on learning experience, professional standards, the local content policy, the local capacity, and government stability		PMT	1
S/n	Description	Remarks	Category	Source
34	Contractor selection methods	Selection of the appropriate and capable contractor based on type of work against contractor experience, project size, etc.	PMT	1
35	Higher number of joint-venture (JV) partners	High number of joint-venture partners is resulting in different goals and objectives which might cause difficulties and slowness in making decision.	PMT	1
36	Inexperienced project management team	Project management team with less knowledge about project management principles, measurement, and control tools.	PMT	1
37	Lack of effective communication among project stakeholders		PMT	1
38	Lack of effective leadership	Failing to clear the vision of the project and motivating people to work on that vision	PMT	1
39	Land expropriation	Land expropriation is the act of taking private properties by the government to utilize it for the public projects	PMT	1
40	Improper risk assessment of the project	Project team to find, categorize, prioritize, and then avoid the expected risks ahead of time	PMT	1
41	Transportation for equipment	Difficulties are faced during the transportation of oversize equipment and pipes that require special roads and moving time range.	PMT	1
S/n	Description	Remarks	Category	Source
42	Underestimating of project cost	Having a low estimate for the project will cause early overrun during construction; increasing the budget is a lengthy process and requires a lot of approvals and justifications	PMT	1
43	Underestimating the complexity of projects	In some cases, projects are measured against similar projects of the same type; however, there are other factors that might give each project unique difficulties and challenges	PMT	1
44	Unrealistic project duration	Client might provide a very tight project duration due to the urgency of the project; however, by doing so the number of mistakes during construction might increase and a lot of rework is done which lengthens the project duration	PMT	1
45	Delay in material and equipment delivery	Material & equipment releasing, collection, and delivery to the site on time.	Resources	1
46	Delay in start of purchasing long-lead items	Long-lead items are items that takes a long duration from the time they are purchased and delivered	Resources	1
47	Process of hiring foreign workers	Hiring foreign manpower consumes time in getting the required visa and residential process.	Resources	1
48	Impractical allocation of resources	Resource allocation is a plan for utilizing available resources	Resources	1
S/n	Description	Remarks	Category	Source
49	Shortage of labor	It is the condition of having insufficient qualified manpower for the available work front	Resources	1
50	Late supply of workers		Resources	2
51	Adhering to safety rules	Major safety incidents causing the stopping of work	other	2
52	Harsh and unexpected weather condition	Bad and unexpected weather condition affecting the construction work at the site.	other	4

.

4.2. Expert Interviews

After identifying the causes of schedule delays, interviews with three local experts were conducted. The following causes that are unique to the Saudi oil industry were then added to the list. Other causes were deleted or paraphrased. The final list of causes is presented in

Table 2. Factors Added by Experts.

Added by Experts
S/n	Factor	Description
1	Shutdown	Scheduled down period for a plant for scheduled maintenance
2	Change in scope of work	A change in scope of work is utilized to have extra or less work compared to scope of work agreed. Changes in scope can impact the schedule cost, affecting the quality of the project
3	Interference with another contractor	In projects divided between more than one contractor, the contractors can work as one team and reach a meeting point in the project.
4	Quality violations	Quality violations by construction team leading to rework and having less productivity
5	Nonpayment to labor which leads to strikes	Strikes due to the mass rejection of labor to work
6	Unknown data during design stage	Unknown data during the design stage which leads the consultant to make assumptions and re-engineering during construction time
7	Hierarchy in making decisions	Involves making decisions based on formal positions of authority which leads to slowness in making decisions
8	Type of contract	Whether it is lump sum, work unit rate, or cost-plus contract

.

The causes listed below were deleted from the list because they were not considered major causes in KSA:

• Owner’s financial problems
• Defective components
• Inadequate quality assurance/control
• Delays in approving major changes to the scope of the work
• Poor interaction with vendors in the engineering and procurement stages
• Increases in the price of materials
• Support from other sectors
• Uncertainties inherent in large projects
• Virtual communication methods
• Regional differences based on learning experience, professional standards, and local content policies
• Local capacity and government stability
• Inexperienced project management team
• Lack of effective leadership
• Delays in purchasing long-lead items
• Late supply of workers

4.3. Survey and Data Analysis

An online survey was developed and divided into three sections. The first section contained general questions to gather information related to the characteristics of the respondent, such as their entity classification, job position, and years of experience; this ensured the reliability of the data collected. The second section contained the finalized list of delay causes for oil and gas projects. Respondents were asked to specify the extent to which they agreed or disagreed with each delay cause listed: selecting ‘1’ meant they strongly disagreed and selecting ‘5’ meant they strongly agreed. The final section of the survey contained an open question where the respondent could add any cause that is not listed on the survey if they felt it was a major contributor to project delays.

The majority of responses were from contractors (44.1%) and owners (32.4%); these were supplemented by responses from consultants (8.8%) and others (14.7%). In terms of job positions, most respondents were either project engineers (47.1%) or site engineers (32.4%), followed by other job positions (17.6%). One response was received from a project manager (2.9%). Respondents’ years of experience were almost equally distributed: 1 to 5 years (29.4%), 6 to 10 years (32.4%), and 11 to 15 years (26.5%). A minority of respondents had more than 15 years of experience (11.8%).

Equation (1) is used to calculate the relative importance index. Table 3 shows the top ten causes after applying the above method.

$$RII=\frac{{{\displaystyle \sum }}_{i=1}^{i=N}S{S}_i}{HS\ast N}\ast 100$$

(1)

where:

• RRI is the relative importance index;
• i is the respondent number;
• SSi is the score selected by respondent i;
• HS is the highest score, in this case, 5;
• N is the total number of respondents;

Table 3. Normal Ranking.

Normal Ranking
S/n	CAUSE	RII (%)
1	Client-related material	82.35
2	Delay in material and equipment delivery	80
3	Permit approval—local and government	78.29
4	Delay in subcontractor’s work	78.24
5	Delay in preparation and approval of drawings by engineering consultant	77.65
6	Delay in reviewing of documents	77.65
7	Re-engineering caused by poor design package	77.06
8	Planning and scheduling deficiencies	77.06
9	Lack of effective communication among project stakeholders	75.88
10	Shortage of labor	75.29
11	Change orders	75.29

Table 3. Normal Ranking.

Normal Ranking
S/n	CAUSE	RII (%)
1	Client-related material	82.35
2	Delay in material and equipment delivery	80
3	Permit approval—local and government	78.29
4	Delay in subcontractor’s work	78.24
5	Delay in preparation and approval of drawings by engineering consultant	77.65
6	Delay in reviewing of documents	77.65
7	Re-engineering caused by poor design package	77.06
8	Planning and scheduling deficiencies	77.06
9	Lack of effective communication among project stakeholders	75.88
10	Shortage of labor	75.29
11	Change orders	75.29

The second method for ranking the top ten delay causes was based on giving preference to certain types of respondents based on their characteristics. This method considers each respondent to be a voter. Each preferred respondent was given more votes, as summarized in

Table 4. Weighing Criteria.

S/n	Job Position	Experience	Adjusted Number of Votes (ANV)
1	Project Manager	More than 10 years	2
2	Project Engineer	More than 10 years	2
3	else	-	1

. These responses had greater weight than those of other respondents. Figure 2 and Figure 3 show the vote distribution of preferred respondents before and after applying the adjustment.

The following formulae were used to calculate the RII for each case, considering the number of votes adjusted based on the respondents’ characteristics.

$$\begin{array}{l}AN{V}_i\\ =\left\{\begin{array}{c}2, if Job Position is Project Mgr. or Project Engr. and experience>10\\ 1, otherwise\end{array}\right.\end{array}$$

$$RII=\frac{{{\displaystyle \sum }}_{i=1}^{i=N}AN{V}_i\ast S{S}_i}{HS\ast {{\displaystyle \sum }}_{i=1}^{i=N}AN{V}_i}\ast 100$$

(2)

The resulting ranking based on the above formula is summarized in

Table 5. Weighted Ranking.

Weighted Ranking
S/n	CAUSES	RII (%)
1	Client related material	83
2	Delay in material and equipment delivery	80.5
3	Permit approval—local and government	80
4	Delay in subcontractor’s work	78.5
5	Delay in preparation and approval of drawings by engineering consultant	78
6	Delay in reviewing of documents	78
7	Re-engineering caused by poor design package	77
8	Shortage of labor	77
9	Lack of effective communication among project stakeholders	76
10	Change orders	75.5
11	Planning and scheduling deficiencies	75.5

.

A second method was separately applied to each group to rank the delay causes from their points of view.

Table 6. Top ten causes from owner point of view.

s/n	CAUSES	RII (%)
1	Client-related material	91.43
2	Shutdowns	90
3	Poor contractor performance	90
4	Non-payment to labor which leads to strikes	90
5	Shortage of labor	88.57
6	Delay in subcontractor’s work	87.14
7	Lack of experience and knowledge of contractor technical staff	87.14
8	Permit approval—local and government	85.71
9	Incompetent site management and supervision	84.29
10	Method of construction and constructability	84.29

shows the top 10 causes from the owners’ point of view,

Table 7. Top ten causes from contractor point of view.

S/n	CAUSE	RII (%)
1	Client-related material	82.22
2	Delay in material and equipment delivery	81.11
3	Delay in preparation and approval of drawings by engineering consultant	77.78
4	Re-engineering caused by poor design package	77.78
5	Permit approval—local and government	76.67
6	Client slowness in process of making decision	75.56
7	Delay in subcontractor’s work	75.56
8	Change rrders	74.44
9	Delay in reviewing of documents	74.44
10	Cash flow and financial difficulties faced by contractor	73.33
11	Adhering to safety rules	73.33

is the same from the contractors’ point of view, and

Table 8. Top ten causes from consultant point of view.

S/n	Cause	RII (%)
1	Client-related material	73.33
2	Client slowness in process of making decision	73.33
3	Change orders	73.33
4	Permit approval—local and government	73.33
5	Client shortage of experienced and qualified engineers	66.67
6	Contractor communication	66.67
7	Delay in subcontractor’s work	66.67
8	Ineffective ways of monitoring and feedback	66.67
9	Planning and scheduling deficiencies	66.67
10	Delay in performing inspection and testing	66.67

is from the consultants’ point of view.

4.4. First-Level Causes

The causes highlighted in red appeared in all scenarios identifying the top 10 causes. Client-related material received the highest score in all scenarios. Thus, it should be further investigated to find the root causes and suggest solutions. After categorizing the responses by type of firm (i.e., client, contractor, or consultant), it was clear that firms tended to blame one another (see Table 6, Table 7 and Table 8). Another observation regarding consultant input is that consultants attempted to maintain neutrality while completing the survey, perhaps due to an absence of expertise in the field of construction. Even though each firm was biased, they all agreed that permit approval and delays in subcontractor work were key causes for project delays. Therefore, these causes should also be given priority when taking corrective and preventative actions. In furtherance of that goal, these causes were further analyzed and investigated in the present research in order to formulate reasonable solutions.

5. Second-Level Causes of Delay

In this section, the top five causes of construction delays are identified and analyzed using the root cause analysis technique, in order to assist in formulating solutions to the problems ranked above. These are:

• Client-related material;
• Delays in materials and equipment delivery;
• Permit approval, both local and governmental;
• Delays in subcontractor work;
• Delays in the preparation and approval of drawings by engineering consultants.

Root cause analysis in project management is a systematic process for determining the main causes behind problems, in order to formulate ways of reacting that encourage the prevention of reoccurrence. To perform the analysis for this study, we collected data on the sub-causes of the top five causes identified above, asking why each factor would delay a project. Data were collected from a literature review and expert interviews. The next step was the prioritization of the causes, accomplished by a questionnaire and ranking the causes using the RII technique. Below are suggestions regarding solutions to the core problem.

5.1. Sub-Factors of Delay

5.1.1. Client-Related Material

All piping material (i.e., pipes, fittings, and valves) and other related electrical and instrumentation materials required for oil and gas pipeline projects in Saudi Arabia are supplied by the client. A total of seven causes were identified, three (i.e., quality of the materials supplied, quality of the packaging and handling, and changes in the material’s price) were obtained from the literature review and another four were gathered from interviewing local experts. These causes are listed below and briefly explained.

Quality of Materials Supplied

The goods and materials supplied should comply with the international and special company standards and specifications. Defects lead to the rejection of the materials received during the construction phase of the project.

Logistics

Logistics are the procedures for planning and performing the efficient transportation and storage of goods from the materials factory to client-owned stores.

Quality of Design Requirements

This is the degree of accuracy of the designer in describing the materials specifications required for the project so the buyer can issue appropriate purchase orders.

Changes in Materials Specifications

Piping materials are considered long-lead items. Accordingly, these items are forecasted in proper inventory planning. Changes in materials’ requirements and specifications make inventory control challenging.

Preservation of Materials in Client Stores

It is necessary to implement a proper preservation program against weather erosion and corrosion causes such as rain and sandstorms.

Quality of Packaging and Handling

Materials supplied should be properly packed, well preserved, and handled carefully during transportation to prevent damage.

Changes in Materials Prices

Changes in the prices of materials impact purchasing. This also includes approval through bureaucratic processes, which impacts the time needed to approve any changes.

5.1.2. Delays in Materials and Equipment Delivery

One of the top five causes of delay as identified in the first survey was whether the construction contractor released, collected, and delivered materials on time to the construction site. Four sub-causes were identified from the literature review and expert interviews. The causes obtained from the experts included the availability of the contractor’s resources (e.g., trucks, cranes, manpower), and oversized materials and equipment transportation. The others were obtained from the literature.

Availability of Contractor Resources

Transportation and lifting resources should always be available and reliable for service. Trained and skilled operators should be available and manage to perform the job at the required time, without delay.

Delivery Accuracy

The required quantity of the correct material should be delivered accurately and without shortage. In addition, the appropriate material should be collected and delivered to the project, without error.

Inspection Document Accuracy and Delivery

Documentations for quality control and assurance should be handled correctly and distributed to the construction team without delay or mistakes.

Transportation of Oversized Materials and Equipment

In some piping construction projects, transportation of oversized cranes, pipes, valves, and other equipment require special trailers and transportation plans.

5.1.3. Permit Approval: Local and Governmental

Another delay factor in our ranking after materials-related problems was work permit issuance. Work permits for construction sites function as a control method to protect the project’s overall level of safety. In this section, I identify the causes of delays to work permit approval. Inspection time during issuance and interpersonal conflict were both identified from the literature review, while other causes were determined from the expert interviews.

Inspection Time for Permit Issuance

This is the total time needed to perform the required inspection of safety items and personnel qualifications to issue the daily work permit.

Interpersonal Conflicts

Interpersonal conflicts occur if one or more employees frustrate or interfere with the goals of other employees. In a business framework, this includes interference with the completion of work tasks and goals.

Number of Agencies Required for Permit Approval

The number of different agencies involved in acquiring work permits varies from region to region. A pipeline project could intersect with electric power lines, water supply pipelines, communication lines, and roads. As the number of agencies increases, work permit approval grows more challenging.

Issuer Responsibility and Accountability

The organizational structure of the client’s company is usually divisional. The work permit issuer has no obligation to the project with regard to on-time completion or level of performance. This type of structure can cause delays by not guaranteeing the support required by the project team.

Issuer and Receiver Knowledge of Permit Requirements

The degrees of knowledge of the issuer and receiver of the work permit requirements determine the timely fulfillment of requirements. After issuance, delays may occur if the work is stopped by a safety team because of failure to meet safety requirements.

Unexpected Weather Conditions

In Saudi Arabia, sandstorms, heat, rain, and other harsh weather conditions onsite can impact daily work permit issuance and delay project completion if not properly considered during the planning phase.

5.1.4. Delays in Subcontractor Work

Oil and gas pipeline construction projects include different technologies that require contributions from individuals with different specialties. Accordingly, subcontracting has emerged as a means of performing these project activities. However, subcontracting and control of subcontractors may cause construction delays. In this section, I describe four causes of delay related to subcontractor work, as obtained from the literature review.

Disputes between Contractors and Subcontractors

Disputes may be the result of ambiguous contract language, late payment, or quality of work.

Market Availability of Subcontractors

The scarcity of subcontractors able to perform certain tasks and use unique technology makes projects dependent on subcontractor availability.

High Degree of Subcontracting on a Project

According to Albino and Garavelli, “subcontractors can contribute more than 50% and can be as much as 90% of total project value to a construction process” [24]. Project delivery is highly dependent on subcontractors’ work performance.

Subcontractor Coordination and Control

Subcontractor coordination and control involves specifying the communication channels employed among the subcontractors to control a project’s scope, quality, and schedule.

5.1.5. Delays in Preparation and Approval of Drawings by Engineering Consultants

Approved construction engineering drawings are required in every project. In pipeline construction projects, engineering drawings are usually produced by engineering consultant firms and then reviewed and approved by the client and project owner’s engineers. The preparation and approval processes are major causes of delay. Accordingly, I obtained sub-causes of such delays from expert interviews. These causes are listed and explained below.

Approval System for Engineering Packages

After the construction engineering drawings are completed, all documents are reviewed electronically by the client’s engineering team, facility owner, and other parties to ensure compliance with the client’s requirements. Comments from these parties must be addressed before issuing the final engineering package.

Quality and Number of Errors Encountered in the Design

The number of human errors and mistakes in the design package that require corrections and modifications affect delays. Moreover, inaccurate information in design packages such as materials specifications, quantities, and dimensions result in rework at the construction site.

Complexity of the Project

Sets of problems consist of many varied and interrelated parts. One example is designing a pipeline that moves through sensitive environments such as existing cities, highways, and plants.

Insufficient Data during the Design Stage

Unknown or incomplete data and information about the project and other technical details like oil or gas reservoir specifications and parameters may lead to delays.

Figure 3 below shows the root of identified causes in this study.

5.2. Root Cause Survey and Data Analysis

5.2.1. Survey Policy

Data ranking the importance of root causes were collected using an online survey questionnaire. As with the first survey conducted, a root cause analysis survey was developed to identify the respondent companies’ field classifications (i.e., client, contractor, engineering consultant, and other). The survey also identified the respondents’ positions within their respective companies (i.e., project manager, project engineer, site engineer, and other). The respondents’ years of experience were also taken into consideration. Respondents were also asked to specify to what extent they agreed or disagreed with each root cause delay factor listed, with selecting ‘1’ indicating strongly disagree and ‘5’ indicating strongly agree. The RII was used to analyze and rank the data gathered, using Equations (1) and (2) for the weighted ranking that took respondents’ levels of experience and positions into consideration.

5.2.2. Respondent Statistics

The total number of responses gathered from the questionnaire was 51. There were 19 client responses, 20 from contractors, four from engineering consultants, and eight from other disciplines. Regarding respondents’ positions in their respective companies, there were two project managers, 10 project engineers, 21 site engineers, and 18 with other positions. Respondents’ levels of experience were categorized into four groups: between 0 and 5, 6 and 10, 11 and 15, and more than 15 years, in which there were 26, 7, 6, and 12 respondents, respectively.

5.2.3. Relative Importance Index Results

Using the adjusted formula in Equation (2), the root causes of delays in oil and gas construction projects are ranked (see

Table 9. Weighted ranking of root causes of delay in oil and gas project in KSA.

1st-Level Delay Causes	2nd-Level Delay Causes	RII %	Ranking
Client-related material	Quality of supplied material	65.2	11
	Logistics	63.9	13
	Accuracy degree of design requirement	69.8	3
	Changes in material specification requirement by client	65.5	10
	Preservation of material in client store	61.6	18
	Quality of packaging and handling	53.4	25
	Changes in material price (including approval process of new prices)	53.4	24
Delay in material and equipment delivery	Availability of contractor’s resources (truck, cranes, manpower)	70.8	1
	Delivery accuracy (quantitatively & qualitatively)	67.8	5
	Documents accuracy	66.2	9
	Transportation of oversize material and equipment	59.3	20
Work permit approval	Inspection time during the issuance	59.3	21
	Interpersonal conflict	54.0	23
	Number of agencies to acquire the approval from	69.8	4
	Issuer responsibility and accountability toward the project	62.9	16
	Manpower and vehicles shortage	70.4	2
	Issuer and receiver knowledge of the permit requirements	57.0	22
	Weather condition (wind, heat, and rain)	61.3	19
Delay in subcontractor’s work	Disputes between contractor and subcontractors	66.5	8
	Market availability of subcontractors	63.9	14
	High degree of subcontracting in the project (number of subcontractors)	63.6	15
	Subcontractor coordination and control	67.2	6
Delay in preparation and approval of drawings by engineering consultant	The approval system of the engineering packages (E-Review)	64.2	12
	Quality and errors encountered in the design	67.2	7
	Complexity of the project	62.6	17
	Insufficient data during design stage	65.2	12

).

Using the same Equation (2), the top 10 causes from clients, contractors, and engineering consultants are ranked (see

Table 10. Root cause in client point of view.

Client Point of View
S/n	2nd-Level Delay Factor	RII %
1	Accuracy degree of design requirement	84.3
2	Quality and errors encountered in the design	77.4
3	Number of agencies to acquire the approval from	77.3
4	Availability of contractor’s resources	76.5
5	Manpower and vehicles shortage	75.6
6	Delivery accuracy (quantitatively & qualitatively)	73.9
7	Insufficient data during design stage	72.1
8	Documents accuracy	71.3
9	Subcontractor coordination and control	67.8
10	The approval system of the engineering packages	67.8

,

Table 11. Root cause in contractor point of view.

Contractor Point of View
S/n	2nd-Level Delay Factor	RII %
1	Quality of supplied material	68.8
2	Manpower and vehicles shortage	68
3	Availability of contractor’s resources	66.4
4	Number of agencies to acquire the approval from	64.8
5	Subcontractor coordination and control	64.8
6	Changes in material specification requirement by client	64
7	Market availability of subcontractors	64
8	High degree of subcontracting in the project	64
9	Disputes between contractor and subcontractors	63.2
10	The approval system of the engineering packages	63.2

and

Table 12. Root cause in consultant point of view.

Engineering Consultant Point of View
S/n	2nd-Level Delay Factor	RII %
1	Changes in material specification requirement by client	80
2	Number of agencies to acquire the approval from	80
3	Insufficient data during design stage	80
4	Disputes between contractor and subcontractors	76
5	Subcontractor coordination and control	76
6	Delivery accuracy (quantitatively & qualitatively)	72
7	Documents accuracy	72
8	Issuer responsibility and accountability toward the project	72
9	Market availability of subcontractors	72
10	High degree of subcontracting in the project	72

, respectively).

5.3. Root Causes

After performing the RII to rank the root causes, it was determined that three of the top delay causes were related to delays in materials and equipment delivery. Availability of the contractor’s resources was ranked the highest, with a 70.8% RII. This factor was ranked third and fourth by clients and contractors, respectively. Materials and equipment delivery appeared in the top ten list as well, in addition to documents and delivery accuracy. Thus, it should be given the highest priority in order to improve project performance.

The second factor listed in the weighted RII ranking was manpower and vehicle shortages associated with issuing daily work permits at the construction site, with an RII value of 70.4%. Work permit issuance has become a major challenge that needs to be resolved. An RII of 69.4% indicates the number of agencies finding it difficult to acquire approval for work permits.

In reference to client-related material, the degree of accuracy in the design requirements and changes in materials specifications were ranked third and tenth on the RII ranking list, with values of 69.8% and 65.5 %, respectively. The accuracy of the design was ranked highest from the client’s point of view. Engineering consultants identifying changes in materials specification requirements was ranked highest by clients.

Regarding delays in subcontractor work, it was found that disputes between contractors and subcontractors, as well as subcontractor coordination and control, were among the top ten root causes, with values of 66.5% and 67.2%, respectively.

Finally, consultant approval of the engineering was a main delay because of the level of quality and number of errors encountered in designs. However, from the engineering consultants’ point of view, the main delay factor was changes in materials specifications by the client.

Each factor defined by this analysis could be further investigated using the “five whys” technique developed by Sakichi Toyoda and used by Toyota Motors to enhance quality. Simply put, the process involves asking the question “why” five times, though in practice the question might be asked more or less than five times until logical reasoning allows possible solutions to appear.

6. Recommendations and Proposed Solutions

In this section, I highlight the top ten root causes and describe the advice and recommendations obtained from the literature on project management.

6.1. Client-Related Materials

Client-related materials or materials supplied by the client were the first cause of delay in the first survey. We found that the quality of the design and changes in materials specifications by the client were among the top ten causes identified by the root cause analysis.

6.1.1. Quality of Design

The quality of the design means the degree of accuracy of the designer in describing the materials specifications required for the project so that the buyer can issue the correct purchase order. Issues here can be resolved by introducing a task force team member. Task forces are committees composed of representatives from each unit who meet, discuss, and come to understand the requirement.

6.1.2. Changes in Materials Specification

As piping project materials are considered long-lead items, the process for forecasting and purchasing such materials can be challenging and complex, especially when the materials specifications and requirements change frequently. To overcome this challenge, the client should reduce their resource dependence by striving to acquire control over the necessary resources; this will mitigate their dependence. Control of external resources can be achieved by maintaining a balance, establishing interorganizational linkages through ownership, formal strategic alliances, and joint ventures. In so doing, the client can use the “just in time” inventory technique to reduce the lead time of required materials.

6.2. Delays in Materials and Equipment Delivery

6.2.1. Availability of Contractor’s Resources

Availability of the contractor’s resources (e.g., trucks, cranes, manpower) was ranked as the highest root cause of delay. In response to this problem, the project management team should ensure that the proper resources are available prior to the project being awarded. Moreover, extensive planning is required to account for transportation times for materials and other available resources.

6.2.2. Quantitative and Qualitative Accuracy in Delivery

Quantitative and qualitative accuracy in materials and documents delivery can be enhanced by providing more training to the materials team, as well as by utilizing new software to manage the materials. This will facilitate real-time knowledge that will assist with managing, controlling, and tracking materials. Moreover, such software will enhance document accessibility for different units in the contractor’s organization.

6.3. Work Permit Approval

The survey ranked the number of agencies required to obtain approval, and manpower and vehicle shortages as the highest causes of delay in work permit issuance.

6.3.1. Number of Agencies Required for Approval

The current practice in granting work permits during project startup involves going to the different agencies using the land for business or community services. For example, these may include cables for the electric company, cables for communications companies, water pipelines, and restricted military areas. The large heterogenous number of external elements and dynamic nature of these causes creates a complex and unstable external environment with high levels of uncertainty. Therefore, it is recommended that an organic organizational structure be adopted by construction firms. Organic structures focus on teamwork, decentralized authority, and distribution of responsibility to lower levels of employees, which enhances response speed in this type of situation. Extensive planning and forecasting are also required to account for all possible scenarios in the construction field. Another solution is linking all of these elements electronically in a single system and assigning the municipality each area of responsibility and focal point for work permit issuance. This will mitigate uncertainty and reduce the time spent obtaining the permit.

6.3.2. Manpower and Vehicle Shortages

This factor is related to daily work permit issuance from the company proponent (i.e., the site owner) to the construction contractor and project management team to ensure site and personal safety. A work permit is issued after physically visiting the site and performing the required inspection. Sites are scattered across large geographical areas. This leads to delays in the issuer reaching the site if one issuer covers more than one site. In response to this problem, the following solutions are suggested. First, the manpower and vehicle numbers should be increased to accommodate the number of ongoing projects. Another solution is decreasing the formalization of work permit issuance and shifting the responsibilities of site safety and work permits to the project management team during the construction phase. Another possible solution is decreasing the issuance frequency to weekly or monthly.

6.4. Delays in Subcontractor Work

Disputes between contractors and subcontractors, and subcontractor coordination and control were ranked in the top ten causes in the survey. Accordingly, selecting the right contractor is very important to the success of the project. However, this will not always guarantee a dispute-free environment. Therefore, determining this factor’s root causes requires further investigation. However, empowering the contractor’s employees with conflict resolution skills and techniques is one likely solution.

6.5. Delays in the Preparation and Approval of Engineering Drawings

The level of quality and number of errors in the design were ranked as the seventh root cause in the survey. Consequently, more focus on this topic and implementation of a project quality plan and producer are needed to reduce human error. A quality assurance manager should verify that all project documents are checked in accordance with the quality plan.

7. Conclusions

To conclude, a literature review was conducted to identify the reasons for delays in oil and gas pipeline construction projects. A total of 53 causes were identified from the literature. Then, two local experts were interviewed (one project engineer and one planning and scheduling engineer) in order to refine the causes obtained from the literature review and modify their causes. The experts deleted 15 and added eight causes. A final list of 47 was distributed locally in an electronic questionnaire. Thirty-four responses were received, and these were analyzed to identify the major delay causes.

The analysis was based on the RII of each delay factor. Five ranking scenarios were carried out: normal, weighted, weighted from the client’s point of view, weighted from the contractor’s point of view, and weighted from the consultant’s point of view.

Client-related material, delay in material and equipment delivery, permit approval, delay in subcontractors’ work, and delay in preparing and approval of engineering drawings were found to be the top five major delay factors in oil and gas pipeline construction projects in Saudi Arabia.

It should be noted that this study is limited to investigating the delay causes of the construction projects of oil and gas in Saudi Arabia. It is also limited to the gathered data from literature, experts, and surveys. Future works should investigate the delay causes of construction in different types of projects as well as in different countries. Further studies should shed light on the economic impact of delay causes in the construction of oil and gas projects.