Investigating Risk Factors in Tender Process Effecting on Contract Implementation Stage in Onshore Oil and Gas Production Facilities Projects

Abstract

Risk factors in oil & gas production facilities projects tender process contribute to project poor quality, delay, cost overrun, claims, disputes, litigation, failure/abandonment, and a bad reputation for the company, in the contract implementation stage, in Arab countries, such as Yemen. This study investigates risk factors in the tender process in onshore oil and gas production facilities projects, via exploratory factor analysis to extract the significant variables based on results of 400 distributed questionnaire in 65 risk factors in nine constructs; and confirmatory factor analysis to ensure, assess, and /or evaluate the explored risk factors. The results show the goodness of fit for the measurement model of extracted risk factors 60 items in nine constructs. The findings help all parties involved in oil & gas production facilities projects to achieve better attention and allocation of risks in the tender process, as well as good control of risk in the contract implementation stage. Moreover, provide support for practitioners to incorporate risk potential analysis in future projects. Such will also be useful to researchers in the field of oil & gas projects to have better understand the risk factors in developing countries.