Delay in Pipeline Construction Projects in the Oil and Gas Industry: Part 1 (Risk Mapping of Delay Factors)

Delay in Pipeline Construction Projects in the Oil and Gas Industry: Part 1 (Risk Mapping of Delay Factors)

Source: http://article.sapub.org

Abstract

Delay in pipeline construction projects in the oil and gas industry attributed by schedule and budget overruns is a major challenge in oil and gas industry. A total of 47 delay factors were identified and ranked where timely project completion alongside with adherence to the budget, quality and safety standards were found to contribute to a project success. Some of the factors identified in the study included: poor managerial skill, slow decision making within all project teams; lack of communication between client, consultant and contractor; inadequate design team; scope variations; unrealistic contract decision and delay in drawings preparation of the project. This paper identifies the factors causing delays and the risk associated with them in the pipeline construction projects in Bahrain. A risk mapping matrix was employed to classify each delay factor under a specific zone based on the mean value of Importance (Consequence) and Frequency (Likelihood) to illustrate the impact nature of the risks resulting from the delay factor. The study adopted a mixed method research design approach which was guided by a pragmatic philosophical stance. The results of this study indicated that inadequate project planning, budgeting, and scheduling, scope variation, and late materials delivery were the main delay causing factors. The research also provides recommendations such as contractor penalties and proper project team engagement have been made to help avoid and mitigate some of the risks to ensure efficiency and timely project completion. Read more.

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