Risk assessment in Iranian oil and gas construction industry: a process approach

Abstract

Purpose

Successful risk management is influential in different phases of construction projects. It can play a critical role in reducing the possibility of claims as well as related disputes. The risk management knowledge area in large capital projects such as oil and gas is considered a questionable problem in the construction industry. The present study makes an effort to identify the importance of process groups in improving risk management performance.

Design/methodology/approach

This study is selected and ranked 36 factors leading to the claim in Iran's oil and gas industry through the Delphi method and a questionnaire. Factors categorized into a risk breakdown structure (RBS) include eight groups. Factors are linked to one of the process groups by a Delphi method. Finally, the relationship between RBS and the five process groups is analyzed using partial least squares structural equation modeling (PLS-SEM).

Findings

Findings showed that the planning process group had more confirmed factors than others. Most of the supported communications belonged to the contractor and the owner parties. Also, the cause of delay in the implementation phase due to the contractor performance had a higher relative importance index.

Originality/value

This article, from a project life-cycle perspective, considers the new structure between the risks leading to claims and the key parties to the project. It can be a good criterion for identifying risks and a timelier response to them before the risks turn into disagreements.

Citation

Sohrabi, H. and Noorzai, E. (2023), "Risk assessment in Iranian oil and gas construction industry: a process approach", International Journal of Quality & Reliability Management, Vol. 40 No. 1, pp. 124-147. https://doi.org/10.1108/IJQRM-03-2021-0069