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Cited by 36Construction Project Management and PerformanceCapital Investment and Risk AnalysisBIM and Construction Integration

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Risk Management Assessment in Oil and Gas Construction Projects Using Structural Equation Modeling (PLS-SEM)

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Kassem, Mukhtar A.·2022·Gases
DOI 10.3390/gases2020003
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Abstract

Oil and gas construction projects are of great importance to support and facilitate the process of operation and production. However, these projects usually face chronic risks that lead to time overrun, cost overrun, and poor quality, affecting the projects’ success. Hence, this study focused on identifying, classifying, and modeling the risk factors that have negative effects on the success of construction projects in Yemen. The data were collected through a structured questionnaire. Statistical analysis, relative important index method, and probability impact matrix analysis were carried out to classify and rank the risk factors. The partial least squares path modeling or partial least squares structural equation modeling (PLS-PM, PLS-SEM) is a method for structural equation modeling that allows an estimation of complex cause–effect relationships in path models with latent variables. PLS-SEM was employed to analyze data collected from a questionnaire survey of 314 participants comprising the clients, contractors, and consultants working in oil and gas construction projects. The results showed that the goodness of fit index of the model is 0.638. The developed model was deemed to fit because the analysis result of the coefficient of determination test (R2) of the model was 0.720, which indicates the significant explanation of the developed model for the relationship between the causes of risks and their effects on the success of projects. The most impacted internal risk categories include project management, feasibility study design, and resource material availability. The main external risk elements include political, economic, and security considerations. The created risk factor model explained the influence of risk factors on the success of construction projects effectively, according to statistical and expert validation tests.

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Metadata

Authors
Kassem, M. A.
Affiliations
University of Technology Malaysia (MY)
Corresponding author
Kassem, Mukhtar A.
ORCID
Kassem, Mukhtar A.
Venue
Gases
Publisher
MDPI AG
Published
2022-05-09
Volume
2
Issue
2
Pages
33-60
ISSN
2673-5628 (ISSN-L)
DOI
10.3390/gases2020003
OpenAlex
W4229459718
Cited by
36
References
1
Citations by year
2026: 11 · 2025: 6 · 2024: 6 · 2023: 11 · 2022: 2
FWCI
3.31
Type
journal article
Language
en
Open access
Licence
Locations
  • Gases (publishedVersion, cc-by)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
Funders
Universiti Teknologi Malaysia (UTM) Research Grant Vot (J130000.7113.05E79)
Topics
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Construction Project Management and Performance
  • Social Sciences › Economics, Econometrics and Finance › Finance › Capital Investment and Risk Analysis
  • Physical Sciences › Engineering › Building and Construction › BIM and Construction Integration
Keywords
risk management, construction project success, risk factors, project management, political risk, economic risk, security risks, Yemen

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