Causes of common and frequent claims in oil, gas and petrochemical projects of Iran

Hasheminasab, Hamidreza; Mortaheb, Mohammad Mehdi; F, A. Ahmadian F.

doi:10.1007/s12205-014-0422-5

Cited by 11 publications

(10 citation statements)

References 8 publications

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“…Generally in Iran's oil, gas, and petrochemical projects, more than 70% of the whole project's weight is related to procurement phase, and due to the low ability of project's parties to purchase and import the materials/equipment, most of the projects are behind the schedule and have delay in project deliverables as well which leads to cost overrun. Fallahnejad and Hasheminasab et al, both presented the same problem for projects in Iran in their researches [8,21]. But in the other researches related to other countries, the external issue problems are such bad weather, site condition, or government pressure, and none of them addressed to this factor in the series of the top 10 important causes.…”

Section: Comparison and Discussionmentioning

confidence: 99%

Importance and Ranking Evaluation of Cost Overrun Factors for Oil Transmission Pipeline Projects

Saidi¹

2017

Case Study of Innovative Projects - Successful Real Cases

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Over the recent years, the cost escalation in oil pipeline projects in Iran has been inevitable due to the political and economic conditions. On the other hand, due to Iran's 20-year vision plan, several projects and plans have been defined by National Iranian Oil Company (NIOC); therefore, to achieve the vision plan's goal and deliver the projects on-budget, identification of the cost overrun causes is the first step. In this research, a list of important cost overrun factors in oil pipeline projects was extracted after a detailed literature review, study the executed projects document, semistructured interview, and a questionnaire survey among clients, consultants, and contractors who are involved in such projects. The results show that the political and economic sanctions, rise in the price of material, delay in payments, unrealistic price proposal to win the tender, inflation, change in orders/extra works, type of bidding award, delay by vendors/suppliers, slow speed in obtaining permits/massive bureaucracy, and unrealistic time and cost estimation are ranked in the top ten cost overrun factors.

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Section: Comparison and Discussionmentioning

confidence: 99%

Importance and Ranking Evaluation of Cost Overrun Factors for Oil Transmission Pipeline Projects

Saidi¹

2017

Case Study of Innovative Projects - Successful Real Cases

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“…Statistics in North America show that about half of the claims are equal to one-third of the value of the contract, 30% of them are worth more than 60% of the contract, while in some cases the cost is equal to the whole (El-Adaway and Kandil, 2009). Although a good contract can reduce future claims to some extent, it cannot eliminate the likelihood of such occurrences (Hasheminasab and Mortaheb, 2014). Any of the risks involved in the construction industry can lead to high-cost litigation and influence the success of the project by creating disputes (Artan Ilter and Bakioglu, 2017).…”

Section: Literature Review and Research Backgroundmentioning

confidence: 99%

“…Almost half of the world's oil and gas resources (54% of the world's oil and 40% of the world's known gas resources) are in the Middle East (OPEC, 2017). The value of investing in these project types is significant in the Middle East and other developing countries such as Malaysia and Vietnam (Bakhary et al , 2015; Van Thuyet et al , 2007; Zarei et al , 2018; Sweis et al , 2018; Fallahnejad, 2013; Hasheminasab and Mortaheb, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…(2013),Marzouk et al (2018),Arditi et al (2017),Sweis et al (2008),Aibinu and Odeyinka (2006),Zarei et al (2018),Hasheminasab and Mortaheb (2014),Bakhary et al (2015),Yousefi et al (2016),Yana et al (2015),Stamatiou et al (2019),Arditi et al (1985),Zaneldin (2006),Shen et al (2017),Bakhary et al (2015),Baloi and Price (2003),Fallahnejad (2013), El-Sayegh (2008 …”

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confidence: 99%

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

Sohrabi

Noorzai

2021

IJQRM

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PurposeSuccessful 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/approachThis 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).FindingsFindings 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/valueThis 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.

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“…Claims are the means available to contracting parties to be able to adjust their contractual and economic relationship to meet changing conditions (Parikh et al , 2019). Researches indicate that a project manager spends approximately 25% of their time to settle tensions and disputes (Hasheminasab and Mortaheb, 2014). In a report by Arcadis (Arcadis, 2019), the average amount of time taken to resolve a construction dispute is 17 months, and the average value of those disputes is about $33 m, around the world.…”

Section: Introductionmentioning

confidence: 99%

A BIM-based construction claim management model for early identification and visualization of claims

Jalal

Roushan

Noorzai

et al. 2020

SASBE

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PurposeThis study aims at introducing a claim management model based on building information modeling (BIM) for claims that can be visualized in BIM models.Design/methodology/approachBased on the results of a questionnaire survey, 10 claims were identified as claims that can be visualized in BIM models (named hard claims in this study). Then, a BIM-based claim management model was developed and used in a case study.FindingsA BIM-based claim management model is represented. The claim management process through this model consists of four steps: (1) extracting project information, identifying conditions prone to claim and storing them into a relational database, (2) automatically connecting the database to building information model, (3) simulation of the claims in building information model and (4) final calculations and report.Practical implicationsThe proposed model can provide benefits to parties involved in a claim, such as early identification of potential claims, large space for data storage, facilitated claim management processes, information consistency and improved collaboration.Originality/valueThere are a few studies on providing solutions to claim management based on BIM process. Hence, the original contribution of this paper is the attempt to set a link between BIM and claim management processes.

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Causes of common and frequent claims in oil, gas and petrochemical projects of Iran

Cited by 11 publications

References 8 publications

Importance and Ranking Evaluation of Cost Overrun Factors for Oil Transmission Pipeline Projects

Importance and Ranking Evaluation of Cost Overrun Factors for Oil Transmission Pipeline Projects

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

A BIM-based construction claim management model for early identification and visualization of claims

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