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An Analysis of Factors for Increase in Financial Turnover Gap between Construction Companies Established During Same Time Period in KSA

This research investigates and evaluates various management-related factors influencing the Saudi Arabian construction companies that are responsible for the increase in the financial turnover gap between construction companies established during the same time period in KSA and tries to determine if the corporate management team or the site management team has a significant effect on the overall performance and success of construction companies. The study has made use of quantitative research methods with a deduction approach. This research is conducted by using a web-based survey questionnaire targeted at the sample size of 400 professionals from all regions of Saudi Arabia including all demographic levels. As per the results, the highest RII scorings of the success/failure factors related to the corporate management (Payment delay, Poor cost estimation, Weakness of the financial and technical capabilities of some contractors, and Delays in decision making by the management team) revealed the importance of corporate management issues that are responsible for the increase in financial turnover gap. The results obtained from the research would provide insight to companies for better identification of issues that may be facing the organization and therefore, helpful in the formation of policies that may benefit the organization to reduce the financial turnover gap between them. This is the first research that covers all five major grading areas: Roads, Water and sanitation work, Buildings, Electrical work, and Mechanical work with grade I, II & III classified contractors including all thirteen provinces of Saudi Arabia. The literature review revealed that none of the previous research covered grading areas and demography.