Abstract:
The Construction industry plays a key role for governments in both growing and
mature economies, which creates new jobs, drives economic growth, and provides
solutions to address social, climate and energy challenges. There are many
challenges posed by the construction projects to their stakeholders in achieving
the project objectives. In general, construction projects are notorious for being
over-budget, late and saddled with scope creep, as well as for poor
communication protocols and inadequate controls around scope management &
change management. As per Deloitte GCC Powers of Construction (2013) report
“Nuclear Power Project in Abu Dhabi – UAE” has been plagued by project delays
and cost inflation. The cost estimate has risen by a staggering USD 10 Billion
since its initial announcement, taking the total to USD 30Billioin.
The core of this research is all about the project governance and risk management
of power projects in UAE been impacted adversely by cost and schedule
overruns, converging into a business problem. This study involves primarily a
detailed literature review which unlocks the gaps prevailing in the system causing
the business problem, resulting into a requirement of a detailed research on ‘How
the perception of the stakeholders in contingency estimation while establishing
the Project Risk Management plays a role towards firm value maximization’, the
problem statement that revolves around the core theme. This problem statement
was further broken down into meaningful and attainable research objectives.
The first objective resulting in identification of 108 number of Significant Risk
Variables across 20 Nos. of Categories by factor analysis considering the factor
loading; while the second objective confirms by hypothesis testing that there is
significant relationship between the perception of the stakeholder pertaining to
contingency estimation on project performance in Construction of substations in
United Arab Emirates.
