Moderation role of government policies, laws and Acts between cultural factors and risk management among Saudi Arabian contractors

Abstract

Contractors have given importance to risks in the construction process as it causes time and cost overrun, delays and total desertion in activities and events present in the construction project. The uncertainty in the completion time, cost and quality during construction relates to construction risks. Organization culture is the combination of system of shared norms and values that defines characteristics and behavior. It is essential for every organization to practice strong culture for project accomplishment as it greatly influence the project team behavior compared with weak culture affecting project team effectiveness. Based on Organization Control theory, current research (quantitative in nature) discusses the influence of cultural factors on construction risk management with the moderation role of government acts, laws and policies among 303 big size company contractors working in KSA using PLS-SEM technique. PLS-SEM is a composite based approach, which provides parameter estimation with high efficiency with increased statistical power for analyzing complex models.  Results depicts that government acts, laws and policies and cultural factors positively influence construction risk management. In addition, moderation of government acts, laws and policies has positive relation between cultural factors and construction risk management. Current research helps project team for project success to develop good culture within client, consultant and contractor, which makes project team members, construction and project manager towards project commitment.