Agrupaciones léxicas o clusters.

The focus of this research study concerns enhancing on-site communication processes within Saudi Arabia. From this perspective, it is important to investigate key features of the Saudi Construction Industry. As explained in Chapter one, Saudi construction is heavily dependent on a transient and poorly educated multi-cultural workforce. A by- product of this dependency has been recurring delays of considerable length, impeding the completion of projects (Alsuliman et al., 2012; Albogamy et al., 2012; Alkharashi and Skitmore, 2009; Assaf and Al-Hejji, 2006). Commonly cited challenges include factors such as ineffective planning and control, poor site management, low labour productivity, communication and coordination problems, and difficulties affecting materials’ procurement. Since the beginning of the construction boom, at the start of the millennium, the Saudi construction industry has over extended itself to the point where its productivity has suffered. Deloitte and Touche (2013) estimated that in July 2012, the total value of delayed projects in which Saudi Arabian contractors are involved was USD 146 bn.

21 2.4.1. Delays to Public Construction Projects

Internationally, Governments are the biggest clients of the construction industry, as they sponsor huge infrastructure projects. A detailed analysis by Alkharashi el at (2009) of Saudi public sector construction projects cited five principal causes for owner-related delays. These included delays revising and approving design documents, lack of contact between construction parties and Government authorities, slow decision making by the owner, delayed progress payments, and owners’ slow delivery of the site to contractors. Final payments are also apparently “notorious for not arriving”, and companies must therefore, either make a provision for such costs up front, or wait several years for a court appearance (Overdahl, 2013). As evident from this analysis by Overdahl (2013), poor communication is a key contributor to project delays, and improving site communication processes would be one way of addressing some of these concerns.

In a similar study by Al-Kharashi el at (2009), five principal reasons for contractor- related delays were identified as, ineffective scheduling of projects by contractors, lack of qualified builders, poor site management and supervision, and ineffective management of project progress. Al-Kharashi et al. also isolated the causes of delays linked to consultants; as inflexibility, late review and approval of design documents, delays in completing inspections, uncertainty when approving major changes in the scope of work, and the overall inadequate experience of consultants (Al-Kharashi el at 2009). The above analysis also indicated the importance of effective site based communication for enhancing overall construction management.

Recent studies have identified various delay factors affecting the industry (Appendix B). Albogamy et al. (2012) investigated 63 different factors causing delays in Saudi public building projects. They reported that contractors were responsible for, or at least linked to many incidents of delays. The most frequent and inconvenient causes of delay were “delays in the sub-contractor’s work” (Albogamy et al., 2012). Furthermore, Assaf and Al-Hejji, (2006) observed a further common cause, identified by all project stakeholders

22 (owners, contractors and consultants), as “changed orders”. Alsuliman et al. (2012) outlined that adapting to and effecting changes to orders is a process not fully understood, nor well managed within the Saudi construction industry.

However, as this study will illustrate, access to regularly updated real-time information should alleviate this widespread cause of delay. Assaf and Al-Hejji (2006) indicated a number of other contractor related factors as contributing to project delays including; intermittent and unreliable progress payments, ineffective project planning and scheduling, poor site management and supervision and a paucity of skilled labour and contractors experiencing difficulties financing projects or parts thereof. In addition, all three parties agreed that “changes in government regulations and laws, traffic control and restrictions at job site, the effect of social and cultural factors and accidents during construction” were the least important causes of delay (Assaf and Al-Hejji, 2006).

2.4.2. Key Characteristics Of Saudi Construction Workforce

A key focus of this research effort is on enhancing on-site communications to better integrate a mobile construction workforce with back office processes. From this perspective, this section reviews key characteristics of the Saudi Construction workforce. As discussed in previous sections, construction is an important contributor to the Saudi national economy. In view of the huge investment in infrastructure construction projects, it is unsurprising that forecasts predict the largest growth in private sector employment in Saudi Arabia will take place within the building and construction sector (Ramady 2010, p.8).

One of the main factors contributing to construction industry’s role as one of the engines driving private sector growth and private sector employment has been its “easy access to low-wage low-skilled foreign labour” (International Monetary Fund 2013 p.14). In 2011, this accounted for approximately 3.5 million (45.1%) of the total private sector foreign

23 workforce (Saudi Arabian Monetary Agency, 2013). According to the International Monetary Fund (2013, p.14), construction has not contributed to an increase in Saudi employment and is “not expected to do so” (Alsheikh, 2015, p.10).

There is limited absorption of Saudi workers into high-wage private sector jobs, and Saudis associate construction with low paid low semi-skilled work. To date, within the construction sector, few jobs have gone to Saudis (International Monetary, Fund 2013, p22), and penalties from the Government’s Saudisation policy, favouring the employment of Saudis in the private sector, has pushed up the average cost of foreign labour by 21% (Trenwith, 2013). At present the Saudi construction industry, which employs 45% of public sector workers, is characterised by multi-cultural, multi-language, low and semi- skilled labour and very low adoption of technology coupled with heavily subsidised AEC sector, fuelling various process inefficiencies (Alsehaimi, 2011). The vast majority of the disparate construction workforce within KSA have different levels of education, language usage, training, knowledge. Of the 170,000 certified engineers working in Saudi, only 30,000 are Saudis, whilst 140,000 are non-Saudis (Anaween, 2013), from a variety of different countries and cultures.

2.4.3. Communication Differences Between Multi-Cultural Workforces

In Saudi context, construction workforce is based primarily on multi cultural and multi- lingual workforce. According to Loosemore and Lee (2001 p522), most companies consider cultural diversity a “potential problem rather than a potential opportunity”. Although the communication problems across different language groups are significant for most supervisors, initiatives for tackling these difficulties are applied inconsistently from site-to-site. Ochieng and Price (2009) conclude that working relationships are most successful when the contribution of the entire project team is acknowledged. Ochieng and Price (2009, p.449) studied communications within multicultural environments on heavy construction engineering projects and found that the creation and development of effective cross-cultural trust, communication, and empathy in leadership are critical

24 components of effective multicultural project teams. Different cultures tend to develop different rules regarding how a person in a particular position should act, and this determines the interpretation of communications with people in positions of power and influence (Loosemore and Lee, 2001, p.518).

Cultural attitudes are multifaceted and multi-layered, with the result that messages can often be misinterpreted, or interpreted differently by individuals from different cultures. Arguably, the adoption of digital technology in the workplace could have a role in reducing this misunderstanding (Loosemore and Lee, 2001, p.518). Effective communication is key to managing expectations, misunderstanding, and misgivings in multicultural project teams. For a multicultural project team to be fully integrated, all team members need to trust and understand one another (Ochieng and Price 2010, p.460). Trust is fragile and difficult to quantify, but is essential to the success of multicultural teamwork. It can be cultivated in settings where good interpersonal skills and mutual respect exists between project leaders and team members.

2.4.4. Implementation of ICT in Saudi Construction

A 2012 survey of Saudi construction companies by Sidawi showed the majority (89%) used traditional communication systems and tools, such as fax machines, mobile phones, site visits, weekly/monthly reports and face-to-face meetings. Even in 2012, it was found that aside from voice calls on mobile phones, 93% of respondents did not use mobile systems or tools to manage or record site related information. These percentages describe an almost uniformly traditional approach to communication and information sharing, suggesting that users feel most content and secure communicating verbally, either face- to-face or by phone.

Two fundamental conditions help explain this heavy reliance on ‘traditional communication methods’. The innate preference for sharing information verbally, and the implied aversion to using and maintaining written records. Cost may have deterred the

25 formation of a community of techno-efficient users, and aside from the issue of availability, there may be a lack of motivation to substitute unfamiliar technology for tried and tested modes of social exchange implicit to verbal engagement, which have functioned well in the past.

Regardless of the reasons, Sidawi (2012) states that Saudi construction companies communication system are undoubtedly predominantly ‘pre-digital’; with the exception of the two–thirds of companies which use e-mail. If these figures are accurate, one-third of companies are not using email to communicate during the course of conducting their business. This situation would be untenable in most modern construction companies. The picture portrayed here is one of a digitally averse business community, which values face-to-face vocal exchange, and written exchange, as a validation of trust. Moreover, writing is a less expressive and more time-consuming medium than the ease, expressiveness and immediacy speech.

Within KSA context, a key barrier to adoption of electronic information management is a slow moving organisational structure and conservative business practices (Sidawi, 2012; p110). Also, Sidawi highlighted technical issues such as cost, maintenance, technical and management support; rigid and inflexible organisational structures resistant to change, and the level of staff IT skills. In a similar study, Sidawi and Al-Sudairi (2014) indicated that the traditional management practices are realised as a barrier to the full utilisation of Advanced Computer based Management Systems (ACMS).