analysis of risks that result in delay and budget overrun in construction projects in kingdom of saudi arabia
Project finance is defined as financing of the long-term industrial, public sector and infrastructure projects and the project finance market in the Kingdom of Saudi Arabia (KSA) has become increasingly active over time. The motto of the study is to outline risk factors that contribute to the delay and consequently budget overrun in the infrastructure project finance in Saudi Arabia. The research findings are solely based on existing literature because pandemic has limited the approach of data collection. The study is a systematic review where data is gathered from secondary sources, critically appraised, and synthesized qualitative findings. Thereby, the study finding denotes the human and natural risk factors as a major cause of delay and consequently budget overrun. However, the analysis emphasized on the outbreak of COVID-19 and its impact on cost and delay of infrastructure projects. Thereby, it can be said that Risk results in substantial time and cost overruns that harm the objectives of the project and are inevitable for every construction project. Inflation, supplying labor and materials, tariffs, equipment availability, exchange rates, and fiscal policies are some humane cause risk that escalates cost and impact finance of infrastructure projects. Whereas, high temperature, humidity, and windy conditions, hurricane, tornado, tidal wave, lightning strike, flood, and typhoon are some of the natural risks leads to delay in infrastructure projects. In accordance with the findings, it is evaluated that to eliminate risk of overrun and delay construction organization of Saudi region can focus on compliance with safety guidelines of COVID-19 with subcontractor and can focus on the construction stage of projects carefully with respect to the management processes to eliminate loopholes and to assure adequate resource analysis and allocation.