FACTORS AFFECTING THE
DEVELOPMENT OF ENGINEERING
CONSULTING FIRMS
BY
MOHAMMED SHAFIUDDIN
A THESIS PRESENTED TO THE
DEANSHIP OF GRADUATE STUDIES
In Partial Fulfillment of the Requirements
for the degree
MASTER OF SCIENCE
IN
CONSTRUCTION ENGINEERING AND MANAGEMENT
KING FAHD UNIVERSITYOF PETROLEUM &
MINERALS
AUGUST, 2004
KING FAHD UNIVERSITY OF PETROLEUM & MINERALS
DHAHRAN 31261, SAUDI ARABIA
DEANSHIP OF GRADUATE STUDIES
This thesis, written by MOHAMMED SHAFIUDDIN under the direction of his thesis
advisor and approved by his thesis committee, has been presented to and accepted by
Dean of Graduate Studies, in partial fulfillment of the requirements for the degree of
MASTER OF SCIENCE IN CONSTRUCTION ENGINEERING &
MANAGEMENT.
Thesis Committee
____________________________
Prof. Abdul Aziz Bubshait
(Advisor)
____________________________
Prof. Sadi Assaf (Member)
____________________________
Prof. Osama Jannadi (Member)
________________________________
Prof. Abdul Aziz Bubshait
Chairman, Department of Construction Engineering
& Management
________________________________
Dr. Mohammad A. Al-Ohali
Dean of Graduate Studies
__________________
[Date]
Affectionately Dedicated to
My Grandfather
&
Parents
ACKNOWLEDGEMENT
In the name of Allah, Most Gracious, Most Merciful
All praise and glory to Almighty Allah (Subhanahu Wa Taalaa) who gave me courage
and patience to carry out this work. Peace and blessing of Allah be upon last Prophet
Muhammad (Peace Be upon Him).
I would like express my unrestrained appreciation to my thesis advisor Prof. Abdul Aziz
Bubshait, for his constant help and guidance. He has been helping me out and supported
me throughout the course of this work and on several other occasions Thanks are also due
to my thesis committee members Prof. Sadi Assaf and Prof. Osama Jannadi for their
attention, cooperation, comments and constructive criticism. Acknowledgement is due to
the King Fahd University of Petroleum & Minerals for supporting this research and
providing me with necessary infrastructure and excellent research environment.
I also acknowledge my colleagues and friends, especially the whole Indian community
with whom I had a pleasant, enjoyable and fruitful company. Thanks are due to all the
faculty and staff of Construction Engineering & Management department and to all those
people in the construction industry who responded to my questionnaire and gave time for
the interviews.
Finally, I extend my acknowledgement and heartfelt love to my Grandfather, parents,
brothers and sister, who have been with me all the time to spur my spirits.
THESIS ABSTRACT
FULL NAME OF STUDENT :
MOHAMMED SHAFIUDDIN
TITLE OF THE STUDY
FACTORS AFFECTING THE DEVELOPMENT
:
OF ENGINEERING CONSULTING FIRMS
MAJOR
:
CONSTRUCTION ENGINEERING AND
MANAGEMENT
DATE OF DEGREE
:
JUNE, 2004
In construction industry, the need and significance of well developed engineering
consulting firms cannot be overemphasized. There are several factors that affect the
development of design firms and if these factors are identified, measures can be taken to
upgrade the engineering consulting firms. The present study concerns isolating the key
factors that affect the development of engineering and consulting firms in Saudi Arabia
based on the study carried out in 2003-2004.
A hierarchical model of development factors was developed to build a
questionnaire based on Analytical Hierarchy Process (AHP). Twenty (20) experts with a
minimum of ten (10) years of experience were consulted. Data collected by means of
personal interviews was analyzed with “Expert Choice 2000”, software based on AHP.
The research concluded that, the Clients and Company’s resources are the important
areas that affect development and Government factors, is the area which is passive
towards development. Client satisfaction, Marketing, Growth of key industries, Size and
qualification of human group, and Type of client are the important development factors
for E/C firms. In order to raise the standards and develop the capabilities of engineering
firms, a conducive environment has to be created wherein these factors coordinate among
themselves to align in the direction of development.
‫خالصة الرسالة‬
‫اإلسم ‪ :‬محمد شافي الدين‬
‫عنوان الرسالة‪ :‬العوامل المؤثرة في تطوير شركات اإلستشارات الهندسية‬
‫الدرجة الممنوحة ‪ :‬ماجستير في العلوم‬
‫حقل التخصص‪ :‬هندسة البناء واإلدارة‬
‫تاريخ منح الدرجة‪ :‬يونيو ‪2004‬م‬
‫إن الحاجة واألهمية التي بلغتها شركات اإلستشارات الهندسية قد وصلت إلى درجة ال يستهان بها في‬
‫المماكة العربية السعودية‪ .‬وهناك عوامل عديدة تؤثر في تطور هذه الشركات والتعرف على هذه‬
‫العوامل سيساهم في رفع مستوى شركات اإلستشارات الهندسية‪ .‬وسوف تتناول هذه الرسالة العناية‬
‫والتعرف على العوامل الرئيسية المؤثرة في تطور شركات اإلستشارات الهندسية في السعودية بناءا ً‬
‫على نتائج دراسة أجريت في األعوام ‪.2004-2003‬‬
‫تم تطوير نموذج تسلسلي للعوامل المؤثرة لوضع إستبيان بناءا ً على عملية تحليلية تسلسلية‪ .‬وتم‬
‫إستشارة عشرين خبير(عشر سنوات خبرة على األقل) في هذا المجال إلنجاز هذا اإلستبيان‪ .‬تم‬
‫جمع المعلومات من خالل مقابالت شخصية و تم تحليل هذه المعلومات بإستخدام برنامج "إكسبرت‬
‫شويس ‪ "2000‬المبني على عمليات تحليلية متسلسلة‪ .‬أفضى البحث إلى إستنتاج أن موارد الشركة‬
‫والزبائن هي أهمل عامل مؤثر في التطوير وأن العوامل الحكومية تكاد تكون غير مؤثرة في‬
‫التطوير‪ .‬رضا الزبون‪ ،‬التسويق‪ ،‬نمو الصناعات المؤثرة‪ ،‬حجم وجودة المجموعة البشرية‪ ،‬و نوع‬
‫الزبون هي العوامل األكثر أهمية في تطوير شركات اإلستشارات الهندسية‪ .‬ومن أجل تطوير هذه‬
‫الشركات يجب إيجاد بيئة مثالية تكون فيها هذه العوامل متناسقة وموجهة في طريق التطوير‪.‬‬
‫درجة الماجستير في العلوم‬
‫جامعة الملك فهد للبترول و المعادن‬
‫يونيو ‪2004‬م‬
TABLE OF CONTENTS
ACKNOWLEDGEMENT........................................................................... iii
ABSTRACT (ENGLISH) ............................................................................ iv
ABSTRACT (ARABIC) ............................................................................... v
TABLE OF CONTENTS ............................................................................ vi
LIST OF FIGURES .................................................................................... xii
LIST OF TABLES ..................................................................................... xiv
CHAPTER ONE ........................................................................................... 1
INTRODUCTION ........................................................................................ 1
1.1
INTRODUCTION .............................................................................................. 1
1.2
OBJECTIVES ..................................................................................................... 4
1.3
SIGNIFICANCE OF STUDY ............................................................................ 4
1.4
SCOPE AND LIMITATIONS ............................................................................ 5
CHAPTER TWO ............................................ Error! Bookmark not defined.
LITERATURE REVIEW .............................. Error! Bookmark not defined.
2.1
INTRODUCTION .............................................Error! Bookmark not defined.
2.2
THEORETICAL BACKGROUND OF E/C FIRMSError!
Bookmark
not
defined.
2.2.1
DEFINITION OF E/C FIRM .....................Error! Bookmark not defined.
2.2.2
DUTIES AND RESPONSIBILITIES OF E/C FIRMSError!
not defined.
Bookmark
2.2.3
POTENTIAL CLIENTS TO E/C FIRMS..Error! Bookmark not defined.
2.2.4
SERVICES OFFERED BY E/C FIRMS ...Error! Bookmark not defined.
2.2.5
SELECTION OF E/C ................................Error! Bookmark not defined.
2.3
DEVELOPMENT OF E/C FIRMS ....................Error! Bookmark not defined.
2.3.1
2.4
OBSTACLES TO DEVELOPMENT ........Error! Bookmark not defined.
IMPORTANT FACTORS FROM PREVIOUS STUDIESError!
Bookmark
not defined.
2.5
THEORETICAL BACKGROUND OF DEVELOPMENT FACTORS ... Error!
Bookmark not defined.
2.5.1
GOVERNMENT FACTORS ....................Error! Bookmark not defined.
2.5.1.1
LEGAL SYSTEM ..................................Error! Bookmark not defined.
2.5.1.2
ENGINEERING COUNCIL ..................Error! Bookmark not defined.
2.5.1.3
PROFESSIONAL PRACTICE RESTRICTIONSError!
Bookmark
not defined.
2.5.1.4
2.5.2
ROLE OF LOCAL MUNICIPALITIES Error! Bookmark not defined.
ORGANIZATIONAL FACTORS .............Error! Bookmark not defined.
2.5.2.1
ORGANIZATION STRUCTURE .........Error! Bookmark not defined.
2.5.2.2
SPECIALIZED EXPERIENCE OF THE ORGANIZATION ...... Error!
Bookmark not defined.
2.5.2.3
MANAGEMENT AND ADMINISTRATIONError! Bookmark not
defined.
2.5.2.4
IN-HOUSE CAPACITY OF THE ORGANIZATION ................. Error!
Bookmark not defined.
2.5.2.5
2.5.3
STRATEGIC PLANNING ....................Error! Bookmark not defined.
MACRO ECONOMIC ENVIRONMENT Error! Bookmark not defined.
2.5.3.1
UNEMPLOYMENT ..............................Error! Bookmark not defined.
2.5.3.2
PRIVATE INVESTMENT ....................Error! Bookmark not defined.
2.5.3.3
GROWTH OF KEY INDUSTRIES ......Error! Bookmark not defined.
2.5.3.4
JOINT VENTURES...............................Error! Bookmark not defined.
2.5.4
DEVELOPMENT OF SCIENCE AND TECHNOLOGY ................ Error!
Bookmark not defined.
2.5.4.1
APPROPRIATE SELECTION OF TECHNOLOGYError! Bookmark
not defined.
2.5.4.2
AVAILABLE IT INFRASTRUCTUREError! Bookmark not defined.
2.5.4.3
RESEARCH AND DEVELOPMENT ..Error! Bookmark not defined.
2.5.4.4
TRAINING AND EDUCATION LEVELError!
Bookmark
not
defined.
2.5.5
CLIENTS ...................................................Error! Bookmark not defined.
2.5.5.1
TYPE OF CLIENT ................................Error! Bookmark not defined.
2.5.5.2
SIZE OF CUSTOMER POOL ...............Error! Bookmark not defined.
2.5.5.3
INVESTMENT POTENTIAL ...............Error! Bookmark not defined.
2.5.5.4
CLIENT CONSULTANT RELATIONSHIPError!
Bookmark
not
defined.
2.5.5.5
2.5.6
CLIENT SATISFACTION ....................Error! Bookmark not defined.
COMPANY'S RESOURCES ....................Error! Bookmark not defined.
2.5.6.1
SIZE AND QUALIFICATION OF HUMAN GROUP................. Error!
Bookmark not defined.
2.5.6.2
PERSONNEL FINANCE ......................Error! Bookmark not defined.
2.5.6.3
AVAILABILITY OF CRAFT AND OPERATIVE SKILLS ........ Error!
Bookmark not defined.
2.5.6.4
MARKETING........................................Error! Bookmark not defined.
2.5.6.5
AVAILABILITY OF REQUIRED INFRASTRUCTURE ........... Error!
Bookmark not defined.
CHAPTER THREE ........................................ Error! Bookmark not defined.
RESEARCH METHODOLOGY .................. Error! Bookmark not defined.
3.1
INTRODUCTION .............................................Error! Bookmark not defined.
3.2
LITERATURE REVIEW ..................................Error! Bookmark not defined.
3.3
DEVELOPMENT OF A LIST OF FACTORS .Error! Bookmark not defined.
3.3.1
INITIAL PROPOSED DEVELOPMENT FACTOR LIST ............... Error!
Bookmark not defined.
3.3.2
LIST
OF
DEVELOPMENT
FACTORS
FOR
THE
PRESENT
RESEARCH ...............................................................Error! Bookmark not defined.
3.4
DEVELOPMENT OF A PAIR WISE COMPARISON QUESTIONNAIRE
Error! Bookmark not defined.
3.5
DATA COLLECTION THROUGH PERSONAL INTERVIEWS ........... Error!
Bookmark not defined.
3.5.1
POPULATION AND SAMPLE SIZE.......Error! Bookmark not defined.
3.5.2
PILOT STUDY ..........................................Error! Bookmark not defined.
3.5.3
FAXING INTRODUCTORY LETTERS ..Error! Bookmark not defined.
3.5.4
FULL SCALE SURVEY ...........................Error! Bookmark not defined.
3.6
DATA ANALYSIS ............................................Error! Bookmark not defined.
3.6.1
MULTIPLE CRITERIA DECISION MAKINGError!
Bookmark
not
defined.
3.6.1.1
ANALYTICAL HIERARCHY PROCESSError!
Bookmark
not
defined.
3.6.1.2
STRUCTURING THE HIERARCHY ..Error! Bookmark not defined.
3.6.1.3
ESTABLISHING PRIORITIES ON FUNDAMENTAL SCALE Error!
Bookmark not defined.
3.6.1.4
THE CONSISTENCY OF A HIERARCHYError!
Bookmark
not
defined.
3.6.2
STATISTICAL ANALYSIS .....................Error! Bookmark not defined.
3.6.2.1
THE SPEARMAN RANK CORRELATION COEFFICIENT ..... Error!
Bookmark not defined.
3.6.2.2
3.6.3
3.7
REGRESSION ANALYSIS ..................Error! Bookmark not defined.
VALIDATION AND DISSEMINATION .Error! Bookmark not defined.
DEVELOP CONCLUSIONS AND RECOMMENDATIONS ................. Error!
Bookmark not defined.
CHAPTER FOUR........................................... Error! Bookmark not defined.
SURVEY RESULTS AND DISCUSSIONS . Error! Bookmark not defined.
4.1
INTRODUCTION .............................................Error! Bookmark not defined.
4.2
RESPONSE RATE ............................................Error! Bookmark not defined.
4.3
HIERARCHICAL MODEL FOR DEVELOPMENT FACTORS ............ Error!
Bookmark not defined.
4.4
GENERAL PROFILE OF RESEARCH SAMPLEError!
Bookmark
not
defined.
4.5
E/C DEVELOPMENT FACTORS IN SAUDI ARABIAError! Bookmark not
defined.
4.5.1
PRINCIPAL FACTORS/PRINCIPAL AREASError!
Bookmark
not
defined.
4.5.2
SUB FACTORS .........................................Error! Bookmark not defined.
4.5.2.1
SUB FACTORS FOR GOVERNMENT FACTORSError! Bookmark
not defined.
4.5.2.2
SUB FACTORS FOR ORGANIZATIONAL FACTORS ............ Error!
Bookmark not defined.
4.5.2.3
SUB FACTORS FOR MACRO ECONOMIC ENVIRONMENT Error!
Bookmark not defined.
4.5.2.4
SUB FACTORS FOR DEVELOPMENT OF SCIENCE AND
TECHNOLOGY ....................................................Error! Bookmark not defined.
4.5.2.5
SUB FACTORS FOR CLIENTS...........Error! Bookmark not defined.
4.5.2.6
SUB FACTORS FOR COMPANY’S RESOURCESError! Bookmark
not defined.
4.6
4.6.1
STATISTICAL ANALYSIS .............................Error! Bookmark not defined.
LEVEL OF AGREEMENT BETWEEN RESPONDENTS .............. Error!
Bookmark not defined.
4.6.2
REGRESSION ANALYSIS ......................Error! Bookmark not defined.
4.7
AREAS OF GREATER EMPHASIS ................Error! Bookmark not defined.
4.8
IMPROVEMENT OF E/C FIRMS ....................Error! Bookmark not defined.
4.9
SCHEMATIC MODEL FOR THE DEVELOPMENT OF E/C FIRMS ... Error!
Bookmark not defined.
CHAPTER FIVE ............................................ Error! Bookmark not defined.
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS ......Error!
Bookmark not defined.
5.1
INTRODUCTION .............................................Error! Bookmark not defined.
5.2
SUMMARY .......................................................Error! Bookmark not defined.
5.3
CONCLUSIONS................................................Error! Bookmark not defined.
5.3.1
SURVEY CONCLUSIONS.......................Error! Bookmark not defined.
5.3.2
GENERAL CONCLUSIONS ....................Error! Bookmark not defined.
5.4
RECOMMENDATIONS ...................................Error! Bookmark not defined.
REFERENCES................................................ Error! Bookmark not defined.
Appendix 1 ....................................................... Error! Bookmark not defined.
Appendix 2 ....................................................... Error! Bookmark not defined.
Appendix 3 ....................................................... Error! Bookmark not defined.
Appendix 4 ....................................................... Error! Bookmark not defined.
LIST OF FIGURES
Figure 2.1: Conceptual model of factors (adopted from Venegas and Alarcon,1997)
....................................................................................Error! Bookmark not defined.
Figure 2.2: Project tam structure ( AIA’s handbook, 1997) ............ Error! Bookmark not
defined.
Figure 2.3: Studio structure ( AIA’s handbook, 1997) ......Error! Bookmark not defined.
Figure 2.4: Departmental structure ( AIA’s handbook, 1997) ......... Error! Bookmark not
defined.
Figure 2.5: Project manager structure ( AIA’s handbook, 1997) .... Error! Bookmark not
defined.
Figure 2.6: Hybrid structure ( AIA’s handbook, 1997) .....Error! Bookmark not defined.
Figure 2.7: The Strategic Planning Process (Adopted from Kaderlan ,(1991) .......... Error!
Bookmark not defined.
Figure 3.1 Research Methodology Flow Chart ..................Error! Bookmark not defined.
Figure 3.2: Survey Development (Adopted fromTang et.al.2003) .. Error! Bookmark not
defined.
Figure 4.1: Hierarchical model for the development factors ........... Error! Bookmark not
defined.
Figure 4.2: Hierarchical model developed in Expert Choice 2000, software with
corresponding priority vectors ...................................Error! Bookmark not defined.
Figure 4.3: Pair wise comparison of principal factors .......Error! Bookmark not defined.
Figure 4.4: Pair wise comparison of sub factors ................Error! Bookmark not defined.
Figure 4.5: Overall ranking of development factors done by Consultants ................ Error!
Bookmark not defined.
Figure 4.6: Ranking of development factors done by Executive respondents ........... Error!
Bookmark not defined.
Figure 4.7: Ranking of development factors done by Technical staff .... Error! Bookmark
not defined.
Figure 4.8: Principal factor ranking done by all consultants ........... Error! Bookmark not
defined.
Figure 4.9: Principal factor ranking done by Executive respondents ..... Error! Bookmark
not defined.
Figure 4.10: Principal factor ranking done by Technical staff ........ Error! Bookmark not
defined.
Figure 4.11: Ranking of Government factors done by all Consultants.. Error! Bookmark
not defined.
Figure 4.12: Ranking of Government factors done by Executive respondents ......... Error!
Bookmark not defined.
Figure 4.13: Ranking of Government factors done by Technical staff... Error! Bookmark
not defined.
Figure 4.14: Ranking of Organizational factors done by Consultants .... Error! Bookmark
not defined.
Figure 4.15: Ranking of Organizational factors done by Executive respondents ...... Error!
Bookmark not defined.
Figure 4.16: Ranking of Organizational factors done by Technical staff .................. Error!
Bookmark not defined.
Figure 4.17: Ranking of Macro economic environment done by Consultants .......... Error!
Bookmark not defined.
Figure 4.18: Ranking of Macro economic environment done by Executive respondents
....................................................................................Error! Bookmark not defined.
Figure 4.19: Ranking of Macro economic environment done by Technical staff ..... Error!
Bookmark not defined.
Figure 4.20: Ranking of Devp. of science and technology done by Consultants ...... Error!
Bookmark not defined.
Figure 4.21: Ranking of Devp. of science and technology done by Executive respondents
....................................................................................Error! Bookmark not defined.
Figure 4.22: Ranking of Devp. of science and technology done by Technical staff . Error!
Bookmark not defined.
Figure 4.23: Ranking of Client factors done by all Consultants ...... Error! Bookmark not
defined.
Figure 4.24: Ranking of Client factors done by Executive respondents. Error! Bookmark
not defined.
Figure 4.25: Ranking of Client factors done by Technical staff ...... Error! Bookmark not
defined.
Figure 4.26: Ranking of Company’s resources done by all Consultants Error! Bookmark
not defined.
Figure 4.27: Ranking of Company’s resources done by Executive respondents ....... Error!
Bookmark not defined.
Figure 4.28: Ranking of Company’s resources done by Technical staff Error! Bookmark
not defined.
Figure 4.29: Pyramid showing the importance of development areas .... Error! Bookmark
not defined.
Figure 4.30 : Areas of Greater Emphasis ...........................Error! Bookmark not defined.
Figure 4.31: Cause and affect diagram for the development of E/C firms ............... Error!
Bookmark not defined.
LIST OF TABLES
Table 2.1: Key factors influencing the development of construction industry adopted
form Fox and Skitmore (2000). .................................Error! Bookmark not defined.
Table 2.2: Joint Venture Establishments March 1999 .......Error! Bookmark not defined.
Table 3.1 Initial list of development factors ......................Error! Bookmark not defined.
Table 3.2: The Fundamental Scale (Saaty, 1990) ..............Error! Bookmark not defined.
Table 3.3 Random Consistency Index ...............................Error! Bookmark not defined.
Table 4.1: Ranking of Principal factors .............................Error! Bookmark not defined.
Table 4.2: Local and Global priorities of Government factors ........ Error! Bookmark not
defined.
Table 4.3: Local and Global priorities of Organizational factors .... Error! Bookmark not
defined.
Table 4.4: Local and Global priorities of Macro economic factors . Error! Bookmark not
defined.
Table 4.5: Local and Global priorities of Development of science & technology factors
....................................................................................Error! Bookmark not defined.
Table 4.6: Local and Global priorities of Client factors ....Error! Bookmark not defined.
Table 4.7: Local and Global priorities of Company’s resources ..... Error! Bookmark not
defined.
Table 4.8: Ranking done by different respondents ............Error! Bookmark not defined.
Table 4.9: Spearman's Rank Correlation ...........................Error! Bookmark not defined.
Table 4.10: Regression output obtained from Microsoft Excel ....... Error! Bookmark not
defined.
CHAPTER ONE
INTRODUCTION
1.1 INTRODUCTION
Engineering Consulting is a knowledge-intensive business service that has been
seen as the key actor in the generation and diffusion of new technologies in advanced
industrialized economies. For the development of a country like Saudi Arabia the need
and significance of well developed Engineering Consulting firms cannot be over
emphasized. The Kingdom of Saudi Arabia is probably one of the countries that has
spent the most on per capita basis on engineering projects. During this period most of the
work was carried out by western engineering firms and in the last decade Saudi
engineering firms are being set and getting a substantial share of the market (State of
Engineering Profession in Saudi Arabia).
The consultancy profession in Saudi Arabia is regulated by the ministry of
commerce who issue license to practice architectural and engineering consultancy. The
city municipality is the authorial agency that implements professional licensing
procedure. Engineering council is the other organization that provides proper atmosphere
for developing the engineering profession (Al-Rugaib).
Currently there are more than 1650 engineering firms in Saudi Arabia, of which a
inadequate portion are well developed and enjoys a good standing along with developed
countries. Various factors such as, influence of government policies, development of
technological capability, international linkages and technology transfer are considered to
be instrumental in the development of E/C firms. Analysis of existing structure of E/C
firms in Saudi Arabia along with these factors can be helpful in identifying the
influencing factors. And if the most important influencing factors are identified, measures
can be taken to apply them in order to upgrade the Engineering Consulting firms
Consulting engineering services are the means by which the project concepts are
translated into real form through successive application of intellectual inputs. Although
they account for less than 10 percent of the investment cost, they none the less determine
the efficiency and long term viability of investment projects. Consulting engineering
services are linked to several aspects of industrial development such as identification of
critical technological needs, technology transfer, and local engineering capability.
Important development factors recognized by UNIDO are reduced engineering fees,
adaptation of technology, promotion of related technology (UNIDO, 1995).
According to UNIDO developing countries are often constrained by a series of
obstacles and an unhelpful or indifferent policy environment. Most of these countries
lack transparent and effective legislation and policies and procedures that foster the
establishment and operation of local consulting engineering services. This was further
confirmed by (Baark, 1999) who has emphasized the analysis of the structure of the
sector in China and the influence of government policies. Baark has also stressed for the
creation and development of technological capabilities in organizations, role of
international linkages, and technology transfer for the development of E/C firms in
China.
Haplin (1990), presented factors affecting technology development in the United
States. Hussain (2002), discussed about the development of engineering consultants in
Asia and Pacific region. Agarwal et al. (2001), has discussed about enhancing capabilities
and cooperation in Engineering consultancy in the Asia pacific region. Hecker (1997)
while discussing the need for successful consulting engineering has reported the factors
promoting to the success. Al-Besher (1998) has put forth “A conceptual Model for
Consultant Selection in Saudi Arabia” criteria that can be used for consultant selection.
Several factors affect the development of consulting firms in a country depending
on the local conditions prevailing. Literature also stresses the importance of
improvements in the effectiveness and efficiency of engineering firms if the construction
industry is to fulfill its tasks in efficient manner. Therefore, it is clear that there is a need
to develop a consistent, comprehensive and flexible decision making list comprising of
important development factors for local engineering consulting firms. This study is
proposed to assess the views of design professionals on the relative importance of the
factors identified from the literature analysis and to come up with most important
development factors.
1.2 OBJECTIVES
1. To identify various factors that effects the development of Engineering
Consulting firms.
2. To highlight their order of importance and Investigate the most important
development factors for Engineering Consulting firms, based on accumulative
knowledge and judgment of experts.

To perform overall ranking based on the consultants.

To perform ranking of development factors according to executive
respondents.

To perform ranking of development factors according to technical staff.
3. To investigate the correlation between the rankings for various type of
respondents.
1.3 SIGNIFICANCE OF STUDY
(1) An expected contribution of this research effort is to recognize elements that are
vital to the Consulting engineering success by identifying development factors
both at the organizational and project level.
(2) The research done to identify the development factors of E/C firms within the
sample population, will aid the local Engineering Consulting firms. Local firms
will gain insight and understand better how to remain competitive and excel in the
operating environment in Saudi Arabia.
(3) The findings of this research will help to improve the performance of the E/C
firms by concentrating more on the key factors obtained from the results.
(4) The key factors can be utilized by all the engineers in Saudi Arabia, their
associations and the government to be able to develop the necessary capabilities
to serve the domestic economy.
(5) Finally this research effort presents a framework for identifying variables that
effect development factors for future research efforts.
1.4 SCOPE AND LIMITATIONS
The following limitations are applicable to this study:
1. Due to the nature of questionnaire, (pair-wise comparison) direct interviews
were conducted with the Experts. (Consultants and Design Professionals).
2. Around 20 consultants or design professionals, with a minimum of 10 years
experience in construction projects worth greater than 5 Million Saudi Riyal,
were only interviewed only. Sample size of the research to be interviewed was
kept small, so that the information obtained is reliable and to maintain the
quality of the information.
3. The study also assumes that the participants of the interview are well trained,
experienced, and capable of performing the selection process.
4. Because of time and financial constraints, the study is limited to the Eastern
Province of Saudi Arabia.