Abstract
This study shows how an organizational and external environmental factor contributes to construction project failures within the Kingdom of Saudi Arabia. A 45-Item Questionnaire was distributed to 68 contractors, surveyors, and construction project managers in KSA. A principal component analysis was performed which produced five factors measuring the contribution of organizational and external environmental factors to the failure of construction projects in KSA. Questions related to competitive threats, company health, and productivity and infrastructure inadequate tools represented the highest commonalities scores of .81, .78, and .79. The findings indicate an existing contribution of organizational and external environmental factors in project failures in the KSA construction industry.