Contractors submit proposals for Dubai Properties framework agreements
17 January, 2018 | By COLIN FOREMAN
Dubai Properties has received proposals from contractors for framework agreements that will cover construction work on the local developers’ upcoming projects.
The proposed framework agreements will be used for a wide range of projects that vary in scale and include apartment buildings, villas, hotels and infrastructure.
Once a pool of firms has been selected, Dubai Properties will then select companies to work on individual projects when needed.
Consultants across a variety of disciplines are also signing up to framework agreements with Dubai Properties.
According to regional projects tracker MEED Projects, Dubai Properties has $230m of projects in the pre-execution phase together with $1.8bn of projects that are on hold and could be revived. The developer has $4.2bn of projects in the execution phase. Major projects Dubai Properties has developed in the past include Business Bay, Culture Village and Jumeirah Beach Residence.
The move to establish a framework agreement with contractors is a departure from the traditional method of tendering used by most developers in Dubai and highlights the growing risks that developers face when procuring construction services.
The supply chain has struggled with severe cash flow constraints due to late payment and certification in recent years and some firms are now unable to deliver projects.
Related Posts
The process of transformation is already underway in the regional construction industry with Covid-19 accelerating the need for this change
Already facing severe cash-flow challenges after five years of recession in ...
READ MORE
Governments need to invest in developing local talent and deploy innovative strategies to create a competitive tourist sector, says Mashreq Bank
The GCC’s tourism sector could face a shortfall ...
READ MORE
Ever since the global financial crisis hit the region in 2008, real estate developers in the UAE have been exploring alternative funding methods to deliver their projects.
Export credit funding backed ...
READ MORE
Carillion is the latest international firm to report problem projects in the region
Before the London Stock Exchange opened for the week on 10 July UK construction company Carillion issued a trading ...
READ MORE
Oversupply points to further decline and shrinking developer margins in the Dubai real estate market in 2019, and continued weakness through 2020
Dubai real estate prices will continue to deteriorate in ...
READ MORE
When Expo 2020 Dubai closes in April 2021, the site will be converted into a test bed for global innovation
Dubai plans to develop a new city on the 4.38 square-kilometre ...
READ MORE
CEO of Arzan Investment Management, Oliver Hogg, comments on how the asset class provides developers with alternative funding solutions and greater flexibility in capital structuring
Download the full case study
An icon ...
READ MORE
The Covid-19 pandemic is accelerating lay-offs amid a low-oil price environment, but some employers are seeking alternatives
Lay-off and redundancy activity has accelerated in the Middle East’s construction sector as it contends with ...
READ MORE
UK firms will be looking for export markets such as the GCC to offset a cooling domestic industry
London’s decision to establish a new body to help promote international opportunities for its construction ...
READ MORE
Experts from Clyde & Co provide insight on force majeure clauses and laws for the construction sector in the wake of Covid-19
Findings from Mashreq Construction Club Connect Series episode I
The ...
READ MORE
CONNECT SERIES: Re-engineering construction in the GCC
Workforce shortages could hamper GCC tourism growth
Export credit works both ways
Middle East risk is an international problem for
Dubai real estate will improve in 2021 at
Dubai plans a lasting legacy for Expo 2020
Watch: The rising prominence of private debt in
Pandemic quickens construction job cuts
GCC will benefit from new UK construction body
CONNECT SERIES: Force majeure and other options in
17 January, 2018 | .By COLIN FOREMAN
