Driving better value in construction

Driving better value in construction report cover

Delivering world-class infrastructure today is essential to the success of the region tomorrow. Not only do today’s projects drive growth and create jobs, but they also lay the foundations for future prosperity and happiness.

That is why it is vital that the region’s construction industry continually strives to achieve world-class standards of quality, safety and productivity.

With more than $820bn-worth of major projects planned in the UAE, and more than $3tn across the GCC, a lot will be gained, or lost, by the way today’s projects are delivered.

This makes the construction industry strategically vital to the future of the UAE.

In order to balance their budgets, finance ministries are demanding that every dirham, riyal or dinar spent adds value to the economy. And nowhere is this more apparent than in the region’s projects sector, where vast sums have been wasted by projects that have run late and cost more than they were ever expected to cost.

But despite its strategically vital role, little has been done to improve an industry that often appears stuck in a self-destructive culture of cut-throat bidding, late payments, and adversarial contracting.

The focus, which starts with the construction clients, on getting projects built as quickly and cheaply as possible with no thought to the long-term sustainability of the project parties, undermines the sustainability of construction and projects in the UAE. It is potentially damaging the long-term prospects of the country.

Perhaps the most harmful impact is on research & development spending, where construction is lagging far behind every other industry.

But there is an opportunity to change. The digital and technological innovations that are disrupting every aspect of our lives, provide an opportunity to get rid of these damaging construction practices and to reform the way projects are delivered.

Driving better value in construction presents the findings of a wide-ranging consultation with construction industry stakeholders in the UAE, who have shared their insights on how things can and are being changed for the better.

Supported by the UAE’s ambitious Vision 2021 strategy, project teams across the country are taking their first steps towards the digitalisation of construction planning and delivery. The adoption of virtual project ‘twins’ in the cloud are forcing project teams to share information and collaborate. They are connecting every aspect of a project through its full life cycle, from concept design through to end-use. Meanwhile, technologies such as virtual reality, drones, 3D printing and generative design are all providing opportunities to rethink construction.

Utilising these new technologies requires a greater focus on quality from project clients, who must recognise that investment is needed to bring best practice into UAE projects.

While it may require higher levels of up-front capital investment, evidence shows that increasing capital expenditure to improve quality can massively reduce operation and maintenance costs throughout the life cycle of a project, and increase revenues generated from infrastructure.

We are just at the start of the process, and it requires a much greater push from all parts of the industry, but particularly from project owners and construction clients, for today’s innovations to become tomorrow’s norms.

Download the full report here
Related Posts
Saudi Aramco tightens capital expenditure
Aramco’s supply chain community is trying to assess the impact of subdued capital spending in 2020 on their businesses Most analysts had predicted Saudi Aramco would register lower profits in 2019 than the ...
READ MORE
UAE construction faces up to the digital storm
Digital transformation is happening everywhere and is being driven by many factors, including changing economic necessities, societal shifts, and new technologies. But while the Big Data/digital revolution has already transformed many ...
READ MORE
Prospects start to brighten for GCC contractors
Outlook improving for contractors in the GCC, though challenges remain Q&A with Arun Mathur, Senior vice-president and head of contracting finance, Mashreq Bank   Q: What state is the GCC construction market in ...
READ MORE
Egypt
The combined value of all projects planned or under way in the five North African countries is about $739bn The signing on 11 December 2017 of an agreement between Egypt and Russia ...
READ MORE
Petrochemicals
New olefins and aromatics facilities will be integrated with the Al-Zour refinery Kuwait’s planned petrochemicals complex at Al-Zour, which includes olefins and aromatics facilities, will become operational in 2023, four years ...
READ MORE
ENERGY CLUB 3: Renewables on the rise in Mena
The third Mashreq Energy Club focused on the rise of renewables in the region The falling costs of clean energy technologies is driving the shift towards renewable energy across the Middle ...
READ MORE
Aramco charts a grounded downstream strategy
The state energy giant and its downstream partners favour bolt-on refining and petrochemicals capacity Saudi Aramco is executing major plans to expand its refining and petrochemicals production capacity primarily through expanding ...
READ MORE
Construction sector adjusts to the new normal
Sentiment in the GCC’s construction market has improved since 2016 The GCC’s construction sector has adjusted to the new normal of lower oil prices and reduced government spending, according to Pinsent ...
READ MORE
Bahrain’s construction goals shift rather than shrink
Manama focuses on critical infrastructure and engagement with the private sector amid fiscal tightening Unlike its Gulf neighbours, Bahrain does not have a trillion-dollar initial public offering or an upcoming world ...
READ MORE
Managing mental health through various mobile applications
  Mental health conditions are quite prevalent worldwide, with almost 10% of the global population suffering from a mental disorder[1]. As per WHO, one in four people in the world are ...
READ MORE
Saudi Aramco tightens capital expenditure
UAE construction faces up to the digital storm
Prospects start to brighten for GCC contractors
North Africa is a challenging market with huge
Timeline set for Kuwait chemicals complex completion
ENERGY CLUB 3: Renewables on the rise in
Aramco charts a grounded downstream strategy
Construction sector adjusts to the new normal
Bahrain’s construction goals shift rather than shrink
Managing mental health through various mobile applications
20 February, 2018 | .By RICHARD THOMPSON