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
Mashreq appoints new CEO
Former CEO Abdul Aziz al-Ghurair has been appointed as new chairman of board of directors Dubai-based bank Mashreq has appointed Ahmed Mohamed Abdelaal (pictured above) as its new CEO, replacing previous ...
READ MORE
Building Future Cities
  Why the Gulf is set to lead the world in urban planning development and management One of the most significant long-term trends around the world is the movement of the human ...
READ MORE
The transformation of regional power
The Middle East’s power sector is on a transformational path, with governments working to shore up energy security and delegate responsibilities to the private sector Demand growth for additional generation capacity ...
READ MORE
Home healthcare services in the GCC
Home healthcare is defined as care provided at home by licensed healthcare professionals who cater to medical treatment needs or by professional caregivers who provide daily assistance to ensure that activities of daily ...
READ MORE
MARKET TALK: Fall in oil prices creates an opportunity to deliver reforms
Interview: Abdul Aziz al-Ghurair, CEO of Mashreq Traditionally seen as rocks of stability, banks over the past decade have been on a roller-coaster ride that has gone from the highs of ...
READ MORE
Middle East contract awards: September 2018
Egypt leads value of deals signed Egypt helped the Middle East record the highest value of deals let to date in 2018, with the country’s $7.8bn of contracts signed forming the ...
READ MORE
CONNECT SERIES: Enabling future generations through digitalisation
Early investment in telecoms network infrastructure puts the UAE in a strong position for successful digital transformation but a shift in mindset is required   The measures introduced in March 2020 to stop the spread of the Covid-19 virus forced workplaces and schools ...
READ MORE
Chemical installation in the Port of Rotterdam
By seeking expressions of interest for an estimated $4bn project, Borouge has helped to boost the market Borouge, the 60:40 joint venture (JV) of Abu Dhabi National Oil Company (Adnoc) and Austria’s ...
READ MORE
Etihad railway to drive logistics growth
Some packages in the next stage of Etihad railway will link the UAE’s major ports The procurement process for the next stage of the UAE’s Etihad railway is now in full swing. Contractors ...
READ MORE
Adnoc headquarters
Adnoc is considering adjustments to its In-Country Value (ICV) system, which was introduced in January this year. An Adnoc spokesperson told MEED: “As with any programme of this nature, you listen and learn during ...
READ MORE
Mashreq appoints new CEO
Building Future Cities
The transformation of regional power
Home healthcare services in the GCC
MARKET TALK: Fall in oil prices creates an
Middle East contract awards: September 2018
CONNECT SERIES: Enabling future generations through digitalisation
Abu Dhabi bolsters regional petrochemicals market
Etihad railway to drive logistics growth
Adnoc considers changes to In-Country Value scheme
20 February, 2018 | .By RICHARD THOMPSON