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
Trend of increasing local pharmaceutical manufacturing capabilities in the GCC
Rapid reform in the healthcare market across the GCC is driving significant growth of the pharmaceutical market. The governments of UAE and KSA aim to boost domestic production of pharmaceuticals and ...
READ MORE
Emaar working on Dubai airport metro link
Developer planning direct airport link to attract airport’s transit passengers Local developer Emaar is working with the Roads & Transport Authority on plans to build a metro link directly connecting the ...
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
Abu Dhabi receives bids for next Etihad rail package
Etihad Rail last week awarded AED4.4bn-worth of contracts for packages B and C to a Chinese/local team Etihad Rail has received bids for Package D of the second stage of the ...
READ MORE
Hydrocarbon project activity contracts sharply
The value of active oil and petrochemical projects in the Middle East has exhibited a steep decline over the course of 2020, while gas project activity has modestly grown   Hydrocarbon-exporting majors in ...
READ MORE
Abu Dhabi real estate pivots to green
Environmental, social and governance (ESG) principles can become a way for Abu Dhabi real estate to differentiate its offerings at a global scale This article is the second in a series ...
READ MORE
Construction
Dubai will increase its spending on infrastructure and construction projects by 43 per cent next year as it continues to prepare for Expo 2020 as well as invest in other ...
READ MORE
Contractors concerned by bleak outlook for Kuwait energy sector tenders
Several key oil and gas tenders are experiencing lengthy delays Contractors seeking work in Kuwait’s oil and gas sector are becoming increasingly anxious about the delays to key projects, according to ...
READ MORE
Saudi Arabia should be the GCC’s largest construction market
Riyadh has cut capital spending and few new projects outside oil and gas sectors have started in recent years Saudi Arabia should be the GCC’s largest construction market by far. Its ...
READ MORE
Mena projects and the impact of Covid-19
Latest exclusive findings and analysis on the impact of Covid-19 on the Middle East and North Africa projects market Click here to watch the latest update on the impact of Covid-19 and ...
READ MORE
Trend of increasing local pharmaceutical manufacturing capabilities in
Emaar working on Dubai airport metro link
Construction sector adjusts to the new normal
Abu Dhabi receives bids for next Etihad rail
Hydrocarbon project activity contracts sharply
Abu Dhabi real estate pivots to green
Dubai to boost infrastructure spending by 43 per
Contractors concerned by bleak outlook for Kuwait energy
Saudi Arabia should be the GCC’s largest construction
Mena projects and the impact of Covid-19
20 February, 2018 | .By RICHARD THOMPSON