How Construction is Changing in the UAE?
Jinoy Viswan FIE, CEng, PMP, B.Tech, ACIArb, Dip(Arbitration)
Delivering Successful EOT Claims & Unlocking Full Contractual Entitlements | Protecting Contractors from Penalties | CEO @ Aegis | Three Decades in Contract Management, Delay Analysis & ADR Support
The UAE's construction industry is changing just like the UK's did after Margaret Thatcher. In the past, main contractors focused on the actual building part. Now, they're more into managing contracts and reducing risks, which is a big change.
Main Contractors Changing Their Ways
Before, main contractors were all about building. Now, they have to think about many things, like dealing with complicated market issues and balancing different tasks. It's not just about building anymore.
Subcontractors Facing New Challenges
As main contractors change, subcontractors have to adapt. They can't just offer low prices; they need to be good at managing projects, figuring out risks, and actually doing the work. They also have to change how they run their businesses because now they face more financial and operational risks.
Economic Effects and New Ways of Pricing
These changes affect the economy. Subcontractors are spending more to keep up with main contractors, which changes how they price their services and how much profit they make. The whole industry is adjusting to this new way of doing things.
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Tier 2 Clients and Changes in Contractors
There's a new trend where Tier 2 clients are skipping the big main contractors and working directly with what used to be subcontractors. These subcontractors have to meet high standards like the big contractors but still work within their smaller budgets. This is tough and makes them rethink how they work and maintain quality.
Working Together for the Future
The construction sector in the UAE needs to focus on teamwork and sharing responsibility. It's important that these changes don't lower the quality of construction the UAE is known for.
This change leads to big questions for professionals in the industry: How can they balance their new roles and still keep high construction quality? How can risks be fairly shared in this new situation?
Let's talk about what the future holds for the UAE's construction industry.