Addressing the audience during the Construction Week: Leaders in Construction Summit UAE 2019, held at the Le Meridein Dubai Hotel & Conference Centre on 17 September, a panel moderated by Reed Smith’s managing partner, Sachin Kerur and comprising panellists such as head of comunity management at Meraas, Walid Soliman; chief executive officer of Mag Lifestyle Development, Talal Moafaq Al Gaddah; CEO of Beaver Gulf, Rajesh Kumar Krishna; and head of customer success at Construction Computer Software (CCS), Fady Kobery agreed that ‘cost control’ had been misunderstood as a concept, and proper awareness could alleviate key industry issues.
Gaddah said price-based competition was causing contract costs to be passed down in the value chain, adding that the situation was also impacted by contractors outnumbering the projects and work opportunities available in the market.
He added that confirming project designs — and ensuring they are not changed later during the construction phase — was also essential to ensure contract awards match initially planned costs.
Beaver Gulf Group's Krishna warned that clients must guard against reducing contract costs to "unrealistic levels", while Kobery pointed out that potential for improvement lay in contractors, clients, and consultants understanding the true meaning and requirements of 'cost control'.
The Leaders in Construction Summit UAE 2019 is supported by Gold Sponsors, HFW and Pinsent Masons; Silver Sponsors, Addleshaw Goddard, Exactal, and Al Tamimi & Co; Claims Sponsor, HKA; Legal Sponsor, Reed Smith; Lanyard Sponsor, Bryan Cave Leighton Paisner (BCLP); Intelligence Partner, ProTenders; Training Partner, Royal Institution of Chartered Surveyors; and Exhibitors, Deltek, Construction Computer Software (CCS), Beaver Gulf Group, Facilio, and CCC.Visit Leaders in Construction UAE Summit's website for more information about the event.