Archive for the ‘Guest Writer’ Category

Crisis for Gulf Construction Companies?

Let’s take a look at what has been happening in the Gulf construction market recently.

Drake & Skull announced plans for a major restructuring after suffering losses in 2016 of AED 787M, an improvement on 2015 when they lost AED 939M. A few weeks ago 8,000 employees of the 40 year old company Saudi Oger received letters announcing that 31st July 2017 will be their last day at work. The company apparently owes $3.5Bn to Saudi banks. Arabtec needed a cash injection early this year too after announcing losses of AED 3.4Bn in 2016. In 2015 the losses were reported at AED 2.35Bn. In March last year Al Jaber missed a debt repayment of AED16.2Bn which had been put in place in 2014 to restructure the company and in August, they announced the sale of their share in ALEC and the Shangri-La Hotel Abu Dhabi to finance yet another restructuring exercise. Then there’s the fall out between Al Habtoor and Leighton, the list goes on and this is just the tip of the iceberg for the Gulf construction industry…the small sub-contractors, sub sub-contractors and suppliers don’t make news in the financial press.

What is going on with contractors in the Gulf? Is there no work?

(more…)

Continue reading

6 Key Actions UAE Contractors Should Take in Today’s Tough Market

UAE contractors are facing tough market conditions, with cash flow constraints and greater competition for fewer contracts placing a squeeze on margins. Expo 2020 is just around the corner now but much of the anticipated bonanza from Expo and related projects has yet to kick off. The region however still offers decent long-term fundamentals for companies prepared to ride out the current slowdown in the market.

In addition to the current slow down, UAE contractors still face pressure on cash-flow from trying to close out legacy projects, and be paid for projects delivered back in 2008-10. Many contractors are finding that market conditions in 2016 are tougher than in the previous year and most have witnessed an increase in construction disputes.

(more…)

Continue reading

Construction Claims Distance Learning Course | A Graduate’s Perspective

When I enrolled on the Claims Class Distance Learning Course, I was approaching 10 years of experience. During that time I had dealt with claims on both sides of the fence, with a reasonable degree of success, so I was by no means a novice.

So why did I enrol on the Distance Learning Course? I have seen claims presented in all shapes and sizes, good and bad.  I too have been guilty of structuring claims or responses in different ways, simply because I was unaware of a tried and tested method.  Knowing that this was something that I could improve on, I went in search of the answer and stumbled across the core text for the course: Construction Claims & Responses – effective writing & presentation, which goes through the preparation of a claim from A to Z in minute detail. I was that satisfied with the book that I decided to enrol on the Distance Learning Course. (more…)

Continue reading