Design & build the way forward

zoom

90% of Al Futtaim Carillion’s work in the UK follows this method of procurement and Buttery expects a similar trend in Dubai. (Valeriano Handumon/ITP Images)

zoom

Al Raha beach, currently under construction, is being built through a ‘risk sharing’ joint venture between Aldar and Laing O’Rourke. (Valeriano Handumon/ITP Images)

But this isn't to say it is a simple methodology to undertake. For this approach to work, the contractor is under far more pressure in what is an already fraught market. Buttery explains that to undertake a design and build contract means serious responsibility, and it must be in a position where it can manage it. "It is much more onerous for the contractor to deliver as there is far more for us to do."

Buttery also believes that such an approach makes better employees, citing those project managers who consequently get involved in design often turn out to be the best design managers, as they bring knowledge of the building process and can apply that. Furthermore, it isn't only the client who benefits from tighter project control and a cost-effective approach. From a contractors' point of view, it simplifies the construction process, eliminating erroneous procedures. According to Kez Taylor, managing director, ALEC, it affords the company greater control. "We find purely as a contractor, generally where you get tripped up is when you don't receive the information in the right sequence in order to execute the work efficiently.

"In design and build, the design component falls under our responsibility, so we will appoint the consultants and from a client's perspective, you have a one-stop shop. What happens in traditional contracts is that you have a lot of conflict with the design team and execution team. So you end up with conflict because the contractor has huge penalties and has to pull the job off, and the design team that is continually changing the design and not giving you the information in the right kind of sequence and time you require."

Taylor isn't surprised at the reticence shown so far by clients in the region, indicating it will take a while for clients to change to another model. In other parts of the world, namely Australia, it is a very common approach to construction. So far, just 20% of its projects are through design and build including the Between the Bridges contract - a $272 million project in Abu Dhabi being one of them. Taylor is confident that, once the message gets heard, more will follow this form.

Cyril Williams, commercial manager, Al Rostamani Pegel, highlights the change in mindset among clients, explaining also that it presents another avenue for companies to expand their business. "We have done about four towers now (design and build), and it's another way to grow our business. We go to a client who has a piece of land and say: ‘let us do everything for you'. They say, ‘well that's great, but how do you know what we want?' And we tell them, we will make them part of the team. It's gaining ground."

Like Taylor, Williams believes a shift in conventional thinking needs to happen before design and build is embraced fully. "I think we have got to get past the stage where everyone is wary of everyone else; I think it's a construction thing. I don't think we will get away from it completely, but I think partnerships will be better in the future."

While there has been a distinct shift away from the ‘us and them' form of contracting that prevailed in the years gone by, there is a growing understanding from contractors that, with the proliferation of projects on offer, theirs is a strong position. It is arguably the ability to be more selective in the future, as much as changing attitudes that could drive change in the future.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM