Discussing the downturn
by This email address is being protected from spam bots, you need Javascript enabled to view it on Saturday, 27 June 2009
Dessoy: We used to work in Libya but we closed the office there. Everything takes a lot of time. You never know when they will start - we had to wait for one or two years to get a contract. We were there from the end of 1990 to 2004. I don't see anything changing.
Ray: From what I hear, anyone who's been to Libya will not go back but those who haven't been there are quite enthusiastic.
So you're not too keen on Libya then...
Eveleigh: We're not particularly aggressive on Libya at all. We keep being presented with opportunities but I think there are some risks in Libya, especially the way they structure deals, not financially, but just in the way they structure things. I don't think there are any common contractual arrangements.
Ray: What I understand is that they have a rate contract - it is government controlled. So if they like you, they'll tell you to go by their rates. If the parties agree, they'll give you the contract but even that is very loose.
Dessoy: Yes but we weren't working for the government. We were working for a private company.
Where is Kuwait in all of this?
Ahmed Al Hashimi: Nothing really seems to be happening there. We've been chasing just one job at the airport for many months now.
Eveleigh: I'm not sure it's particularly an international market. Even though Bahrain and Oman are smaller markets, they've attracted some international names to work there but Kuwait doesn't seem to have.
Ray: The problem in Kuwait is that projects take ages to be conceptualised, ages for the contract to be awarded and then when it is, it's dropped. This is very time consuming. Recently two major projects got cancelled due to a parliamentary decision - sometimes democracy and business don't go together either. It's a tough market. Only the Koreans are there in the refineries.
Has health and safety improved?
Dessoy: There's been a huge change since ten years ago.
Mark Wiltshire: It's a lot better than it was but there's a long way to go. Working at height is still the most important issue.
Al Hashimi: The industry probably need more health and safety training.
Wiltshire: The other thing that we must be careful of, is that over the past six months a lot of the skilled labour has gone back to Asia, and when things kick off again we're going to have to train the new ones again.
Eveleigh: Your're right, health and safety is a constant battle. You've got to keep on driving it. It's number one on our agendas always. You've got to keep it at the forefront.
Wiltshire: I think due to competitiveness, there's pressure on everybody to reduce the cost of what they're producing as well, and we have to be careful of the quality of some of the materials we're using in formwork, so that we're not getting a dodgy batch due to pressure on suppliers to reduce costs.
Darren Ellwood: Requests for tests are now being asked for on everything by the RTA.
Dessoy: Yes, but sometimes the materials are good but the design is wrong.
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