DMCC adopts new ‘partnering’ model

The Dubai Multi Commodities Centre (DMCC) has adopted a Project Partnering Contract (PPC) model for its forthcoming DMCC Business Park development in Dubai.
DMCC adopts new ‘partnering’ model
By Conrad Egbert
Sat 10 May 2008 04:00 AM

The Dubai Multi Commodities Centre (DMCC) has adopted a Project Partnering Contract (PPC) model for its forthcoming DMCC Business Park development in Dubai.

This follows a series of stories in Construction Week over the past few weeks with contractors calling for an overhaul of the contracting system and better co-operation between parties in the GCC.

DMCC is one of the first companies in the region to establish a partnering contracting system, in line with international best practices in the construction industry.

The partners working on the DMCC Business Park include Norr Group Consultants International as the lead designer and architect, K Home International as the client representative, Hanscomb Consultants as the lead consultant and Al Futtaim Carillion as the contractor.

The PPC is a team-oriented contract where the client, project manager, contractor and consultant sign a single partnering contract, instead of individual agreements between each party and the client.

All partners are brought on board in the initial stages of the project to facilitate better co-operation, design, safety and management of the project supply chain and logistics.

The partners have an obligation to the core group, enabling them to work together to reduce risk and price.

The new method will eliminate key challenges faced by developers in collaborating separately with individual contractors. It will also improve project delivery time and construction quality, eliminating supply bottlenecks and establishing a structured development model.

"This format ensures a structured development plan by addressing the challenges associated with a multi-party contract," said Ahmed bin Sulayem, executive chairman, DMCC.

"There is a clear understanding of the delivery timelines and shared areas of responsibility between the different project partners.

DMCC Business Park is a 13.8 hectare development located adjacent to the Jumeirah Lakes Towers. The business park will feature office and hotel towers and commercial buildings.

The development will enjoy free-zone status and will feature a 34-storey office tower and a 34-storey business hotel. There will also be office buildings ranging in height from seven to 15 storeys.

Bryan Wilson, executive director, Property, DMCC, said the PPC format aligned contractual project management processes with teamwork methods, offering identical terms and a level playing field for partners.

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