Why Construction in Dubai and Abu Dhabi Charms You

Construction In Dubai And Abu Dhabi Has A Great Potential For The Ones Who Are Gravely Willing To Double Their Money Overnight. Plenty of ongoing constructions reveal the growth and stability of property business in a country and the world witnessed a huge construction projects in Dubai and ADhabi mainly. These constructions in Dubai and ADhabi attracted a lot of builders and real estate investors and other type of investors. Special emphasis was laid to the make the laws pertaining to construction and property’s sell, purchase and rent better. This step also boosted construction in Dubai and construction in Abu Dhabi. One more interesting fact is that 16% of the world’s cranes are engaged in Dubai’s construction works.

There are certain reasons which have played a key role in growing construction business in UAE, especially in Dubai and ADhabi. One of the most significant reasons is the on-time completion of all the construction projects. Many construction companies are well-known for their ability to meet the project deadline and assigned budget such as Arabian Construction Company, Dubai Contracting Company, ACTCO, Nakeel Group and Dutco Group. These construction companies in Dubai top the list of the best construction companies all over Middle East.

The reason behind the quick completion of projects is the abundant exploitation of laborers in construction in Dubai and ADhabi. They employ higher number of laborers as compare to the other countries, especially western ones. They are capable of employing excessive laborers since they get them at cheaper rates from the third world countries like India, Pakistan, Bangladesh, etc. Same is the case with technical staff like architects and engineers. They hire good architects and engineers at much lower fees and salaries from the same countries so as to designs and monitor construction in ADhabi and Dubai.

In construction falsework designs are very significant since they are required to give the needed shape of the building being constructed. Falsework designs are also available on ready-made basis in the market, but it is not necessary that the construction companies in ADhabi always select the ready-made falsework designs. Normally falsework designs are constructed according to the architecture of the building. Falsework designs are availed from the construction material dealers. There are also firms having business in Dubai who only deal in falsework designs in Dubai, therefore, these firms excel at making falsework designs.

If we focus on the ongoing and complete projects, we can deduce that all the construction in Dubai and Abu Dhabi are focused to attract the visitors which lead to promotion of tourism and business. These construction projects include luxury residential apartments, big shopping malls, and 7-star hotels, especially near the beaches; and adding to the elegance is world’s current tallest building, Burj Khalifa.

It is obvious that one can see a great potential in all these finished and unfinished and upcoming constructions in Dubai and Abu Dhabi. There is no doubt that investment in Dubai will open the gates of fortunes to the investors.

How to Evaluate a Construction Software Vendor

One of the most difficult facets of a Construction Management Software selection project for a sizable construction company is that of picking the right Construction Management Software vendor. Obviously, there are a number of suppliers of Construction Software who would like us to believe their product is the best there is. They go to great lengths to market the strengths of their products, and to disclose the alleged weaknesses of other software vendors’ products. Such is the game of the free enterprise business system.

There are some things you can do to help you “separate the wheat from the chaff,” as the saying goes. As is true with most major business enhancement endeavors, it is well worth it to do lots of research and homework before actually soliciting software vendors to come in to demonstrate their products and services. If you don’t do this, and you end up with a vendor who is full of hot-air promises but cannot deliver, there will be regrets. Likewise, depending how deeply involved and entrenched in the project the hot-air vendor becomes before you realize they are not satisfactory, you could lose a lot of time and money on getting nowhere. Some suggestions to minimize or prevent such risks follow:

1. Do the research! Check with internet resources, listen to other construction company recommendations, see what the Better Business Bureau has to say, and look in financial newspapers, bulletins, etc.

2. Look for red flags! Have any vendors been sued for non-performance or deceptive practices? Has the Construction Management Software package itself been kept up to date with technology and business practices? Has the vendor shown stability in their own business arena with regard to staff turnover, profits, employee treatment and satisfaction, and the like? Has the Construction Management Software vendor been taken over or bought out by others?

3. Look for green flags! Don’t forget to look for positive, as well as negative issues about Construction Management Software vendors. Has the vendor been recognized for any profound or meritorious software-related accomplishments? Has the software vendor been cited for Community and Public involvement? Have they been recommended by any of your business colleagues and associates?

4. Sift, sift, sift! Once you’ve done the research and developed your evaluation matrix to plug in your findings, you can begin to sift all the data so the finest and best Construction Management Software vendors will become readily apparent. After you sift the data once, do it twice; even three times. That way, you will be sure to have eliminated those Construction Management Software vendors who might not be all they are cracked up to be. Let the data speak for itself; try to leave emotions and sentiments out of the equation, since those things tend to add confusion.

5. Insist on the best! Be assertive with your final selection of Construction Management Software vendors with regard to the individuals they will be assigning to work on your software selection and implementation process. Don’t forget; you are paying them to give you their best possible product or service. If, at any time during the selection process, you feel the vendor representative is not working out, don’t be too hesitant about letting the vendor know that. Again, it’s your money!

How To Find Big Savings In Construction Projects

Knowing what to expect – including the places costs typically “hide” – provides an edge for efficiently managing the construction process.

Step one
A well-defined interview process will assist you in selecting the best construction manager (CM) for the job. Be thorough; replacing the CM once the job has begun is costly and raises serious questions of liability.

For renovation work, invite only CMs with considerable related experience. Interview previous clients to determine the CM’s ability to handle change orders, unforeseen elements and client decisions.

Insist that the project executive, project manager and project superintendent assigned to the job be present at the interview. (The executive represents the company, the manager spends the owner’s money and the superintendent is the on-site contact.) Closely observe the interaction between these people. A successful project can hinge on the working relationship between them.

Require all interviewing CMs to submit a detailed account of what they heard and agreed to at the interview. This important document will reflect the CM’s understanding of your conditions and form the basis for contract negotiations. This document will also serve to suppress potential disputes arising from construction contract issues.

Where costs hide

The construction contract between the owner and CM is a legally binding contract but its terms are not universal. The owner should negotiate the specifics of the contract requirements and the particular needs of the project.

The more knowledgeable the owner – often represented by the facility executive – is about the nature of the terms of the contract, the greater the awareness of the potential for hidden costs. Uninformed owners can unwittingly agree to pay more money for a longer period of time than necessary.

Demonstrate your understanding of the construction process by first knowing the unit prices and labor costs of every item you agree to purchase and negotiating the following standard construction contract line items.

• General Conditions. General Conditions should only be those non-construction costs that are necessary to get the job done and are directly applicable to the project. All general conditions should be a line item amount agreed to and guaranteed before the start of construction. Typical components of general conditions include funds for a site office, on-site project administration labor and necessary office equipment. Do not accept an amount that is expressed as a percentage of the cost.

Substantial savings can be realized by asking the right questions about general conditions. For example, question the site office requirements presented by the CM, including how much new equipment is necessary. Who should assume the cost of purchasing and installing the computer equipment and software the CM lists as a site office requirement?

• Overhead. Overhead is the CM’s cost of doing business. Should the owner be responsible for that cost? An argument can be made that the owner need only pay for costs directly applicable to this specific project, and not for costs the CM incurs on other jobs. This line item in particular is often the subject of legal disputes. Do not be afraid to eliminate elements of cost contained in this category and, again, do not accept an amount that is expressed as a percentage of the work.

• Hourly Wages. Agree to pay only the wages for work on your project. The actual hourly wages, taxes and benefits (not a multiple of these) are the owner’s responsibility. Time off and educational seminars are not. Avoid a situation where you are asked to pay wages for a general superintendent or any other part-time supervisory personnel.

• Construction Fees. To determine a fair construction fee, negotiate a percentage based only on the cost of the work. Be careful of the language of the contract. All fees are a direct percentage of the cost of the work, before the contingency and general conditions are added. A fair 4 percent construction fee could be 4.5 percent if taken as a percentage of a cumulative total. On multi-million dollar jobs, this can represent a substantial amount of money.

Insist that the fee be converted from a percentage to a fixed amount before construction starts. Once construction starts and the potential for change orders (that can increase the cost of the work) exists, the fee will continue to rise without limit. Don’t allow the construction budget to be compromised in this way.

• Contingency Fee. Most CMs require that a contingency fee be built into the guaranteed maximum price. The only responsible way to manage the necessary contingency fee is to insist that it be jointly controlled by the owner and the CM. Neither the design nor the construction process is a perfect science; CMs will insist that they need to “manage their risk” with the contingency fee. Maintaining some control over the allocation of funds will enable the owner to best justify the expenses.

When negotiating the contract, the owner must “buy the schedule” with the cost of construction and guard against it slipping. Extending the construction phase is a costly decision.

Agree on the completion date of the project and insist that a penalty be levied if the project is delayed. Do not agree, however, to a bonus if the project is finished before the scheduled delivery date. The CM might deserve a bonus for early delivery if extraordinary problems were overcome, but does not necessarily deserve bonus dollars for performing the job you hired them to do.

Change orders and substitutions

In negotiating the change order procedure in the construction contract, the owner should demand a “no work stoppage” clause. Too much time can be wasted if work ceases in anticipation of a general agreement of change order amounts and schedule implications.

When presented with a change order, the architect should consider both the money and time the CM is looking to add to the job. Each is open for discussion. Don’t wonder why construction isn’t finished and then discover the architect has authorized an additional week of accumulated change orders.

While the CM should aggressively pursue reasonable substitutions on your behalf, be sure you or your architect knows the cost of the originally specified product and the cost of the alternative. The construction contract should state clearly that cost savings realized by the substitution for a specified product go directly to the owner. Here, too, substantial savings can be realized.

As your architect’s last element of control over the quality of the project, the punch list must be a thorough process. Accompany the architect to look at the job. Try to anticipate any problems that may arise once the space is occupied. If a fault is discovered after the owner has released the CM, the issue will be more difficult, time consuming, and expensive to remedy.

Secrets of a successful renovation

To successfully manage a renovation process while the facility remains in operation, consider the following ways to minimize cost and disruption:

• What you see is not what you get. In most cases, the older the building you are occupying and renovating, the greater the potential discrepancy between the budgeted and actual costs of the renovation. Work with an architect and a CM who have enough renovation experience to anticipate potential unforeseen elements (electrical, mechanical, environmental and code compliance) and to quantify the cost of the work before the construction contract is signed.

• Designating a “swing space.” If your project requires renovating existing spaces while you are occupying them, provide a “swing space” for temporary use by each displaced department as its permanent space is modified. To determine the order in which the areas are renovated, consult with department managers and the CM to minimize the disruption to company productivity and maximize the efficiency of the renovating and moving processes.

• Building a “smart” addition. If your renovation includes building an addition onto the space you are occupying, minimize traffic, dust and noise by building as much of the addition as possible before breaking through to connect with the existing spaces.

• Establishing a presence. As the facility manager, your knowledge of the facility and daily operations makes your presence in the process invaluable. Attend weekly construction meetings and address issues before they become magnified and more costly. Often, because of your vast knowledge of the building and its systems, you will understand the issues and can offer a workable solution more readily than the construction team.

Opening the lines of communication

Precise communication with all of the individuals involved in the process, especially the clients you service and the employees who must be accommodated, is essential. One extreme case – the renovation of a hospital emergency room – demanded the cooperation of the local police, ambulance services, and other area hospitals to reroute and accept patients.

Common scenarios involve notifying staff of an activity or a move (start date, duration, specifics), discussing the arrangement for temporary facilities, ensuring safety and security, and providing additional signs to redirect visitors. The more accurate the construction schedule and the more open the lines of communication, the more efficient and less expensive the process.

Weekly progress coordination meetings should be attended by building administrators, maintenance and engineering staffs, and each subcontractor to review progress. Detailed meeting minutes should be distributed both internally and to the appropriate regulatory officials. These minutes will be the core documentation vehicle for the project.

Not every owner or facility manager has the time, interest or expertise to devote to project management.

The owner can still protect his or her interests by hiring an advocate to coordinate and oversee the construction process. As the owner’s representative, this individual defines the development process, negotiates project contracts, schedules and monitors all stages of the construction process, and coordinates communication between participants.

The fee for this service can be offset by substantial savings in construction costs. Many clients hire these experts to “fix” a project that is already in trouble, but an advocate is most valuable if consulted from the start.