Abu Dhabi – Mubasher: The real estate sector is facing a major challenge as an environment of rivalry and disputing was developed between contractors and clients.
Among the main complaints brought up by some companies in the giant industry were late payment, unprofessional contract-drafting, and some other point peculiar to the Middle Eastern culture in general.
These points were raised and discussed by the attendees of Construction Week’s inaugural Dispute Resolution Question Time, held on 21 March.
The problematic situation in hand propels some contractors to leave the GCC market, ceasing to find any consolation in dispute resolution and alternative dispute resolution (ADR), construction week revealed.
“Some contractors are debating whether it’s worth continuing in the industry because there is just so much risk in the UAE,” senior quantity surveyor at Alemco Paul Yates commented.
Amidst various disputes, contractors in the Emirati market may find themselves short of liquidity, willing to seek funding through their parent or sister companies, Yates added.
“The sector may need to reinvent itself by rewiring the contractual dispute framework,” director of the Royal Institution of Chartered Surveyors in the Middle East said, as Construction Week reported.
In 2017, the UK-based British Carillion – recently collapsed –left the GCC market, while Balfour Beatty unveiled plans to end its business in the Middle East.
