Contract Administration

Contract Administration

Suspension of works

by Dennis Brand

 Until late last year I was frequently asked by those visiting the UAE and seeing the amount of construction being undertaken, when I thought the construction bubble in the UAE would burst.

My often repeated answer was that I did not think the bubble would burst as such, but would over time slowly deflate; how wrong I was. What we have seen over recent months as a result of what the experts tell us is result of the world wide economic downturn has resulted in an unprecedented number of projects and therefore contracts being suspended. …

Contract Administration

UAE law provides security in construction deal risks

By Jim Delkousis

The UAE has seen a major slowdown of construction projects in recent months, particularly in Dubai. The situation is far from being ideal for players in the construction market.

Trapped with stagnating projects, developers and contractors are facing a recurrent question. What can we do when a project is frozen? Do we take drastic measures such as cancellation of the project? Or shall we wait until conditions improve? …

Contract Administration

Salaries of engineers have fallen by 15 per cent

Salaries of engineers have fallen by 15 per cent as construction companies reconsider their budgets, said experts.
“The salaries of civil engineers in the country have fallen by 15 per cent for new hires. It’s not like six months back when engineers in the construction sector got a 50 per cent hike when they switched jobs,” said Ian Giulianotti, Associate Director, HRM Consulting, at Nadia Recruitment. …

Construction Law, Contract Administration

The UAE’s new arbitration law: is there an easier way?

by Anthony Edwards

 In May, Construction Week reported the UAE’s plan to finalise a new arbitration law, and highlighted various criticisms of the current draft. One contributor was quoted saying that “The point (in arbitration)…is beaten if things get complicated”. Review of the current draft suggests that the criticism reported in May could hardly have abated. …

Contract Administration

A long term view for Credit Crunch

A long term view for Credit Crunch
by Omar Al Saadoon
Senior Associate Omar Al Saadoon.Construction & Engineering Practice – Al Tamimi & Company

This article might deter short term speculators or pessimists (so called realists) in reading further and if so no hard feelings. I too have noticed a reduction in crane activity and generally less traffic on the Sheikh Zayed Road. I also understand and appreciate the world we have lived in is rapidly changing and the credit crunch is likely to have a profound impact on global construction industries for the foreseeable future. …

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