Procurement Management

Construction Industry, Construction Law, Contract Administration, Procurement Management, Project Management, Security of Payment

The Importance of Timely Payments in the UAE Construction Industry: Challenges and Solutions

By Dr Samer Skaik

Cash flow is the lifeblood of the construction industry, and timely payments are essential for maintaining a healthy financial ecosystem. In the UAE, delayed or non-payment by employers has become a significant issue, leading to severe cash flow problems for contractors and their supply chains. These disruptions not only impact the construction companies but also have broader implications for the UAE’s economy, where construction contributes significantly to the GDP.

Traditionally, contractors claim payments upon completing specific project milestones, with payments made on a monthly basis or as specified in the contract. However, various factors can jeopardize this smooth cash flow, causing delays that ripple through the entire supply chain. Delayed payments can lead to project delays, disputes, and reduced profitability, and in extreme cases, even push contractors and subcontractors toward insolvency. …

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Construction Industry, Construction Law, Contract Administration, Procurement Management, Project Management

Navigating Nomination Procedures in Construction Contracts: Insights and Challenges

By Dr Samer Skaik

In the realm of construction project management, nomination procedures play a pivotal role in determining how subcontractors are selected and engaged. These procedures have evolved significantly over time to address various shortcomings and complexities inherent in subcontractor nomination. This blog post explores the intricacies of nomination procedures, the risks associated with them, and strategies for improving their effectiveness. …

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Construction Industry, Construction Law, General Management, Procurement Management, Project Management

Navigating the Insolvency Risks in the Australian Construction Industry: Insights from a Recent Study

By Dr Samer Skaik

Insolvency is a pressing concern within the Australian Construction Industry (ACI), where businesses face significantly higher risks compared to other sectors. This challenge is not unique to Australia, as construction industries globally experience similar issues. However, the causes of insolvency can vary widely across different regions, prompting the need for tailored approaches to predict and manage these risks.

A recent study has shed light on the critical factors contributing to insolvency within the ACI, offering a theoretical framework that prioritizes these factors based on their relative importance. This framework, derived from a rigorous systematic literature review (SLR) and supplemented by data from the Australian Securities and Investments Commission (ASIC), highlights both quantitative and qualitative factors essential for predicting insolvency. …

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Construction Industry, Contract Administration, Procurement Management, Project Management

Mastering Subcontract Nomination in Construction: Key Strategies for Success

By Dr Samer Skaik

Subcontract nomination is a pivotal practice in the construction industry, offering significant advantages in project management. It allows the Employer to maintain control over cost, quality, and time while ensuring the involvement of specialized subcontractors. Despite the challenges and complexities associated with this approach, subcontract nomination remains a valuable tool for optimizing project outcomes. This blog delves into the essentials of subcontract nomination, exploring its benefits, strategic applications, and the types of subcontracting arrangements that can enhance project efficiency. …

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Construction Industry, Construction Law, Contract Administration, Procurement Management

How to Deal with Provisional Sums Under FIDIC 1999

By Dr Samer Skaik

In construction contracts governed by FIDIC 1999, provisional sums are often included to account for certain parts of the work that are not defined in detail at the time of contract signing. These sums provide flexibility to accommodate future decisions by the Employer or Engineer regarding specific work items or materials. Proper management of provisional sums is crucial to ensure that the contract remains fair and that all parties understand their obligations and entitlements. …

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Civil Engineering, Construction Industry, Construction Law, Construction Technology, Contract Administration, General Management, PMP Hints, Procurement Management, Project Management, Statutory Adjudication

Launching My Channel on YouTube

By Dr Samer Skaik

Very recently, I have launched a channel on Youtube. This channel aims to provide integrated, handy and focused educational materials for those interested in developing their competencies in construction project management, professional practice and leadership. My aim is to help raise the bar by providing sound, solid and up-to-date knowledge for students, graduates and professionals in the construction sector. The channel, in addition to the videos, includes other interesting educational playlists. You can display the playlists chronologically if you are keen to develop a robust understanding in the field and advance progressively towards mastering the subject. …

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Contract Administration, Procurement Management, Project Management

FIDIC’s Middle Eastern launch for the new contracts

The FIDIC Middle East Contract Users’ Conference in Dubai is your opportunity to gain exclusive analysis and best practice guidance on the three new FIDIC contracts.

In order to provide accurate and balanced information, the FIDIC Contracts Committee will be joined by distinguished professionals and contract users from across the region and will also be delivering insights on successfully using the full FIDIC Suite, managing major projects, mitigating risks and resolving disputes in the Middle East. …

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Civil Engineering, Construction Industry, Construction Law, Construction Technology, Contract Administration, General Management, PMP Hints, Procurement Management, Project Management, Statutory Adjudication, Sustainability

Launching CMGuide Inaugural Mentoring Programme

We are very delighted to launch the Inaugural Mentoring Programme targeting graduates and early-career professionals in the construction industry.

This is a free service initiated and operated by CMGuide and led by CMGuide Founder (Dr Samer Skaik). The mentoring programme is targeting ambitious graduates and early-career professionals in the construction industry. The programme is only available in Australia. We encourage prospective and interested mentors in Australia who have the experience in any of the mentoring areas to join our ‘Mentors Panel’ ASAP so we can serve and enrol more mentees in the programme. Interested mentors should mention the mentoring area and availability arrangement so we can properly match mentees (protégé) with appropriate mentors. It is completely up to the mentors and mentees once to discuss and agree the mentoring arrangement during the mentoring year such as mentoring duration (not less than 6 months), communication method, frequency of meetings, level of support, etc.  …

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Construction Law, Contract Administration, Procurement Management, Project Management

How will you benefit from 2016’s most comprehensive construction law advice?

If your team would benefit from detailed and intensive guidance on all the key aspects of international construction and engineering law then you might want to take a look at the annual Construction Law Summer School.

2016 sessions include:

FIDIC; NEC3; termination & insolvency; time & delay; global claims & disputes; dispute boards; international arbitration; EU procurement regime; tendering liabilities; civil code; ADR. See more topics on the agenda.

…

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Construction Law, Contract Administration, General Management, Procurement Management, Project Management

Can alliancing work in the Gulf?

By STUART JORDAN

In the eyes of many people in our industry, the Middle East construction industry is old fashioned and not very open to new ideas. This view implies that new ideas are good ideas – which isn’t always the case.
Certainly, in the case of construction procurement models, the Gulf remains quite attached to single-stage competitive lowest price tender selection. Everyone knows where they stand and, as between employers and contractors, they stand quite far apart from each other! Relationships tend to be arm’s-length and driven by the formalities of the tender process. And the terms of the contracts formed in this way tend also to be tougher on contractors than we see in other parts of the world. …

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