Construction Management Guide

By Martin Preston
THE majority of the features of a project finance loan agreement are the same as a corporate loan agreement. However, because the basis on which the lenders are advancing the loan is the forecast revenues of the project, rather than the assets or creditworthiness of the sponsors, the risks taken by the lenders and, therefore, the controls that they require under the loan agreement, are greater than would be required under a corporate loan agreement. Inevitably, some of these additional controls impact on the construction contract.

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Despite the harsh lessons learnt over the latter part of 2009 and first quarter of 2010 it is still patently obvious that parties to contracts are falling into a number of age old pitfalls, many of whom are convinced that they have no other viable choice but to accept top-down back-to-back arrangements and in some cases a scramble of documents that barely resemble a contract at all.

There is still an overwhelming market tendency to order mobilisation and commence work on the back of a very brief Letter of Intent (LOI), particularly if the commissioned works are minor works or low value. This is a particularly high risk practice. [Read more…]

   Leonora Riesenburg.

After the Dispute Review Board (DRB) Foundation and Society of Construction Law (Gulf) met to discuss dispute boards and their function in the local market, many praised the ‘checks and balances’ proffered by the mechanism.

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By Hisham Yousef,

Sustainability has become the buzzword of choice in our industry, with many technical terms and metrics that makes it almost beyond the understanding of many clients and professionals alike. But this need not be the case. Sustainability is about going back to the basics of interacting with the environment and adopting a common sense approach to design.

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By Dennis Brand

Perhaps the best way of describing ‘design-build’ is to describe what it is not.
The traditional ‘design-bid-build’ method of construction is a sequential process in which the owner or developer first contracts with a design professional to prepare a concept or basic design, then a detailed design for construction. This includes specifications to solicit competitive bids for construction, and finally the award of a construction contract to the lowest bidder. [Read more…]

by Dr Jay Palmos
Last month, Deutsche Bank estimated that as many as 30 000 new units will enter the Dubai residential market this year, decreasing demand for new and existing units. A Union Bank of Switzerland study predicts rental prices could decline by as much as 30% during the course of financial year 2010 due to overcapacity in the sector. These reports paint a bleak picture for current developments. [Read more…]

by Sarah Blackman

zoomNets can be used to eliminate fall hazards but personal protective equipment should also be used when working at height.next »In order to prevent injuries or fatalities at work, companies should go out of their way to reduce hazards wherever possible. Where there is the slightest risk that someone could get hurt, personal protective equipment should always be used, as experts tell Facilities Management Middle East. [Read more…]

Many people hear the terms projects, programs and portfolio, but are not sure what they all mean and how they fit together. Project managers probably have a good sense for what a project is, but the other two terms might be a little fuzzy. In general, you can divide all the work of a corporation into projects (large and small) and support (ongoing operations). Administration may be considered separately, or as a part of support. At a high level,
Projects are where all the new work gets done, including new enhancements. They have a beginning and an end, have specific objectives and deliverables, and are unique. 

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The Cost Management Plan describes the process that will be used to manage the project budget including tracking current expenditures, upcoming expenses, identifying potential budget overruns and evaluating overall project spending against the budget. The components of the Cost Management Plan can include:

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The Schedule Management Plan describes the process that will be used to manage the project schedule including tracking activities in progress, identifying activities to be completed, measuring activity performance against allocated time, identification of potential project delays, and evaluating overall project performance. The components of the Schedule Management Plan can include: [Read more…]