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Construction of the burj dubai skyscraper, dubai, uae

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Strategies and Guidelines for a US-based Contractor to reach out for Middle East Construction Market

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Construction of the burj dubai skyscraper, dubai, uae

  1. 1. BCN 5776 International Construction Business Management Assignment 2: Construction of the Burj Dubai Skyscraper, Dubai, UAE By Siddharth Mantri
  2. 2. International Projects like Construction of Burj Dubai always requires a variety of aspects to think over. Careful study of these aspects pertaining to the project is the backbone of a timely- completed project. In order to successfully finish the project Burj Dubai, we need to prepare for the following facts: 1. The most important thing for an International Construction project to be successful is to understand the objectives of owner behind the Project. The design, construction and management team need to understand the functionality of the billion dollar structure. The team might need to identify few areas of projects which cannot be compromised regardless of the circumstances and need to plan the project around that. 2. As an US-based firm, we need to accept our unawareness about the construction industry in UAE. Thus, we might need to tie-up with a potential local construction firm in order to get familiarized with the local industry and construction regulations. The selected firm need to be assigned the work of getting the permits and inform about the mandatory construction regulations. 3. As the construction is quite complex, the project will require bunch of skilled labors. We need to make sure the adequate availability of required labors during the life-span of the project. Company also needs to gather information regarding the potential specialty sub- contractors for different works. We might even require the help of the local construction partner for this. 4. A large portion of the labor force brought in Dubai is from Pakistan, India and Afghanistan. Study regarding the behavior, work mentality and efficiency of the labor community by the Project Manager or the Supervisor can help in achieving greater productivity. 5. As the project has to be constructed at Dubai, the various construction measures, construction regulations, design codes, safety measures, quality measures has to be closely studied. 6. Dubai being the Islamic region, the effect of sociocultural environment on the construction has to be considered. Work on Thursdays and Fridays might have to be abandoned and work intervals might have to be provided for the prayers every day.
  3. 3. 7. According to the scale of the project, various construction materials need to be imported from across the world. List of such materials along with their manufacturing location has to prepare well before time to schedule the delivery at appropriate time. 8. We need to understand about the probable dispute resolution alternatives if unfortunately project leads to that. The justice system in Dubai is largely dependent on Islamic Sharia (part of Islamic holy book ‘Quran’). Dubai operate as largely patriarchal society, headed and administered by family of rulers. The magistracy is more likely to favor the local people at times of litigation. Thus, alternatives like arbitration or mediation should be more preferable. The legal team needs to take into consideration all these important facts. 9. As an US-based firm working in Dubai, the accounting team has to understand the taxation policies of US as well as Dubai. There are policies through which we can take benefits of minimizing the taxes. 10. We also need to concentrate on the payment clauses in the contract. The mode of the payments along with the mobilization cost are the important aspects to be taken into consideration while preparing the contract. 11. One of the most important aspects in International Construction Projects is the exchange rate fluctuations. These clauses will be depending upon company’s future plans about expanding business in Dubai or in UAE after finishing this project. Appropriate currency clauses has to be incorporated within the contract to avoid the losses due to exchange rate fluctuations. The exchange rates between UAE Dirham and US dollar is quite stable, thus the transactions for goods and services for the project from both the countries shall not affect significantly as far as exchange rates are concerned. But the transactions for the goods and services from other countries are vulnerable to losses due to unstable exchange rates. The cost management team needs to analyze all these future probable transactions meticulously and decide appropriate payment clauses. 12. An adequate insurance coverage against the confiscation, disputes, etc. has to be taken to get protected on foreign soil. 13. The employees which are going to work in Dubai needs to understand about the local culture, community behavior and other likes and dislikes of society. All these will help their stay in Dubai more comfortable.

Strategies and Guidelines for a US-based Contractor to reach out for Middle East Construction Market

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