Expert: Project delays can be curbed by eliminating shady stakeholders
Vasanth Kumar, ex-CEO and co-founder of Arabian MEP/Al Malki Group, spoke to MEP Middle East on allowing only competent stakeholders to be part of the construction industry
Vasanth Kumar, ex-CEO and co-founder of Arabian MEP/Al Malki Group, spoke to MEP Middle East on allowing only competent stakeholders to be part of the construction industry.
He said that studies have identified there are 40 different factors which cause delay on construction projects, but the most compelling reason is money and the human factor.
He said: "There are simply too many players out in this predominantly unorganised [construction] sector. There are no clear ground rules in this ruthless game of price war and in the majority of cases, the cheapest bid wins.
If the buyer on the top of the supply chain exploits the seller, the chain reaction sets in and continues until the very last party in the supply chain. Human factor comes next due to the involvement of several parties in a construction project."
According to Kumar, the best way forward to effectively prevent and curb dispute and delays in construction projects is to first eliminate the incompetent and shady stakeholders through a mechanism much similar to how black points are given to non-complying drivers resulting in the disqualification and cancellation of licenses.
This should be followed by the Integrated Project delivery model which calls for collaboration between all associated parties.
Kumar added: "Only competent stakeholders should be permitted to be part of the construction industry and they should sign a joint Ethical Undertaking document in which they should pledge to work together with utmost sincerity, professional ethics and transparency.
"At the same time, they should also sign a joint contractual document on guaranteed maximum price, completion time and payment schedule that shall be audited on regular intervals by independent third parties.
"The project outcome including cost savings or cost overrun shall be mutually shared by the parties involved based on the project benefit weightage points."
To read Kumar's entire views, read the 1209 issue of MEP Middle East, which will be out on the first week of September 2017.