|
|
Article: Controlling the supply chain: with securing materials and resources becoming a major concern for the Gulf construction industry, many contractors are opting to take it in-house.(CONTRACTORS)
- Article from:
- MEED Middle East Economic Digest
- Article date:
- April 25, 2008
- Author:
CopyrightCOPYRIGHT 2008 MEED Middle East Economic Digest. All Rights Reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
"What is my biggest fear?" asks one Abu Dhabi-based contractor. "Liquidated damages. On big projects, the risks are so great that if you call it wrong, you could literally go out of business."
The contractor's concerns are serious. Contractors may be enjoying double-digit margins, record growth and an abundance of projects to choose from, but the risks involved in building projects are bigger than ever. Major companies are now taking on schemes worth more than $1bn and the consequences of failing to deliver could be catastrophic.
Losing revenue
Liquidated damages, or contractual penalties for not completing on time, am understandably the ...