Call for effective construction contracts

 25 Oct 2015 - 0:00

Call for effective construction contracts
Participants at the Qatar Contractors Forum & Awards 2015.

DOHA: ‘Ineffective and unbalanced contracts’ are major cause for concern in Qatar’s construction industry. These could lead to negative consequences on employers due to delays and cost overruns, Abdulaziz Al Mulla, Chief Commercial Officer of leading Project Management company ASTAD, said at the just-concluded Qatar Contractors Forum & Awards 2015. Addressing the Forum, experts outlined innovative solutions to the problems being faced by the construction sector. 
ASTAD CEO Ali Al Khalifa said: “The standard of contracts within the construction industry needs to be improved. They are the key causes of delays, disputes and ultimately, higher and unforeseen costs. At a time when the progression of the nation’s infrastructure is a priority, we must make a concerted effort to ensure that all construction-related contracts are effective and agreeable to all parties”.
Al Mulla said ASTAD is leading an initiative to change the ineffective contractual culture in Qatar’s construction industry and across the region. He revealed that experts within ASTAD are making use of their experience managing and delivering major complex and iconic projects to work on a set of contract templates that are balanced, fair, effective, flexible, and most importantly, easily customisable to suit the specific needs of projects or clients. He added that ASTAD’s solution is comprehensive and covers all the imperative aspects of a construction project including flexible payments terms, extensions of time provisions, change management, claims management, and effective dispute avoidance and resolution mechanisms — something that most current contracts do not effectively cater for.
Explaining why ASTAD has ventured into developing these contracts, Al Mulla said: “The construction industry within the region usually imports best practices from abroad, which in some cases do not match the operational realities that are applicable in Qatar or the region. ASTAD is continuously utilising its expertise to build upon this best practice by developing solutions that are tailored to the specific needs of the region, while maintaining the highest international standards.”
The event brought together industry-leading speakers for presentations, debates, networking sessions and interactive workshops. The aim of the event was to discuss the challenges that contractors face, and consider strategies to overcome. Fostering collaboration for successful delivery of projects in line with employers’ expectations and requirements was also part of the tended aims of the forum.
    
The Peninsula