Page 75 - magazine Jun 2020

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How COVID-19 is stalling UAE

construction projects

When most parts of the country came to a standstill higher tender costs, as contractors are expected
last March due to the deadly coronavirus outbreak, to factor in the economic toll of coronavirus. As
it was business as usual in a lot of construction for incoming projects, there have been no new
sites. launches of late.
Cranes and cement mixers continued to operate “The UAE [construction] market was weak prior to
and, expat labors went about their work, hauling the virus and this has continued. We have found
materials and pounding away, while the majority of that projects in the design stage have been slowed
the population retreated to their homes. down rather than put on hold and no real decisions
are being made at the moment to move forward
However, as with many other businesses, the with any new projects,” said Bob Flanagan,
UAE’s construction sector has not been spared managing director for project management and
from the disruptions caused by the fast-spreading cost consultancy services at Colliers International
virus. Middle East and North Africa (MENA).
Developers and contractors have had to deal Construction works
with sluggish civil works, delayed delivery of Unlike in Saudi Arabia where only essential
materials and limited workforce, while suppliers projects were allowed to continue during the
are grappling with rock-bottom prices, according lockdown, Flanagan said existing construction
to industry sources. works in the UAE have continued. “But onsite
“As COVID infects the global economy, no industry productivity is down due to a number of reasons,”
or business is truly immune. The obvious fallout in said Flanagan.
terms of delays due to the disruption to work on With coronavirus infections still raging worldwide,
sites, material supply disruptions due to closed he said there is a general fear among the labor
factories and shipping delays are symptoms of workforce that they might contract the virus, and
an economic disease,” said AvinGidwani, CEO of they’re cautiousness on-site is having an impact
Industry Networkers. on the progress of work.
And, as the crisis continues to deepen, project The tight measures imposed by the government,
proponents may eventually have to deal with particularly the social distancing requirements in

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