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Data of questionnaire survey were collected from 155 contractors and 49 consultants. They were asked to provide information related to the current issues in claim management, the problems encountered, preferred dispute resolution methods and the suggestion on how to improve the system. They were also asked to provide information related to types of claims, causes of claims, and the frequency of occurrence.
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The United Arab Emirates (UAE) government is investing billions of dollars every year in new facilities to improve the infrastructure of the country. Modern cities have risen from the barren desert, connected by a vast network of first-class roads and linked to the outside world by modern airports and ports. Housing compounds, schools, hospitals, shopping malls, telecommunications, electricity and water, luxury hotels, and recreational facilities have all been provided in a short space of time. The majority of these projects are being constructed in Dubai and Abu Dhabi Emirates.
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The construction sector in Saudi Arabia is the largest and fastest growing market in the Gulf region. Ongoing construction projects in the Gulf are valued at $1.9 trillion (SR7.1 trillion), and one-quarter of the developments are located in Saudi Arabia. A number of positive economic, demographic, and geographic factors, as well as continued government support, have combined to help Saudi Arabia weather the current economic downturn better than most of its Gulf neighbors.
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The construction sector has great potential for growth, as demand rises for residential, commercial, housing and institutional construction. The housing sector, in particular, is likely to grow, as the Saudi population is rising at a rate of 2.5 percent a year. Construction will also play a large part in the Kingdom’s massive industrial expansion through the National Industrial Cluster Development Program as well as in the completion of six Economic Cities. Saudi Arabia’s government budget reflects the importance of ongoing growth in the construction sector. Government spending is likely to remain aggressive in the sector, as the prices of commodities decrease due to the global economic downturn. Furthermore, according to industry experts, a revival in the Saudi economy in general, and in the construction sector in particular, is likely, as demand for projects continues to increase and as the financial climate improves.
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