Category: Construction

Introduction

Baxtern & Doll Construction Company is a registered firm operating in the UK building and construction industry. It has been a leading market player in the building and construction industry since its incorporation five years ago.

It has an asset base valued at 1.3 billion pounds. Following the expansion requisition for the firm, it wishes to invest in a foreign country, whilst meeting its strategic goals at the lowest operational costs and maximizing on the returns. This report highlights the country’s background, the firm’s financial products and services, demand of the products and services, economic feasibility of the investment plan, and the effects of currency exchange rate on the business.

Egypt’s Political, Economic and Cultural Background

Egypt is an Afro-Arabian country located in the North-Eastern Africa with the majority of its populace being Muslims commonly called Sunni. It borders the Mediterranean Sea in the horn of Africa as well as acting as the bridge between the African continent and the Arabian states.

Egypt has been a politically stable country with the most volatile moment being during the Mubarak era in which political clashes affected the country. Political stability of the state gives the firm humble investment time. With the current political stability state in the country, the investment is likely to out- perform investments in other potential countries.

Egypt has a mid-sized economy mainly funded by the Agriculture, mining and industrial sectors. Its population is slightly over 68million people majority being under the age of 50 and a population density is 62 persons per square kilometre. Majority of its populace is also unemployed and a literacy level of 53.7%, as well as a 26.1 million-labour force.

In addition, the economy has a GNP of about $80billion (51.6bn pounds), a GDP growth of 5.2% pa and an inflation rate of 12% pa. The economy has an opportunity cost of conflict valued at 106.5 billion pounds further rendering the growth rate low at only 5-6% per annum.

The exchange rates for the main currencies are fair with the main currencies; the dollar and the British pound valued at 0.166 and 0.1065 respectively. The economy also has 57 banking institutions with 28 of them being state owned commercial banks, 26 investment banks, 15 branches of foreign banks as well as 3 specialized commercial banks.

Moreover, the economy also has a stock exchange controller, the Egyptian Stock market handling 663 listed companies. The main listed companies in the stock exchange include those from the construction industry, agricultural industry as well as cement and steel industries with Orascom Construction Company being the market leader.

Egypt being an Arab speaking state has majority, 94% of its populace being Muslims and 4% Christians and other religions. Islamic culture is thereby predominant, in the state, shaping majority of personal and societal opinions. For instance, the use of Islamic banking principles is predominant in the majority of banking institutions in the country.

The quality, designing, as well as the size of residential areas being constructed based on Islamic monuments and religious buildings. The main merit that Baxtern & Doll Construction Company can accrue from executing the project, in Egypt, is being a market leader in pioneering other more stylish and ultra-modern building and construction designs.

Optionally, the firm will also get first hand information and designs from the local designers for implementation in other regions with similar culture. The key demerit to this uni-cultured state is the limitation for accessing funds and other credit facilities from their local banks. In view of Islam, funds from non-Muslims is unclean hence should be avoided.

Majority of local banks being Muslim oriented, implementation of the Islamic banking practices such as the adoption of the quad Hassan policy in which interest free loans are issued. The way forward, in alleviating these challenges, is having adequate information on the needs of the local residents.

Products and services

The firm should consider offering the following products and services, Islamic religious buildings construction services, green/solar powered housing facilities, real estate development services, construction consultancy services and sales of construction materials such as steel bars, roofing materials and glassware for construction companies.

Following the quest for expansion, the firm wishes to invest at least 40% of the net worth in the designated country. In this regard, a feasibility study on the best country/countries to invest in has been done with Egypt being considered as the most suitable country for the investment.

Why offer the products and services in Egypt?

To begin with, Egypt is a viable FDI destination for the investment project in real estate development because, as a growing third world economy, it has a high potential for growth. This aspect is fuelled by the fact that it has just recovered from the Mubarak-clashes, which rendered most places ruined and desolate.

Secondly, it also ranks better than most other potential investment destinations globally as well as having high demand for ultra modern housing for both the middle and upper class residents. The fact that Egypt is an unimpeachable source for enriched culture on Islamic buildings and design industry, it will enhance transferability of construction technology.

The Investment Plan

The investment plan is designed to offer affordable housing to both the middle and high-income earners in Egypt through

(i) Mortgage facility ceded by a local financial institution

(ii) Development of owner’s property at a fee

(iii) Designing and development of real estate facilities for commercial use such as malls,

(iv) Importing ultra-modern construction materials for local use by local contractors

(v) Provision of construction consultancy and related services

Economic viability of the plan

Egypt is a suitable destination investment country because the procedures of setting up the firm are few compared to other potential destinations, as it allows for subsidized machinery importation, as well as having low corporate tax rates.

Moreover, the project is viable since investing in the destination country will generate extra income to the company after maximizing on the economies of scale in Egypt where labour is cheap and readily available, ultra-modern construction designs are inexistent yet could fetch good returns as well as having low tax implications to the firm’s operations.

It will also help the company in construction technology transfer to the destination country, while gaining more skill on Islamic housing, hence a double benefit to the company’s investment of extra funds.

Effect of currency exchange rates on the business

An assumption of minimal fluctuations in the exchange rates is made from the onset of the project to the time the venture has fully picked up. Weakening of the Local Pound against the Egyptian Pound will lead to a reduction, in the purchasing power parity between the two currencies; hence, the business shall hold more funds in local currency other than in the Egyptian pounds.

In return, more Egyptian investors will be more willing to invest in the British pound dominated investments; hence, the company should size such a scenario to bid more investment cash from Egyptian investors increasing supplies to Egypt.

On the other hand, strengthening of the British pound against the pound will increase the purchasing power parity for the two currencies hence the firm should hold more funds in Egyptian pounds. In return, local British investors will be more willing to invest in Egyptian pound dominated ventures; hence, the firm should borrow from local lenders to invest in Egypt.

Trade & Licensing rules and procedures

In setting up the construction, company branch in Egypt, the procedure and rules include:

Factors to help Baxtern & Doll Construction Company in executing the project

Baxtern and Doll Construction Company have a stable financial background as well as having superior construction and housing technology. It has deployed local managers and employees to help solicit local housing information. The implementation of this project in Egypt will have various impacts on the economy.

First, it will improve of the national housing infrastructure through the development of ultra modern housing facilities. Employment opportunities will further be created. The country will also raise income tax from the project. There will also be resource utilization and mobilization by using local resources. Housing technology improvement – use of expatriated technology will better the local housing technology such as green/solar powered housing facilities. Conclusion

In conclusion, considering Egypt, as the destination FDI country, the project will be more beneficial to both the firm and the destination country. The products and services have demand in the country because of their use of cheap and modern technology. Even though this venture will not be a virgin market for the company, it presents a potential market given the pricing of the products and services.

Running costs have always been high in many third world countries and by introducing technology into the market, Baxtern & Doll offers a way of cutting down on running costs. The products will be sold in various markets, as there is demand for modern technology in the building and construction industry.

Moreover, the firm’s plan is economically feasible considering the marketing mix elements of price, place, distribution, and promotion. This will further see the firm raise more funds to fund more local projects. Lastly, the firm can capitalize on the economics of scale, in Egypt, to better its financial value.

Introduction

Projects relating to constructions and contracts have greatly increased and are now recognized in the UAE over the past years. This has significantly given rise to great numbers of claims either between contractors and employers or even between contractors and sub-contractors (Hinchey and Schor 2002, 63).

These disagreements are mostly solved by conciliation or arbitration and are predominantly held in the universal language which is English, where specialist arbitrators are appointed due to the nature of the subjects involved (Ren 2011, 123).

Assessments of UAE situation and the negotiations in the construction industries

Negotiation is another important mechanism for arranging construction contracts in the construction industry. Project managers may often find themselves as participants in negotiations, either as principal negotiators or as expert advisors. These negotiations may be complicated and often present important opportunities and risks for the various parties involved.

For example, negotiation on work contracts could involve issues such as completion date, arbitration procedures, special work item compensation, contingency allowances as well as the overall price (Essam 2006, 453). However, exogenous factors such as the history of a contractor and the general economic climate in the construction industry will determine the results of negotiations.

The skill of a negotiator can affect the possibility of reaching an agreement, the profitability of the project, and the scope of any eventual disputes, and the possibility for additional work among the participants. Therefore, negotiations are an important task for many project managers.

However, even after a contract is awarded on the basis of competitive bidding, there are many occasions in which subsequent negotiations are required as conditions change over time (Fleming 2003, 13; Harmon 2004, 47).

Poor negotiating strategies adopted by one or the other party may also preclude an agreement even with the existence of a feasible agreement range.

For example, one party may be so demanding that the other party may simply decide to break off the negotiations. In this effect, negotiations are not a well behaved solution methodology for the resolution of disputes (Kumaraswamy and Chang 1998, 12; Al-Khalil and Al-Ghafly 1999, 647).

Therefore, the possibility of negotiating failures in the land sale example highlights the importance of negotiating style and strategy with respect to revealing information.

Style includes the extent to which negotiators are willing to seem reasonable, the type of arguments chosen, the forcefulness of language used, etc. Clearly, different negotiating styles can be more or less effective in one way or another.

Cultural factors are also extremely important and play a major role in negotiation processes. American and Japanese negotiating styles are very different (Cheung, Yiu and Yeung 2006, 132). For example, Revealing information is also considered as a negotiating decision.

In the land sale case, some negotiators would readily reveal their reserve or constraint prices, whereas others would conceal as much information as possible or provide misleading information (Groton 1997, 76; Kumarasamy 1998, 56).

Due to these problems, it is often beneficial to all parties to adopt objective standards in determining appropriate contract provisions. These standards would help in coming up with an agreement or a method to arrive at appropriate values in a negotiation (Ho and Liu 2004, 95; Scott 1993, 143).

When it comes to additional issues, negotiations may become more complicated both in procedure and in result. The sequence in which issues are defined or considered can be very important. Negotiations, for example, may proceed on an issue-by-issue basis, and the outcome may depend upon the exact sequence of issues considered.

Alternatively, the parties may decide to proceed by proposing complete agreement packages and then proceed to compare packages. When it comes to the outcomes, the possibility of the parties having different valuations or weights on particular issues may arise. When this happens, it is possible to trade-off the outcomes on different issues to the benefit of both parties (Brams and Lerner 1996, 59).

Key questions

Questions that are frequently asked are:

1. What do you do in order to have a successful negotiation?
2. What ways do you use to negotiate in the UAE construction industry?
3. What types of negotiations that mostly occur in UAE construction industry?
4. Have these negotiations ever occurred in the past or is this the first time they are happening?
5. How have negotiations among contactors affected employer or the employee relationship in UAE construction industries?

The Literature review

This study reviews the pertinent literature on the subject of negotiations in order to attain the objectives; a thorough review is to be conducted by the use of books, referring to the journals on how disputes among contractors were solved in the past years and also by looking at conference papers to get information and find a solution to these negotiations (Kangari 1995, 65).

According to Fleming (2003, 21), the most important items to consider in ADR include; the factors that currently impede the efficient, productive, timely and cost effective performance of projects, source of disputes and practical strategies to avoid disagreements or reduce the impact of disputes in negotiation, general degree of the direct and indirect costs of disputes to clients, contractors, other industry stakeholders and the community, primary principles of conflict management in the context of commercial disputes and practical dispute resolution strategies for facilitating the equitable, certain, amicable, timely and cost effective resolution of disputes (El- Sayegh 2006, 1169).

Main reasons for study and analysis

Coming up with an analyzed alternative on negotiating methods in construction industry in the United Arab Emirates so as to identify and analyze projects in which various ADR methods were used, to analyze the responses from questionnaires and interviews, to recommend compatible methods and further research and to conduct interviews with the selected representatives (Harmon 2004, 47).

Interviews involving construction professionals

Questionnaires are prepared and distributed to contractors and their employees to fill in information about their disagreements, the main causes of these negotiations and their recommendations about these negotiations and what they think should be done to avoid these disagreements in the UAE industries.

Writing research reports

When writing research reports on negotiation in the construction industry is the main source of concern for anyone concerned with the construction process (Essex 1996, 67).Negotiation, mediation and arbitration remained the main methods for resolving the disputes but new techniques were being explored.

When writing a research report inquires the introduction, background of the study, methodology, data analysis, and the conclusion. The construction industry has greatly increased in complexity over the past decades (Essex 1996, 76).

A Proposed structure of dissertation

Introduction

This chapter talks about the construction industry in UAE and how the contractors manage to solve their disputes, talk about the construction projects and how they have increased or decreased in the last decade, introduce any complaints made by contractors or owners and employers or between contractors and sub- contractors and how they solve their disputes and lastly introduce future plans of the construction industry.

An overview of negotiations

This chapter will talk about:

1. Negotiating method.
2. Negotiations in the UAE construction industries.
3. Institutional and legal framework for negotiating in the UAE construction industries.
4. The UAE construction industries.

Negotiating methods

This chapter talks about the different types of negotiations that are there in a construction industry and these are; domestic or family, personal injuries, workers compensation, construction, bankruptcy, employee benefits and many more negotiations that arise in the UAE construction industry from the information you get from the employees through the questionnaires.

It examines the relationship between negotiating when it comes to contracts. It will demonstrate the negotiating processes and how they have affected the employees and the employer’s relationship in the construction industry.

The main causes of negotiation in the UAE construction industry

This chapter talks about the main causes of misunderstandings, lack of communication, delay in delivery of materials, shortage of labor, financial difficulties by contractors, poor site management, slowness in decision making by client and many more causes as stated by contractors in the questionnaires.

Ways of negotiating

This chapter talks about all the methods used in negotiation in contraction disputes for example, mediation, conciliation, and arbitration and dispute resolution boards.

Conclusion

It focuses on conclusions of the study according to the information that was got from the questionnaires that were distributed to the contractors and employees of the UAE contraction companies.

References

Al-Khalil, M. and Al-Ghafly, M., 1999. Important causes of delay in the public uitility projects in Saudi Arabia. Construction Management and Economics 17, (5) 647-55.

Brams, R. and Lerner, C., 1996. Construction Claims Deskbook. Aspen Law & Business, USA.

Cheung, S., Yiu, T. and Yeung, F., 2006. A Study of Styles and Outcomes in Construction Dispute Negotiation. J. Constr. Eng. Manage. 132, 805.

El- Sayegh,S., 2006. Significant factors causing delay in UAE construction industry. Construction management and economics, 24, 1167- 1176.

Essam, KZ., 2006. Construction claims in United Arab Emirates: Types, causes and frequency. International Journal of project management 24, 453-459.

Essex, R., 1996. Means of Avoiding and Resolving Disputes during Construction. Tunneling and Underground Space Technology, 7(1), 10-77.

Fleming, Q., 2003. Project procurement management: contracting, subcontracting, teaming. Pennsylvania: FMC Press.

Groton, JP., 1997. Alternative dispute resolution in the construction industry, Dispute Resolution Journal, 76.

Harmon, J., 2004. Construction conflicts and dispute resolution boards: attitudes and opinions of construction industry members. Conflict Resolution Journal, 47.

Hinchey, JW. and Schor, L., 2002. The Quest for the Right Questions in the Construction Industry. Dispute Resolution Journal, 63.

Ho, SP. and Liu, LY., 2004. Analytical model for analyzing construction claims and opportunistic bidding. Construction Engineering and Management, 130(1) 94-104.

Kangari, R., 1995. Construction documentation in arbitration. Journal of Construction Engineering & Management, 1(2), 63-123.

Kumarasamy, M., 1998. Tracing the roots of construction claims and disputes. Cobra ‘98, RICS Foundation.

Kumaraswamy, MM. and Chang, DW., 1998. Contributors to construction delays. Construction Management and Economics, 78-9.

Ren, Z., 2011. Lessons Learned from Principled Negotiation in International Construction Projects. J. Legal Affairs Dispute Resolution in Eng. Constr. 3, 123.

Scott, S., 1993. Dealing with delay claims: A Survey. International journal of Project Management, Vol-11, No. 3, pp.143.

Contributing Factors

Investigators believe that a gust of a strong wind that hit the city could have contributed to the collapse of the Swanston St Wall. According to the data from the Bureau of Meteorology, the estimated speed of the wind was 102 km/h at the time (shortly before 3 pm) the wall collapsed (Millar and Lucas, 2013).

The Bureau of Metrology estimated that the “average wind speed for a 10-minute period at 3 pm was 83 km/h” (Millar and Lucas, 2013). The Bureau considers a wind of such a magnitude as strong and has the ability to dislocate roofs from houses and break limbs from trees.

Another possible cause of the wall collapse is the sign that had been hanging there for the last 17 months. As a result, many investigators have focused on the possible role of the advertisement board. They believed that it could have created a sail-like effect in such a strong wind.

Finally, investigators would also focus on tree roots to determine if they could have cracked and made the wall weak (Shand and Baxendale, 2013).

What Happened?

Architectural engineers concurred that, if the advertisement sign was notably higher than the wall that held it, then there were chances that it tampered with the safety of the wall (Millar and Gough, 2013). In this respect, the signboard acted as a sail or parachute when the strong wing hit the city. This potentially enhanced the collapse of the Swanston St Wall.

Some tenants who occupy the opposite buildings noted that the advertisement sign was more than one metre taller than the brick wall that held it. Richard Eckhaus, an engineer from the Engineers Australia Structural College noted that a taller hoarding than the wall could have contributed to the collapse of the wall.

Outcomes

The collapsed wall hit straight on the footpath and caused severe injuries to three pedestrians, who were passing near the wall when it collapsed. They sustained injuries from the falling debris and bricks.

Three people also lost their lives. They included “Alexander Jones, 19 years old; Marie-Faith Fiawoo, 33 years old and Bridget Jones, 18 years old. Both Alexander and Marie-Faith died at the scene of the accident due to injuries they sustained while Bridget Jones succumbed to her injuries after three days while undergoing treatment.

Australian authorities have embarked on a series of investigations in order to ascertain the exact cause of the collapse. Different city authorities have also called for a countrywide inspection of dangerous buildings in order to avert any potential future disasters. In addition, the State Coroner also initiated initial hearings into the death of three pedestrians.

Status of Investigations

Currently, investigations are underway to ascertain causes of the collapse and its consequences. However, some of the architects have already reacted by questioning the safety of the brick walls constructed in the 1960s and 1970s (Millar and Gough, 2013).

Trevor Huggard, an engineer and a former Melbourne lord mayor noted that “a building regulation dating back to the 1930s, but still in place, dictates that such external walls must not be more than 6 feet, or 1.8 metres, high” (Millar and Gough, 2013). In addition, he also observed that the wall met the standard approach of an external building wall construction at the time.

However, after a careful review of the photographs, the engineer concluded that the Swanston St Wall was poorly constructed. The wall lacked a significant number of metal ties, which were responsible for holding the two courses of the wall together. In addition, the wall seemed to lack buttresses or any other supports. Haggard concluded that the brick wall “appeared to contravene every rule in the book” (Millar and Gough, 2013).

Who Was Responsible?

According to Planning Ministry, the property developer has the responsibility of obtaining all the relevant permits for the site (Vedelago and Johanson, 2013). The Melbourne City Council has the responsibility of ensuring that such developers adhere to the city regulations. On the other hand, the City Council responded that the Ministry had the responsibility of issuing planning permits for the site.

These two offices demonstrate that issues of who bear responsibility for such accidents are daunting. Clearly, the Planning Ministry must ensure effective planning while the City Council has the authority on all structures within the public domain and any advertisement. In addition, the Building Commission and WorkSafe also have responsibilities in this case.

Overall, all relevant government agencies bear ethical responsibility for the collapsed wall. Further investigations would prove whether the owner of the site had relevant documents, including advertisement permit. These investigations would show the government agency that has a legal responsibility of the collapsed wall.

The owner of the building site and some of his engineers bear legal responsibility for the collapsed wall. Possibly, they would face criminal charges if all the investigations concluded that the collapse took place due to negligence of the owner and engineers.

WorkSafe must investigate the collapse of the Swanston St Wall. It may also be prudent to invite Melbourne North Crime Investigation Unit to probe the collapse of the wall.

Some observers believe that the construction company (Grocon) bear legal responsibility because of the signboard (Shand and Baxendale, 2013). WorkSafe must probe whether the wall had a proper support and what the billboard and the wind did to cause the collapse of the wall.

Legal liabilities will depend on whether WorkSafe finds “evidence of negligence on the part of the owners, workers, contractors, or managers for any work that was done or failed to be done on the site” (Vedelago and Johanson, 2013). According to the Occupation Health and Safety Act, an employer has “a duty to ensure that the public is not exposed to health or safety risks from work sites” (Australian Government, 2013).

WorkSafe has the ability to present cases for prosecution under different states’ health and safety acts (WorkSafe Victoria, 2013). In some circumstance, the body may refer some cases to the Director of Public Prosecutions for prosecution under the Crimes Act (WorkSafe Victoria, 2013).

Overall, all parties involved in regulation of city structures, the owner of the structure, and the engineers have ethical and legal responsibilities to protect the public from such accidents.

Was the Accident Foreseeable and Preventable?

The Swanston St Wall was not heritage-listed. This may raise questions on why the wall was still there, although it is almost a century old.

For several years, councillors and other parties that ensure safety of the city have claimed that the sight like CUB Swanston St should not be “cleared or partly cleared until the proposed development is ready to begin after approval and funding” (Millar and Gough, 2013). This indicates that wall was dangerous to the public and constructors on the site.

It is also imperative to note that the city authorities once cleared the site as a bombsite. However, the developer and city authorities did not take any action to ensure that the place was safe. Usually, a bombsite has higher risks than other finished structures. The developer failed to develop the Swanston Square as required. This increased the public exposure to the danger of the wall. Hence, the accident was foreseeable and preventable.

Possible Prosecution by WorkSafe under the Victorian OHS Act 2004

The major role of OHS Act is to ensure “the health and safety of employees rest with employers, as well as any person who has the ability to control the health and safety of employees through their acts or omissions” (Australian Government, 2013). The OHS sets the standards and required guidelines for compliance with various laws of OHS. Different states have their standards rules in order to reduce cases of unexpected danger.

The OHS implementation also depends on specific industries or fields of employment. The WorkSafe should be constructive and accountable in order to ensure compliance among stakeholders as required. Moreover, WorkSafe also offers advice and assistance for employees and employers on how to enhance their safety at workplace.

The OHS Act 2004 places the onus on the owner of the site (employer) who should ensure that employees are safe and healthy.

WorkSafe must ensure effective investigation and regulation by providing “clear, accessible advice and guidance about what constitutes compliance with the Act and Regulations” (WorkSafe Victoria, 2013). The agency must use Compliance Codes, WorkSafe standards, and any other requirements, which depend on the nature of the job to warrant investigations.

WorkSafe must provide convincing solutions on the matter of who was responsible for safety of the wall and permit for the attached hoarding. The permit of the billboard has remained a contentious issue since the collapse of the wall. For instance, the Melbourne City Council has insisted that it did not issue any permit and the issue of responsibility lies with the State Planning Ministry.

On the other hand, the Planning Minister noted that the City Council was responsible for enforcing all city laws. The property developer has refused to comment on the matter. Overall, one must note that the issue of the hoarding permit is a delicate matter between the City Council and the Planning Ministry. This situation has made it difficult for the public to determine who bears the responsibility because of negligence.

WorkSafe must harmonious several regulations and establish the relationship between these regulations. The agency must be able to show various points of action for different authorities in managing city buildings and sites. Hence, WorkSafe must establish who is responsible for the safety of the site, the building, and the collapsed wall.

WorkSafe must also establish whether there was a legal onus for the owner of the building and the developer to provide regular updates about the deterioration condition of the wall and public safety measures. According to legal requirements, owners of derelict sites must provide such information annually to the government (Shand, 2013).

The Agency must resolve the conflict between the City Council and the Planning Ministry with the issue of the hoarding approval. According to the City Council, the Planning Ministry is responsible for the planning permit of the site. In addition, the Ministry also controls large plots, which are above 25,000sq m in size. On the contrary, the Planning Ministry says that the City Council approves all hoarding within the city.

Approval of the advertisement billboard was not a part of the Ministry’s role. The Planning Ministry only provided a permit for the development of the site, but it failed to ensure that the development commenced as required under the law. Shand notes that, “Melbourne City Council has been unable to locate paperwork relating to any application” (Shand, 2013).

Given the squabble between these two government agencies, it would be difficult for WorkSafe to hold any of them accountable unless issues of roles and responsibilities become clear. WorkSafe may only prosecute the owner of the site and the engineer for negligence on safety of the public.

Construction Failure Results

Several engineers pointed at the hoarding as a possible contributor to the collapse of the wall because it was taller than the wall that held it. In this respect, the hoarding could have acted as a parachute for the wind. Clear, walls should not bear advertisement billboards that are taller than they are in Melbourne, especially in windy areas. In addition, Melbourne has strong winds, which can make walls constructed in 1960s to collapse.

There is a need to review and audit conditions and safety of such walls in the country and report on their conditions. There are many ‘bombsites’ in Australia, which are not heritage-listed. An audit would review the number of such walls and provide safety to the public against any possible collapse from strong winds.

The OHS Act 2004 is clear on the roles and responsibilities of employers and employees in the workplace. However, this is not the case with the Planning Ministry and the Melbourne City Council. These arms of the government have overlapping roles in managing sites and issuing of permits.

There is no clear point on where their duties end. This has made it difficult to hold any department accountable for the collapsed wall. Hence, the Planning Ministry and the City Council require a new definition of their roles and responsibilities.

Law enforcement has not been effective in managing derelict sites. For instance, the owner of such buildings should provide annual updates about conditions of their structures with regard to public safety. In addition, they should also develop such sites immediately after the issuance of permits.

However, it is obvious that the owner of the Swanston St Wall site did not do so. This is a violation of public safety rules, which WorkSafe should not tolerate.

The Swanston St did not have an adequate exclusion area for pedestrians. This is a mandatory requirement in public places, which have ongoing construction works.

Engineers believe that the wall lacked adequate reinforcement. Unreinforced brick walls are highly prone to cracks after several years. Moreover, they can easily collapse under pressure from strong winds. Strong reinforcement is necessary for such walls (Ayub, 2010).

Engineers noted that the foundation of the collapsed wall did not have strong buttresses and supports. In addition, it lacked any form of reinforcement to resist possible pressure from strong winds or hoarding boards (Levy and Salvadori, 1992).

It is important to build strong buttresses and support systems for walls in order to resist strong winds, cracks, and weights. Braces are also necessary in double walls to keep them together. Engineers examined the photographs and noted cracks.

The wall was unable to resist the strong winds and support the hoarding that created a sail-like effect in the strong wind. This could have caused the collapse of the wall. The brick walls tend to crack fast under pressure. Analysis of the photographs revealed several cracks on the brick wall. Many engineers believed that they could have resulted from tree roots due to a weak foundation (Petroski, 1994).

It is important to note that the developer and the owner could have prevented the accident because they knew all about safety requirements for such structures. The lack of the support from the ground was rather obvious. Additionally of the advertisement billboard was a big mistake. The site owner could have ignored yearly audit required to ascertain the safety of the structure.

Although number of collapsing structures are not common in Australia relative to other places, such cases indicate potentially dangerous buildings that can collapse under such extreme conditions (Wearne, 2000).

Changes to Existing Practices, Legislation, and Regulation

The OSH Act 2004 provides clear safety requirements and practices for employers and employees at the workplace to observe and maintain. However, in this case, neither the employer nor the engineer observed the OSH Act requirements. In this regard, risk control is a process that all stakeholders must observe in the construction industry.

The site took more than seven years after approval before any construction could begin. This is against the regulation, which requires that developer must start immediate construction after approval. The law should be strict on such site owners and developers.

All constructions should have clear erection guidelines, which are specific to the site of construction. Such sites are prone to danger than other sites. Hence, the site must adhere to set guidelines. Tall walls may also require additional support during construction to support loads (Virdi, 2000). The drawing must capture such requirements.

Engineers must insist on exclusion zones to keep away the public from potential collapse zones. This was not the case at the CUB Swanston St. There should be clear signs for pedestrians to avoid such paths. However, the developer did not put a warning sign to the public.

The OSH Act 2004 and WorkSafe should understand roles and responsibilities of the Planning Ministry and the City Council. These two organisations tend to engage in squabbles during such crises. WorkSafe should approach investigations based on specific legal and ethical responsibilities of various parties.

There is a need to insist on professional and ethical engineering practices at workplaces. Engineers have professional, ethical, and legal responsibilities at the workplace. Adequate awareness and education can promote good practices during construction.

Finally, OSH and WorkSafe should insist on classic scientific methods on investigating structural failures and collapsed buildings. Review of the evidence should be systematic. Investigators should conduct careful analyses of photographic documentation, measurements of the structures against approved limits, and other clues that may provide substantial evidence (Feld and Carper, 1997).

Witnesses are important in effective investigation of any accidents. This process must also include a thorough analysis of construction documents and geotechnical reports of the site.

Engineers should observe the site and provide their opinions before disasters strike. They can develop several hypotheses to explain the cause of structural failures for future improvement. Finally, every stage must undergo a thorough analysis by using engineering standards. This is the best method to gauge the party responsible for the structural failure.

Reference List

Australian Government 2013, Australian Occupation Health and Safety Act. Web.

Ayub, M 2010, ‘Structural Collapses During Construction: Lessons Learned, 1990-2008’, Structure Magazine, pp. 1-8.

Feld, J and Carper, K 1997, Construction Failure, John Wiley & Sons, New York.

Levy, M and Salvadori, M 1992, Why Buildings Fall Down, Norton & Co, New York.

Millar, R and Gough, D 2013, The wall, and why it collapsed. Web.

Millar, R and Lucas, C 2013, Freak winds may have led to fatal brick wall collapse. Web.

Petroski, H 1994, Design Paradigms: Case Histories of Error and Judgment in Engineering, Cambridge University Press, Cambridge.

Shand, A 2013, Doubts Grocon had permit for hoarding. Web.

Shand, A and Baxendale, R 2013, Questions raised over role of Grocon billboard in wall collapse. Web.

Vedelago, C and Johanson, S 2013, Owners could be charged over wall fall as Grocon under fire. Web.

Virdi, K 2000, Abnormal Loading on Structures: Experimental and Numerical Modelling, Taylor & Francis, New York.

Wearne, P 2000, Collapse: when buildings fall down, TV Books, Orlando.

WorkSafe Victoria 2013, Occupational Health & Safety. Web.

The OSHA system was set up to address the safety conditions for the rising number of injuries and death at places of work in the construction industry. In order to create a friendly working atmosphere, OSHA decided to set this mission after having gained experience working in the field both as an employer and an employee. As a result, it was difficult for him to realize whether safety received special attention at the workplace.

However, in 1970, the OSHA Act was enacted. Thereafter, case study was conducted and discovered that over 14,000 workers from America had lost their lives due to poor working conditions, 2.5 million workers became disabled and 300,000 new cases of injuries the work place were reported every year (Randall, 2003). Hence, this mission was mainly meant to reduce hazards at workplace by initiating a uniform law.

The safety man feels that since he started working as a manager in the safety industry, his initiative has been ignored at work places because some foremen do not perform their duties accordingly.

In 2001, some consultations were made and after visiting 27,000 small scale employers, they offered training in safety and health to over 260,000 workers and employers. For instance, workers should be trained how to concentrate on their work.

A new beginning for the company

As a result of new ownership of the company in the year 2000, there were a number of changes that took place in order to give special attention to safety measures at places of work. This was not merely focused on reducing risks. It was also meant to reduce the company’s expenses.

The manager therefore felt that it was important to have a reliable person in charge of the company, who would be attributed to the welfare of workers and ready to advocate for change (Randall, 2003).

First of all, the manager had to become conversant with the field by dedicating himself to learn more about OSHA and its measures. He also had to develop a positive attitude among workers and convince them that the success of the company was for the common good to all. Failure to observe the rules of OSHA would make them pay large fines which would leave the company bankrupt with workers jobless (Neelankavil & Rai, 2009).

In addition, the company’s mode of keeping records was improved, general viewing of the company’s activities reviewed, some equipment were purchased in the company to ensure the safety of workers. New policies were also communicated to the workers. Among the equipments bought included those that offered skills to both the employer and employees in order to improve the level of production.

The impact of the ‘Safety Man’ became the centre of concentration because there have been major improvements in the roofing industry. For instance, in the year 2001, there were few cases of injuries; between 10 to 50 percent less than those that occurred in the previous year.

Safety man has played a major role in the roofing industry as the impact is seen through workers who frequently seek regular checks in their companies. Safety man has also enabled companies develop a culture that is centered towards the safety and health of the workers (Neelankavil & Rai, 2009).

In conclusion, both Mundy and the Safety Man have played a major role towards ensuring safe working conditions at places of work in the construction industry. This makes it clear to the reader that he is the pioneer of the safety working conditions in this industry

References

Randall, M. D. (2003). The Safety Man Cometh. Professional Safety. 48(12), 44-46.

Neelankavil, J. P., & Rai, A. (2009).Basics of international business. Armonk, N.Y: M.E. Sharpe.

Executive Summary

Value and risk management is a critical component in managing construction projects in the construction industry. It is a process which when integrated into the procurement phases improves and increases project value, enables project managers identify and reduce unnecessary expenditure, optimising resources, enables mangers and stakeholders generate creative ideas, and provides a framework for updating standards and objectives.

Integrating value and risk management provides successful project implementation to identify business needs, and design value and business study to evaluate the potential for implementing value into the project. In addition, value and risk management is critical in minimising minimizing waste, optimizing resources, and in protecting reputation and value of assets.

Value and risk management provides a framework for assessing the contracting process against typical contracts signed in the recent past, which provide a typical example of the procurement contracting for the client. A typical example of the potential value of risk and value management in the construction industry is applied in the Chinese construction industry.

Evidence has shown the potential impact value and risk management has had on the current and future construction projects in the construction industry in China. Typical areas include risk avoidance, reduction or mitigation for project value.

Introduction

Value and Risk Management are critical components in the current project in enabling optimization of team contributions to the value and risk management process to enhance value in the delivery of service by implementing a new-build local government administrative headquarters. The team is obliged to ensure that quality, performance, reliability are upheld while minimising the life cycle costs (Shen & Liu 2004, p.4).

Value management will provide a creative project specific problem solving methodology with stakeholder involvement toward attaining value added solutions to the current project of constructing a new administrative block. The integrative approach of project learning define in value management is evidently optimized in constraining the budget and project complexity.

The results will be sustained performance improvement and reduced costs in the construction of the City Government (Council) headquarters during the projects initial stages (Lin & Shen 2007, p.5).

It will be able to add value to the building project. Mainly, value management will provide maximum value for the project, detailed information about the functions fundamental to a cost effective project which provides value for the users, clearly established and verified project objectives, optimized design solutions, and cost effective project development, making value management identifiably beneficial for the City Government (Council) headquarters project.

Identifying Business Needs

The rationale for constructing a centralized administrative block at the center of the city is to reduce the costs of running different departments located at different parts of the city to optimize governance and service delivery from a centralized location. In this case, the strategic objective of rationalizing the local government service delivery and attain the vision of a progressive and modern city will be attained.

A cost benefit analysis reinforces the rationale for relocating employees to the outskirts of the city while centralizing the provision of services from a single point. In addition, the number of employees requiring to be moved will have to be enumerated, the costs associated with the disturbances, the number of departments to be moved into the central administrative block, the risks to property and other assets when relocating.

Designing Value and Risk Study

It is critical that the risks involved be identified, assessed, and the probability of occurrence of any of the risks evaluated. This study integrating different experts from different disciplines wills benefit the client in many ways. Among the benefits includes identifying and acquiring financial information which is critical for decision making during the deliberations in the workshop.

This includes the costs of the project and accruing benefits. The project can create value if the benefits are more than the costs or if there is value for the money invested. Financial data is useful in his stage because sound decisions can be made based on this information (Shen & Liu 2004, p.7).

The participants in the workshop should be informed about the risks that the City Government (Council) headquarters are susceptible to. Risk will have to be an integral component in value management. Critical data includes the risk categories identified in the project, and countermeasures and controls to address the risks. That is in addition to informing the participants about the costs of mitigating the risks (Shen & Liu 2004, p.8).

The process for managing value for the City Government (Council) headquarters will include testing and validation of planning assumptions. All stakeholders have to agree on the objectives, goals, the changes to be introduced, the impact of the changes on their social and economic lives, and common vision that the project is designed to attain (Graham, Kelly & Male 2001, p.3).

Once the value management team has studied the results of the study of the company procurement rules and policies to ensure no vulnerable points are left susceptible to being exploited in the event of a disagreement, the project manager will develop principles to guide successful attainment of the goals. Critical in this case, is to get value for the money from the project (Graham, Kelly & Male 2001, p.4).

How Studies Will Benefit the Client

Employing value management during the initial stages of the building project will provide the advantage of acquiring greater insight about what the project is all about. The purpose and means of achieving the same will be known to various stakeholders. Often middle managers are not knowledgeable of all the aspects of a project and this will be a good opportunity to gain this insight (Woodhead & Downs 2001, p.4).

Value management will be useful for establishing project objectives, preparing the project brief and the consideration of concept and design alternatives. City Government (Council) headquarters will benefit from value management in many ways. It will be possible to simplify and ease processes in the project. There will be a lot of time, money is necessary to carry out the project successfully.

With proper planning and execution, efficiency will be enhanced hence time and money will be saved. Obsolete and redundant items and procedures can be known and discarded. For instance old technologies with are no longer efficient can be done away with (Dell’Isola 1982, p.3).

Pre-workshop Activities

The pre-workshop activities include identifying any strategic procurement done recently by any department which is of high quality. Typical examples include a contract signed in the recent past, a typical example of the procurement contracting for the client, and a typical example of a contract that had been completed and that can act as an informing example in the review. The components to consider include:

• Strategic targets, contract initiatives, goals, and objectives.
• The party responsible for the management of the strategic relationships.
• The legal requirements and any other legislation framework used in establishing the contract.
• Key performance indicators used in the project.
• The risk and value management plan.
• Any changes introduced in the process of project development.

Identification of stakeholders

The entire project requires the participation of an integrated supply team comprised of supply chain consultants, facilitating managers, constructors, and an integrated supply chain of consultants working as a team. The value management team is managed by the project manager and project sponsor, the project finance team, design team, project cost manager in the construction of the new City Government (Council).

A value manager must be part of the value management team. This individual is charged with the responsibility of understanding the value problems, coordinating value systems and implementing improvements to the company (Woodhead & Downs 2001, p.5).

The finance team has to ensure that the project being embarked on by City Government (Council) headquarters has a sound capital investment plan. The team should also perform a detailed analysis of the project in order to find useful information that will be used during deliberations and decision-making. The finance team should ensure that the project follows the company’s financial policies.

The accounting and financial reporting standards should also be followed. The manager responsibility is to ensure that there is proper planning. This includes asset disposal planning, asset maintenance, planning and capital investments planning. The basis of these plans should be the company’s policies (Woodhead & Downs 2001, p.9).

Agenda for each study

The agenda for the value management study is to enhance its effective operations, customer service and business expansion. In addition, it is important that the process clearly show how the organization will get value for the money they invest in the project.

The individuals in the value management team will come up with measures to improve the business while meeting the customers’ needs. The new project should to add value to the core business of the organization (Woodhead & Downs 2001, p.8; Woodhead & Downs 2001, p.7).

The agenda will be to identify the best methods of managing contract establishment which includes strategic relationships, effective communication strategies, and working with an updated risk management plans.

That could lead to managing contract performance based on good relationship and communication strategies, and clearly stipulated contract and strategic initiatives. It will be important to identify the best strategies to manage contract evaluation with clearly explained up to date risk management plans.

Recommendations

There should be technical documentation provided at each phase of the meeting and during the value and risk management process. A post workshop assessment will include identifying the each of the tasks to follow in managing the whole process. That will include identifying client characteristics, requirements of the clients that City Government (Council) headquarters serves.

In addition, the demographic data, experience, financial capabilities etc., will enable the firm to use accurate methods of adding value to the project. Value will be added in the delivery of services to the public if they will be offered at the central administrative point instead of being scattered across different places.

In addition, the document results will provide a guideline for resolving problems that arise at project level, review design solutions and any changes compatible with new changes in the project, assess each program and activity at each level, evaluate at each stage project stages, and assess the action plan to align it with the project goals and objectives. Tools critical here are cost index, and value index in the project (Shen & Liu 2004, p.9).

Risk Management in Construction

Throughout the construction industry in China, value and risk management is critical in minimizing waste, optimizing resources, and in protecting reputation and value of assets. The potential for effective application of value and risk management is based on the benefits gained into the construction industry at all construction phases to minimise cost overruns, potential for stalling projects, and budget overruns (Ling & Lim 2007, p. 3).

Value and risk management have the potential to enable project managers and stakeholders establish clear project objectives, identify and remove unnecessary expenditure, save money and time, reduce any redundant items, and generate creative solutions to the problems in the industry. The potential for risk in the construction industry is high.

The potential for the value and risk management enables project stakeholders and the project manager to identify specific areas of design, operations, and construction to cut costs without reducing value. Value and risk management enables project managers and stakeholders provide refined project options aligned to project brief and objectives.

Value management has the potential to quantify business benefits associated with working in a better working environment to improving the working conditions and provide value for money. Value and risk management in the construction industry in China is critical because of the potential risks in the construction industry.

Construction risks

Here, the potential impact of value and risk management in the construction industry in China has a potential impact in the construction of residential buildings, office buildings, commercial buildings, hotels, schools, airport terminals, railway stations, harbours and factories (IBIS World 2009, p. 2).

The potential impact of value and risk management in the construction industry in china has had much positive impact because of the new policies of openness the country has had to the outside word. The impact has been accelerated growth, and increases in the total output value with a rapid growth in the construction industry.

Integrating value and risk management in the construction industry in China has experienced rapid growth in the number of foreign investment companies seeking to invest in China. However, because of the high number of risks, many companies get discouraged to invest in China, especially when the country had not integrated value and risk management into the construction Industry.

According to Fong, Fang and Li (2004, p. 4), a comprehensive and clear understanding of the impact value and risk management has on the construction industry is critical in successful implementation of projects that provide value in the industry (Ling & Lim 2007). In this case, the following class of risks are strongly influenced by value and risk management and can be mitigated to provide value for the projects (Fong 1999, p.2).

Technical risk

Here, value and risk management is critical in mitigating the most common technical risks in the construction industry in China, which include equipment malfunction, design inaccuracy, injuries, accidents, and resource shortages. According to Ling and Lim (2007, p.3) default of contactors or subcontractors is a major risk problem that should be addressed to reduce risk to acceptable levels in China.

Value and risk management is critical for project managers to identify incompetent subcontractors and suppliers who push highly qualified and experienced foreign investors out of the market.

Risk management enables managers, organizations, and project stakeholders to identify and address risks such as the breach of contract, delay in the delivery of materials or services and disputes between contractors and subcontractors (Ling and Lim 2007, p.5).

A well-integrated value and risk management strategy in the construction industry has the potential to address the risk that investors are likely to face in the construction industry such as lack or delayed payments. Banks and other financial institutions are usually willing to finance large national projects but reluctant to support small firms.

In this case, value and risk management plays a critical role in facilitating and inspiring confidence in banks and other financial institutions to provide financial support in form of loans to invest in construction projects. That is because the smaller projects have insufficient funds to successfully run the project. With the integration of the strategy, it is possible for smaller firms and projects to be funded to completion.

That will avoid the problem where project managers do not pay contractors in time. In that situation, lack of construction credit facilities and shortage of capital is a disadvantage in that it will be overcome to encourage investment in the construction industry (Ling & Lim 2007, p.6).

Value and risk management is also critical because of the increased demand for construction has led to a very high demand of the necessary resources for investment. With value and risk management integrated into the projects, a decrease in prices of the resources could be experienced in the construction industry.

Despite the increase in labour and material costs due to the increase in demand for the resources, a long term impact on the value of projects and assets could be cost effective.

Financial risks

Value and risk management provides the basis for identifying and eradicating unnecessary expenditure, optimize resources, save money, time, and energy in the construction industry. Among the risks impacting negatively on economic project value in the construction industry includes fluctuation in the foreign exchange rates.

The potential to suffer substantial losses when revenue received and loan repayments are in different currencies is significant. It is possible for an unfavourable exchange rate to plunge a construction company into bankruptcy. In addition, inflation is another risk which affects other variables in the economy such as changes in interest rates and rate of return.

The fluctuation of interest rates has a major bearing on the construction industry as it affects the operations and feasibility of a project. To address the adverse impact of the risks is to integrate risk management strategy to address and mitigate the risks. Here, risk management and value management are integrated and provide the framework for industry players to protect themselves from the effects of inflation.

The higher prices will ensure that the business is not affected during inflation of material of labour costs (Ling & Lim 2007, p.8). Value and risk management could provide the companies with the ability to provide updated standards, optimal use of resources, generation of alternative ideas, and use of simplified methods and procedures in the construction process.

Future Application of Value and Risk Management

It is critical that value and risk management be critically evaluated in relation to the impact on the future of the construction industry. It is evident from the Chinese construction industry that steps have been taken to integrated value and risk management into the construction industry.

Studies by Ling & Lim (2007, p.4) show that firms have evidently attempted to integrate value and risk management into the construction industry to manage and mitigate the risks to acceptable levels for project implementation. One of the solutions include managing foreign exchange risk by making payments for construction in the same currency of the money borrowed for financing the project.

In addition to that, other approaches include identifying and assessing the impact of risks on the interest rate fluctuation in the pricing strategy of resources and project procurement process. It is critical to use fixed exchange rates in contracts to optimise capital fund savings.

Another application of value and risk management in the construction industry is to address high inflation rates by transferring risk of increased material or labour costs to the consumer.

Here, the transfer of such cost risks allows them to transfer the inflation risk to contractors, subcontractors and suppliers (Ling & Lim 2007, p.9). The potential impact value and risk management has in future applications are critically embedded in the risk management process as follows.

Risk management processes

Risk avoidance

Value and risk management will provide strategies for avoid risks all together. In this case, the construction industry stakeholders will identify construction projects that are not vulnerable to any risks. Risks cannot be fully avoided in the construction industry. However, risk avoidance is a difficulty choice when compared with business benefits. Risk avoidance will amount to missed opportunities (Raftery & Reilly 2006).

Risk reduction and elimination

A radical benefit of integrating value and risk management in the construction industry is risk reduction and elimination. While risks cannot be completely eliminated, risk reduction will be achieved by training employees and best practises.

Loosemore, Raftery and Reilly (2006, p.2) argue that risk management can be integrated to enable project managers to positively address technical risks such as by changing projects technologies, project design, and materials while addressing political risks positively.

Risk transfer

Another approach is to transfer risk to another person or firm such as third party bodies such as insurance firms. That is based on the bargaining power of the financier’s requirements, company culture and policies.

Conclusion

Value and risk management has a positive potential impact on the construction industry by providing a framework for reducing project costs while increasing and maintaining the project value. In addition, value and risk management will provide a string framework for construction companies from the local and international market to invest in the construction industry in China.

References

Dell’Isola, A 1982, Value Engineering in the Construction Industry, Van Nostrand Reinhold, New York.

Fang, D., Fong, P., & Li, M. 2004, ‘Risk Assessment Model of Tendering for Chinese Building Projects’, Journal of construction engineering and management, The International Journal of Public Sector Management, Vol. 12, No. 5, pp. 445-454.

Fong, P 1999, ‘Organizational knowledge and responses of public sector clients towards value management’, The International Journal of Public Sector Management. Vol. 12, no. 5, pp. 445-454.

Graham, D, Kelly, J & Male, S 2001. Value management of construction projects Wiley-Blackwell, Oxford.

IBIS World 2009, Building Construction in China. Web.

Lin, G & Shen, Q 2007, ‘Measuring the Performance of Value Management Studies in Construction: Critical Review’, Journal or management in Engineering, vol. 23, no. pp. 2-9.

Ling, F. & Lim, H. 2007, ‘Foreign firms’ financial and economic risk in China.’ Engineering, Construction and Architectural Management. Vol. 14, No. 4, pp. 346-362.

Loosemore, M., Raftery, J. & Reilly, C 2006, Risk management in projects. Taylor and Francis, Oxon.

Shen, L. Y., Wu, C. & Ng, C. S. 2001, ‘Risk Assessment for Construction Joint Ventures in China.’ Journal of Construction Engineering and Management, Vol. 127, no.1, pp. 7681.

Smith, N. K. K., Merna, T. & Jobling, P. 2006, Managing risk in construction projects. Wiley-Blackwell, New York.

Woodhead, M & Downs, C 2001, Value management: improving capabilities. Thomas Telford, London.

“An evaluation of current and potential future application of Value and Risk Management into [QS/CPM/FM/BS] professional services in the construction sector in [my country of study]”.

Introduction

At Turner Construction Company, understanding the considerations for railroads as a means of transport is very important. The demand and supply findings of Turner Company are vital aspects of enhancing efficiency and competitiveness of the company.

Railroad Supply and Demand Considerations

To enhance the provision of diligent, creative, and resourceful construction services to its clients, existence proficient and cost effective means of transport for Turner Construction Company is of essence.

As revealed by Welsh (2006), adoption of rail transport is an important operational mechanism aimed at streamlining service delivery. This approach is in line with the Turner Company’s vision of offering its customers easy support and accessibility to its construction services.

The demand for railroads is directly related to the demand for the constructed property and the level of efficiency of the services being rendered.

Failure to construct more housing units in a given area will impact negatively on the demand of railroads in that area due to low supply of the users of rail transport (Wolmar, 2009).

Inconsistent consumption patterns and availability of discrete supply intervals must be considered by Turner Construction Company in its consideration, adoption, and continued use of railroads (Welsh, 2006).

The type of facilities to be constructed is another consideration that Turner Company management needs to consider in its analysis of railroad demand and supply patterns.

It is crucial to understand the certainty of the means of transport adopted and the prospective demand and supply of the company products. According to Welsh (2006), rail transport is an environmentally friendly means of transport.

This implies that if adopted, rail transport will offer Turner Construction Company a better means of transporting its employees to their workstations as well as transporting heavy and bulky construction tools and materials at a reduced cost.

Based on the nature of infrastructure already in place, utilization of rail transport will enhance efficiency and cost effectiveness in the transportation of the construction materials to the intended sites.

This will in turn reduce the ever increasing burden of high transport cost and traffic congestion to the company (Wolmar, 2009).

The many construction opportunities available in North America and other parts of the world also make the use of railroad a viable means of transport for Turner Company.

Wolmar (2009) explains that the safety and sustainability of railroads are issues that can never be ignored in analyzing the demand and supply aspects of railroads.

The implemented stringent standards, regulations, and efficiency levels of rail transport in the U.S and in countries in which Turner Construction Company operates make rail transport a workable means of transport.

The relevance of railroads is complemented by the fact that rail transport is a cheaper and more reliable means of transport when compared to other means of transport such as air and water transport.

Anticipated demand and supply must be understood in order to effectively address absorption and construction project feasibility concerns.

For efficiency and effective resource utilization, supply of railroads for the construction industry should strictly be based on the industry’s demand (Welsh, 2006).

Turner Company should work on how best to push for the improvement of infrastructure and implementation of more effective railroad policies aimed at streamlining rail transport and its use in the construction sector.

Conclusion

The analysis of the proximity, reliability, safety, and flexibility concerns indicates that adoption of rail transport will effectively address the demand and supply of Turner Company.

Rail transport offers safe and reliable means transport as well as reduced transport processes. If adopted, rail transport will improve Turner Company’s performance.

References

Welsh, J. (2006). The American Railroad: Working for the Nation. The Motorbooks Classic, Motorbooks Publisher, Illinois.

Wolmar, C. (2009). Joining up Europe. Blood iron and gold: how the railways transformed the World, Atlantic Books, 74-94.

Abstract

This paper is aimed at examining the role of the construction and real estate sector in developing the economy and infrastructure of the United Arab Emirates. One can say that it can contribute to the growth of other sectors such as the hospitality industry, manufacturing, retailing, and so forth by providing infrastructure and office space. Moreover, construction companies can create opportunities for businesses that can act as suppliers or contractors.

The Role of Construction and Real Estate Sector in the UAE

The government of the United Arab Emirates attempts to diversify the country’s economy and make it less dependent on the oil industry. Much attention should be paid to the role of the real estate and construction sector because it plays an important role in supporting various forms of businesses that may differ greatly in terms of size, structure, or activity. Some of them can benefit from using buildings and infrastructure, while other enterprises can act the suppliers or contractors of construction companies. These are the main questions that should be discussed more closely.

It should be noted that the construction sector plays an important role in promoting the growth of the tourist industry in the country (Oxford Business Group, 2008, p. 171). Various hotels, restaurants, and entertainment parks can be cost-effective only if developers can construct buildings quickly and at a relatively low cost. In turn, the increased inflow of affluent travelers from various regions of the world generates extra revenues for the country and its citizens.

Furthermore, the companies working in this sector contribute to the creation of more affordable office space in the country (IBP, Inc, 2014). This opportunity is critical for many businesses that may represent various sectors of the economy. For instance, one can speak about such organizations as retailers, IT companies, banks, public agencies, and so forth. This is one of the positive effects that should be distinguished.

Moreover, the construction industry is important for developing infrastructure such as roads and telecommunications (Gorgenlinder, 2011, p. 35). At first, this infrastructure is critical for the movements of goods across the country. Thus, manufacturers, distributors, and retailers are able to benefit from the growth of the construction sector. Furthermore, this infrastructure is important for financial transactions that are made by various financial institutions, such as banks and financial institutions. These are the main details that should be distinguished.

Furthermore, one should mention that the real estate and construction sector contributes to the development of different businesses that can be engaged in such areas as sustainable technologies, design, engineering, and so forth. In many cases, they are the suppliers of the construction companies. This is one of the positive impacts that should be identified. Nevertheless, it is important to mention that the construction and real estate sector can contribute to the development of the economy, provided that there is a regulatory framework supporting the activities of various businesses. For instance, one can speak about reduced taxes (Kumar, Agarwal, & Khullar, 2010). Without this legislative environment, investment in the construction industry will not be efficient.

On the whole, this discussion indicates that the construction sector can bring significant improvements to the economy of the UAE. To a great extent, these companies can create opportunities by improving infrastructure and providing office space. Moreover, the real estate sector generates demand for the products and services of many businesses, such as the manufacturers of sustainable technologies. Yet, the government should support these businesses by adopting appropriate regulations. Thus, the positive role of the construction sector should not be overlooked.

Reference List

Gorgenlinder, V. (2011). A Strategic Analysis of the Construction Industry in the United Arab Emirates: Opportunities and Threats in the Construction Business. New York, NY: Diplomica Verlag.

IBP, Inc. (2014). UAE: How to Invest, Start and Run Profitable Business in the UAE Guide – Practical Information, Opportunities, Contacts. New York, NY: Intel Business Publications.

Kumar, R., Agarwal, A., & Khullar, R. (2010). Real Estate and Construction Sector in the UAE: Growth Strategies. Web.

Oxford Business Group. (2008). The Report: Dubai 2008. New York, NY: Oxford Business Group.

Introduction

XYZ Construction LLC has a bright future not only in the United Arab Emirates but also in the regional markets in the Middle East. To achieve the best results in its operations, it is necessary to restructure the HR department in order to come up with an effective HR unit that can cope with the developments that the firm is experiencing. In this study, the researcher will look at how to come up with new HR strategies that meets the expectations of the firm as per the directives of the chief executive officer.

Workflow Diagram

Recruitments

The first step when coming up with new HR strategies is to develop a plan that will be used in hiring new staff to work in various departments within the firm. The figure below shows a workflow diagram of the activities and stages that should be followed when hiring a new staff.

This firm will need a team of highly qualified individuals who can help this firm move to the next level in its development process. The workflow diagram above shows specific activities that the HR unit will have to undertake when planning to hire new staff. The first process will be to advertise the vacancies. When the applications are received, the recruitment process shall then begin.

Recruitment is a rigorous process that involves interviewing the applicants, verifying their documents, and determining whether they have the practical capacity to undertake responsibilities expected of them. The next step will be to hire the applicants who register the highest scores during the recruitment process. Once these employees have been hired, the final stage is to take them through a training process.

Employee services

XYZ Construction LLC is an upcoming firm in the United Arab Emirates’ construction industry. The management must realize that employees are the most important assets that can help it achieve success in such a competitive industry. It is important to appreciate that employees may have issues that require attention of the management. Developing an employee service program may be necessary as a way of addressing the needs of the employees from time to time. The following diagram shows the stages that the managers can use to address such issues as they may arise.

As shown in the above system, the first step is to identify the need of the employees. The management should then determine an appropriate solution before administering it. The last stage is to assess the effectiveness of the solution offered.

Payroll

Determining the payroll of individual employees within this firm is another important activity that the HR will need to focus on in the new plan. The following flow diagram shows the stages that should be followed when defining the payroll.

The first step is to define the basic pay. The allowances is then added to the basic pay before making the necessary deductions such as tax, social security fund, national health insurance fund among the rest. The final amount will be reflected in the payroll of that individual employee.

Training and development plan for the company

Employee training is a very critical component of HR activities. The management will need to ensure that the employees are taken through training programs at regular intervals, especially when changes are made within the organization. The figure below shows a plan that should be used every time the management is coming up with a new plan.

The first step will be to identify the training needs. A need may arise when some fundamental changes occur within the firm. When the need has been identified, an appropriate training program will be developed that specifically focuses on the new development. The program will be tested by involving the relevant stakeholders, especially the affected employees and HR experts, to determine if the program can help achieve desired outcome. If it is approved, the plan will be rolled out. This involves the actual training process of the employees. The last stage is to conduct a review after the training process to determine if the expected outcome is achieved.

A methodology to apply career path initiatives

The best way of retaining talents within XYZ Construction LLC is to ensure that all the employees feel they are on the right career path in their respective jobs. The HR will need to come up with an initiative that will help to ensure employees feel they are taking the right career path. The appropriate methodology will be to organize regular career counseling sessions for all the employees so that they may understand if they have taken the right career paths.

Conclusion

XYZ Construction LLC needs a complete overhaul of the current HR system because it is not responsive to the emerging changes in HR management. This should be replaced with a new system which will ensure that the employees’ needs are effectively addressed in order to enhance their motivation and productivity.

Rational

The construction industry is a major sector of the economy that impacts heavily on the livelihoods of many people. UAE is a region that has witnessed tremendous growth in the construction industry. This industry employees many immigrants and make use of resources from different parts of the world (Weber, 2005).

As a result, several challenges crop up as growth in the industry is sustained. The most important challenges that need to be tackled are cost effectiveness and sustainable practices (Bliss, 2006). The demand for construction resources has driven up the prices of construction materials and as a result, we need to come up with means of tackling costs.

Sustainability involves analyzing several factors in the process of managing construction projects (Sassi, 2006). Sustainability involves the protection of the environment through the use of different strategies that ensure the environment is protected to a great extent.

The pollution of the water, air and the soil should be minimized and every project should involve a sustainability manager. Sustainability will enable the minimization of costs from different aspects such as reduced cost of energy, water use and other forms of cost savings (VanDerZanden, 2011).

The process of ensuring cost effectiveness in relation to environment sustainability looks into minimizing costs associated with construction. One of the best methods of minimizing costs is to ensure all the major construction activities occur at site (Gorgenländer, 2010).

One of the examples in the minimizing of costs was the construction of the high rise Burj Al Khalifa and Burj Al Arabi projects. Most of the construction activities were conducted on site and this minimized costs associated with transportation, labour costs since there was a lot of time savings (Cavanaubh, 2010).

Huge projects such as the Burj Al Khalifa minimize costs by ensuring that all infrastructural requirements are centred within the project site. The Burj Al Khalifa is an example of a cost effective project and from this project we learn on how to plan on cost savings (Halliday, 2008).

Moreover, in the process of saving costs, construction project make use of technology to minimize workforce and wasted man hour that would be used if human resources were deployed. The Burj Al Khalifa made use of numerous technologies that meant the project finished on time and saved on a lot of costs (Uqaili, 2011).

Sustainability is a task that ensures minimal destruction is meted on the environment while at the same time a task/project will eventually lead to cost savings. The newest trend in construction is to ensure buildings make use of minimal energy and save a lot on waste production (Edgerton, 2008).

Water is a scarce resource in the UAE and therefore this resource has to be used effectively. Projects such as the Burj Al Khalifa have put in place measures whereby electricity consumption is minimized through use of solar panels that reduce energy consumption (Uqaili, 2011).

Renewable energy and use of creative architecture has ensured new buildings minimize waste production. For instance, buildings such as the Burj Khalifa and the Burj Al Arabi have their own water treatment plants for the re-use of water.

Moreover, these buildings are designed to make use of little air conditioning as a result a lot of energy is saved. Making use of enough lightening in buildings ensures that less energy is spent on lighting and in the end it ensures environmental sustainability (Curwell, 2008).

Aim

The main aim of the project is to find out cost effective means and ways of minimizing costs and ensuring sustainable development in the UAE.

Objectives

The objectives of the task could be divided into general and specific objectives as shown below:

General Objectives

1. Clarify what sustainability is and its relevance and importance in the UAE construction industry.
2. Find out what sustainable measures and practices that are adopted by the UAE construction and their effectiveness in projects.
3. Judge the cost-benefit-analysis of sustainable construction and the efficiency of how such projects are run.

Specific Objectives

1. Come up with policies that ensure environmental sustainability markers are met within the construction industry in UAE.
2. Develop and maintain standards and strategies that ensure regulation of cost in the construction industry in UAE.
3. Develop environmental sustainability markers that ensure the environment is protected and hence costs of construction are minimized.

Hypothesis

The attainment of sustainable practice in the construction companies and that the efficiency and cost effectiveness of sustainability in the construction field is possible only with the adoption of the current sustainable construction practices.

Research methodology

Literature Review

Literature review will be from books, journals, reports, presentations, and websites in order to:

• Describe the importance of sustainability
• Discuss the environmental impacts by the current construction industry.
• Discuss the current practices with construction in the UAE and its impact to the environment.
• Explore cost effective and sustainable practices with construction in the UAE.
• Establish the relation between Sustainability and Cost benefits with construction.

Data Collection

Data for the writing of the dissertation is majorly collected from the secondary sources. In addition, the information is majorly found online through the internet apart from just a few pieces which are collected through interviews and questionnaires.

Data Analysis

After collecting all the data, it is necessary to ensure that they are analyzed using the relevant analytical tools. The quantitative data will be analyzed using online software called the SPSS. Qualitative data will be examined as well, and interpretations will be given.

Writing the research report

A conclusive report, conclusions and recommendations in line with the report will be compiled. The report can aid several departments and sectors make decisions that are likely to register improvements in the construction sector.

Dissertation structure

Introduction

This chapter includes the rationale, aim and objectives of the research study and the hypothesis is presented. In addition outline research methodology and the outline structure of this dissertation is also displayed in this chapter.

Sustainability and Built Environment

This chapter describes the importance of sustainability in the built environment in terms of various impacts due to increasing level of CO2 emissions by the current trend, and the necessity to reduce the CO2 emissions in the UAE.

This chapter further discusses the relationship between sustainability and competitive advantage in business and guidelines to implement sustainability in the construction industry. An overview of sustainable constructions and its benefits upon implementation within the construction industry is also discussed in this chapter.

Construction Industry and Its Impact on the Environment

This chapter details how the construction industry contributes towards the impact on the environment and presents the current strategy with UAE construction industry and its impact to the environment.

Sustainable Practices for Construction in the UAE

This chapter explores the regional geology of UAE and current practices with construction. The chapter also discusses various sustainable practices for constructions in the UAE to achieve cost-effectiveness and CO2 emission reductions. Benefits of sustainable construction practices and barriers to implement these practices with constructions in the UAE are also described in this chapter.

Research design and methods

This chapter describes research strategies and details the chosen methods for data collection and analysis.

Research results and analysis

This chapter presents the research results obtained from various sources and compares the analysis with the literature review.

Conclusions and recommendation

This chapter presents the conclusions based on the findings from the research. The limitations of this study and further recommendations also form part of this chapter.

References

This chapter lists the references used throughout this research study.

References

Bliss, S., 2006. Best practices guide to residential construction, materials, finishes, and details. Hoboken, NJ: John Wiley & Sons.

Cavanaubh, W.J. Tocci, G. and Wilkes, J., 2010. Architectural acoustics, principles and practice (2nd Ed.). Hoboken, NJ: John Wiley & Sons.

Curwell, S. Cooper, I. and Deakin, M., 2008. Sustainable urban development. New York, NY: Jones & Bartlett Learning.

Edgerton, W., 2008. Recommended contract practices for underground construction. Littleton: Society for Mining Metallurgy, and Exploration.

Gorgenländer, V., 2010. A strategic analysis of the construction industry in the United Arab Emirates opportunities and threats in the construction business. Hamburg: Diplomica-Verl.

Halliday, S., 2008. Sustainable construction. Chicago, IL: Edward Elgar Publishing.

Sassi, P., 2006. Strategies for sustainable architecture. London: Cengage.

Uqaili, M. and Khanji, H., 2011. Energy, Environment and Sustainable Development. Tokyo: Palgrave.

VanDerZanden, A. and Cook, T., 2010. Sustainable Landscape Management: Design, Construction, and Environmental Protection. London: Routledge Falmer.

Weber, S., 2005. Scheduling construction projects, principles and practices. Upper Saddle River, NJ: Pearson Prentice Hall.

Introduction

This chapter presents the background of the study, statement of the problem, objectives of the study and research questions. It also presents the significance of the study, limitations and conceptual framework of the study.

Background of the study

An overview of the construction industry

In a global context, construction industry constitutes one of the largest sectors of any given economy. Within European Union, construction industry accounts for over 7 percent of the total employment among the industrial employers (European Union 2001).

The industry is arguably the largest employer among industrial employers in Europe. In the year 1999, the industry accounted for over 10 percent of European Union’s Gross Domestic Product (GDP). This phenomenon is not isolated to the European Union.

The construction industry constituted over 9 percent of the United States of America’s GDP in the year 2004 (Building Futures Commission (BFC) 2005). BFC estimated the value of construction work within 2004 at over $1 trillion (BFC 2005).

The United Arab Emirates (UAE) construction industry is a robust industry that competes favourably with the construction industry in different geographical entities. UAE’s construction industry valued at over $700 billion in 2010, accounts for a fifth of the construction industry in the Arab world (Malty &Dillon 2007; RNCOS 2011; Gulf News 2011).It is also the second largest contributor to UAE’s GDP (Gulf News 2011)

Despite the relatively positive outlook on the construction industry, disputes have the potential to derail any gains made in the industry. According to the American Bar Association (ABA) (n.d), litigation expenditure in the US construction industry amounts to over $5 billion annually.

This expenditure has been growing at the rate of 10 percent on a yearly basis (ABA n.d). The construction industry in the UAE has also seen an increase in the construction disputes. The growing demand for lawyers versed with construction disputes attests to the increasing construction disputes within UAE (Arabian Business 2011).

Causes of disputes within UAE construction industry

There are several causes of disputes within UAE’s construction industry. These are classified into three broad categories. The three categories include economic factors, legal factors and the human factors.

Economic factors as a cause of disputes within construction industry can be analysed within the context of the wider global economic crisis. Recent economic crisis resulted in cash strapped developers (Haddad 2009). The developers had limited cash liquidity to settle their debts from lenders and to pay their contractors, sub contractors and employees resulting into disputes.

Human factors can be understood from the three dimensions; disputes attributed to contractor, disputes attributed to clients and finally disputes attributed to the designer (Motsa 2006). These are construction disputes that can be directly associated with a given party’s failure to accomplish its part of the agreement. Such failure may be for example inadequate design drawings by the designer amongst other factors.

Disputes attributed to the legal factors often occur due to inadequate understanding or compliance with set legal provisions. The disputes may also occur because of abuse of powers or provisions of the construction laws.

Sometimes the disputes may occur due to loopholes inherent in the construction laws utilized. In the context of legal factors as a cause of construction disputes, Mansoor (2010) identifies several provisions within the FIDIC construction contracts that often lead to disputes.

He stated the Engineer’s powers to suspend construction works or recover lost time and an employer’s right to subcontract to third parties some of the construction works as some of the causes of disputes. Other legal provisions with potential of generating disputes include the ‘pay if paid’ legal provisions and the assignment of the engineer’s role amongst other legal provisions.

For the purposes of illustrating how legal provisions can degenerate into disputes, we will use the ‘pay if paid’ legal provision. The ‘back to back’ and ‘pay if paid’ payment provisions in the construction contracts are a major cause of construction disputes in UAE.

These legal provisions allow the subcontractor to receive payment for work done when the main contractor is paid money corresponding to that piece of work (Bin Shabib & Associate 2009). In this context, subcontractors can lose their money when the main contractor fails to be paid for any given reason.

Traditional ways of dispute resolution

Traditional ways of dispute resolution involves arbitration, adjudication and litigation methods. Arbitration uses experts with an appreciation of a dispute’s technical, legal perspective and technological perspectives to act as arbitrators.

There are several advantages associated with arbitration method of dispute resolution. In the arbitration method, any evidence that is relevant to the dispute is admitted.

This contrasts sharply with the litigation method where there are formal rules to be applied for the evidence to be accepted. Arbitration decisions are often not available for public records. This preserves the confidentiality of the nature of dispute and the disputing parties.

This often avoids the stigma associated with negative litigation records that may be available to the public. Arbitration also use specialists in the given dispute matters and as such root problems of the dispute are often addressed.

There are numerous disadvantages associated with the arbitration method of dispute resolution. Arbitration decisions often have to be ratified by the courts in order to be effective. Sometimes, lack of rigour associated by with litigation in admissibility of evidence and the rules of procedures may weaken arbitration decisions.

Litigation method is method that involves the use of courts to settle the disputes. Litigation is often used when all the other methods of dispute resolution have failed. There are several advantages associated with the litigation methods. The major advantage of the litigation method is the ease of enforcement of the decisions.

Litigation often uses formal rules in terms of evidence admissibility as well as procedural matters that are known or easily accessible to everybody.

On the other hand, there are some disadvantages in the litigation method. The method is often costly because disputing parties have to hire advocates. Litigation method also takes a lot of time to resolve disputes which often drive the costs up. The other major disadvantage of litigation is the destruction of the commercial relationship.

Negotiation as a means of dispute resolution

In the context of the challenges associated with arbitration and litigation methods, Alternative Dispute Resolution (ADR) is emerging as a popular dispute resolution mechanism. In particular, negotiation is increasingly becoming a preferred mode of settling construction related disputes in UAE (Al-Tamimi & Company 2011).

Negotiation falls within Alternative Dispute Resolution (ADR) dispute resolution mechanism. The other dispute resolution mechanism that forms ADR is the mediation mode of resolving disputes amongst other forms. Negotiation as a means of dispute resolution involves the disputing parties agreeing on an amicable solution to their problem.

It often works best in instances where there is a provision of the same in the construction contract or where the conflicting parties mutually settle on negotiation process. Some of the construction issues that can be negotiated include project completion dates, arbitration dates and special work item compensation amongst other issues (Fleming 2003).

There are several advantages and disadvantages associated with negotiation as a mode of dispute resolution. This mode of dispute resolution offers a low cost mechanism of solving disputes. It also saves on time as the parties dictate their own timelines.

However, negotiation is not an ideal dispute resolution mechanism in instances where there are technical legal provisions that have to be interpreted (Al-Tamimi & Company 2011). It may also be difficult to enforce decisions arrived through negotiation unlike in the litigation mode of conflict resolution (Bin Shabib & Associate 2009).

This is primarily because compliance on the arrived decisions depends on the goodwill of the parties involved. Poor negotiation and skills adopted by one of the parties may lead to a stalemate. This may occur when one party is too demanding and the other party cannot compromise to the desired level. In this context, negotiation may not be an ideal dispute resolution mechanism.

Statement of the problem

ADR as a means of disputes resolution mechanism in the construction industry has been studied from a global perspective. In the context of UAE’s construction industry, there are several studies on ADR as a means of dispute resolution mechanism.

However, there is a shortage of studies exhaustively focusing on the negotiation as a means of dispute resolution mechanism within UAE’s construction industry. This paper seeks to address this gap.

Objectives of the study

The objectives of the study are divided into two broad categories; general objectives and specific objectives. Specific objectives are a subset of the broader general objectives.

General Objective

The main objective of the study is to examine negotiation methods within the context of UAE’s construction industry.

Specific Objectives

The study has four objectives as highlighted below.

• To examine the constituents of successful negotiations in UAE’s construction industry disputes.
• To examine the different types of negotiations in UAE’s construction industry disputes
• To examine the historical context of the various negotiations used in UAE’s construction industry disputes.
• To examine how negotiations affect contractor-employee and contractor-employer relationships.

Research questions

• What are the constituents of successful negotiations in UAE’s construction industry disputes?
• What are the different types of negotiation methods used in UAE’s construction industry disputes?
• What is the historical context of the various negotiation methods used in UAE’s construction industry?
• How do negotiations affect the contractor-employee and contractor-employer relationships in UAE’s construction industry?

Significance of the study

This study will be useful to a number of people including but not limited to construction employees, clients, contractors and researchers. The research will be beneficial to this diverse group of people in several ways.

Employees

Disputes between the employer and contractor or even directly between the contractor and the employees may affect the welfare of the employees in several ways. The employees may lose their wages and benefits or there may be a delay in the processing of the same.

Such scenarios are not desirable. Successful resolution of such disputes is of utmost importance to the employees. This research will educate the employees on the various negotiation options available to the clients whenever disputes arise.

Clients

Clients may get into various disputes with the contractor on either finished work or work-in-progress. Negotiation forms a critical way of solving those disputes whenever they arise.

This research will provide adequate negotiation types and methods within the context of UAE’s construction industry. The research will thus provide educative materials on the several negotiation options that the client can utilize in dispute resolution.

Contractors

Construction disputes often have negative financial consequences on the contractors. Such consequences may include loss of revenue for work done or reputational damage leading to loss of business. Successful dispute resolution is thus of critical importance to the contractors.

In this context, the paper will provide educative literature on the negotiation as means of dispute resolution. Such information will be useful in enumerating the various negotiation options available to the contractors embroiled in disputes.

Researchers

The study will expand the existing literature on the construction disputes resolution mechanisms. In particular, the study will provide literature on negotiation as a means of construction industry disputes resolution. In this context, the study will be useful to the researchers in several ways.

The study will provide relevant literature for the researchers on dispute resolution mechanism in UAE. The study will provide suggestions for further studies in the conclusion part of this report. Such suggestions can provide future researchers on relevant topics for research.

Limitations of the study

The research intends to discuss negotiation as a means of dispute resolution mechanism within the context of UAE’s construction industry. The paper does not intend to cover in detail other means of dispute resolution within UAE’s construction industry.

Several factors contributed into settling for the research proposal. The researcher considered researching on the dispute resolution mechanism within UAE’s construction industry. However, the topic was too broad to be tackled in depth.

Conceptual framework

In the study of the set objectives of the study, the researcher used several approaches. Studying of the relevant literature on the subject provided much needed background on the study and material facts on dispute resolution methods.

The study used questionnaires to collect data on several aspects. Such aspects included how negotiation affects contractor-employer and contractor-employee relationships among other issues. The collected data was then analysed and inferences deduced.

References

Al-Tamimi & Company 2011, Construction Law. Web.

Arabian Business 2011, Demand soars for UAE construction dispute lawyers. Web.

BFC 2005, Measuring productivity and evaluating innovation in the US construction industry. Web.

Bin Shabib & Associate 2009, United Arab Emirates. Web.

European Union 200, Competitiveness of the construction industry. Web.

Fleming, Q. 2003, Project procurement management: contracting, subcontracting, teaming. Pennsylvania: FMC Press.

Gulf News, 2011, UAE tops Gulf construction market. Web.

Haddad, J. 2009. Impact of the global financial crisis on the GCC’s construction Industry. Web.

Mansoor, M. 2010, The application of Alternative Dispute Resolution (ADR) in the UAE construction industry. Web.

Matly M., & Dillon L. 2007, Dubai strategy: Past, Present, Future. Web.

Motsa, C. D. 2006, Managing Construction disputes. Web.

RNCOS 2011, UAE Construction Industry Outlook to 2012. Web.

Weinberg, W. 2010, Recent developments in arbitration law in UAE. Web.