Tag Archives: construction projects
New MEFMA report forecasts FM industry revenues in the GCC to continue growing by 10 per cent annually
- Regionâ€™s increasing number of construction projects seen to drive in more growth
- Market consolidation prompts increase in Mergers & Acquisition activities
Â A report from the Middle East Facilities Management Association (MEFMA) confidently forecasts that revenues for the GCC regionâ€™s FM industry will continue to grow at 10 per cent annually for the next two years. The bullish outlook complements the region’s thriving FM segment with local firms placing key focus towards further growing their core business lines. The statement, which is the result of a survey commissioned by MEFMA, attributes the expected growth to drivers like the increasing demand generated from the region’s portfolio of construction projects and an expanded scope of work coming from existing clients.
- Ongoing liquidity issues due to lower oil price led to increase in volume of claims submitted
- Average value of construction disputes decreased, indicating higher number of lower value claims
- Failure to properly administer the contract remains the most common cause of construction disputes
- Party to party negotiation still the preferred method for resolving disputes across the regionÂ
Ongoing liquidity issues within the Middle East construction market has seen an increase in the number of claims submitted however the industry is resolving them more swiftly, according to the latest research from Arcadis. On a less positive note, basic contract issues remain the root cause of many of the disputes that materialize across the region.