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Delay analysis Methodology in UAE construction Projects: Delay Claims, Literature Review

By Saad Hegazy

Dubai, UAE


Introduction

UAE is one of the pioneers among developing economies in the Middle East and the core for its development depends on the construction industry as an important sector. It is considered one of the largest sectors in the UAE economy; the government is spending billions of dollars every year in major projects; and in such environment, claims appear as an important factor increasing the possibility of project delays (Zaneldin, E.K., 2006). Some studies indicate that more than 50 % of the construction projects in UAE suffer from delays (Faridi, A.S. & El-Sayegh, S.M., 2006). And it is always a point of disagreement between parties about delays and causes of them, client and engineer trying always to mitigate delays to avoid giving the contactor extra money; on the other hand the contractor trying to impose the delays to get the maximum time and money. Claims industry in UAE is approximately 4 billion US dollars; it is really a big problem for projects and the industry, and claims management itself has real problems. (Enshassi, at. al., 2009)

Choosing the delay analysis is an important part of the claims industry. Many techniques are used in the UAE, and with the involvement of many factors the chosen practice became more important to define the delays. Contractors pay a lot to the specialist to prove their right using delay analysis methodologies DAMs and they submit this as extension of time (delay claim), trying to maximize their benefits. Meanwhile the client is trying to use other DAMs to try to neglect certain facts which increase the despute with the contractor.

In this review we will discuss the delay claims in the construction industry in UAE and the approach for choosing delay analysis methodology.

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Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally published in the PM World Today eJournal, Vol XIV, Issue III, March 2012. It is republished here with the author’s permission.

About the Author

Saad Hegazy

Author

Dubai, UAE and Cairo, Egypt

Saad Hegazy, an Egyptian Project Management consultant based in Dubai United Arab Emirates, consults to the construction and Oil & Gas industries. He has worked in various companies in the field as a Project Manager and Project management Consultant, with experience in a variety of industries and project types. As a consultant he specializes in using Project Management techniques to enhance an organization’s Performance. His wealth of experience and knowledge at management level with strategic responsibilities added value to service delivery in organizations he worked with. In addition he is recognized as independent Arbitrator, Mediator and Dispute Resolution consultant. Saad has published many articles and researches about Project Management in all over the world; also he is a well known international trainer in Project management. Saad obtained his Bachelors of Science degree in Civil Engineering from Tanta University in Egypt, International Diploma in Project Management from Cambridge University CIDPM, Diploma in International Arbitration from Alexandria University, Post Graduates Diploma in Human Rights and Civil Society from Faculty of Economic and Political Science Cairo University , Master of Strategic Project Management from Herriot-Watt University in UK. Saad had been certified from Global societies as International Project Management Association IPMA ©, Project Management Institute (PMI®), Charted Institute of Arbitrators CIArb and International Arbitration Center IAC. Saad Hegazy is the founder of Egyptian project management standard committee, the head of Egyptian Delegations to ISO 21500 Committee “Guide for Project Management”, and ISO Standards for Program &Portfolio Management as well, Founder of IPMA Young Crew in the Egypt, Founder in IPMA Coaching for Development initiative C4D. He is also an active member in the Management Engineering Society MES the IPMA representative association in Egypt, Recently he Received the IPMA Young Project Manager Excellence Award Prize for 2010. Saad is a very active member in the Egyptian & International Civil Society, he started his life promoting volunteerism and helping establish development projects with many associations and the United Nations; he is also a member of many NGOs. He can be contacted at [email protected].