With the Gulf enjoying the biggest building boom in its history, construction companies should have little to grumble about. Sadly, that is not the case.

According to the 500 senior executives at MEED’s Arabian World Construction Summit (AWCS) in Abu Dhabi, the industry is suffering a crisis that could bring the region’s economic boom to a standstill.

The principal concern is a chronic skills shortage, which means the industry cannot deliver the $1.8trillion worth of projects being planned. Three-quarters of those gathered in Abu Dhabi said that finding suitably qualified personnel was their biggest challenge. Inflation was the next most pressing concern, with contractors unhappy that developers were unwilling to share the risk.

The root of the problem is the short-term approach traditionally taken by contractors and their clients.

Governments and developers are continuously launching huge new schemes, without any apparent strategic aim or thought for the ability of the supply chain to deliver them. They persist with a lowest-price-wins-all philosophy, and often insist on arbitrarily modifying standard contract terms.

The industry cannot carry on like this. More than 83 per cent of summit delegates said that quality and safety were being compromised.

The Gulf must rethink the way it buys construction services, to maintain quality, safety and profits. Clients must consult key suppliers at the outset and be prepared to share the risk of cost overruns.

Many of the region’s clients lack the experience to lead such reforms, so the industry’s biggest companies should take the lead. They must produce an action plan to ensure Gulf construction remains the driver of the boom, rather than the block.