Contracts should shift to design and build

18 March 2015

Laing O’Rourke says more clients should consider the model

Construction contracts in the Middle East should shift towards design and build, says Mark Andrews, managing director, Laing O’Rourke Middle East.

Speaking exclusively to MEED, Andrews said he wants to see more construction clients move towards this contract type.

Design and build contracts place more responsibility and risk on to the main contractor, but can streamline the construction process, with fewer parties involved in the project and be more financially attractive. But such contracts can be more expensive to bid on.

In part two of MEEDtv’s interview with Mark Andrews below, he talks about contract types, training and some of the company’s major projects

Video:

Mark Andrews, MD, Laing O’Rourke, part 2

He said the contract Laing O’Rourke has with the UAE’s Majid al-Futtaim to build the Hilton Garden Inn in Dubai is design and build, and one of the first the contractor has done in the region. “It’s a model not used very much in the UAE at the moment. We believe it’s the way forward, said Andrews.

“For many functional buildings, the idea of off-site assembly is the way forward. But you can only really do it under a design and build type method,” he says.

The company will potentially further increase its workforce this year, if “plans come together”. He said Laing O’Rourke will recruit several hundred more people, but timing depends on contracts.

Mark Andrews, Laing O'Rourke

In part one of MEEDtv’s interview, he discusses the impact of the falling oil price on construction projects and the markets the company is focusing on.

Watch the interview

 

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