The GCC is a highly commoditised construction market where the lowest bid is usually awarded to the contract, says Mark Andrews, regional managing director at the UK-based Laing O’Rourke.

Speaking at MEED’s Construction Leadership Summit this morning, Andrews went on to explain that the culture of low bidding and a lack of focus on reputation means contractors fail to distinguish themselves from competitors.

Contractors often fall into a price driven bidding trap because of the bias towards lowest price wins the contract. According to Andrews, companies sometimes find they have to chase the cash and want to take on as many projects as possible to ensure liquidity.

“There is a sense of everything being about upfront costs and advance payments with value engineering and quality being compromised,” says Andrews.