Risk allocation creates rifts between contractors and clients

27 May 2015

Companies must improve their relationships for better delivery

  • Alliancing and partnership could solve the problem
  • Measuring contracts frequently is an option for some

Alliancing and partnering at the highest level between the contractor and the client does and can work if done properly, says Thomas Topolski executive vice president at consultancy firm Louis Berger.

Speaking during a panel debate at MEED’s Construction Leadership Summit in Dubai this morning, he said that disproportionate risk allocation creates a bad relationship between the contractor and the client. Often, the contractor feels it is taking on more risk than required.

Panellists said there was a sense that contractors are increasingly taking on unfair risk allocation. “New conditions of contracts are required,” said Jalal Salhi, infrastructure affairs director at Qatar’s public works authority (Ashgal).

Ensuring that contracts are remeasured may become an option, “but it may not be the solution for everything”, says Mark Andrews, regional managing director at Laing O’Rourke.

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