But with the Gulf’s construction boom putting the industry under enormous strain, overstretching resources and driving up costs, partnering agreements are increasing in popularity. So they should.

Such deals are born of necessity - the need to better understand and control costs. With rises in construction materials and labour prices, it has become almost impossible for contractors and clients to accurately estimate the cost of multi-billion-dollar projects.

By entering into long-term agreements with suppliers, developers can give certainty to producers, who can then plan accordingly - rather than having to wait for a contractor’s order several months later.

Many contractors are attempting to mitigate the risks inherent in the region’s overheating market by buying or launching their own supply divisions.

It is a strategy that works well currently. But it leaves them open to risk should the market stall in the future.

Leadership must come from the top, from the clients, governments and private sector alike, who must work with the supply chain to manage long-term supply and demand.

Special Report: Construction - The move to partnership -Index of all stories

• Contractors: Controlling the supply chain
  Companies are seeking to control costs by buying up suppliers

• Megaprojects: Taking the partnership approach
  Contractors in Saudi Arabia and Kuwait are preparing for some of the region’s biggest ever projects

• Subcontracting: Services market heats up
  Survey of the mechanical, electrical and plumbing firms reveals the market’s key companies

• Marine projects: Specialists gain the upper hand
  Offshore projects are on the increase and contractors are choosing work carefully

• Plant: Tight market benefits locals
  Equipment imports are accelerating but delays continue as manufacturers struggle to meet demand

• Construction cost analysis: Project boom drives up costs
  Material and labour cost rises show no sign of falling

• Data: Selected Middle East construction labour costs: 2003 - 2008

• Data: Specialist materials costs in selected Middle East countries, April 2008

• Commentary: Rising Gulf construction costs are here to stay
  There is little that contractors can do, other than ensure escalation clauses are included in contracts