'Under-Valuation' Creating Problem in UAE Construction Sector
Undervaluation of project work and b delayed payments is the UAE construction sector’s biggest challenge. To resolve this, projects will need to be valued “more accurately” for the health of the construction sector – that’s according to a poll conducted among industry leaders by the British Business Group. For some time now, there has been talk in the local construction sector that projects were won because of “unrealistic” valuations and bids. The problem has always been there, but in the last two years as the number of projects reduced, under-valuation has taken on a significant size. This has, in turn, pushed many businesses, mainly subcontractors, into bankruptcy. Some industry analysts also say the same about the crisis at Arabtec, the UAE contractor which is now in liquidation, being set off by under-valuations.
Tags : INTERNATIONAL UAE Construction Sector 'Under-Valuation' Problem