“UAE contractors will have to go through the whole price negotiation process again as project promoters insist on re-pricing contracts because of the changed circumstances. Even projects that were awarded as recently as weeks ago are being put through re-pricing.”– Gulf News – Business Section 10th April 2020
The current COVID 19 crisis has led the global construction industry into a period of re-evaluation…. all existing and new projects will require a validation check on construction rates, firstly to cut expenditure and secondly to make the project viable. A cost analysis is a means of conceptually modelling the construction cost, construction duration and scope of works of a building. Aspects commercial team have been collating, indexing and bench marking construction rates over a 10 year duration, we can provide a ‘sanity check’ and advise clients and developers on the rates they have been quoted to ensure they are within, or are below, current market rates and advise on inflated rates and potential adjustments.
Alternative – Open Book Contracts
As an alternative to driving down fixed prices, Aspects contracts team can quickly adjust your procurement route to an “open book” contractual arrangement. Your contractor will be forced to declare his actual costs and an agreed overhead and profit margin, this pathway ensures the contractor covers his costs whilst the client knows he is only paying market rates for his materials, albeit without a lump sum, fixed or guaranteed price.
To discuss your options call Aspects commercial team on +971(0) 45518588 or email us on email@example.com, we will be happy to review your current project and offer advice on your best way forward.
Aspect Commercial Services offers a professional team that provides a scalable and economic cost consultancy solution. The team offers a diverse range of services and compliments the project team to offer a “one-stop” solution to developers, contractors, designers, operators, financial institutions and investors.
- Cost Planning
- Project Controls
- Value Engineering
- Value Management
- Contract Strategy
- Pre Contract Administration
- Stakeholder Co-ordination
- Tender Management
- Tender Evaluation
- Contract Administration
- Change Management & Variations
- Claims & Litigation
- Expert Witness Sevices
- Close Out and Final Account
- Project Auditing
Email us on firstname.lastname@example.org or call on +971 (0)45518588