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Monday, July 18, 2005

Construction Issues

Quality Assurances

What are the construction standards in the UAE and particulalry with regard to new properties being marketed in Dubai? How will buildings withstand the harsh climatic conditions?

These are extremely important questions, but not easily answered. One way to measure quality standards in constructon is to look at how structures already built in the UAE have withstood the test of time. By this measure one might see a lot of red flags. Larger buildings only 15 to 20 years old often appear much older and many are set to be demolished by such time. But this does not necessarily reflect on current standards. Buildings constructed in the past targeted a much different market--it was for local and inexpereinced entrepreneurs looking to generate income from rental returns. 15 to 20 years of rental returns should have been enough to cover the initial outlay for such inverstors and provide a respectible profit. Buildings appeared to be cast from the same mold, suggesting a sort of assembly line construction process. This wouldn't necessarily indicate that construction standards were poor, but it does suggest a lack of innovation and interest in the instrinsic value of the property.

Today's real estate environment, especially in Dubai, is dramatically different. It is geared toward internaitonal investors and set to compete with world-class properties. A much more sophisticated market is being targeted and innovation and uniqueness are very much names of the game. This again does not necesarily indicate better construction standards, but it suggests builders and developers are focused to some extent on making a statement with their properties, and not simply in it for a quick return on investment. The record of past construction, therefore, can hardly be an accurate guage of present construction standards.

That being said, there still remain many unanswered questions? There exists a situation where few reliable track records are available to evaluate the credibility of a buildier. It requires one to be technically well-versed enough to look at raw construction data and from that make judgements as to what standards are being met. Is the general media pursuing this? Are regional trade publications investigating such concerns? These would be two places to look to find answers.

One article of late 2004 published at AME Info only briefly highlights a matter of concern:

Construction Standards Warning

United Arab Emirates: Tuesday, November 23 - 2004 at 09:07

UAE construction firms are using substandard quality concrete with a reduced service life, a building design expert has warned. Dr Abdul-Rahim Sabouni, President of the UAE Chapter of the American Concrete Association, says the Middle East construction sector needs to take a more professional approach, with better codes of practice and quality control.

This very brief media piece raises exactly the type of questions that are needed to evaluate the current level of contruction standards. Such an article alone, however, is very anecdotal and does little to clarify either the general state of affairs or the conditions at any particular development, as none are named. It does offer a stepping stone, however, toward getting answers to the important questions of standards by identifying the UAE Chapter of the American Concrete Association as perhaps one watchdog in the industry. There are clearly questions to be raised about construction standards and there are answers albeit ones that need to be ferreted out.

See also Construction Issues (News Index).

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