Intelligent Build.tech Issue 19 | Page 17

FOUNDATION FRAMEWORK

NAVIGATING THE COMPLEXITIES OF CONSTRUCTION COST MANAGEMENT IN THE MENA REGION

I n the Middle East and North Africa ( MENA ) region , construction projects are growing in size and complexity , and with this growth comes a higher risk of costly disputes . This article breaks down some complexities of construction disputes in the MENA Region and how technology can help address these disputes . It case-studies Procore ’ s unified construction management platform which is helping project teams manage these disputes efficiently by organising all project details in one place , streamlining communication and building transparency .

The growing challenge of construction disputes in the MENA Region
Disputes in the MENA construction sector are often driven by a unique set of challenges and understanding these challenges is the first key to addressing and preventing them :
1 . Project delays and extensions : Construction schedules are frequently tight and regional environmental factors such as intense heat or dust storms can lead to delays . When delays happen , disagreements can arise over who is responsible . This creates friction between contractors , suppliers and clients .
2 . Complex contracts and ambiguities : Construction contracts often involve multiple parties including international and local contractors , suppliers and regulatory bodies . Differing interpretations of contractual language can lead to disputes , particularly in cross-border projects .
3 . Payment discrepancies and cost overruns : Disputes over payment terms and cost adjustments are common in large-scale projects . Cost overruns due to unexpected expenses or delays can lead to lengthy and costly payment disagreements .
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