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In an interview with Zawya Projects, Marco Fahd, Chairman of Versatile International, which recently released its GCC construction survey, highlighted that 42% of companies allocate 5-10% of their budgets for contingencies, representing a significant financial strain. Rework is a colossal denominator in cost overruns worldwide, Marco Fahd, Chairman and CEO of Versatile International, told Zawya Projects. Almost 30 percent of construction budgets are wasted on rework - mistakes that could have been avoided with proper oversight and planning, he added. According to the companys first GCC Construction Pulse Survey, 42 percent of companies allocate 5-10 percent of their budgets for contingencies, which can amount to $50 million set aside for every $500 million project. Fahd stated that 57 percent of construction professionals in the UAE and Saudi Arabia have identified quality control issues as the leading cause of rework in their projects. Interview excerpts: How important is sustainability, as 55 per cent of respondents in your survey emphasised it as a key driver of innovation? Sustainability is increasingly becoming embedded into official regulation frameworks across the GCC and the standards of the industry are adapting to greener frameworks, as global concerns about energy use and CO2 emissions grow, reflecting a deeper commitment to sustainable building practices and creating eco-friendly, energy-efficient buildings that address environmental challenges while meeting industry demands. A significant factor in the region’s green shift is the ongoing giga projects in Saudi Arabia, which are leading the way with bold commitments to sustainable construction, such as signing memorandums of understanding (MoUs) with sustainable construction companies, committing to carbon-neutral development. For example, Saudi Arabia’s Qiddiya project has the preservation of the environment guiding its principles of development, with the project seeking to support national endeavours such as the Saudi Green Initiative and Green Riyadh Project. Do you expect the percentage to increase in 2026? Across our survey, construction professionals at every level of the supply chain noted the challenges that lie in adapting to stricter environmental regulations and sustainability requirements over the next decade – highlighting how it is becoming increasingly embedded into requirements for construction projects – as opposed to an optional initiative. We see sustainability and the preservation of the environment only becoming more embedded into development projects, as developers and contractors move sustainability throughout the supply chain further up the agenda, in line with the ambitious plans of the region’s government and their sustainability initiatives and regulations. What new sustainable technologies are developers/contractors implementing in their projects? While our survey did not address the specific technologies being implemented into projects, our research showed that the majority (83 per cent) of developers identified sustainable and green building practices as a top industry trend. By comparison, the figures are lower among architects (37 per cent), engineers (59 per cent), contractors (17 per cent), and PMCs (33 per cent). This suggests that developers play a more significant role in driving the industry’s shift toward sustainability due to their role in selecting technologies and nascent green practices across all sectors. Our in-depth experience within the industry has seen sustainable construction technologies extend beyond simply reducing emissions. 3D printing, construction robots, energy-efficient architecture, solar and upcycling are just a few of the sustainable construction technologies becoming essential tools that drive innovation, improve project efficiency, and support the transition towards a more sustainable future in construction. Indeed, developers and contractors increasingly sign MoUs with technology companies grounded in sustainability in the UAE and Saudi Arabia to support their projects. For example, the Qiddiya project includes initiatives such as treating 100 per cent of wastewater for recycling, reusing 90 per cent of organic waste as compost for green spaces, and equipping 80 per cent of parking slots with electric vehicle charging capabilities. Almost 56 per cent of respondents cited labour shortages as a substantial issue over the next 5 to 10 years. Is labour shortage not an issue currently? The labour market is an emerging challenge, as currently it is trying to keep pace with the region’s explosive growth in construction demand. We can see an unprecedented gap in the workforce - driven by several factors, such as competition for skilled labour across industries, and the lingering impact of the pandemic. Reliance on expatriate labour has also resulted in fluctuations in workforce availability, significantly impacting progress. Enhanced sustainable construction technologies may also attract young talent into the construction field. Additionally, technology adoption, such as BIM, AI, and robotics, is already helping to alleviate some pressure by reducing on-site labour needs and speeding up project timelines. These innovations, combined with workforce training, upskilling and development, will be critical in overcoming labour shortages in the long term. Rising costs are among the primary challenges facing construction professionals across the UAE and Saudi Arabia. Which commodities do you see becoming more expensive this year? Individual commodities weren’t specified by the survey participants. Natural stone is a highly sustainable choice of building material for large-scale construction projects across the Gulf, and by integrating a stone project management consultant (SPMCs) into the construction process – the end-to-end process is made more cost-effective due to the minimisation of rework across the supply chain. It can be locally sourced and follows a simple process - quarried, cut, transported, and installed. By sourcing directly from quarries and involving stone consultants at every stage, our unique model prevents rework, reduces costs and optimises timelines. This value proposition has been recognised by more than half of respondents in the UAE who believe SPMCs provide unmatched expertise in material selection and project efficiency. What measures can the contractors/developers take to control these costs? A significant opportunity for developers is to mitigate rework from the outset of their projects. Rework is a colossal denominator when it comes to cost overruns - globally, 30 per cent of construction budgets are wasted on rework - mistakes that could have been avoided with proper oversight and planning. Ensuring that the correct materials are sourced right from the start of projects can reduce waste and transportation and, therefore, costs throughout the life cycle of a project. Our survey found that 42 per cent of companies reported allocating 5-10 per cent of their budgets for contingencies, which can amount to $50 million set aside for every $500 million project. Our survey found poor quality control and assurance procedures are the primary cause of rework. In our survey, 57 per cent of construction professionals in the UAE and Saudi Arabia identified quality control issues as the primary factor contributing to rework in their projects. Many sustainable materials result in long-term savings through energy efficiency and lower maintenance. What the asset developers need is a trusted advisor working on their behalf to bridge the misaligned priorities and minimise risks across the supply chain, ensuring full transparency, quality control, and certainty of outcome. |
