Failure of Construction Projects in the UAE

1.1 What is a Project? 

In engineering and construction, a project can be defined as a sequence of connected tasks and activities which in the presence of competence and proper planning lead to the realisation of tangible structures. Projects are temporary, whereas the final structures can either be permanent or semi-permanent. Construction projects in particular entail the various processes that facilitate the erection of complex buildings or structures. Construction projects are characteristically made up of other smaller projects. As such, supervision may become complicated and project managers on their part have to rely on. This consequently leads to the creation of junior managerial posts such as construction management and project architects. 

The dependability of a construction project relies on adequate planning and effective time management. In addition, project safety has to be guaranteed. Proper design and sketch outs of project budgets ensures that costs are kept at a minimum. It also limits occurrences of injuries on project team members. Planning is also prudent owing to the influence on varied environmental factors. Therefore, planning ideally depends on site safety, the obtainability of resources, logistics, budgeting, tendering, and project convenience to the external environment. 

1.2 Types and Forms of Projects 

The planning stage of a construction project is comprehensively reliant on project category. In turn, project type has an effect on procurement, financing, and tendering. There are four broad categories of construction projects based on characteristics. Projects are categorized into residential housing construction, infrastructure/heavy construction, institutional/commercial building, and specialized industrial construction. 

The scope of residential housing covers family residences and lofty apartments. These projects can be sponsored by the owners themselves or by developers. The design stages are carried out by experienced engineers and building architects after which the construction phases are sub-contracted to structural and electrical constructors. However, in residential housing projects that involve the construction of single-family units, it is not uncommon to find that the constructing companies are also in charge of building design. 

Several factors affect residential housing projects. According to Abdul-Aziz and Kassim (2011), these projects are reliant on predominant financial conditions, monetary policies, and taxation regulations. Increases in relative access to money lead to rises in demand for residential housing. In turn, the concurrent commissioning on various housing projects may occur. Competitiveness may also increase when monetary policies are attractive to constructors, as well as when governments offer subsidies or relax commercial tax laws. 

Conversely, public roads, footbridges, rapid transits, and sewerage systems can all be categorized under the infrastructure and heavy structure projects subdivision. It is important to note that a majority of such projects are not privately owned. They are both labour and capital intensive and therefore are characterized by massive budgeting and planning costs. In the same way, skilled personnel are needed for these kinds of projects. As opposed to residential housing projects, the demand for these projects depends on the collective need of regional or national populations. Owing to high levels of specialisation of the engineers, workers, or designers, contractors’ services are also suitable for other industries such as mining and excavations. 

Institutional or commercial constructions also require intensive financial inputs as well as high degrees of sophistication. This category may include projects like stadia, shopping malls, factories, commercial offices, or healthcare facilities. Ideally, such projects are long-term investments for private or public financiers and are intended for the facilitation of the provision of specific goods or services to people. Planning and budgeting are also highly specialised and only qualified personnel are selected. Due to the fact that finances for commercial projects are not evenly spread out within the general population, competition for jobs in this sector is on the lower end. Dependency on prevailing economic conditions is also insignificant meaning that project owners can effortlessly access funding from financial institutions. 

Last but not least, we have specialized industrial construction projects whose chief characteristic is that they demand great levels of technical intricacy. Examples of such projects are petroleum factories, power plants, and steelworks. Skill specialisation is high and construction time minimisation is of utmost importance. Demand anticipation is long-term meaning that complex planning and financial input is intensive. However, specialized industrial construction projects are vastly dependent on industrial regulation and administrative policies. 

1.3 Project Measurement 

It is important to measure the success and failure of construction projects. Project success and failure measurement is critical because it provides the blueprint for future improvement. It is important to note that although these two concepts are ideally different, they are interrelated. Often, project success and failure factors are similar. These factors are several, and varied factor determination criteria are used. Silva, et al. (2016, p. 698) note that “project success is the foundation for managing and controlling current projects, and for planning and orienting future projects.” Once the success of a project cannot be measured, then future improvement is impossible. The measurement of project success also enables academics to carry out research that is more focused and applicable to the industry. In addition, evaluation facilitates project management as a process. 

Khosravi and Afshari (2011 ) present a project success model which is dependent on the time taken, costs incurred, project quality, customer satisfaction, and project health safety and environment (HSE) as the determining success factors. When a projects is completed within the minimum time possible, with minimised cost structures, and where the quality of the final products is superior, then the project is deemed a success. Also, project success is realised when the client is satisfied with the efforts of the designers and engineers, and when HSE factors are prioritised during the course of the construction process. 

On the other hand, a failed construction project alludes to “a terminated contract cancelled by either of the two parties to the contract” ( Valentin & Vorster, 2012, p. 19 ). Despite the fact that failed projects can be restarted or continued, cost overruns may further toughen the situation ( Doloi, 2012 ). As opposed to project success, it becomes difficult to even measure client satisfaction or quality where the process itself becomes incomplete. Project failure may be caused by various factors such as lack of access to funds, stringent government policies, or deliberate sabotage. 

1.4 The United Arab Emirates 

1.4.1 Location, Population, and Economy of the UAE 

The United Arab Emirates (UAE) can be geographically located in the western parts of the Asian continent. It can be found on the Persian Gulf. The neighbours of the UAE and the kingdom of Saudi Arabia, Oman, Iran, and Qatar. The state is made up of seven Emiratis namely Dubai, Fujairah, Abu Dhabi, Ajman, Sharjah, Ras al Khaimah, and Umm al Quwain. The UAE is a monarchy based on the country’s constitution and the capital is based in Dubai. The country has a population of 9.5 million people many of whom are expats (Edarabia, 2019). 

The UAE’s economy is progressive. Over the last half-century, the rulers have turned the country into one of the wealthiest globally. Although the country’s growth has been highly dependent on the sale of oil, non-oil income has also massively increased mainly due to diversification. Today, the country earns commendable foreign exchange figures that have put the UAE’s nominal GDP at US $432.6 billion ( Rizfi, 2019) . Construction has become liberalised and therefore it is not uncommon to find foreign-owned construction projects in the capital as well as other urban locations. Additionally, the tough visa restrictions have not deterred foreign workers to venture into the country in terms of employment. As earlier stated, most residents are noncitizens. As such, the labour supply in the UAE is stable meaning that the country is economically stable, save for the effects of global recessions such as the one which occurred in 2008. The government also has a larger say on macroeconomic strategies which continues to keep joblessness relatively lower compared to other middle-eastern countries. 

1.4.2 The UAE’s Infrastructure and Construction Industry: An Overview 

Recent trends in the UAE construction industry show that a majority of the activities revolve around infrastructure projects. However, most of these projects are concentrated in the Dubai area as researched by Mackenzie, et al. (2019, p. 1) and they state that “3,200 projects are active in the Dubai’s urban construction sector alone, amounting to a combined estimated value of over USD245 billion.” The emirate of Abu Dhabi is also a key player when it comes to construction projects. Examples of ongoing large-scale projects are New Royal Atlantis Resort, the Gasoline development project in Abu Dhabi, as well as the photovoltaic plant. Al Maktoum international airport has also been recently expanded, while additional terminals are been built on the Dubai International Airport. 

These infrastructure projects involve highly specialised personnel. Mackenzie, et al. (2019) note that the design and tendering process often involve international contractors. External consultations are also common owing to the complexity of the projects. Tenders are made public and the procurement processes are also regulated in accordance to the country’s Public Tenders Law. Procurement is also differentiated and is based on the rules and regulations specific to individual emirates. 

Nevertheless, this is not to imply that residential housing and commercial projects are uncommon. In fact, due to the facts that the UAE is home to millions of expatriates, there has been an influx in offices, apartments, shopping malls, hospitals, and prestigious hotels in the country over the years. Examples of big hotels are the Grand Hyatt and Jumeirah Beach Hotel both based in Dubai. The Big Mart Butterfly and the Galleria malls on the other hand can be found in Abu Dhabi. These commercial projects can be either funded by the federal or local governments, or by public authorities within the UAE. The aim has been to grow the country’s GDP through direct investment in infrastructural, residential, and commercial construction projects. These constructions in turn lead to improved employment opportunities and the evolution of the UAE into a leading global tourist destination. 

As can be expected, the infrastructure and construction industry in the UAE is home to both local-based and international construction professionals. Personnel recruitment and selection differs on the nature of the project. The most prevent method is through the issuing out of notices for the approval of bids. Because the country’s projects are capital intensive, cost concerns are paramount to the process. The employment of construction designers or non-design experts also relies on job experience. Noticeably, applicants with superior experience are considered first. Remuneration then occurs in advance or in instalments through the consideration of project milestone success factors. 

1.5 Failures in the UAE Infrastructure and Construction Industry 

One of the widespread challenges encountered in the construction industry is project delay. Project delays have undesirable effects on project success. Time is wasted, investments opportunities are missed, while the health and safety of residents is compromised. Often, project delays are considered as project failures. Research shows that 50% of construction projects in the United Arab Emirates fail which has had a massive impact on the country’s economy because the construction industry contributes 14% of the gross domestic product (Faridi & El ‐ Sayegh, 2006). Construction failure in the UAE has majorly been caused by inadequate project planning, absence of timely drawing approvals, poor site management, and sluggish decision-making. Although there are other contributor factors, these carry the most weight. For policymakers, these findings are significant as new frameworks can be introduced to cushion investors from future losses. The information will also enable project managers in project planning and management. Possible solutions that Faridi and El ‐ Sayegh (2006) recommend are the conception of agreeable project schedules between contractors and authorities, advanced human resource management, and the participation of construction management organisation as a way of curtailing the effects of project delays. 

1.6 Learning and Knowledge 

1.6.1 What Is Learning and What Is Knowledge? 

Although learning and knowledge development share certain relationships, they are two different concepts. On the one hand, knowledge can be described as a blend of facts, figures, information, professional opinion, abilities, and understanding to form an important asset that helps us in making decisions (Zagzebski, 2017). Ideally, knowledge is processed data that is both applicable and actionable. Knowledge can be developed both individually and cooperatively as groups of people. This process is part of knowledge management which engulfs the generation, storage, sharing, and utilisation of knowledge to produce desirable results. 

On the other hand, learning is defined as the methods through which we capture and produce knowledge for self and collective improvement. As such, one can become learned. In the same way, companies can become learning organizations in a sense characterised by the presence of expert personnel in charge of the generation, storage, sharing, and utilisation of knowledge. Therefore, it can be seen that knowledge and learning are indeed different since the latter is the process of obtaining the former. 

1.6.2 Types of Learning and Types of Knowledge 

The two major types of learning are collaborative learning and cooperative learning. From a training perspective, collaborative learning is defined as “an instruction method in which students at various performance levels work together in small groups toward a common goal” (Gokhale, 2012, p. 634). This type of learning as a method helps us to fashion associations that nurture positive co-dependency, personal responsibility, and social skills. Collaborative learning prepares us for the real world where corporations have become more diverse and whose performance relies on teamwork and interdependency. The scope of collaborative learning encompasses acquiring knowledge by studying past case scenarios, guided design, or discussing as groups. 

Cooperative learning differs from collaborative learning in that the former promotes shared learning activities between scholars. That is, cooperative learning is characterised by the encouragement of positive exchanges between learners who share similar interests. These interactions are crucial in that they help experts gain more understanding of their colleagues’ work, and also because shared learning activities help nurture fast learners. Examples of cooperative learning processes are the use of cooperative base groups, formal cooperative learning, and informal cooperative learning. 

By developing a comprehension of the different types of knowledge, one is able to cultivate an early understanding of the knowledge management process. Knowledge is categorised into explicit knowledge, tacit knowledge, and embedded knowledge. Explicit knowledge is characteristically formal and organised which eases the process of detection, storage, and recovery. Explicit knowledge is therefore ideal for knowledge management systems. Tacit knowledge is spontaneous knowledge which is highly dependent on experience. As a result, tacit knowledge is highly personalised and reliant on environmental and situational circumstances. Nevertheless, most companies have been found to appreciate the impact of tacit knowledge relative to other forms owing to its ability to channel organisational breakthroughs (Holste & Fields, 2010). The third and final subcategory, embedded knowledge, is connected to procedures, products, principles, or structures. This type of knowledge is dependent on relationships and can be hard to change. An example of embedded knowledge is that which is found within a company’s rules and regulations. An employee who possesses an understanding of the same cannot deviate from normal procedure and there are specific consequences associated with such behaviour. 

1.6.3 How Do We Learn? 

The learning process occurs in two separate stages: information processing and knowledge creation (Dermol, 2013). The information processing exercise involves the transmission of information from the environment to the individual or organisation, internal interpretation, and the subsequent application of the same. Information processing may be informal or formal, unintentional or intentional. It is also important to note that information processing does not necessarily improve the understanding or performance of an individual. The final part of the process makes all the difference. However, an individual or organization that lays importance to the acquisition of the information stands a better chance of efficient and effective interpretation. 

Knowledge creation is based on experience. After information is processed, an individual has to choose what to internalize and what to disregard. The application stage of information processing in turn morphs into behaviours that become embedded into our character. Over the course of the 20 th century, the behaviourism school of thought has helped explain the processes of learning and knowledge creation. One can either learn through classical conditioning, operant conditioning, or observation (Gazzaniga, et al., 2010). Classical conditioning occurs through associations, operant conditioning is a result of reinforcements and punishments, while observational learning happens when we observe other people’s deeds and the consequences of their behaviours. 

1.6.4 Learning Platforms and Their Roles 

The use of learning platforms enhances the learning process. These platforms are defined as collections of amalgamated collaborative and cooperative online services which allow interested parties to access facts, figures, tools and learning resources in ways that support education and knowledge management. These platforms rely on the internet to provide these solutions. They are also characteristic of interactive user interfaces where customer credentials are recorded and stored. 

Learning platforms enhance learning experiences through content management, communication tools, syllabus mapping and development, and training management. These media can convey a wide range of content to visitors. The content is tailored to suit precise needs, and can be internally or externally developed. In addition, some learning platforms also allow offline access to information where it is downloaded, stored, and retrieved at a later date. Clients can also connect with peers through inbuilt notice boards, email messaging, discussion mediums, or blogs. These learning systems also facilitate the measurement of learning outcomes and issuance of personalised feedback. 

Learning platforms also enable the management of learning processes. For instance, Canvas is a learning management system through which users can track learning progress, offer training to third parties, and issue out knowledge tasks. Users on Canvas can also assess the efficacy of content to their personalised syllabi. They can engage with peers, keep track of industrial developments, or acquire new learning qualifications. For us to effectively learn today, the use of learning platforms, hence, has to be deemed important. Specifically, learning management platforms are essential because they help save time, costs, improve performance through customisation of learning styles, and integrate learning tools to provide unrestricted access to online e-learning resources. Users can also continuously develop ICT skills and work at their own pace. 

References 

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Dermol, V. (2013). Relationship between learning, knowledge creation and organisational performance. Annals of the Alexandru Ioan Cuza University-Economics , 60 (1), 79-93. 

Doloi, H. (2012). Cost overruns and failure in project management: Understanding the roles of key stakeholders in construction projects. Journal of construction engineering and management , 139 (3), 267-279. 

Edarabia. (2019, June 11). Population of the UAE (2020). Retrieved from https://www.edarabia.com/population-uae/

Faridi, A. S., & El ‐ Sayegh, S. M. (2006). Significant factors causing delay in the UAE construction industry. Construction Management and Economics , 24 (11), 1167-1176. 

Gazzaniga, M. S., Heatherton, T. F., & Halpern, D. F. (2010). Psychological science . New York: WW Norton. 

Gokhale, A. A. (2012). Collaborative learning and critical thinking. Encyclopedia of the sciences of learning , 634-636. 

Holste, J. S., & Fields, D. (2010). Trust and tacit knowledge sharing and use. Journal of knowledge management , 14 (1), 128-140. 

Khosravi, S., & Afshari, H. (2011, July). A success measurement model for construction projects. In International Conference on Financial Management and Economics IPEDR (Vol. 11, pp. 186-190). IACSIT Press Singapore. 

Mackenzie, A., Prestige, G. H., Kotb, S., Mechantaf, K., & Roberts, N. (2019, April 30). Construction and projects in United Arab Emirates: overview. Retrieved from https://globalarbitrationnews.com/construction-and-projects-in-united-arab-emirates-overview/ 

Rizfi, M. (2019, April 18). IMF forecasts UAE's nominal GDP to grow 4.7%. Retrieved from https://www.khaleejtimes.com/imf-forecasts-uaes-nominal-gdp-to-grow-47

Silva, G. A., Warnakulasooriya, B. N. F., & Arachchige, B. (2016, December). Criteria for construction project success: A literature review. In University of Sri Jayewardenepura, Sri Lanka, 13th International Conference on Business Management (ICBM) . 

Valentin, W. S., & Vorster, F. S. (2012). Understanding construction project failure in Southern Africa. Proceedings of the Institution of Civil Engineers-Management, Procurement and Law , 165 (1), 19-26. 

Zagzebski, L. (2017). What is knowledge? The Blackwell guide to epistemology , 92-116.