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Budgeting for the big build - Finding funding has been a key issue for developers across the Gulf in the last two years. Is the situation finally easing?

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25 May 2011

Quality over quantity

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Alejandro López Palma gives his reasons for why quality is more important than cost in the construction sector.


Performance is a critical element of any piece of construction, be it equipment or consultancy. In your opinion, does the Middle East offer any particular or unique challenges in terms of performance requirements?

Alejandro López Palma. Yes. We have faced some cases where project managers in the Middle East were less proactive than the rest of the world, therefore there are more important efforts spent in moving forward the projects than solving real important technical issues. The main challenge in this part of the world is, then, to deliver the projects on time.

Additionally, I believe that all engineering companies like ours should make a big effort to change certain mentality aspects in some clients that are focusing on the service prices rather than on quality. We have to convince them that the investment cost in design and engineering will have a big saving impact at the time of the construction.

There has been a growing focus on sustainability and greener construction evident in the sector over the last few years in the Middle East. What impact have you seen this trend have on business?

ALP. The focus in sustainability and greener construction is more to do with fashion than reality. People do not tackle sustainability issues seriously, but we hope it will change with more mature and committed developers. We cannot keep simply creating huge massive buildings, we should look forward to more humanised cities where there are place for kind economies. There should be a new concept in transportation, recreation areas and green areas aiming to improve all resident living conditions.

2009's global economic crisis has without doubt impacted the construction sector in the Middle East. What do you perceive as the key opportunities in these challenging times?

ALP. The global economic crisis will bring a change of strategy for the construction sector in the Middle East. It will bring better management and seriousness in business, and will be focused on delivery rather than promise. The time for construction without planning for the future and thinking in terms of potential buyers as investors instead of users is over. It is also the time for well-planned government infrastructure investments and properly organising the services that the population really need.

How difficult is it to convince people in the region of the need to focus on quality rather than cost? How can you change that mindset?
ALP. Not all countries in the region are the same or react in the same way. Sometimes it is difficult to convince them of the need to focus on quality because they have financial constraints that do not allow them to accept more expensive solutions. The only way to change that mindset is through our experience in other markets where quality is really important. When they see what we normally do in other markets, they appreciate the quality of a well-done job although it is more expensive. Experience is very important and, after accepting cheaper solutions from our competitors with poor results during some time, stakeholders are slowly realising the value of quality and moving on that direction. As the economic situation improves, most of the people in the region will demand better services with a higher degree of quality.

What new developments can we expect to see from you over the next six to 12 months?

ALP. We expect to increase our activities in other sectors like transport infrastructure while keeping our current architectural projects. We are focusing more on public clients and in countries with no clear exposition to the current financial crisis. We are very optimistic about our possibilities of being a quality driven company for markets that can appreciate quality over other factors. 

Alejandro López Palma, Director for Middle East Countries at TYPSA, has worked in Project Management on megaprojects such as the Al-Imam University of Riyadh. Present in the Middle East since 1994, he is responsible of the establishment of TYPSA in the UAE and the consolidation of TYPSA in Saudi Arabia.


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