February 17, 2023
By:EmpoweringCPO Insights Team

Construction Services (Civil, MEP, HVAC and FFE)

This UAE category Construction Services- Market Research report will be very useful for your team responsible for managing and buying this category. As part of the Construction Service Industry, this report also gives an overview of all sectors that are included like Civil Works,      Mechanical Electrical Plumbing (MEP), Heating Ventilation & Air Conditioning (HVAC), and Furniture Fixtures & Equipment (FF&E). This report gives in-depth information about the Construction Service industry in UAE, Construction Pricing, Construction suppliers, and many other insights useful for bench-marking your current prices. In this report, we have also presented insights on the RFP process – data gathering, RFP elements, and buying decision scorecard. Our team of experienced sourcing and procurement professionals can help you with the execution of the strategic sourcing process by providing Procurement Consultancy, Spend Management Solutions, and ongoing category management.

This Construction Services- Market Research document on Construction Services will help your team in bench-marking this category as well as in identifying negotiation points when finalizing your contracts. This report also provides an exhaustive list of leading vendors in this domain. Based on their strengths and capabilities these vendors can be shortlisted for participating in Strategic Sourcing Projects.

Abstract:

  • The global construction industry is expected to grow at an average rate of 3.6% over 2018-2022; Global construction output is forecast to rise to US$12.7 trillion in 2022, up from US$10.6 trillion in 2017
  • The expansion in advanced economies will remain stable, at 2.5% in 2019-2020 before easing back in 2021 and 2022
  • Global Construction Outlook is said to be in a stable state; Sustained buoyant activity in the US and APAC will drive growth
  • The aviation infrastructure market is anticipated to witness a CAGR of about 7% during 2018-2023
  • The top 3 sectors with the most value in the contract awarded in 2018 were residential and commercial ($24.1 billion), transport ($13.1 billion), and oil and gas in the GCC region
  • The increased spending in the GCC Construction Market is driven by the UAE and KSA’s bumper budgets, ADNOC’s 2030 Integrated Strategy, and KSA’s Vision 2030
  • The Middle East gained a five percent share of the global aviation market in 2017, flying 206 million passengers – an increase of more than 9 percent over 2015
  • UAE construction sector is said to be worth $1.01 trillion, with $284.7 billion worth of projects on hold
  • Dubai has been ranked the 28th most expensive place for construction and rated “lukewarm” for tendering conditions, characterized by rising prices and growing competition for projects
  • Against average construction cost inflation worldwide of 4.3 percent, Muscat will see just a one percent rise in the price of construction this year, while the UAE will see two percent
  • A key challenge for UAE lies in how risk is allocated within contracts, which are regarded as far more onerous in this region than elsewhere
  • The market is driven by investments in transport, energy, and social infrastructure development projects under various programs such as the Strategic Plan 2021, the Energy Strategy 2050, Sheikh Zayed Housing Program, Dubai Tourism Strategy 2020, and the National Strategy for Higher Education 2030
  • While construction contracts serve as a means of pricing construction, they also structure the allocation of risk to the various parties involved
  • The structure of the construction industry and the nature of the process lends itself more to market-oriented pricing than cost-oriented pricing
  • The value chain for any construction project is composed of specific variations within a fixed framework of distinct stages—design, production, and conversion of raw materials into manufactured products, and construction itself
  • The construction industry is under a significant paradigm shift with trends like Augmented Reality (AR), Construction Management Software, BIM, Robotics, and much more
  • The threat of new entrants is low as the brand names in the construction industry are well-known and well-established and barriers to entry are high in this industry
  • This report provides a list of players in this market; information related to revenue, capabilities, industry served and number of employees has also been presented for all the vendors
  • The leading 5 vendors in the airport industry active in UAE are as follows: Khansaheb Civil Engineering, Arabian Construction, ALEC, Arabtec Construction, and Drake & Scull International.

 

Table of Content:

Contents Slide No.
Executive Summary 3
Civil Construction – Service Overview 4
Concrete-Steel Composite Structures – Overview 5
Mechanical, Electrical, and Plumbing (MEP) – Service Overview 6
Heating, Ventilation, and Air Conditioning (HVAC) – Service Overview 7
Furniture, Fixtures, and Equipment (FF&E) – Service Overview 8
External Works – Service Overview 9
Global Construction Industry Outlook 10 – 12
Global Aviation Infrastructure Market Outlook 13
GCC Construction Outlook 14 – 15
GCC Airport Construction Outlook 16
UAE Construction Outlook 17 – 21
Pricing Models 22 – 24
Pricing Strategies 25
Construction Sector Value Chain 26
Construction Industry Market Trends 27 – 28
Market Statistics 29
Middle East – Building Cost Comparison 30
Middle East – Mechanical & Electrical Cost Comparison 31
Middle East – Major Measured Unit Rates 32
Middle East – Major Material Prices & Labour Costs 33
Buying Decision Score – Card 34
RFP Elements 35
Industry Analysis – Porter’s Five Forces 36
Vendor List – Summary 37
Vendor List – Capable Of Providing All Services 38 – 39
Vendor List – General & Civil Construction Services 40 – 41
Vendor List – Mechanical, Electrical, and Plumbing (MEP) Services 42 – 44
Vendor List – Furniture, Fixtures & Equipment (FF&E) 45
Methodology & Sources 46 – 47
Next Steps 48
Disclaimer / Feedback 49

If required EmpoweringCPO can support with additional information and the next steps in executing projects like Construction Services. Also, feel free to reach us if a similar report is required for any other category. We can also help your organization with tools like Procurement Dashboard, Spend Management Solutions, Procurement Intelligence, and Procurement Consultancy.

EmpoweringCPO is a team of experienced sourcing and procurement professionals with hands on experience of having worked with many fortune 500 companies. The company was founded in 2011 and since then has executed multiple strategic sourcing projects and have achieved average savings of 10-12% so far. In addition to Strategic Sourcing their other offerings are Spend Analysis, Procurement Intelligence, Procurement Analytics, Best Cost Country Sourcing, Procurement Outsourcing, Built Operate Transfer, Supplier Diversity, Sustainable Procurement, Tail Spend Management, Item Master Optimization, Collective Buying, Compliance Tracking and Managed Procurement Services.

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At EmpoweringCPO, we’re not just a procurement service provider; we’re your strategic ally. With a suite of offerings—from strategic sourcing to procurement analytics—we prioritize your organization’s unique needs, ensuring every procurement decision is smart, strategic, and sustainable.

Your aspirations drive us. Each service, whether it’s spend analysis or supplier risk management, is molded to resonate with your specific goals. Our commitment is to provide bespoke solutions that align with your vision and challenges.

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Knowledge is the compass for strategic procurement. Leveraging procurement analytics, intelligence, and custom dashboards, we bring clarity and foresight into your procurement processes. With us, you’re not just making decisions; you’re crafting a vision.

Diversity is strength. Our supplier diversity program is designed to widen your horizons, connecting you with a rich tapestry of suppliers from varied backgrounds. It’s about procuring with inclusivity and purpose.

Our name speaks for our mission – empowering Chief Procurement Officers and their teams. We stand out through our personalized solutions, industry insights, and a relentless pursuit to optimize your procurement, ensuring it adds value beyond savings.

From ambitious startups to global frontrunners, our clientele spans various industries. They all share a vision: procuring with purpose and efficiency. They choose us because we don’t just offer services; we craft bespoke procurement experiences.

Savings matter, but not at the expense of value. Our strategy is rooted in understanding the intricacies of your business. Through keen analysis and leveraging our vast industry know-how, we identify avenues for savings that elevate, not diminish, your procurement’s quality.

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Beginning with us is straightforward, but the impact is transformative. Reach out through our Contact page or at sales@empoweringcpo.com, and let’s pave a path to procurement excellence together.

Every saving forecasted should translate into reality. Our savings compliance tracking closely monitors and validates realized savings against projections, ensuring transparency, accountability, and confidence in your procurement strategies.

Absolutely. We believe in the unique potential of each organization. Share your aspirations, and we’ll craft a procurement narrative that’s exclusively yours, resonating with your goals and ethos.

We’re with you. Beyond strategies, we impart knowledge. Dive into our workshops and training modules designed to kindle the procurement genius within your team.

Data is a goldmine when understood. With our procurement analytics, we turn your raw data into actionable insights, highlighting opportunities for cost savings, efficiency improvements, and strategic decision-making.

In a global marketplace, knowing where to source is as crucial as what to source. Our best cost country sourcing identifies optimal sourcing locations based on quality, cost, and risk, ensuring your global operations remain competitive and resilient.

Uncertainties demand vigilance. Our supplier risk management actively monitors, evaluates, and strategizes against potential supplier risks. From geopolitical changes to supply chain disruptions, we help you stay a step ahead, ensuring continuity and stability.

An optimized item master is foundational for efficient inventory management. We refine and standardize your item data, leading to accurate tracking, reduced redundancies, and a smoother procurement lifecycle.

Procurement intelligence goes beyond traditional market research. It offers tailored insights specific to procurement activities—supplier landscapes, pricing models, and risk assessments. With EmpoweringCPO, you get actionable intelligence designed to optimize and elevate your procurement decisions.

Our custom dashboards and tools offer a holistic view of your procurement operations at a glance. By integrating real-time data, performance metrics, and analytical insights, they empower your team to make informed, agile decisions, driving efficiency and value.

Consider us an extension of your team. Our managed procurement service handles the intricacies of your procurement processes, from sourcing to payment. By leveraging our expertise, you gain the freedom to focus on core business functions while enjoying enhanced procurement efficiency.

Supplier diversity enriches your supply chain by integrating businesses from varied backgrounds, ensuring inclusivity. This not only promotes innovation and resilience but also positions your organization as a forward-thinking, socially-responsible entity.

Savings projected after strategic sourcing project should mirror savings achieved and reaslized. Our savings compliance tracking ensures this by validating and monitoring realized savings against set benchmarks and projected savings, infusing transparency and confidence into your cost-saving endeavors.

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You can reach us if you need a customized version of this report. We can also help you with category specific RFP template or with executing end to end Strategic Sourcing project.

Compliance Management Tool

Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:

  • Very high prices
  • Risk of losing out on volume discounts and rebates

As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:

  • Vendor Compliance
  • Price Compliance

The objective of this tool is to ensure that the orders are placed only with the vendors that were shortlisted after the sourcing process and at the same price that was agreed upon and negotiated during and after the strategic sourcing process.

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