Job seekers are making false claims of work experience on their resumes to land jobs in the UAE's construction industry, taking advantage of the acute shortage of skilled manpower in the sector, industry experts said.
They were reacting to questions following the recent publication of the results of KPMG's 2008 Global Construction Survey in which contractors from across the globe said there was a serious shortage of skilled manpower and blamed the construction industry for not doing enough to tackle the issue.
Several recruitment professionals told Emirates Business that they have seen an increase in cases of fabricated resumes especially after Dubai's announcement of green initiatives in the construction industry.
The KPMG survey studied resource shortages, risk management, escalating costs and sustainability. It polled major contractors from around the world, including many from the UAE, and found that the single biggest priority for contractors is to somehow overcome the chronic skills shortage.
About 84 per cent of respondents, mostly CEOs, felt the industry as a whole is doing very little to tackle the problems, while, curiously, two-thirds of respondents felt their own company was doing enough to attract the right people.
Richard Whittington, global head of KPMG's building and construction practice, said that the results from the GCC were similar to other markets.
"The problems and issues facing the GCC construction industry is the same as anywhere else. It is just that the region's most acute problem at present is material price escalation," he said.
Commenting on job applicants claiming false work experience, he said: "Although the issue did not come up during any of our discussions with senior company officials, I am not really surprised about it. When there is a shortage there will be enough people trying to make use of the situation."
He also expressed his surprise that members of the industry believed they were doing enough individually, but that as a whole the industry was deficient.
"The construction industry must take positive steps to combat the image problem it recognises it has, if it is to compete for the best graduates. The war for talent should start way before the graduate recruitment rounds. The industry must learn the lessons of other industries and start building a positive and attractive image, while potential employees are still at school and not wait until they graduate," said Whittington.
Emirates Business had in April reported how construction companies in the region are struggling to find competent candidates for top posts despite a record rise in salaries. Saudi Arabia was the most affected despite having the largest number of projects under construction.
The shortage in the market continues to prevail and, according to a recruitment agent, is so severe that several companies are settling for candidates who actually do not meet the required criteria and have half the required years of experience.
According to the KPMG report, site and project managers [including programming personnel] are in the greatest demand, with respondents also citing a need for contract managers, tradesmen, engineers and estimators.
According to industry experts, the UAE's shortage of skilled personnel is mainly concerning structural specialists, quantity surveyors, planning engineers, project directors, design managers, contract administrators and urban planners.
This shortfall has led to fears that a lack of good people would strangle companies' growth plans, with half of the surveyed contractors expressing concern over the recruitment issue.
Sarfraz H Dairkee, General Manager of Al Khoory Engineering, said: "More worrying are claims made by several applicants. They claim to have adequate skills but actually are not much experienced. Right after His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, passed an order in November calling for Green buildings, there were many who entered the market claiming to be experts. In this industry you cannot create skills overnight."
Imad Al Jamal of UAE Contractors Association said staff shortages were bound to occur due to the large numbers of new projects being announced almost every day.
"There is a construction boom all across the GCC and in China, India and several other East Asian countries. Unfortunately, the number of skilled professionals is limited. The industry needs to align with academic institutions to try and solve the problem," said Al Jamal.
Meanwhile, majority of survey participants said they would continue to bid for major contracts, accepting the risk that, with a lack of resources, projects could run into trouble.
"There is a real danger that these shortages will constrain the construction industry's ability to satisfy global demand, which could hold up important infrastructure projects in major markets. As different sectors and countries compete for scarce resources, construction contractors will have little choice but to become more selective in their bidding," said the report.
Phil Starr, a senior recruitment expert, stressed the need for a shift in the way companies think.
"There is never going to be an immediate fix, the problem needs to be addressed at a graduate stage. From then on companies need to develop clear and precise development programmes for existing staff," he said.
"This will allow companies to look in-house when certain positions become available and also help retain staff. They also need to have the HR function involved at an earlier stage. Recruitment strategies need to be mapped out almost at concept stage," said Starr.
The problem is equally serious when it comes to labourers working in the construction industry.
Andrew Broderick, Health Safety and Environmental Team Leader at Aldar, speaking during a recent labour conference, highlighted his company's efforts towards training unskilled workers to meet the challenges of building the UAE's massive developments.
According to Whittington, the construction industry must learn the lessons of other industries and start building a positive and attractive image, while potential employees are still studying and not wait until they finish their degrees.
"The construction boom is here to stay and will not be over by the end of the decade. There will be more construction activity in the developing countries and India and China will continue to grow at a tremendous pace. We need to change the attitudes of young students about joining the construction industry and it has to be done now," he said.
"There is no short-term solution to the problem. It would take at least four to five years to develop qualified personnel required for the construction industry," Whittington added.
Salary, he said, is clearly a vital motivating factor in attracting and retaining talented people and pay levels in the industry have certainly risen in recent years.
"Less than one in 10 of those surveyed want to be market leaders in compensation, with most choosing to benchmark against their peers or react to changes in the market. This is an understandable reaction to the competitive pressures that can hit margins, with contractors wary of building up an excessive salary burden at a time when other costs are rising sharply," the report said.
Construction, banking and energy sectors saw the highest pay rises across the GCC over the past year. In the UAE, salaries for senior staff in construction companies have risen more than 25 per cent during the 12 twelve months.
On cost overruns, almost 60 per cent of the survey's respondents identified material price escalation as the most common cause, with 55 per cent blaming it on poorly defined scope and 40 per cent identifying contractual disputes as the main cause.
The other causes identified include time delays, lack of approval and weather.
The majority of contractors [70 per cent] claim to have successfully kept control over rising costs, partly through the use of techniques such as contract clauses, supply agreements, pre-purchasing and early procurement.
The majority of respondents claim to have made adequate allowances for cost rises over the past year.
About 53 per cent of respondents named steel as the number one contributor for cost escalation, followed by 45 per cent who blamed it on sub-contractors and an equal number on labour costs and trade. It's clear that many contractors have learnt lessons from previous years, where unexpected price rises ate into margins.