Re-tendering may save costs, say developers

A couple of new projects at the Dubai World Central are being re-tendered to make best use of falling construction costs.

Emirates Business spoke to building material suppliers and contractors who said the re-tendering could significantly save costs for the developer.

"During a recent meeting, it has been decided to submit three new projects for re-tendering at the Al Maktoum International Airport. However, work on several ongoing projects will not be affected as they are almost nearing completion," said the official from a contracting company.

Recently it was announced that the installation of fences and gates around the Dubai World Central is complete. The DWC's Director of Marketing and corporate communications Abdulla Al Falasi also said that several major ongoing construction projects are continuing as scheduled.

According to reports, Al Falasi also said the next round of contracts to be awarded will be more carefully reviewed in light of the global financial crisis.

Other infrastructure work within the DWC such as the cargo terminal building, control tower, navigational aids, aprons and taxiways, central utility complexes (CUC), electrical substation, fuel staging area, fire stations and police facility are expected to be completed as scheduled.

Meanwhile, work on the Air Traffic Control tower is almost 98 per cent complete and would be complete by February said another official from ETA's Power Projects Division.

"Our work on the ATC tower is almost complete. We are actually in the process of commissioning and closing the documents. Right now, only the external lighting needs to be installed. The materials have already been procured and it just needs to be installed. The work should be complete by February-end," said the official.

Emirates Trading Agency's PPD is the MEP contractor for the ATC tower.

The joint venture of Arabtec and Max Bogl Emirates is the general contractor involved in the structural work on the ATC tower.

According to another official from Emirates Falcon Electro-Mechanical Company (EFECO), the MEP contractor for the cargo terminal and passenger terminal, it has completed most of the work.

"Work on the cargo village is complete while that on the passenger terminal is progressing. The blocks are being laid and it will be complete by this month," said the official.

A senior official from Al Naboodah Contracting told Emirates Business that it has already sent out circulars to several building materials suppliers informing them about cancellation of all orders until further notice.

"We sent out the message following instructions. Now we are trying to get clearance of whatever we have already done," said the official.

The contractor is involved in building one of the runways and three parallel taxiways and associated rapid exits apart from the airside road network and infrastructure services such as airfield lighting, power, water, fire fighting and drainage network.

According to a sales staff at Al Mashrabia Furniture Industry, orders for materials worth Dh25 million for the Dubai Residential City have been cancelled.

"I have also heard from another supplier that some orders for the Logistics City has also been cancelled. They are probably aiming at re-tendering and obtaining the materials at a much more lower price," said the official.

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