Risk faced by Contractors in Qatar

1. By Ahmed Fouad, PMP, PMI-SP
Head of Planning and Risk Management Coordinator
CCIC (Consolidated Contractors International
Company)

2. Contents
 Introduction and Bio
 Risk and Challenges Per Phase
 Engineering Works
 Procurement Works
 Construction Works
 Commissioning and Handing over
 Interface Works
 Resources , Cost & Contractual
 Summary

3. Introduction and Bio
 The Head of Planning and Risk Management Coordinator
at one of CCC’s Projects in Qatar. (MPAC Project)
 12 years of experience in the field of Project Management
for construction projects for Gas and LNG Plants, Oil and
gas pipelines, Infrastructure projects and Ports and
Buildings, the approximate construction value of these
projects is 4.5 Billion US Dollars.
 A certified PMP and PMI-SP and a volunteer for various
PMI activities .
 A part time Project Management and Personal
Development trainer.

4. Risk and Challenges Per Phase

5. Engineering Phase
 Engineering works work flow starts with Concept design then Schematic design then
Detailed design then IFC and AFC and Shop drawings.
 Due to the fast track nature of the world cup projects and the interface with other
infrastructure projects it is expected that these stages will overlap in a risky manner ,
i.e. Master plan finalization.
 Availability of well coordinate drawings IFC drawings between disciplines especially
(Arch/MEP).
 The Green buildings trend + New HVAC systems for the stadiums and the New
technology that will be implemented, will lead to new challenges and unusual
problems in the engineering and design phase and their interface with the other
disciplines, the lessons learned from each project must be communicated to the
ongoing and new project to avoid the pit falls.
 New and Specialized designer will be introduced and with the expected simultaneous
demand, delays and extra costs are expected.

6. Procurement Phase
 No tolerance regarding the PVL (Preferred Vendor Lists).
 New long lead items i.e. Score boards(9 month lead time), New technology HVAC equipments,
special lighting fixture, Custom made and special material.
 Final approval for regular long lead items S/G, MCC panels, etc., it is expected that the lead time
will increase by 20% due to the simulations demand by the various parallel ongoing major project.
 Mock- up approval & prototype approval by the client and end users.
 Challenges for new custom clearance regulations and changing of regulation.
 Expected Increase in all construction material costs and Increase in the delivery time.
 The suggested solution is to consolidate all forecasted project requirements schedules by a
governmental organization to secure the main construction material, i.e. Cement, reinforcement
steel, and for Contractors to order the material as early as possible and to plan for longer deliver
time, i.e. pipes, flooring, etc. but this must be support by flexibility and quick approval of design
and material approvals by Clients.

7. Construction Phase
 The Green buildings trend + New HVAC systems for the stadiums and the New
technology that will be implemented, will lead to engaging specialized S/C who are
new to the region, and with the new technology the experienced and highly skilled
manpower required to perform the tasks and meet the anticipated construction
boom will not be easily available.
 Consider precast option in design for all possible elements to reduce the work and
time on site.
 SKILLED Manpower availability.
 Managing S/C staff and team by main contractors team on behalf of S/C due to the
lack of qualified / sufficient team on board the S/C team and his failure to do it as
required which means more staff for main contractor leading to costs overrun.

8. Other Phases
Commissioning and Handing over:
 The Risk of End users having time and cost impacting comments at the handover
time.
 Expected challenges during commissioning of stadiums and the new technology
being used and its interface with other disciplines and systems.
Interface Works:
 Timely issuance of work permit (For excavation and for Construction).
 Civil Defense final approval at design stage and handover.
 Tie-in for power and utility supply.
 Changing the rules and regulations in Qatar (Civil Defense and Custom Clearance
Changes).

9. Other Phases
Resources, Cost & Contractual:
 No tolerance for any delay ( Fixed Completion Dates).
 Expected Claims especially for the expected acceleration costs to catch up with delays
due to the above risks.
 Inflation : Qatar has history of big Inflation Swings., during previous construction
boom (Asian Games), Inflation reached record 15.2 %, above high inflation rate is
partly due to very short construction duration.
 If new project awarding is delayed and construction for all major projects is in parallel,
the inflation will once again reach double digits due to highly compressed completion
period.

10. Summary
 Very High Risks in all project phases.
 Expected Increase in material the delivery time and costs.
 Shortage in Skilled Manpower.
 Since FIFA 2022 schedule is fixed, Projects must be completed on time.
 High inflation rate.
 However these challenges can only be successfully resolved, if all stake holders
involved work as “ one team with open mind ”.

11. Thank You