Interview: Abdullah Al-Saleh: Amid the expansion of real estate projects that have been taking place in the Kingdom in recent times, companies operating in the construction sector are facing a number of challenges, especially following the adoption of the Saudi Building Code and as international and regional companies have sought to establish a presence in the Kingdom, so some have begun to wonder how to balance supply and demand, how specialized trade shows can provide expertise to their participants, and to what extent participants can benefit from the products showcased at these projects.
The newspaper “Amlak” surveyed several experts on the key factors for project success and sustainable quality, as well as the best ways to benefit from specialized trade shows.
Amr Al-Hamrani: The rising cost of skilled labor is the most significant challenge
To begin with, Amr Al-Hamrani, the founder of Construction Tips, explained that there are a number of challenges facing the construction sector, such as the economic recession, new government regulations, and the rising cost of skilled labor. He emphasized that the private sector, with its expertise and capabilities, can capitalize on the construction projects currently available, stating: “Construction activity plays a key role in maximizing returns for the private sector.”
Al-Hamrani noted that the private sector has significant investment opportunities presented at specialized exhibitions that it can take advantage of, and he highlighted the effectiveness of participation by various market segments in these forums, which enhances their experiences and expertise, noting that exhibitions and events, to a certain extent, serve as an important and unique platform for construction and building firms to highlight their efforts and contributions and introduce the public to their key services and projects, and that suppliers, manufacturers, and competitors can also benefit from them.
Al-Hamrani summarized the most important factors and developments leading to project success as follows:
1- Effective project management.
2. The efficiency of the engineering design, its suitability to reality, and its feasibility.
3. The accuracy and rigor of the project budget, taking into account all circumstances, variables, and risks to prevent the project from stalling or failing.
In concluding his remarks to “Amlak,” Amr Al-Hamrani explained that building insurance contributes significantly to improving construction quality, as it is subject to various factors that raise engineering quality standards. Al-Hamrani considered the short-term increase in costs to be natural, but at the same time, it helps reduce costs in the long term, given that buildings are durable assets whose cost calculations are based on long-term sustainability and safety standards, noting that building insurance provides added value for the building.
Abdullah bin Al-Arfaj: Technical updates have made it difficult for companies to keep pace
Abdullah bin Ibrahim Al-Arfaj, General Manager of the Central Region for Al-Asasia Electronics Co., Ltd., affirmed that the construction sector is witnessing rapid and continuous developments due to the increasing pace of technical updates in the sector, which has made it difficult for companies to keep up with the latest advancements. Al-Arfaj noted that this inability to keep pace has highlighted a number of challenges, including: training and developing the workforce to keep up with developments in the sector, in addition to rising raw material costs, ensuring safety and quality, and increasing property values.
Al-Arfaj noted that the private sector has a significant opportunity to benefit from specialized exhibitions and the construction technologies on display, as real estate forums bring together the largest number of investors and decision-makers with leading companies in the field, providing a platform to showcase the latest technologies, discuss potential projects, and exchange expertise with them—in addition to seeking out deals and exploring mutual interests.
Regarding the most important factors and developments that lead to project success, Al-Arfaj explained that there are many factors that contribute to achieving the goals of real estate projects, which can be summarized as follows:
- Innovation and keeping pace with developments.
- Focus on product quality.
- Proper project management from both administrative and technical perspectives.
- Conducting more precise and in-depth project studies.
- Setting SMART goals and ensuring their achievement.
In concluding his interview with “Amlak,” Abdullah Al-Arfah discussed building insurance and its impact on the future quality and pricing of products, explaining that insurance aims to protect the building from any cracks or collapses, thereby safeguarding the end consumer’s rights against structural issues after product delivery and obligating the contractor to guarantee the quality and safety of the materials used. As for costs, they are predetermined not to exceed %1.5.
