Assessing the practice of project-based JV between local and international contractors in the UAE

Samer Skaik, Hussain Oweineh

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Abstract

    This paper is about assessing the practice of Project-Based Joint Ventures formed between local and international contractors in the UAE construction industry. This common practice nowadays, provides the means for contractors to quickly add resources to enhance project acquisition. Studies indicate that JVs are among the tools that contractors will need to get together in the face of increasing market demands. Specifically, Project-Based JVs are often used in the UAE Construction industry with an exceptional growth in an attempt to diversify from Oil and Gas. The UAE is very business friendly which makes it attractive for such kind of alliance or partnership for local contractors to get the necessary experience and for international contractors to minimize the risks associated with entering new markets. In this context, studies that evaluate this alliance phenomenon in the UAE construction industry are limited. The few industry-related studies have primarily focused on large, international JVs; yet, many JVs are formed on small and medium-sized projects within the UAE. The paper aims to assess the current practices and understand the many factors involved with forming, managing, and controlling JV partnerships. The research methodology adopted a mix of quantitative and qualitative approaches. First, a closed question survey was disseminated to construction professionals in the UAE in light of the literature findings. Second, two case studies were demonstrated and analysed, then triangulated with the literature and survey findings to remove possible bias and improve the confidence in the collected data. The paper concluded that the JV in the UAE construction industry is mostly formed on project-basis rather than continuous collaboration. The management control mostly used in the UAE construction industry is shared management of activities in a venture with the operations shared between parents. The paper addressed major factors that lead to successful JV in the construction projects of the UAE which are namely trust, correct structure, communication, and partner's commitment. Partners' common objectives do not affect the JV success or failure. Willingness to adapt eliminates conflicts and enhances the JV success prospect.

    Original languageEnglish
    Title of host publicationProceedings of the 30th Annual Association of Researchers in Construction Management Conference, ARCOM 2014
    PublisherARCOM
    Pages443-452
    Number of pages10
    ISBN (Print)9780955239083
    Publication statusPublished - 2014
    Event30th Annual Association of Researchers in Construction Management Conference - Portsmouth, United Kingdom
    Duration: 1 Sep 20143 Sep 2014

    Conference

    Conference30th Annual Association of Researchers in Construction Management Conference
    Abbreviated titleARCOM 2014
    CountryUnited Kingdom
    CityPortsmouth
    Period1/09/143/09/14

    Keywords

    • Joint venture
    • Partnering
    • Procurement
    • Success factors

    ASJC Scopus subject areas

    • Civil and Structural Engineering

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  • Cite this

    Skaik, S., & Oweineh, H. (2014). Assessing the practice of project-based JV between local and international contractors in the UAE. In Proceedings of the 30th Annual Association of Researchers in Construction Management Conference, ARCOM 2014 (pp. 443-452). ARCOM.