Saudi Arabia is also a member, ahieved new heights in terms of the construction contracts awarded (AME Info, 2010, “uwait construction industry - hitting new heights”). Acording to the previously mentioned article, te value of the construction contracts for the GCC region doubled at the end of the year 2006 from the figure at the end of the year 2004 due to a rapid surge in the region’s real GDP following a boom in oil prices in the years 2003 - 2006. Hwever, snce then, acording to Gulf (2010, 2– 3), fnancing conditions for construction have become difficult despite the Saudi Arabian government’s infrastructure plans and a more modest real GDP growth expected for the next three years has created a requirement for delivering better value in construction.
Te real GDP growth rate for Saudi Arabia peaked in the year 2003 to about 8% p. t maintain a value of about 6% p. fr the years 2004 – 2005 (Gulf, 2010, P. Fr the year 2003, te gross value of construction output in Saudi Arabia amounted to SR 3billion and construction activities contributed 5.
8 to the GDP (Franklin & Andrews, 2005, P. Acording to the figures presented in (Gulf, 2010, P. 2- 3), te Saudi Arabian GDP growth rate slumped to about 0. fr the year 2009, pior to recovering to about 2% for the year 2010 with an expected growth rate of about 3% p. fr the next three years as depicted in the figure below. Thus, nw a greater need exists for emphasising value engineering in the Saudi Arabian construction industry. Vlue Engineering (VE) to a methodology for improving value in construction by trying to customise quality and by optimising the life cycle cost of a construction project (Al-Yousefi, 2008, P.
2– 3). The VE process identifies opportunities to remove unnecessary costs involved with a construction project, wile ensuring that the quality, rliability, prformance and other critical factors / specifications for a construction work meet, o exceed client expectations (Dell’Isola, 1997, P. xii – xxvii). Acording to the previously mentioned author, te application of VE to construction not only results in savings in and time for construction, bt proper application of VE present improvements in quality, rliability, mintainability and performance for construction.
Thus, i makes sense to try to understand better value issues for the construction industry in Saudi Arabia because now competition is more intense than ever and...
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