DMCC introduces Dubai's first Project Partnering Contract

The project consultants for the DMCC Business Park include Norr Group Consultants International Ltd. as the lead designer/architect, K Home International Ltd. as the client representative, Hanscomb Consultants Inc. as the consultant and Al Futtaim Carillion LLC as the constructor.

All the consultants signed a partnering agreement with DMCC today, to form a core group that will work together for better management of the project.

The PPC model is a team-based approach where the client, project manager, constructor and consultants sign a single partnering contract, instead of individual agreements being signed by each party with the client.

All partners are brought on board at an early stage and form a core group that works closely together to alleviate design scope gap and safety issues and enables better management of the project supply chain and logistics.

All partners have an obligation to the core group, which enables them to work together to reduce risk and price, and focus on creating a quality product at lowest possible cost.

The PPC format is a first-of-its kind initiative in Dubai and looks to eliminate some of the key challenges faced by developers in collaborating separately with several individual contractors.

It will also ensure timely project delivery, better quality of construction, elimination of supply bottlenecks and the establishment of a structured development model.

"For DMCC and the real estate industry in the Middle East, the introduction of the PPC model represents a significant step forward," said Ahmed bin Sulayem, Executive Chairman, DMCC. "This format ensures a structured development plan by addressing the challenges associated with a multi-party contract. There is a clear understanding of the delivery timelines and shared areas of responsibility between the different project partners".

"As a dynamic community that will be built to the highest international standards, DMCC Business Park will further the quality of construction with this initiative, setting a precedent for developers in the emirate. DMCC is pleased to be partnering with K Home International Ltd., Norr Group Consultants International Ltd., Hanscomb Consultants Inc. and Al-Futtaim Carillion LLC on this very exciting project," he added.

DMCC Business Park is a 13.8 hectare development, located adjacent to the Jumeirah Lakes Towers.

The business park will be a premium commercial development featuring office and hotel towers and commercial buildings.

The development will enjoy free-zone status, and feature a 34-storey office tower and a 34-storey business hotel together with a number of office buildings ranging in height from 7 to 15 storeys.

Bryan Wilson, Executive Director, Property, DMCC, said: "Operating in a globally competitive environment, the real estate industry has been facing procurement issues and rising prices, leading to delay in deliveries. The PPC format addresses the challenges arising from large-scale multi-contractor developments by mapping the way a partnering team works. A PPC model aligns contractual project management processes with teamwork methods, offering a single contractual hub and allowing all contractors/partners to contract as a team on identical terms.

There is sufficient awareness of the construction requirements and ample build-up time to meet them.

By ensuring a holistic development model, this project will boost investor confidence and meet the needs of businesses based in the emirate and those intending to open offices here.