SNC-Lavalin calls for 'collaborative contracting' in the Gulf

"Over the past two decades, the GCC has established a reputation for delivering ambitious megaprojects that push the boundaries of what can be achieved," the Montréal, Canada-headquartered company says in the white paper. "With an estimated USD2.9tn of major projects planned or under way at the end of 2020, there are abundant future project opportunities in the region. But despite the ambition to drive forward with development agendas, change is needed in the way that projects are delivered."

Collaborative contracting models are commonly used for project delivery in the oil & gas and nuclear industries, where there is greater emphasis on safety and quality than there is in the construction projects industry, and which have projects of a larger scale, the reports says. The vast size and cost to develop a nuclear power plant means that any delays can be costly for everyone involved. As a result, nuclear power project clients use collaborative project delivery models in order to minimise delays and waste, it says.

"Some countries have supplier alliances within the supply chain," David Haboubi, head of nuclear, Middle East and Africa at SNC-Lavalin, says in the white paper. "They are still competitors, but set the KPIs [Key Performance Indicators], challenge each other, and keep each other in check. It’s a very mature supply chain relationship.”

Secondment is also a common practice in the nuclear industry, which involves the temporary deployment of a client team member to the contractor or consultant team. "This enables some real joint working and maximises knowledge transfer,” Haboubi says. “We work together as one team, we’re responsible for their work and targets. And by working on our side, clients also better understand how the suppliers work."

The report, New Aliances, is here.