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Egyptian Construction Management

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By: themindandbeauty

June 7, 2017

Egyptian Construction

Construction industry enjoys a remarkable activity that enriches the Egyptian economy. Construction industry represents 7% of the Egyptian GDP and it is expected that the investment will increase and reach US$21bn by 2017 (UKTI, 2013). There are 31 public construction companies and 36000 private ones contributing to the construction industry in Egypt as they find it a bright field looking forward to promising results in the future. There are pioneer companies producing the reinforced steel. The annual production reaches 7.2 million tons. Because there are efforts that the government makes to make the construction materials available although those materials reached EGP 5200E per steel ton and EGP6000 per cement ton (El-Behary, 2013), the banks offered EGP 1.7 billion in 2012 to establish two Steel factories. That helped the investors to start construction projects after they found that the industry witnessed an apparent recovery. In 2011, the annual production of cement reached 54 million tons.There are different obstacles facing the Egyptian construction and affecting the parties involved because the construction projects succeed when these parties make their efforts and the performance rises (El-Gohary et al, 2013). For that, the industry faces troubles regarding the shortage of training and development of skills. After the revolution of 2011,  skilled labor becomes rare so, a decline in the industry prevailed and time and cost overruns exhaust the parties and infuriate the investors who the government tried to attract (Yehya, 2012). That decline continued to spread to the extent that Arab Contractors, and Talaat Moustafa Group and Orascom Construction Industry authorized that a 40% turnover affected the industry after the revolution of 2011 falling to EGP202 millions. Those challenges tempt the parties to attract the unskilled labors who accept low wages and work for long periods (Shehata et al, 2011). That resulted in delays in the projects (Abdel Razek.et al, 2007).

 

The conclusion

That study investigated the reasons and effects that construction projects face when claims and delays come. The study identified the main reasons causing claims and delays categorizing them regarding the parties involved who can use the study as a practical tool recognizing those reasons and reducing them. I consider the universality of that study addressing the reasons and effects in different countries and cultures so, the parties involved can recognize the most significant reasons and try to control them.

References included:

  1. Abdel Razek. RH, and Abdel El-Shakar .Hany. (2007). Labor productivity benchmarking and variability in Egyptian projects. International Journal of Project Management. 27 (4), p189-197.
  2. El-Behary,Hend .(2013). High prices cripple the construction sector. Available: http://www.dailynewsegypt.com/2013/06/22/high-prices-cripple-the-construction-sector/. Last accessed 15 Jan 2014.
  3. El-Gohary,Khaled,and Fayek, Remon. (2013). Factors influencing construction labor productivity in Egypt. Journal of Management in Engineering. 2 (6), p27-44
  4. Shehata, Mostafa and El-Gohary, Khaled. (2011). Towards improving construction labor productivity and projects performance. ALexandria Engineering Journal . 50 (4), p321-330.
  5. UKTI Digital. (2013). Construction Sector in Egypt. Available: http://opentoexport.com/article/construction-sector-in-egypt-1/. Last accessed 22/12/2013. 
  6. Yehya, Sherif. (2012). Construction Sector in Egypt. Available: http://www.ditp.go.th//attachments/article/71855/Egypt%20Construction.pdf. Last accessed 15th August 2013.

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