Unit rates
Clients should monitor unit rates monthly due to fluctuations in material costs like steel and concrete, driven by global supply chain issues and inflation. Steel prices have been volatile, and concrete costs will be rising with demand. MEP components, especially copper, are also increasing in price. Close monitoring allows for agile procurement and better budget management, reducing the risk of delays or overruns caused by price hikes. Price surges and labour shortages are key risks.
Exchange rate to 1 USD is 3.67 AED.
We recommend risk-sharing contracts where both clients and contractors share responsibility for cost fluctuations. For instance, a target cost model allows contractors to benefit from cost savings, while both parties share the risks of price escalations. This approach mitigates financial pressure, fosters collaboration, and ensures more stable project delivery.