Building smarter is the way to manage costs and uncertainty in the Middle East

Reducing risk and cost through smarter building strategies

High energy and resource costs, combined with increasing construction demand, make it essential to focus on building faster and with less materials. Iman Abi Saab, buildings market leader at Mott MacDonald in the Middle East, explains how we approach technical and market constraints with practical design and engineering solutions.

Building smarter is a long-term priority for the Middle East construction industry, which is especially important in the context of higher energy and resource prices, supply chain disruption and heightened geopolitical risks resulting from the regional conflict.

What do I mean by building smarter? When buildings are more efficiently designed and more constructable, they use less resources and energy during construction. They are also faster, safer and more cost-effective to deliver.

None of this is easy but it is possible with advances in digital engineering, modern methods of construction (MMC) and building information modelling (BIM).

It is more important than ever for the construction industry to double down efforts to improve resource and energy efficiency and shorten construction timeframes.

The UAE and Saudi Arabia are significantly dependent on imports of construction materials, though both countries have meaningful domestic production capacity for core materials like cement and steel and are actively investing to reduce import reliance. Higher energy prices and transportation costs which have recently spiked will inevitably feed into the cost of construction materials.

According to figures from GlobalData and MEED, steel prices could rise by 3% to 5% for each $10 rise in a barrel of crude oil and cement prices could rise by 2% to 3%. In April, the price of crude oil rose by more than 50% compared to pre-conflict forecast and has remained volatile.

The rebar price for domestic and imported steel in the UAE rose by 8% in April due to shortages and logistics costs, according to Fastmarkets, the commodities price reporting agency.

Uncertainty about the availability and future cost of materials are likely to make investors and developers more cautious about long-term fixed-price contracts. We expect more projects to be split into early-stage and later-stage contracts. This gives stakeholders time to reflect on market conditions but it can slow down delivery.

These pressures make one thing clear: the Middle East construction sector must work harder to find tactical and technical solutions that enable projects to be delivered smarter within tighter constraints.

Building with less

Buildings that are easier to construct use less labour, equipment and energy on-site. They also require less materials. Despite this, early planning and design discussions generally don’t prioritise constructability, which is a missed opportunity.

Thinking about how to build should be an integral part of the design process – whether using traditional construction methods, MMC or a combination of both.  It opens the way for designers and engineers to consider a wider range of options and encourages innovation.

A good starting point is to focus on how to make high-cost aspects, such as the facade or large-span roof, more constructable. Buildings with fewer large structural pieces require less temporary support during construction. This helps contractors to build faster and with less resources.

Standardising facades, even partially, can significantly reduce the total number of components needed in construction. A kit of parts can also be manufactured off-site to a high level of precision, generating significantly less waste materials and enabling even faster assembly on-site.

Standardisation does not have to be comprehensive to be effective. Particularly with high-cost components – every step really counts.

Working with suppliers to mitigate risks

Shifting towards design for manufacture and assembly (DfMA) and MMC could help the Middle East construction industry to address some immediate and longer-term challenges.

MMC suppliers can provide a range of different components, from prefabricated volumetric modules built off-site to panelised systems for assembly on-site. They have a vital role in a distributed supply chain, helping to mitigate the risks of materials shortages and price volatility.

It is important to understand the range of existing MMC suppliers and what they already manufacture. It is quicker to integrate flatpack bathroom modules or panelised wall or floor systems that are already being manufactured into designs than to start from scratch with bespoke requirements. It is also less risky.

To generate volume, developers should also look for ways to rationalise the number of different components they use across large-scale programmes. Fewer variations in the type and size of doors, facade pieces or service modules required on a project leads to economies of scale. This helps MMC suppliers to predict demand more accurately and deliver parts more efficiently and cost effectively.

Closer collaboration across the supply chain will not only help to mitigate supply chain disruptions, but also contribute to longer-term strategic goals, such as decarbonisation. Using less materials and generating less waste delivers the greatest carbon savings in the built environment.

Using digital tools for agility

Even on a well-planned project, risks and uncertainty are inescapable. Building designs are often altered due to unforeseen conditions on-site, materials shortages or changes in client requirements.

Fortunately, digital tools are making it easier to adapt to change. Stakeholders can access more information, more options, more quickly, so they can make informed decisions.

Parametric modelling is a critical tool used to facilitate the design of complex engineering models. Within seconds, a model can be updated to provide new information on carbon intensity, weight and constructability. This helps to compare designs and find the most efficient form. Clients, architects, engineers and suppliers can share feedback and changes can be made collaboratively.

As an example of adaptable design, Mott MacDonald was able to align the structural design of a building above ground to fit the foundations of a previous building at the same site. That meant we could reuse 80% of the existing reinforced concrete piles from the foundations, rather than sourcing all new materials. This added complexity but led to major savings on materials, energy in construction and faster delivery.

Plan slow, build fast

To remain resilient in a more volatile environment, the construction industry needs to embrace design and engineering innovation.

New ways of working, such as standardisation and off-site manufacture, take time to embed. Close collaboration and knowledge sharing across the supply chain is the way to find practical solutions faster.

As my colleague James Middling explained recently in an article, thinking slow upfront enables you to act fast later. Taking time to find the right design and procurement strategy is never time wasted.

Five steps for building smarter

• Challenge the brief: give designers and engineers the freedom to explore technical solutions that use less materials and energy to meet requirements.
• Simplify and standardise: think tactically about what can be standardised – it's not all or nothing. Target high-cost elements or economies of scale to realise the greatest benefits.
• Diversify your supply chain: partnering with traditional and MMC suppliers can help to mitigate the risk of materials shortages or price volatility. If standardised components are available – see if you can work with them.
• Embrace digital tools: change is inevitable on major projects. Digital modelling provides clarity about the options so decision-making is faster and more informed.
• Plan slow, build fast: close collaboration and knowledge sharing across the supply chain leads to well-planned, deliverable projects. We have a shared interest in success.