Impact of COVID-19 on project performance in the UAE construction industry

Abstract

Purpose The coronavirus disease 2019 (COVID-19) pandemic has affected the global economy and, thus, the global construction industry. This paper aims to study the impact of COVID-19 on construction project performance in the United Arab Emirates (UAE). Design/methodology/approach This study adopted a qualitative and exploratory approach to investigate the impact of COVID-19 and its policies on project performance in the UAE construction industry in critical areas of the project management body of knowledge (e.g. schedule, cost, resources and contracts). Semi-structured interview questions were asked from ten construction professional to obtain valuable insights into the pandemic’s effects on the UAE construction industry and the effectiveness of policies implemented to rectify the damage and identify the industry’s new normal. Findings The findings indicate that the construction industry faced several challenges such as schedule delays, disrupted cashflows, delayed permits, approvals and inspections, travel restrictions, serious health and safety concerns, material and equipment shortages, among others which hindered the timely delivery of construction projects. It also indicates that efforts made by the government institutions and the construction industry of the UAE such as economic support programs, digitization of processes, fee and fine waivers, health facilities, among other statutory relaxations proved effective in supporting the construction industry against the adverse effects of the pandemic. Research limitations/implications The research findings are limited to the literature review and ten semi-structured interviews seeking an expert’s opinion from industry professionals working in the UAE construction industry. The research team did not get access to project documents, contracts and project progress reports which may be required to validate the interview findings, and to perform an in-depth analysis quantifying the impact of COVID 19 on construction projects performance, which is a limitation of this research. Practical implications The implication is that, owing to the imposed lockdowns and strict precautionary measures to curb the rapid spread of the pandemic, smooth execution of the construction project across the country was affected. The government institutions and stakeholders of the construction projects introduced and implemented various techniques and solutions which effectively handled the implications of the COVID-19 pandemic on the construction industry of the UAE. Originality/value This study has identified the challenges faced by the construction industry of the UAE in the context of the management of project schedule, project cost, construction contracts, health and safety of construction employees and other related aspects of the construction projects. This study also identified the techniques and solutions adopted by various public and private institutions of the country and their implications on construction projects. Therefore, this study provides guidelines for policymakers and future research studies alike.

Managerial Responses to the Onset of the COVID-19 Pandemic in Healthcare Organizations Project Management

“…The dynamic and unexpected materialization of multiple risks related to the COVID-19 pandemic may, in many cases, have a negative impact on the performance of the implemented projects. This can be seen, in particular, in the construction industry [63][64][65], where the COVID-19 pandemic had a negative impact on the timely implementation of construction projects. The results of other research indicate that the pandemic also had a negative impact of the performance of projects in the energy sector [66], infrastructure [67] or crowd-funding projects [68].…”

Prediction of the Normalized COVID-19 Epidemic Prevention Costs of Construction Projects Based on an Optimized Neural Network

“…Some studies have investigated the impact of COVID-19 on the construction industry in Ghana, the United States, the United Arab Emirates, and the UK [5][6][7][8]. In terms of the construction industry, many migrant workers live on construction sites, and they usually have the characteristics of high mobility and high intensity [9].…”

Opportunities and Challenges for Construction Health and Safety Technologies under the COVID-19 Pandemic in Chinese Construction Projects

“…Regulations can force companies to adopt innovation through detailed specifications and standard procedures and encourage innovations through incentives, subsidies, and grants [ 45 , 48 ]. The DOI theory has been widely used in the research of ICT to provide insight into the adoption, implementation, infusion, and diffusion of ICT innovations [ 5 ]. Without strong internal or external motivations, an organization will not evolve to use innovations.…”

“…Its impacts on many industries such as construction are profound. The construction sector has encountered significant difficulties with the shutdown of sites, disruptions to the supply chain, and substantial project delays [ 3 , 4 , 5 ]. To curb the spread of the pandemic, many businesses shut down at the early period, and people had to work from home.…”

“…Several research gaps have been identified. Many studies have investigated the impacts of COVID-19 on the construction industry in Ghana [ 3 ], the U.S. [ 4 ], the United Arab Emirates [ 5 ], Nigeria [ 10 ], and the U.K. [ 11 ]. An in-depth investigation of the impacts of the COVID-19 pandemic on Chinese construction projects is lacking.…”