< PreviousAVERAGE KERB-TO-GATE WALKING TIME 12 MINS | THE BIG PICTURE | 20 APRIL 2024APRIL 2024 21 | THE BIG PICTURE | Crafted by the acclaimed architectural rm Kohn Pederson Fox (KPF), Terminal A of Zayed International Airport combines contemporary designs with rich cultural motifs. Drawing inspiration from the rippling sands of the desert and intricate Islamic geometric patterns, the terminal stands as a testament to both innovation and tradition. Its expansive design, stretching 319 metres at its widest point, features a central roof supported by inclined arches spanning up to 180 metres, transforming the terminal into an iconic symbol of connectivity between the East and the West. [KPF] APRIL 2024 2122 APRIL 2024 | COVER STORY | Words by Angitha Pradeep EVOLVE TO RESOLVE Director Daniel Hughes and Branch Director Philip Cronin, delve into how Omnium Resolve is transforming the landscape of disputes—shifting the focus from reactive solutions to preventative strategiesAPRIL 2024 23 | COVER STORY | The escalating values of disputes and the intricate complexities of modern construction projects spotlight a critical industry challenge: the urgent need for adept dispute resolution. Traditional resolution mechanisms often fall short, with fi nancial stakes mounting and project environments becoming increasingly sophisticated. Recent trends further intensify this situation, with global reports indicating a signifi cant worldwide rise in construction dispute values. Such an alarming increase highlights the fi nancial risks and underscores the vital need for entities equipped to navigate these challenges eff ectively. In this challenging landscape, Omnium International’s dispute resolution arm, Omnium Resolve, carves out a distinct niche. In an industry where time equates to money and the stakes are higher than ever, Omnium Resolve embarks on a transformative mission: to shift dispute resolution from being reactive to proactive. This pivot ensures that projects not only stay on track but also embody the collaborative spirit fundamental to the industry’s success. Delving deeper into Omnium Resolve’s approach reveals a strategy that extends beyond merely mitigating risks. Their goal is to fundamentally change how disputes are perceived and resolved within the construction sector, heralding a signifi cant shift in industry practices. With a suite of expert services—such as contract advisory, dispute avoidance, claims management including quantum and delay analysis, dispute resolution, support, and expert witness services—across diverse sectors such as hospitality, residential, commercial, oil and gas, aviation, and infrastructure, Omnium Resolve is expertly led by Director Daniel Hughes and Branch Director Philip Cronin. Hughes introduces Omnium Resolve’s pivotal role within the Omnium Group with a clear focus: not just resolving disputes, but pre-emptively addressing them. “At the heart of our mission,” he says, “is guiding our clients through their projects with an emphasis on proactive and collaborative engagement.” Cronin elaborates on this foundational principle, “What makes us unique is our commitment to bringing project parties together at the earliest stages, aiming to resolve potential disputes before they become larger issues.” His commentary not only underscores the critical role of early engagement but also refl ects Omnium Resolve’s dedication to fostering a 24 APRIL 2024 | COVER STORY | cooperative project environment. Delving deeper, Cronin describes how this ethos is applied across projects. “By tailoring our strategy to meet the specifi c needs of each project right from the outset, we’re able to preempt and navigate disputes eff ectively,” he explains. Their approach was eff ectively demonstrated in a prominent hotel project. Collaborating with stakeholders from the outset led to considerable success, emphasising the importance of early engagement. Cronin also shares valuable insights into the importance of timing in their engagement strategy. “Our experience has shown that engaging when a project is approximately 30% complete allows us to effi ciently prevent potential issues from escalating,” he remarks, showcasing their strategic approach to timing interventions for optimal outcomes. PROACTIVITY IN ACTION Delving deeper into the concept of risk management and dispute avoidance, Cronin and Hughes discuss how their approach refl ects and infl uences current trends. Cronin notes, “Our involvement tends to drive a shift towards providing accurate advice based on contract conditions, aiming to steer clients away from formal disputes through internal negotiations. This represents a signifi cant trend in the industry, moving towards more amicable resolution methods.” Hughes adds an important dimension to this approach, highlighting the role of experience and learning from past projects. “Noticing trends based on project experience allows us to preempt potential disputes, leveraging our team’s vast experience to address issues before they escalate,” he remarks. This combination of proactive advice and leveraging past experiences underscores Omnium Resolve’s comprehensive approach to risk management. The conversation then shifts to their work’s global context, exploring how regional practices align with international standards. Hughes points out, “While procedural rules may vary by jurisdiction, they generally adhere to an international context, making them accessible. However, at the project level, we see more regional variations, especially in the Middle East, where contracts can be quite bespoke.” Further highlighting Omnium Resolve’s regional expertise, Cronin also sheds light on their expert witness services, critical in formal dispute resolution. “Our commitment lies in delivering accurate, integrity-driven services, adhering strictly to industry standards regulations, procedures, and rules set by authoritative bodies like the CIR, RICS, and SCL, as well as centres such as ADCCAC in Abu Dhabi, DIAC in Dubai, and SCCA in Saudi Arabia,” he asserts. Hughes adds, “We also take pride in our ability to produce high-quality, detailed reports that stand up to scrutiny, supporting our clients through every phase of the dispute resolution process.” The strength and diversity of Omnium Resolve’s team are pivotal to its success, blending expertise across various sectors with a dynamic approach to growth and innovation. Hughes and Cronin refl ect on the Daniel Hughes, Director, Omnium Resolve Engaging when a project is approximately 30% complete ef ciently prevents potential issues from escalating “At the heart of our mission is guiding our clients through their projects with an emphasis on proactive, collaborative engagement” Daniel Hughes, Director, Omnium ResolveAPRIL 2024 25 | COVER STORY | unique composition of their team, which spans the UAE, GCC, Europe and a key member in Canada, highlighting how this blend of seasoned professionals and emerging talents underpins their strategic approach. “Our deliberate focus on team diversity— from seasoned experts to young, dynamic innovators—enables us to bring fresh perspectives and robust solutions to the complex challenges of our projects,” Hughes explains. This strategic mix also facilitates a deeper client relationship and enhances their resilience and adaptability, crucial qualities that were especially tested during the pandemic. “It’s this combination of experience and dynamism that positions us uniquely in the fi eld, ready to deliver top-notch dispute resolution services,” Hughes adds. Cronin also emphasises the contributions of their younger team members, Scott Carville and Hiba Irshaid, praising their unique skills and enthusiasm. “Both Scott and Hiba have brought fresh perspectives to our work, showing exceptional promise and dedication. Their adaptability and eagerness to incorporate new technologies and methodologies have kept our company at the industry’s forefront.” Expanding on Omnium Resolve’s capabilities, Hughes highlights how the organisation leverages the broader expertise of the Omnium Group. “Being part of the Omnium Group enriches our resources, allowing us to draw on a wide range of expertise in areas like commercial and project management. This synergy enhances our ability to off er specialised and comprehensive solutions to our clients,” Hughes states. SHOWCASING EXPERTISE Through detailed accounts of their work on major projects, Cronin and Hughes provide concrete examples of Omnium Resolve’s impact. One of the most illustrative examples of their work involves a major infrastructure project, where the client appointed Omnium Resolve to review the contractor’s claims for acceleration, extension of time, and associated costs, as well as to assess the employer’s counterclaims. This project exemplifi es the intricate balance required in dispute resolution, necessitating a thorough understanding of contractual obligations, project timelines, and fi nancial implications. “We assembled a large, well-experienced team that managed to navigate this complex process with fi nesse, ensuring collaboration among all stakeholders. Despite our fi ndings not aligning with the employer’s expectations, our dedication to accurate, independent analysis allowed us to provide advice that was both correct and benefi cial for the project’s outcome,” Cronin refl ects on the endeavour. This example highlights the challenge of managing client expectations while adhering to factual analysis and the importance of integrity in the dispute resolution process. Another compelling project story shared by the team involved a recently completed billion-dollar hotel project. This project presented a unique set of challenges, primarily concerning claims related to entitlements that the contractor believed were due. Omnium Resolve’s role was critical in conducting an independent assessment, which ultimately revealed that the contractor had more entitlement than the employer had previously recognised. “Our fi ndings facilitated a pivotal decision- making process for the employer, who, guided by our advice, settled with the contractor, thus avoiding a formal dispute. This decision not only saved time and resources but also preserved the relationships between the parties involved,” Hughes elaborates. What sets these project examples apart is not just the resolution of complex disputes but also the proactive approach taken by Omnium Resolve. By engaging early in the project lifecycle and employing a collaborative strategy among all parties, they can identify potential issues before they escalate into full-blown disputes. This proactive engagement and reliance on accurate and detailed assessments allows Omnium Resolve to advise their clients The strength and diversity of Omnium Resolve’s team are pivotal to its successExternal parties like Omnium Resolve can often help realign project teams towards a more collaborative and less adversarial stance Omnium Resolve bene ts from Omnium Group’s broad expertise in areas like commercial and project management as part of the larger organisation 26 APRIL 2024 | COVER STORY | eff ectively, often leading to amicable settlements that benefi t all parties involved. Cronin and Hughes articulate a measured enthusiasm for technology’s role in reshaping construction. “It’s pivotal that we navigate technology’s advancement with a steady hand, ensuring its responsible integration into our practices,” Hughes mentions, pointing out the balance required in harnessing tools like AI. As a lawyer, he refl ects on the recent AI guidance provided by the English Judiciary as a model for this approach. This emphasises that holders must be alive to the potential risks, emphasising the main safeguards that need to be in place to ensure consistency. This includes understanding AI and its limitations, upholding confi dentiality and privacy, ensuring accountability and accuracy, maintaining security and taking personal responsibility for materials produced. Cronin adds, “BIM has been a game- changer, and now, augmented reality and drones are setting the stage for even greater insights and effi ciencies in project management.” He envisions a future where these technologies not only streamline operations but fundamentally improve accountability and decision-making in construction projects. Furthermore, they highlight AI’s transformative potential in construction law. “The adoption of AI, as seen in platforms like LexisNexis, is not just about innovation; it’s about making our processes more effi cient and eff ective,” says Hughes, underscoring the strategic incorporation of technology to enhance dispute resolution and project analysis. NAVIGATING THE FUTURE As the conversation delves into the future of dispute resolution and avoidance within the GCC region, Cronin and Hughes envision a landscape where negotiation and amicable resolutions remain at the heart of the construction industry’s ethos. “The culture in the Middle East has always leaned towards negotiation. Despite perceptions, the aim is to resolve disputes amicably, maintain relationships, and ensure project success,” Cronin explains. This refl ects a broader trend towards mandatory mediation and conciliation, which Hughes notes is becoming increasingly prevalent as a means to resolve disputes before they escalate. The role of relationships in the negotiation process is underscored, with Cronin emphasising the importance of Omnium Resolve engages early on in the project lifecycle and employs a collaborative strategy among all parties APRIL 2024 27 | COVER STORY | understanding the dynamics between project parties. “It’s essential to look at whether both parties have acted in accordance with their agreement and attempted to navigate issues throughout the project’s lifecycle,” Hughes adds, pointing out that the perspective of an external party like Omnium Resolve can often help realign project teams towards a more collaborative and less adversarial stance. In wrapping up, the dialogue also touches on the critical aspects of quantum and delay analysis. Cronin begins with a clear assertion of the signifi cance of their work, stating, “The impact of quantum and delay analysis on project outcomes is profound. It’s a simple equation—time equals money. Dealing with disruption, acceleration, and direct loss and expense (DLT) claims forms the crux of our eff orts. “The ability to identify who is responsible, pinpoint the causes of delays, and assess their impacts is fundamental in delay analysis. While some might initially overlook the cost aspect, it’s a well-known fact in our industry that time directly translates to fi nancial implications. It’s vital for both employers and contractors to determine liability in terms of time before addressing the cost implications.” He further elaborates on the gravity of delays, providing tangible examples from their experience. “Take, for instance, a gigaproject planned for 34 months that took 80 months to complete. We have observed a number of gigaprojects facing delays extending to 200% beyond their original schedule. This has a domino eff ect, elevating claim values to around 23%of the fi nal contract value for such projects. These numbers are not just abstract statistics; they represent signifi cant fi nancial challenges, especially when projects run into billions of dollars. Even smaller projects, valued between 70 million to 150 million dollars, aren’t immune, with delays and claim values observing a similar upward trend.” As the conversation comes to a close, Cronin reiterates the importance of early involvement and meticulous planning in avoiding disputes. “The best defence against claims is prevention. Thorough planning, accurate design and pricing, aligned with effi cient administration and execution of the contract, will signifi cantly reduce the risk of disputes. While this may seem straightforward, it’s a practice not suffi ciently adhered to across the industry. Enhancing these practices is essential for avoiding unnecessary costs and delays,” he concludes. “Our experience has shown that engaging when a project is approximately 30% complete allows us to ef ciently prevent potential issues from escalating” Philip Cronin, Branch Director, Omnium Resolve Philip Cronin, Branch Director, Omnium Resolve| OPINION | 28 APRIL 2024 REAL ESTATE REIMAGINED WITH BEHAVIOURAL ECONOMICS Abdulaziz AlQarra, Director of Project & Development Services KSA at JLL, underscores how balancing digitisation and humanisation could revolutionise real estate project success In recent years, two topics have dominated the discussion within the real estate industry—sustainability (environmental impacts and net-zero emissions) and digitisation (data, robotics and artifi cial intelligence). While these trends are crucial for shaping the real estate industry, there is a hidden power often overlooked—the infl uence of behavioural economics. Fundamentally, real estate is a people business. Therefore, understanding human behaviour and relationships and incorporating soft skills is critical for successfully delivering any related project. This is especially true for large and complex projects under development across the GCC, particularly in Saudi Arabia, where gigaprojects like NEOM and Diriyah are taking place. Moreover, with major upcoming developmental activities planned in the kingdom in the next ten years, such as World Expo 2030 and FIFA World Cup 2034, project management has become more critical than ever. INFLUENCE OF HUMAN BEHAVIOUR Traditionally, project management within Understanding behavioural economics can bene t project management nudges allow project management teams to make more eff ective and effi cient decisions. JLL’s research on how human behaviour aff ects businesses explains the situation and highlights actions companies take to keep employees engaged and connected to the shared goal. Similar to employees in an offi ce, vendor partners and workers involved in a project have their own expectations. If those expectations are not met, productivity falls, confl icts arise, and such situations often result in ‘quiet quitting’. Cognitive biases can hinder objective decision-making in project management. However, techniques developed in the fi eld of cognitive behaviour provide a better understanding of these biases, allowing a more rational and unbiased decision- making process. Behavioural economics can also inform motivational strategies in project management. Project managers can use concepts like intrinsic and extrinsic the industry has been process-driven and hierarchical, focusing more on the physical aspect of real estate than on the people involved. Hence, humanising project management involves a signifi cant shift in approach. The changing dynamics in the industry require more attention to behaviour, relationships, decision-making biases, probability judgements, and the impact of emotions on project outcomes. While other industries have long understood the importance of these behavioural approaches, the real estate industry has yet to widely apply them. However, with the greater use of behavioural economic strategies in project management, including leveraging social norms, framing techniques, and communication tactics to encourage collaboration, decision-making, and adherence to project objectives, change is now inevitable. LEVERAGING A BEHAVIOURAL APPROACH The most signifi cant benefi t of adopting a more human approach is to enhance the decision-making process. Techniques such as anchoring, choice architecture and | OPINION | APRIL 2024 29 “The most significant benefit of adopting a more human approach is to enhance the decision- making process” Abdulaziz AlQarra, Director of Project & Development Services KSA at JLL motivation, goal setting, and the power of rewards and recognition to inspire team members and enhance their performance. In addition, understanding behavioural economics can benefi t project management by improving communication and collaboration within project teams, managing risks, reducing uncertainty and evaluating return on investment decisions. CONCLUSION In recent years, the property industry has focused heavily on data and project digitisation. While improvements in the fi eld of ‘proptech’, many of which have been driven by developments in the application of artifi cial intelligence, have certainly provided several good tools and techniques for property managers, they have also drawn attention away from the importance of human factors. Nevertheless, there is a growing awareness of the benefi ts a more human approach can off er across the entire real estate spectrum. Nowhere is this more apparent than in project management, where behavioural economics techniques off er the potential to transform the way real estate projects are delivered. A project’s objectives may remain unchanged, but the approach to achieving them will continue to evolve. Project managers who can recognise the potential of human behaviour, respond to these changes and embrace more soft skills to humanise the delivery process will likely redefi ne future success. In short, using behavioural economics to humanise real estate can be a game- changer for successfully managing and delivering projects. Next >