6 minute read
Client’s satisfaction the key to Naresco’s phenomenal success
Abdulkarim Abdulla Al Arif,
Managing Director of Naresco Contracting LLC
Abdulkarim Abdulla Al Arif, Managing Director of Naresco Contracting LLC, outlines in detail how the company overcame the issues they encountered during the global COVID-19 crisis, how Naresco has managed to sustain its success over the last four decades – and some of the projects they have in the pipeline over the next 12 months.
Naresco has firmly established itself as one of the most diversified construction companies in the Middle East. However, can you inform our readers what challenges you faced as a direct consequence of the global COVID-19 pandemic?
Thanks for the compliment. 2020 had been a challenging year globally due to the COVID-19 pandemic and still reeling the adverse impacts, which were significant all over the world.
The initial challenge was to protect our valued workforce from the fear and stress they were going through due to pandemic and hence, we created a protective environment by conducting the Covid Tests for all our workforce, installed sanitisation tunnel, arranged quarantine facilities for any suspected cases with all provisions, etc.
In addition, for all the efforts put in by the UAE Government and their relevant authorities especially DHA, we lend our support by constructing the isolation wards, extension for hospitals, temporary facilities for tests, etc in various locations in Dubai, UAE.
Moreover, the direct consequences which we faced and impacted us due to the pandemic were namely: a.) Freezing of major tender projects by our valuable Clients which were anticipated to tender and commence in the year 2020. b.) Suspension of projects which were in the final stages of award. c.) Huge negotiations on prospective tender projects with reduction on our margins. d.) Work productivity in projects were severely impacted due to all required precautions maintained at project sites and offices to minimise the COVID-19 virus spread as well as
reduced work timings considering the health of our staff & workers which consequently impacted the project progress and revenue collection. e.) Delayed material delivery from our suppliers (Local & Imported) for major materials due to suspension of activities in factories & manufacturing units worldwide thereby severely hampering the progress in projects. f.) Additional burden of overheads to comply with the precautionary measures of COVID-19 i.e. Regular sanitising of all our facilities along with temperature monitoring, construction and complete setup of quarantine centre in our camp facilities for suspected Covid cases, Increased fleet for transfer of staff/ workers due to seating limitations, etc
However, the global recession in 2008 played a major role for us to overcome such situations. The company’s solid foundation to withstand such situations were the accumulation of various valuable assets which were self-owned e.g. Residential properties, Lands, numerous labour camps, Vehicles & Machineries as required for construction purpose, etc
In addition, due to slowdown in construction industry and being a diversified group catering to construction related business, management took significant decisions to explore other business opportunities and as such, we ventured into sports facilities and established World Padel Academy engaged in Padel Sports and allied business activities which now has a great demand.
Since your inception in 1986, you have always purused projects with innovation and excellence at the heart of everything you do. Is the customer centric model that you have adopted one of the reasons you have enjoyed so much success over the last four decades?
Client’s satisfaction has always been our first priority and due to which, we have numerous valuable clients who has conferred their faith in our management and company by awarding their next projects with preference to us.
Also, we have succeeded in building a good relationship with local authorities as a main contractor for their valuable projects which were completed in line with their guidelines and expectations.
Moreover, we tend to innovate our construction business with all the updated and latest technology available in the market which benefited us to improve our production to meet the deadlines as well as to reduce our construction cost.
Can you tell us about some of the exciting projects that you have in the pipeline for 2021?
Even though it was a tough year (2020) for the construction business, we were able to secure some good projects from our existing and new clients which are in the initial stages of construction in 2021 and includes a.) Hospital building in Umm Suqeim b.) 2 buildings in Al Warsan c.) Residential building in Nadd Al Hamar
d.) Residential building in Al Mankhool fe) Tower (mixed used) in Business Bay
Also, we are in the final stages of completing the huge and notable project of constructing 27 buildings as a package.
2020 has been an extremely difficult year for all industries on a global scale. However, there is renewed optimism. What are your predictions from a construction perspective for 2021, and what will be your strategy to ensure you maintain growth and success?
With the introduction of Covid-19 vaccinations around the world to curb the Covid-19 virus, we are very much optimistic that, 2021 will be a recovery phase for all the industries globally and especially UAE as we have great faith in the Rulers of UAE and their robust leadership which has put in great efforts to commence the vaccination on a large scale to cover the entire UAE population within the shortest period.
We are monitoring the market situation which we anticipate to remain subdued till the 2nd quarter of 2021 and subsequently anticipate the demand to increase especially in construction business.
With the number of projects in hand currently, we are confident to maintain a satisfactory growth in 2021 and are putting our best efforts to secure high end projects with our competitive pricing to maintain and sustain the growth and success of our company. In addition, apart from the construction business, we are venturing in various other businesses which are now trending and have a great demand in UAE.
In your opinion, many industries have embraced new technologies which has been labelled as ‘digital transformation’. What role do you see technology playing in the construction industry in an era known as Industry 4.0?
As earlier said, we tend to innovate our construction business with all the updated and latest technology available in the market. Our specialised team keeps a keen eye on the market developments in terms of technology and after a thorough review on its elements and its benefit, we include the same in our business line.
Currently, we are dealing with various advanced applications/ softwares which has greatly facilitated us in minimising the cost as well as to take keen business decisions and includes:
Oracle Fusion (complete module)-
Forecasting and budgeting the project cost and various management dashboards providing a useful tool for the management to review the overall group status and to identify any lags.
DMS- Scanning of all documentations especially related to projects and centrally stored which can be accessed by all authorised representatives thereby reducing the paper wastage and contribute to the Environment preservation.
Hilti- Accurate tracking and status of all our available inventories to reduce the unwanted procurements and overheads.
Location Solutions- Accurate monitoring on movement of vehicles with consumption details to reduce the unwanted cost and maximise the utilisation of fleets.
