ALDAR LAING O ROURKE REDUDANCIES
#62
Banned
Joined: Jun 2009
Posts: 12
Re: ALDAR LAING O ROURKE REDUDANCIES
Something is very wrong in the reporting by EXALOR. Let us change the perspective, and return several years ago...
Laing O'Rourke is a VERY reputable company with fascinating references... They make a deal with ALDAR for 'cost plus fee'. They set up a very sophisticated company in the country far away from Europe and managed to bring both highly paid specialists and cheap labour.
ALDAR got the great opportunity to sell the flats more expensice than in London while paying the cost of cheap labour. It was a great business. Laing O'Rourke got their fixed 'fees', but they were for sure significantly smaller than ALDAR's profit.
But..... After the worldwide crisis suddenly struck UAE, nobody wanted to purchase flats at all.
ALDAR did not like 'cost plus fee' contracts any more. And, Laing O'Rourke said 'thank you, we are not interested'.
If you continue to claim how Laing O'Rourke is bad, please be honest and answer the simple question:
What should Laing O'Rourke do?
I find the decision of Laing O'Rourke very, very smart. Of course, many expats had to be fired.... but they have been hired under assumption that ALDAR will go ahaed with the project.
We all make own decision. But, it is wrong to blame someone else if the things end up belly up.
Laing O'Rourke is a VERY reputable company with fascinating references... They make a deal with ALDAR for 'cost plus fee'. They set up a very sophisticated company in the country far away from Europe and managed to bring both highly paid specialists and cheap labour.
ALDAR got the great opportunity to sell the flats more expensice than in London while paying the cost of cheap labour. It was a great business. Laing O'Rourke got their fixed 'fees', but they were for sure significantly smaller than ALDAR's profit.
But..... After the worldwide crisis suddenly struck UAE, nobody wanted to purchase flats at all.
ALDAR did not like 'cost plus fee' contracts any more. And, Laing O'Rourke said 'thank you, we are not interested'.
If you continue to claim how Laing O'Rourke is bad, please be honest and answer the simple question:
What should Laing O'Rourke do?
I find the decision of Laing O'Rourke very, very smart. Of course, many expats had to be fired.... but they have been hired under assumption that ALDAR will go ahaed with the project.
We all make own decision. But, it is wrong to blame someone else if the things end up belly up.
#64
Forum Regular
Joined: Aug 2008
Posts: 51
Re: Beware of Laing O'Rourke
You mean slanderous or scandalous ?
Facts are facts and rumours are rumours.
The accounting /budget goings on are fact. Within the overall Al raha project there are many smaller projects each having their own separate contract and budget. The budgets quoted by ALOR were deliberately low so that they could get the contracts approved and signed by the ALDAR chairman. The idea was that the contracts were on the NEC terms and conditions and if the budget was exceeded they could go back and ask for more (in theory). The way NEC works is that as soon as they knew there would be overspend they are supposed to put a document together to explain why and then get this authorised by Aldar to increase the budget.
Problem was that no-one really knew how to operate the NEC contracts (not even ALDAR !!) and so ALOR proceeded merrily on until the budget ran out blindly under the impression that they will get paid for what they spend plus their % on top. This was back in mid 2008 by the way. However, when ALOR applied for payments that exceeded the approved budget ALDAR quite rightly refused to pay and only paid up to the budget amount.
So what ALOR did to keep the over-spent projects going was to "borrow" budget from other contracts that had just started and still had lots of budget left. This went on and on until the recession started to kick-in and there were suddenly not enough new projects to "feed" the over-spent ones. This meant that some projects had consumed almost all their budget but not even half the work had been carried out.
This was all done not just with the knowledge of the senior management but under the specific "instruction" of the senior management.
When there was no more budget left they had to start trying to operate NEC and ALDAR were suddenly inundated with revised budget forecasts for approval which increased budgets (more than doubled on some jobs) but with no real justification other than it is costing more than expected!! When ALDAR received these this is when the **** hit the fan.
Non of the proposed budget increases were approved and the overall project gradually started to grind to a halt. People started getting sacked and the rest is history.
ALDAR instructed that all new projects (instead of being "given" to ALOR) would go out to open competitive tender with the other big contractors allowed to bid for work that was previously given to ALOR.
ALOR had brought out thousands of staff in anticipation of getting all the new projects to the new increased budgets. When this did not happen this is why they suddenly had to sack hundreds of staff. People had given up good jobs in the UK and elsewhere for the promise of 10 years in the sun tax free. They brought their families...some of the spouses had also given up good jobs and kids were settled into new schools. Many people had bought cars etc. But because of ALOR catastropic mangement decisions peoples lives were put in complete turmoil.
The individuals responsible should not only be named but should be locked up.
Facts are facts and rumours are rumours.
The accounting /budget goings on are fact. Within the overall Al raha project there are many smaller projects each having their own separate contract and budget. The budgets quoted by ALOR were deliberately low so that they could get the contracts approved and signed by the ALDAR chairman. The idea was that the contracts were on the NEC terms and conditions and if the budget was exceeded they could go back and ask for more (in theory). The way NEC works is that as soon as they knew there would be overspend they are supposed to put a document together to explain why and then get this authorised by Aldar to increase the budget.
Problem was that no-one really knew how to operate the NEC contracts (not even ALDAR !!) and so ALOR proceeded merrily on until the budget ran out blindly under the impression that they will get paid for what they spend plus their % on top. This was back in mid 2008 by the way. However, when ALOR applied for payments that exceeded the approved budget ALDAR quite rightly refused to pay and only paid up to the budget amount.
So what ALOR did to keep the over-spent projects going was to "borrow" budget from other contracts that had just started and still had lots of budget left. This went on and on until the recession started to kick-in and there were suddenly not enough new projects to "feed" the over-spent ones. This meant that some projects had consumed almost all their budget but not even half the work had been carried out.
This was all done not just with the knowledge of the senior management but under the specific "instruction" of the senior management.
When there was no more budget left they had to start trying to operate NEC and ALDAR were suddenly inundated with revised budget forecasts for approval which increased budgets (more than doubled on some jobs) but with no real justification other than it is costing more than expected!! When ALDAR received these this is when the **** hit the fan.
Non of the proposed budget increases were approved and the overall project gradually started to grind to a halt. People started getting sacked and the rest is history.
ALDAR instructed that all new projects (instead of being "given" to ALOR) would go out to open competitive tender with the other big contractors allowed to bid for work that was previously given to ALOR.
ALOR had brought out thousands of staff in anticipation of getting all the new projects to the new increased budgets. When this did not happen this is why they suddenly had to sack hundreds of staff. People had given up good jobs in the UK and elsewhere for the promise of 10 years in the sun tax free. They brought their families...some of the spouses had also given up good jobs and kids were settled into new schools. Many people had bought cars etc. But because of ALOR catastropic mangement decisions peoples lives were put in complete turmoil.
The individuals responsible should not only be named but should be locked up.
#65
Banned
Joined: Jun 2009
Posts: 12
Re: Beware of Laing O'Rourke
Using NEC contract does not necessarily mean that the contractor is entitled to additional money. NEC has 6 different options with different payment terms. It can either be priced contract, target cost or cost reimbursable. If it's priced contract, the price will be fixed and the contractor carries the financial risk unless the client asks for a change order which is called compensation event under NEC. So it all depends on which option they are using.
#66
Just Joined
Joined: Sep 2009
Posts: 4
Re: ALDAR LAING O ROURKE REDUDANCIES
Such a shame that a company like Laing O'rourke ( a company that has mispent millions of Aldors finances by their mismanaged approach to everything) has been on the receiving end of all this bad press,
such a shame indeed.
i'm sure that if i was financing multi million DHS contracts i would want a "top heavy" company running them, yes i would stipulate that why hire just one incompetent manager to do a job when 10 incompetent managers can do that one job just as badly, and LOR have can get these people at a moments notice. "Jobs for the incompetent eh"
LOR should hold it's head in shame for raping the economy of Adu Dhabi assuming that it's finances were a bottomless pit which they could use to employ inexperienced managers at ground level on the sites,
also, apparently the criteria for safety managers is such that you should be fat, to the extent that your shirt no longer fits you properly, be grossly incompetent at your job and be the project managers "pet bitch"
sometimes a word in the ear is far better served than a slap to it stu,
anyway i've said my bit
comments please
such a shame indeed.
i'm sure that if i was financing multi million DHS contracts i would want a "top heavy" company running them, yes i would stipulate that why hire just one incompetent manager to do a job when 10 incompetent managers can do that one job just as badly, and LOR have can get these people at a moments notice. "Jobs for the incompetent eh"
LOR should hold it's head in shame for raping the economy of Adu Dhabi assuming that it's finances were a bottomless pit which they could use to employ inexperienced managers at ground level on the sites,
also, apparently the criteria for safety managers is such that you should be fat, to the extent that your shirt no longer fits you properly, be grossly incompetent at your job and be the project managers "pet bitch"
sometimes a word in the ear is far better served than a slap to it stu,
anyway i've said my bit
comments please
#67
BE Forum Addict
Joined: May 2007
Location: Utopia
Posts: 1,644
Re: ALDAR LAING O ROURKE REDUDANCIES
Such a shame that a company like Laing O'rourke ( a company that has mispent millions of Aldors finances by their mismanaged approach to everything) has been on the receiving end of all this bad press,
such a shame indeed.
i'm sure that if i was financing multi million DHS contracts i would want a "top heavy" company running them, yes i would stipulate that why hire just one incompetent manager to do a job when 10 incompetent managers can do that one job just as badly, and LOR have can get these people at a moments notice. "Jobs for the incompetent eh"
LOR should hold it's head in shame for raping the economy of Adu Dhabi assuming that it's finances were a bottomless pit which they could use to employ inexperienced managers at ground level on the sites,
also, apparently the criteria for safety managers is such that you should be fat, to the extent that your shirt no longer fits you properly, be grossly incompetent at your job and be the project managers "pet bitch"
sometimes a word in the ear is far better served than a slap to it stu,
anyway i've said my bit
comments please
such a shame indeed.
i'm sure that if i was financing multi million DHS contracts i would want a "top heavy" company running them, yes i would stipulate that why hire just one incompetent manager to do a job when 10 incompetent managers can do that one job just as badly, and LOR have can get these people at a moments notice. "Jobs for the incompetent eh"
LOR should hold it's head in shame for raping the economy of Adu Dhabi assuming that it's finances were a bottomless pit which they could use to employ inexperienced managers at ground level on the sites,
also, apparently the criteria for safety managers is such that you should be fat, to the extent that your shirt no longer fits you properly, be grossly incompetent at your job and be the project managers "pet bitch"
sometimes a word in the ear is far better served than a slap to it stu,
anyway i've said my bit
comments please
#68
banned
Joined: Oct 2008
Posts: 7,611
Re: ALDAR LAING O ROURKE REDUDANCIES
Such a shame that a company like Laing O'rourke ( a company that has mispent millions of Aldors finances by their mismanaged approach to everything) has been on the receiving end of all this bad press,
such a shame indeed.
i'm sure that if i was financing multi million DHS contracts i would want a "top heavy" company running them, yes i would stipulate that why hire just one incompetent manager to do a job when 10 incompetent managers can do that one job just as badly, and LOR have can get these people at a moments notice. "Jobs for the incompetent eh"
LOR should hold it's head in shame for raping the economy of Adu Dhabi assuming that it's finances were a bottomless pit which they could use to employ inexperienced managers at ground level on the sites,
also, apparently the criteria for safety managers is such that you should be fat, to the extent that your shirt no longer fits you properly, be grossly incompetent at your job and be the project managers "pet bitch"
sometimes a word in the ear is far better served than a slap to it stu,
anyway i've said my bit
comments please
such a shame indeed.
i'm sure that if i was financing multi million DHS contracts i would want a "top heavy" company running them, yes i would stipulate that why hire just one incompetent manager to do a job when 10 incompetent managers can do that one job just as badly, and LOR have can get these people at a moments notice. "Jobs for the incompetent eh"
LOR should hold it's head in shame for raping the economy of Adu Dhabi assuming that it's finances were a bottomless pit which they could use to employ inexperienced managers at ground level on the sites,
also, apparently the criteria for safety managers is such that you should be fat, to the extent that your shirt no longer fits you properly, be grossly incompetent at your job and be the project managers "pet bitch"
sometimes a word in the ear is far better served than a slap to it stu,
anyway i've said my bit
comments please
#69
Re: ALDAR LAING O ROURKE REDUDANCIES
Sounds like another round of cuts then. Minuteman, do you work in Logistics by any chance?
#70
Re: ALDAR LAING O ROURKE REDUDANCIES
Such a shame that a company like Laing O'rourke ( a company that has mispent millions of Aldors finances by their mismanaged approach to everything) has been on the receiving end of all this bad press,
such a shame indeed.
i'm sure that if i was financing multi million DHS contracts i would want a "top heavy" company running them, yes i would stipulate that why hire just one incompetent manager to do a job when 10 incompetent managers can do that one job just as badly, and LOR have can get these people at a moments notice. "Jobs for the incompetent eh"
LOR should hold it's head in shame for raping the economy of Adu Dhabi assuming that it's finances were a bottomless pit which they could use to employ inexperienced managers at ground level on the sites,
also, apparently the criteria for safety managers is such that you should be fat, to the extent that your shirt no longer fits you properly, be grossly incompetent at your job and be the project managers "pet bitch"
sometimes a word in the ear is far better served than a slap to it stu,
anyway i've said my bit
comments please
such a shame indeed.
i'm sure that if i was financing multi million DHS contracts i would want a "top heavy" company running them, yes i would stipulate that why hire just one incompetent manager to do a job when 10 incompetent managers can do that one job just as badly, and LOR have can get these people at a moments notice. "Jobs for the incompetent eh"
LOR should hold it's head in shame for raping the economy of Adu Dhabi assuming that it's finances were a bottomless pit which they could use to employ inexperienced managers at ground level on the sites,
also, apparently the criteria for safety managers is such that you should be fat, to the extent that your shirt no longer fits you properly, be grossly incompetent at your job and be the project managers "pet bitch"
sometimes a word in the ear is far better served than a slap to it stu,
anyway i've said my bit
comments please
#73
Re: ALDAR LAING O ROURKE REDUDANCIES
I'm not sure I could bring myself to pay over 60k GBP a year in rent in this country. Especially as at the moment I have a three bed in town with a pool, gym and parking for 120k AED...