Experts: Finance, debt and the contractor … the most prominent challenges of citizens in housing construction

Written by: Iman Abdullah Al Ali

The experts pointed out that the challenges that citizens face when building a house are the finances and the return of the citizen to borrowing from banks that exceed his capabilities, as well as the problems that occur between the contractor and the citizen, which sometimes reach the corridors and courts. , and the lack of engagement by some contractors contributes to the delay in submitting projects to their citizen owners, the contractor’s failure to implement the project, and breach of contract.

Specialists participating in the Ramadan session “Gulf” on the “Twitter” space, entitled “Challenges of building an apartment … Causes and solutions” stressed the need to increase the financial culture of citizens and to promote a culture of saving in society , as well as the need for the establishment of bank guarantees by contractors, projects do not stop in case of lawsuits and failure of the contractor, to guarantee the rights of all parties, in addition to increasing the value of loans granted to citizens under housing programs, and the need to establish controls over the issuance of contractors’ licenses.

And attended the virtual dialogue session, Aisha Al-Mulla, member of the National Federal Council, Abdullah Al-Shehhi, Director of the Department of Engineering Projects at the Mohammed bin Rashid Housing Institution, lawyer Ali Mosbeh Dahi and lawyer Ahmed Al-Maamari.

Financing and use of loans

Aisha Al-Mulla stressed that the biggest challenge is financing, both in value, which is considered insufficient in terms of high prices of construction materials, so the young man turns to bank credit, which creates a number of problems and another . The challenge is the ignorance of the citizen about his rights in concluding contracts with the Contractor and the consultant, in terms of knowing the laws related to this, leads him to a big spiral, as he often faces challenges with the contractor when he starts job. , such as late delivery of the house on time, and placement of materials that do not match those in the contract, so he does not understand what the penalties are for the other party to the contract. The lack of his commitment, and all of these issues constitute a burden for the citizen and the other challenge is that the citizen has to borrow from more than one bank to complete the construction and he has nothing left from the salary.

Aisha Al-Mulla supported the idea of ​​giving citizens loans from housing programs so that loans are at the full value of construction, within the standards and requirements and a clear legal framework, thus reducing the burden on citizens.

She stressed that society lacks a culture of saving and that culture should be strengthened in future generations and a full national campaign should be implemented to promote this culture and we start with students until they understand the meaning of saving, and that means a culture of life. Noting the need to establish controls over the issuance of contractors’ licenses.

Home beyond needs

Abdullah Al-Shehhi stressed that the most salient challenges are that most homeowners build a house that exceeds their needs and financial capabilities. A citizen can build a house that exceeds two million and thus reaches a stage that he can not complete the construction, as that construction study is incorrect, as the Foundation has conducted a study on houses that are successful in construction for nearly 4 years, it was found that the dimensions of construction exceed the needs of the family and the next point is the non-implementation of the contractor. the project and the breach of contract.These reasons influenced the prohibition of construction for years, in addition to the change of the project by the owner during the start phase of construction.

Bank guarantee from the contractor

He also stressed that there are solutions to the challenges in terms of project procrastination, namely that licenses issued to construction contractors must have bank guarantees and supervision, in order to reduce the number of random licenses. Basic license and starts working and at the moment when he is not able to commit to the surrender, he escapes, leaving the partner citizen and the owner of the house in even greater trouble and the establishment of a bank guarantee will limit these practices. There must be awareness for the part of the citizen to build according to his needs, taking care to build in a way that enables it to expand in the future, so that this does not constitute a financial burden for him in the first phase.

Construction contracts and commitments

Lawyer Ali Mosbeh Dahi confirmed that the owner always has a contract with the consultant, which is the supervision and determination of construction requirements, and the second contract between the contractor and the owner, which is the contract in which there are obligations for both. the parties and compliance with the deadlines set for completion and the owner must make regular payments under the contract As defined the contentious procedures in the courts are smooth and there are no delays. the court appoints an engineering expert to compile the report and ascertain the shortcomings and errors of either party, and consequently contentious proceedings are regular in court.

Regarding the most prominent housing issues, he said: Sometimes the contractor files a lawsuit against the owner, for not paying the amounts on time and as a result some problems occur between the two parties, on the other hand, the owner files a lawsuit. against the contractor, because the other receives the financial payments, and does not complete the building Depending on the payment received, he delays his project by months and years. There is another problem between the two parties, regarding the specifications, as the owner discovers that the specifications provided in the contract are not similar to the specifications completed at home, so the owner is forced to claim that the specifications are less than the value of the contract. regarding owner issues with the consultant are very few.

He explained: The owner should determine his data from the beginning and the amount he can, and choosing a good contractor will avoid him from many problems, looking at the contractor’s previous projects and asking the owners of those projects about the scope of the contractor’s commitment to the delivery time and specifications, and this issue will contribute to selecting the correct and dedicated contractor.

Supervision of contracts

Lawyer Ahmed Al-Maamari demanded the necessity of increasing the supervision of contracts between the two parties, the ranking of contractors and the application of the star system for contractors.

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