Rising costs require contractors to substitute imported material by sourcing locally manufactured products. Another mitigation strategy is directly purchasing costly and long-lead items through clients’ procurement teams as early as possible, even before the contract is awarded.

Payment terms are another critical factor in ensuring project success. Savvy developers are considering alternative payment mechanisms and conditions, including realistic advance payments, allowing contractors to purchase expensive items at the earliest. Securing project funds in foreign currency may also help protect against future foreign exchange (FX) fluctuations.

In addition, as technology profoundly impacts all aspects of the construction sector, cost management plans are no exception. The increased use of Building Information Modelling (BIM) technologies should minimise potential conflicts between tender documents, thereby reducing the risks of cost and time claims during construction.