Construction Business News ME - February 2017

OCTOBER JANUARY 2016 2017

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

How the UAE’s new Fire and Life Safety Code will improve safety in tall buildings

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February 2017 // Issue #24

Editor’s note News Appointments Contracts Comment On Site La Perle: The latest addition to Dubai’s entertainment scene

30 Interview

Niall Greene, managing director, Middle East, Linesight

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34 Cover Story

The Burning Issue: Dubai’s new Fire Safety Code

38 Event Review Intersec 2017

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// Editor's note

editor’s note

Worth the Wait

It’s taken longer than expected but finally the new UAE Fire and Life Safety Code has landed. At over 1,500 pages, the revised document will be twice the size of its previous incarnation, first published in 2011 and amended the following year to make fire rated façade cladding mandatory in tall buildings. A new chapter has been added while all others have been subject to some sort of revision and improvement.

Hundreds more illustrations and diagrams will aid a clear understanding of the text and hopefully eliminate any room for confusion. The authorities have clearly taken their time to get things right. This has involved carrying out an extensive consultation with a large number of experts in the field of fire safety. We spoke to some of them to get their thoughts on the new code for our cover feature this month.

The big news is that owners and developers will not be compelled to retrofit

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older buildings with fire-rated cladding, as many had anticipated, leaving some 70 percent of Dubai’s buildings fitted with cladding that experts say has contributed to the rapid spread of fires. There are obviously some impediments to asking owners to change all the cladding on a high rise building. For one thing the cost of a full refit could run into millions of dollars while owners would also find themselves out of pocket if they have to tell all tenants to move out for several months during the renovation.

But speaking to the experts it is clear that there is much more to the new code than just cladding. While it will take a while to delve into the detail to assess the implications for everyone affected by the new code, I think we can call agree that, when it comes to stricter safety regulations, the ultimate winners will be UAE residents.

// construction business news me // February 2017

Jason o'Connell Editor

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// Update An update from around the region

For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news

Development

Dubai unveils waterfront megaproject

Dubai Harbour

Dubai kicked off 2017 with the announcement of a new waterfront mega development that will feature a cruise liner terminal as well as the largest marina in the MENA region.

Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum unveiled the plans for Dubai Harbour, to be located between the Palm Jumeirah and JBR. Meraas Holding will master the huge mixed-use development which will spread 12

over 20 million sq ft and will feature residential, retail and hospitality projects as well as an events arena and a marina with space for 1,400 vessels, increasing Dubai’s yacht capacity by 50 percent from the current 3,000 berths.

A 135 metre tower, dubbed ‘Dubai Lighthouse’ will landmark one end of the project which will take four years to complete once construction begins.

Another standout feature of the project will be an integrated transport system in the form of a monorail that

// construction business news me // February 2017

will link Bluewaters Island, Palm Jumeirah and the mainland.

The masterplan of the new destination integrates Skydive Dubai, Dubai International Marine Club (DIMC) and Logo Island into a single community.

HH Sheikh Mohammed said: “We are happy that this new project, which represents a unique and innovative new addition to the region’s tourism landscape, opens up a range of new opportunities to investors. “‘Dubai Harbour’ creates a

venue for new investments that support our vision for this important sector and promises to further accelerate the expansion of the tourism industry in the UAE, which is already growing rapidly.

“I am confident that the project will have a highly positive impact on our entire region’s tourism sector.

We are keen to encourage new projects and promote investments that will contribute to bringing to the region more tourists interested in experiencing this part of the world,” His Highness added.

Energy

UAE to invest $163bn in energy projects The UAE plans to invest AED 600bn (163bn) in energy projects by 2050 and will boost the contribution of clean energy to 50 percent of the overall mix to enable savings of AED 700bn.

Under the UAE Energy Plan 2050 launched last month by Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum, the government hopes to generate 44 percent of its energy from clean sources, 38 percent from gas, 12 percent from clean coal and 6 percent from nuclear. The plan also calls for residential energy consumption to be slashed by 40 percent by 2050.

“Our new energy plan balances supply and demand, and takes into consideration our international commitments in terms of the environment. It also seeks to ensure a conducive economic environment for growth across sectors,” His Highness

said while launching the UAE Energy Strategy 2050.

“The new strategy takes into consideration an expected annual growth of 6%, and efforts to increase the contribution of clean energy in the energy mix from 25% to 50% by 2050, apart from the reduction of the carbon footprint resulting from power generation by 70% over the next three decades,” His Highness said.

The plan is a joint effort of

all energy-related authorities and executive councils in the UAE, and was developed under the supervision of the federal government represented by the Ministry of Energy, and the Ministry of Cabinet Affairs and The Future.

“Ensuring the sustainability of energy resources guarantees the sustainability of our country’s growth. Drafting the first unified energy strategy in the country based on

supply and demand is a significant achievement of the government. He who does not think of energy is not thinking about the future,” His Highness said.

“The Gulf countries are similar in their economic structure, and we hope that we will one day have a unified GCC energy strategy in order to ensure sustainable growth for our people and global influence for our economies,” he added.

The strategy will be implemented in three phases: the first aims to accelerate the move to efficient energy consumption, ensure stable sources of energy and the diversification of energy sources, while the second aims to find new energyefficient solutions for transportation.

The third will focus on research and development in addition to enhancing innovation and creativity in the supply of sustainable energy.

Qatari contractor Investment Holding Group (IHG) plans to raise around $135mn from launch an initial public offering (IPO) on the Qatari Financial Market.

Italian architect One Works has won the international competition held by Qatar Rail to design the new Transport Education Centre in Doha, Qatar.

// Bitesize news

Majid Al Futtaim plans to build a new AED 300mn ($82mn) project in the heart of Masdar City in Abu Dhabi by the end of 2018.

Gulf Contracting Company (GCC) has marked the start of structural concrete works for the first phase of the Al Majed Tower in Lusail City, Qatar.

construction business news me // February 2017 //

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// NEWS

Property

Dubai property sector attracts $25bn in 2016

The findings confirm that the Dubai real estate market has reached a new phase of maturity” Sultan Butti Bin Mejren

Dubai continued to attract a wealth of investors in 2016 with the sum of real estate investment transactions for the year exceeded AED 91bn ($24.8bn).

As has been the case in previous years, the leading investors were GCC citizens which contributed AED 35bn, according to a new report by the Dubai Land Department (DLD) The emirate’s real estate sector recorded a total of AED 259bn ($70.5bn) worth of real

estate transactions in 2016.

DLD’s report identifies Dubai’s top five sales areas for 2016 in terms of volume as Business Bay followed by Dubai Marina, Jebel Ali 1, Burj Khalifa and Warsan 1.

In terms of value, the Burj Khalifa area came out on top, having secured over AED 7bn across 2,097 transactions.

Following closely behind, the Dubai Marina area recorded 2,937 transactions worth AED 6.3bn. Business Bay secured third place, followed by Jebel

Ali 1 and Warsan 1.

Commenting on the report, His Excellency Sultan Butti Bin Mejren, Director General of DLD, said the findings confirm that the Dubai real estate market has reached a new phase of maturity and stability, and that it is moving towards sustainable growth.

Bin Mejren predicts that the market will gain further momentum in 2017, signaling an upward trend for sustained growth in the run-up to Expo 2020.

// In numbers

$136mn 550 $815mn Development cost of Nakheel’s new resort on Deira Islands

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rooms in the resort to be managed

by Centara of Thailand

// construction business news me // February 2017

already invested by Nakheel in Deira Islands infrastructure

Construction tender

Nakheel tenders Deira Islands Boulevard

Nakheel has invited construction proposals for the AED 5bn Deira Islands Boulevard residential project that will eventually be home to 10,000 people.

The master developer released a tender for the construction of 2,924 apartments and townhouses in 16 residential towers.

Due for delivery in 2020, Deira Islands Boulevard lies at the heart of Nakheel’s 15.3 sq km Deira Islands coastal city, a new hub for living, leisure and hospitality and a key element of the Government of Dubai’s tourism vision.

Reaching up to 21 floors, the 16 towers will be built in four clusters, each containing nearly 670 one, two and three bedroom apartments, 65 townhouses and ground-level retail and recreation facilities.

There will be 4,500 podiumlevel car parking spaces at the development, which will have a total built up area of over seven million sq ft.

Deira Islands Boulevard is set on an area of land spanning more than nine million

sq ft – equivalent to nearly 120 international-standard football fields – with 20 percent of the development dedicated to communal outdoor space.

The project will be built around Deira Mall, Nakheel’s 6.5 million sq ft shopping, dining and leisure destination, for which a construction tender has already been released.

The Boulevard will also contain six further buildings – two hotels, two serviced apartment complexes and two residential – bringing the total number of towers to 22. A construction tender for these will be issued in due course.

The new homes at Deira Islands Boulevard are key to Nakheel’s residential leasing strategy, under which the company is doubling its existing number of units to nearly 36,000.

Nakheel is also building homes to lease at Jebel Ali, Nad Al Sheba, Palm Jumeirah and Jumeirah Heights, adding to its existing stock at The Gardens, Discovery Gardens, International City and Jebel Ali Village.

Corporate

Etihad ESCO saves $9.3mn

Etihad ESCO retrofitted over 2,000 buildings in 2016 saving $9.3mn and 54 GWh of energy from executing out major projects for government organisations.

Dubai Electricity and Water Authority (DEWA), Jebel Ali Free Zone Authority (JAFZA), Dubai International Financial Centre (DIFC), and Mohammed Bin Rashid Housing Establishment (MRHE) all saved on their energy thanks to Etihad ESCO. The energy service provider is undertaking a number of new projects in 2017 as it works towards achieving the goals of demand side management strategy (DSM Strategy) and Dubai integrated energy strategy (DIES), which aim to slash energy consumption by 30 percent by 2030.

Ali Al Jassim, CEO of Etihad ESCO, said: “As of today, we are pleased to announce that 2016 saw positive growth for ESCOs in Dubai. Most of our projects and programmes enabled a considerable amount of energy savings while advancing into more extensive phases of implementation. We have successfully completed retrofitting of 2,178 buildings,” he added.

“In general, buildings comprise a huge amount of the total consumption in Dubai, and thus make an important component in the Dubai Integrated Energy Strategy and Demand Side Management Strategy 2030.”

Etihad ESCO’s retrofit programme for 2017 includes a further 2,000 buildings and energy saving of 20 percent.

Hill sells claims division for $147mn Hill International is to become a pure-play project management firm after agreeing to sell its construction claims group for $147mn in cash to private equity group Bridgepoint.

The claims division, with approximately 960 professionals in 40 offices worldwide, booked revenue $163.1mn for the 12 months ended September 30, (accounting for 26.3% of Hill’s revenue during that period) and operating profit of $11.1mn.

Net proceeds from the sale will be used primarily to pay off Hill’s outstanding senior debt, which currently totals $145.8mn but which is expected to be lower by the time the deal closes in around 60 days.

“Our Construction Claims Group was the original business that began Hill more than four decades ago,” said David L. Richter, Hill’s Chief Executive Officer.

“We will miss our friends and colleagues in that business but we know that each of us will be in a better position to grow our two distinct businesses as independent and separate companies.

“This transaction transforms Hill into a pure-play project management firm with a significantly stronger balance sheet,” added Richter.

construction business news me // February 2017 //

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// NEWS

// Snapshot

Jameel Al Ramahi, CEO of Masdar delivers the keynote speech to the World Future Energy Summit 2017

Awards

DLD extends Real Estate awards deadline

Top 5 Web Stories

www.cbnme.com

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1

Dubai unveils waterfront megaproject

2

Aconex deployed for Kuwait causeway

3

UAE to plough $163bn into energy projects

4

Nakheel confirms $136mn Deira Islands Resort

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UAE to release new fire safety code

Dubai Land Department (DLD) has extended the nomination deadline for The Gulf Real Estate Awards until February 15 thanks to the high level of interest from companies across the GCC. The original deadline was January 19, meaning prospective nominees have almost an extra month to submit their nominations. The winners will be announced at a ceremony on April 19.

Mahmoud El Burai, Executive Director of Dubai Real Estate Institute (DREI), said: “In light of the high level of applicant interest from a wide number of companies in the GCC real estate sector, we have decided to extend the application deadline and provide an opportunity for more companies to participate in The Gulf Real Estate Awards.

“We are delighted with the response; even in its inaugural year, we expect the program to generate strong competition across all of the award categories.”

El Burai added: “The awards are designed to raise the bar for innovation in

// construction business news me // February 2017

the real estate sector, and provide a platform for GCC companies to highlight their innovative solutions to addressing real estate matters. It promises to have a real impact on the market by promoting best practices.”

Dubai Real Estate Institute, the educational arm of Dubai Land Department, signed an agreement with Awards International at the recent Cityscape Global 2016 exhibition, which paved the way for The Gulf Real Estate Awards.

Infrastructure

Riyadh Metro Line 3 tunneling complete Salini Impregilo has completed tunnel excavation on the longest line of the massive Riyadh metro project.

Also known as the Orange Line, Line 3 is more than 40 km long, but only about 11 km will be underground, excavated by a combination of tunnel boring machines and the “cut and cover” method. The completed metro line will have 22 stations.

Completion of the work on Line 3 was celebrated in the presence of Riyadh Governor HRH Prince Faisal bin Bandar Al Saud in the Downtown Station of the metro.

Located near the Riyadh governor’s palace in the heart of the city, the Downtown Station will be one of the iconic stations, with two underground metro

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Salini Impregilo leads the ArRiyadh New Mobility (ANM) consortium, one of three involved in the $23bn, six-line Riyadh Metro project that will cover 176 kilometres.

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// NEWS

Infrastructure

Dubai plans $1.9bn sewerage infrastructure spend

Dubai Municipality has allocated AED 7bn ($1.9bn) in this year’s budget for executing water drainage and treatment projects.

The lion’s share of the budget will be spent on the storm water tunnel project for the Airport City and

the Expo 2020 Venue areas, which amount to AED 5bn.

The projects are 55 percent complete and will be operational before the opening of Expo 2020.

Areas covered by the project include Deira, for which an initial study has been done.

Currently, primary design is being studied, which includes the drilling of two tunnels and the pipelines will be extending up to 13 kilometres.

The AED 1.4bn sewage treatment plant in Jebel Ali comes in second place in terms of importance. The plant will be expanded to have a capacity of 675,000 cubic meters per day instead of its current capacity of 300,000.

The expansion of the plant has three basic objectives: to absorb the excess flow from the Expo areas and the diversion of a portion of the load of Warsan Station to Jebel Ali, as it is operating above design capacity by about 27 percent. It is due to be completed in 2018 and will serve 1.8 million people covering an area of 25,000 hectares.

Treated water produced by the plant is used for irrigation purposes in public parks and for city greening as well as in district cooling plants.

// They said...

“Ensuring the sustainability of energy resources guarantees the sustainability of our country’s growth” His Highness Sheikh Mohammed Bin Rashid Al Maktoum

“As of today, we are pleased to announce that 2016 saw positive growth for ESCOs in Dubai” Ali Al Jassim, Etihad ESCO

KEF Holdings unveils $100mn facility KEF Infra, the infrastructure division of UAE-based KEF Holdings, has launched the world’s largest and fully integrated offsite manufacturing park in Tamil Nadu, India.

Valued at $100mn, KEF Infra One spans one million square feet and features a diverse range of cutting-edge technology to revolutionise manufacturing and delivery processes in the construction industry.

With 10 manufacturing lines featuring industry 4.0 technology, the facility promises significant cost and time savings in building hospitals, homes, schools, hotels

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and specialised infrastructure.

Automation and data exchange is integrated with manufacturing technologies, where a network of smart factories is driven by human endeavour and Cyber- Physical Systems, to create durable and sustainable products in an environment that is differentiated through performance speed, efficiency and precision.

Faizal E Kottikollon, founder and chairman, KEF Holding said: “At KEF Infra, we challenge conventional building methods and move the industry towards an effi-

// construction business news me // February 2017

cient, and automated platform.

“The launch of KEF Infra One is an important step towards achieving our vision of pushing forth the next phase of India’s growth through world-class infrastructure.

We are proud to introduce this revolutionary concept to the world.”

With a strong pipeline of projects within India through 2017, KEF Infra also aims to export its global vision of innovation and technology-led development to various GCC markets, starting with the UAE, to specifically address the sustainable infrastructure demands in the region.

“The awards are designed to raise the bar for innovation in the real estate sector” Mahmoud El Burai, Dubai Real Estate Institute (DREI)

Energy

Masdar and Bee’ah to build Wte plant

Masdar will develop a wasteto-energy plant in Sharjah in partnership with Bee’ah, it was announced at Abu Dhabi Sustainability Week 2017.

Diverting as much as 300,000 tonnes of solid waste from landfill each year, the project will help Sharjah reach its “zero waste-to-landfill” target by 2020 – and the UAE deliver on its 2021 goal of diverting 75 percent of solid waste from landfills.

The facility will incinerate up to 37.5 tonnes of solid waste per hour to create 30 megawatts (MW) of energy. This will add more power to what is produced by Bee’ah’s auxiliary waste-to-energy project, which will eventually produce a total of 90 MW and will be supplied to the Sharjah electricity grid.

Khaled Al Huraimel, Group CEO of Bee’ah, said: “Today marks the first venture in the realisation of the partnership that we announced with Masdar last year. The cutting-edge Waste-to-Energy plant in Sharjah is a concrete example of what this strategic partnership will deliver to the UAE and the communities that we serve.”

Bee’ah collects approxi-

mately 2.3 million tonnes of waste from nearly one million households in Sharjah each year, diverting around 70 percent of its collected waste to its recycling waste management facilities from landfill.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “With GCC countries having among the highest rates of per-capita waste production in the world, sustainable waste management solutions are both critically important and a clear business opportunity.

“Masdar will combine its proven expertise in renewable energy project development over the last ten years with Bee’ah’s track record in environmentally responsible waste management, to deliver a project that will catalyze further investment in wasteto-energy infrastructure in the UAE and beyond.”

Masdar is adopting waste management best practices in the development of Masdar City in Abu Dhabi, where its construction waste management demonstration project reuses and recycles waste building materials from the City’s construction sites.

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construction business news me // February 2017 //

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// Appointments

Appointments Movers and shakers in the industry

Schneider promotes Hanan Darwish Hanan Darwish has become the first woman to be named Schneider Electric’s Cluster President, Gulf and Pakistan. In her new role, Darwish will oversee all business operations within the region for the specialist in energy management and automation. She brings more than 17 years of experience in Schneider Electric to the role. Prior to her latest appointment, she was the Global Senior Vice President, Corporate Strategy and Human Resources, Energy Business, covering a scope of more than 29,000 employees worldwide.

GFH Real Estate appoints new CCO

Emrill names new MD UAE facilities management firm, Emrill has promoted Alex Davies to the position of Managing Director at its Dubai head office. Previously Operations Director, Davies has a proven track record in delivering all aspects of facilities management within the UK and in the UAE. He brings a wealth of international experience acquired over 13 years with Emrill’s shareholding company, Carillion. Prior to joining Emrill in 2014, Davies held a number of Director positions at the UK construction contractor.

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GFH Real Estate has named Mohammed Khalil Ahmed as its new Chief Commercial Officer to maximize and diversify its revenue. Prior to joining the Bahrainbased developer, he held the same position at the Bahrain Airport Company, where he was responsible for managing all airport revenues streams. His previous experience includes eight years at Al Khaleeji Development Company (Tameer), where he was an Executive Director in the Property Development and Services department.

Beale & Co builds construction team

Claire Miller

// construction business news me // February 2017

Law firm Beale & Company has started the New Year with a number of changes to its construction team in Dubai aimed at significantly strengthening its capability in the Middle East. Claire Miller has been promoted to Partner while John Sheils has been appointed as a consultant and Natalie Ledger has transferred to Dubai from the London office. Sheils and Ledger join Royston Pendley - Managing Partner of the Dubai office - Claire Miller and Linzi Ashworth in Dubai.

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// Contracts

Contracts Al Futtaim Carillion wins $200mn One Central deal Al Futtaim Carillion (AFC) has won a contract to deliver the next phase of One Central in Dubai, taking the total value of work awarded to the company on the Dubai World Trade Centre project to AED 1.8bn ($490mn). Phase 1A6 of One Central, located between the current Dubai International Convention and Exhibition Centre and Emirates Towers, comprises two Grade A office buildings of 12 and 8 storeys. The contract, which is worth approximately AED 725mn ($197mn), will begin in January 2017 and is scheduled for full completion at the end of 2018.

Aecom and SYSTRA signed for Dubai Tram extension Dubai’s Roads and Transport Authority (RTA) has awarded phases 2 and 3 of the Dubai Tram to SYSTRA in association with AECOM. The pair will take charge of transport planning, preliminary design and invitations to tender for the second and third phases, a process which is expected to last around 14 months. The company previously worked on the design for both lines of the Dubai Metro and the first phase of the Dubai tram launched November 2014.

Chinese firms ink $530mn deal for Kuwait hospitals Kuwait’s Health Insurance Company (Daman) has signed a contract worth KWD 162mn ($530.85mn) with China Metallurgical Group Corporation (MCC) to build two hospitals in Jahra and Ahmadi governorates with capacity of 600 beds each. The hospitals, which will serve insurance-paying expatriates, are scheduled to be ready to operate by the end of 2019.

Zamil Steel Construction Co wins $2.26mn contract Zamil Steel Construction Company (ZSCC) has won a SAR 8.5mn ($2.66mn) turnkey contract from sister company Zamil Alpla Plastics Middle East Company. The project encompasses construction of an extension to an existing plant Dammam, Saudi Arabia. The contract includes structural, architectural, electrical and mechanical work on three primary buildings.

The steel building has been designed, fabricated, and will be delivered by Zamil Steel, the subsidiary of Zamil Industrial engaged in pre-engineered steel design and fabrication.

SNC-Lavalin bags extension with Aramco SNC-Lavalin Fayez Engineering (SLFE) has won a five-year extension to its existing General Engineering Services Plus (GES+) contract with Saudi Aramco, with three one-year options to extend. Under the deal, SNC-Lavalin will be invited to bid on front-end engineering, detailed engineering and project management services on projects including onshore oil and gas production and processing facilities, building and infrastructure projects, as well as refining and petrochemical facilities.

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// construction business news me // February 2017

Amlak names Bahrain tower contractor Bahrain’s Amlak has awarded a construction contract for a residential tower to Yousif Al Zayani Trading & Contracting Co. The Sixty Six is a sixstorey building with 66 fully-furnished apartments and a luxury recreational floor with a swimming pool, gymnasium and multipurpose room. The project is scheduled to complete by mid-2018.

Atkins wins major power consultancy work in Oman Atkins Power & Renewables has clinched the contract to provide technical advisory services for the development of the Oman’s Power 2021 Procurement Cycle to expand the current installed powergen capacity of around 6,000 MW by 800 MW. Atkins will have an extensive scope of work from drafting the project definition report and competition paper right through to the award of the developer contract. The total duration of the project is expected to be 18 months.

ACES wins work for Al Maktoum Airport Consultant Dar Al Handasah recently awarded ACES Dubai with the geotechnical investigation Package 6 for Al Maktoum International Airport. Field works started in December using more than ten of ACES rotary drilling rigs and is expected to be completed in the first quarter of 2017. Work includes drilling of 600 boreholes to depths ranging from 15 to 50 meters, with a total linear meter of more than 12,000. The next phase of the Al Maktoum Airport expansion comprises construction of an additional terminal building, concourses and runways, and other ancillary structures.

Batco wins contract for The Address Fujairah Eagle Hills has awarded Batco Group with the contract for marine and grading works on its project in Fujairah, UAE. Located south of Al Aqah beach, the mixed-use development comprises The Address Fujairah Resort + Spa hotel, and The Address Residences Fujairah Resort + Spa and is expected to be deliver in 2019. Awarding the marine and grading contract marks the first step in realising the project which was unveiled during Cityscape Abu Dhabi in April 2016.

Petrofac pens $600mn Oman LPG contract Petrofac has signed a contract worth close to $600mn with Oman Oil Facilities Development Company to undertake the engineering, procurement and construction (EPC) of its Salalah LPG project in southern Oman. Under the terms of the 36-month contract, Petrofac will build the LPG unit and associated facilities, including tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah. construction business news me // February 2017 //

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// Comment

A new generation of health As innovation and the requirements for different types of hospital has grown, so have the demands made on master planning and design teams

By Barry Landrum, Associate Director in Design Management of SSH

H

ealthcare is changing and evolving around the world, and nowhere is this more evident than in the Middle East. With the rise of digital healthcare and other expanding and innovative approaches to hospital and care centre designs, the landscape has been evolving with a clear focus on improving the patient experience.

In the past functionality may have been achieved at the expense of comfort. Research evidences that high quality patient care and recovery rates can be improved through careful design for better patient outcomes. With regional targets and standards being firmly put in focus by governments across the GCC, and specifically within the UAE, in Dubai and Abu Dhabi, the healthcare services in Middle East are increasingly improving to deliver to international standards.

The way that hospitals are designed and built has changed considerably in recent years, in a way that is positive for the patient. While functionality and cost will always be considerations, other factors are increasingly being introduced as desirable in any design brief for a healthcare facility.

On one level, a hospital is about the flow of goods, people and waste.

While it is essential to the successful delivery of services in every hospital that the flow of people, materials and waste functions smoothly and efficiently these elements shouldn’t be considered in isolation as to do so disregards the human element that could ultimately make the difference 24

The way that hospitals are designed and built has changed considerably in recent years to a patient and positively impact on the healing process.

There have been many studies into how design, light, providing scenic views, displaying art and other nonmedical elements influence patient wellbeing. Vibrant and welcoming spaces can reduce stress, lower blood

// construction business news me // February 2017

pressure and be a positive distraction for patients, visitors and staff enabling the environment to facilitate healing.

These are vitally important ingredients to incorporate in the design of the building and the build process thereafter. An example of design for healing can be seen at the Sheikha Salwa Al-Sabah Centre for Stem Cell and Umbilical Cord in Kuwait. Clean lines with a focus on enabling natural day light to enter internal spaces provide patients with tranquility and invite a sense of calm while undergoing treatments.

The challenge of designing a medical facility can be considerable. The creation of safe and secure, well equipped, functional spaces that work in relation to each other can make the difference between life and death. Efficient floor planning must be aligned with the philosophy of the organisation in respect of patient care and engagement and be supported by the necessary technology in order for well-planned buildings to deliver the best environments for patients, visitors and medical staff.

Architecture and medicine are team-based activities. Medical teams bring clinicians and medical staff members together to deliver holistic patient care. The collaboration between pharmacists, social workers, lab technicians, nurse practitioners and many more specialists drives the need for a variety of treatment spaces.

It also requires a level of coherence of staff spaces, requiring prescribed adjacencies of workspaces to enable them to function efficiently.

Recent developments in the Middle East suggest that countries are enhancing their capacity, making the GCC a hub for healthcare. Dubai and Saudi Arabia are aggressively building an increasing number of hospitals, of greater size, followed by Kuwait and Qatar. In the UAE, Dubai has launched the world’s first medical tourism portal, where international medical tourists can book procedures, with discounted travel rates and visas.

The medical tourism initiative in the UAE has set a target of receiving over 500,000 international medical tourists by the year 2020, underlining the determination for increased medical capacities in the Emirate.

SSH holds a growing portfolio of prestigious healthcare projects and is currently working on the largest specialist pediatrics hospital of its kind in the world. It will be a landmark project for the Kuwaiti Ministry of Public Works and Ministry of Health, consisting of 792 beds with diagnostic and treatment facilities capable of treating patients from across the Middle East. It will have the capacity to cater for the healthcare needs of 4.5 million people.

Modern healthcare provision in the Middle East is taking an evolutionary turn, adding a dimension of luxury that currently can only be found in this part of the world. As innovation and the requirements for different types of hospital has grown, so have the demands made on master planning and design teams. Architects could now take inspiration from the levels of comfort in hotels or the communication connectivity in office spaces for example and incorporate them into healthcare design. When doing so they will need to retain the necessary hospital layout requirements, enabling the next generation of healthcare services to be delivered in comfortable healing environments, providing privacy in addition to efficient operations and management.

It will not be long before there is a 5* hotel in a hospital.

Additionally, a new field of study that emphasises the significance of

Kuwait Children's Hospital

credible evidence to influence healthcare design, known as, EvidenceBased Design (EBD) is employed

by SSH. It provides a mechanism for clients and designers to incorporate empirical evidence to best design healthcare environments. By introducing positive distractions (artwork, entertainment and nature) designers are able to improve patient healing, reduce stress, increase safety and reduce the need for infection control.

All result in fewer staff errors and positively impact on patient outcomes.

To support the delivery of accurate information, SSH also applies BIM software to produce coordinated sets of complex data, while Codebook and Activity Data Base (ADB) are used to assist with the production of repetitive information for example. Used wisely these tools deliver direct cost savings throughout the life of a project enabling shorter delivery periods and securing the standardisation of

information. In unison, as an ongoing process they bring positive financial benefits to any investment in healthcare facilities.

SSH has extensive experience in the sector across the globe. Its rich talent pool of shared professional expertise and knowledge is invaluable in a sector where design integrity matters, and facilitates collaboration with clients to create buildings that assist with the healing process. The ultimate goal at SSH is to lead the design of the expanding national healthcare system in the UAE, continuing to produce world-class architecture that facilitates faster recovery, improving the standard of care offered by the hospital’s operators.

With the growth of the healthcare sector in terms of hospitals and the growing specialised healthcare workforce, alongside the technological developments, SSH is well placed to lead healthcare design into a new ‘gold standard’ generation of healthcare.

construction business news me // February 2017 //

25

// On Site

26

// construction business news me // February 2017

Pearl of Dubai A new theatre in Al Habtoor City will be the first of its kind in the region.

T

he opening of Dubai Opera in August marked a watershed for the cultural scene in this City. The Atkinsdesigned theatre has already proved a huge hit with cosmopolitan audiences previously deprived of a world class entertainment venue.

A new 1,300 seat theatre is set to take show business in Dubai to the next level. La Perle in Al Habtoor City will become home to the region’s first permanent Cirque du Soleil-style show when it opens its doors this summer.

Approaching the bridge over the canal on Sheikh Zayed Road (SZR) you can’t fail to notice the imposing hotel and residential complex. What you won’t see is the ongoing construction of a new type of entertainment space nestled between the St Regis, Westin and W Hotels. With an entrance through the W, La Perle has been designed to host a show created by Italian-Belgian theatre director Franco Dragone, who has launched a number of similar shows in major cities such a Macau, Paris, Las Vegas and two in China.

Steven Dubuc, Construction Project Manager with Dragone, recently gave Construction Business News a tour of the unusual venue as it entered the final stages of construction. Dubuc worked for Dragone on the two projects in China and prior to that he was with Cirque du Soleil for 15 years.

Vastly experienced, he estimates he was involved in the construction of around 70 percent of these types of venues in Las Vegas.

The themes of the show will draw heavily on Dubai’s history and culture.

Even the name La Perle, refers to the city’s heritage as a centre for pearl diving and trading. This has influenced the design of the interior, a process that began with well-known French set designer Jean Rabasse.

“The way this works is a little bit different from the design of a standard theatre like Dubai Opera where you have an architect that designs the building and then you put on different shows,” he explains. “This theatre is designed specifically for one type of show.”

La Perle certainly features a number of unusual design elements that you’d be unlikely to find in a typical theatre.

To start with there is a ‘wet stage’, a steel structure built over a water basin that is five metres deep in the centre and two metres deep around the perimetre. The perforated stage floor allows the water level to be raised within 60 seconds by releasing water from a tank located high up in the venue. From a special apparatus fixed 25 metres up in the eaves of the building, performers will then dive into the pool below.

Another stand out feature of the ultra-high-tech space is the enormous automated proscenium doors that stretch almost the full length of the 33 metre high building. Despite the lofty ceiling, overall the space manages to remain relatively intimate, with the audience almost encircling the stage.

Al Habtoor Group hired specialist

construction business news me // February 2017 //

27

// On Site

theatre consultants Auerbach Pollock Friedlander (APF) to work with Khatib and Alami (K&A), the engineers and architects of record for the entire Al Habtoor City project. Dubuc and APF have collaborated on a number of similar projects over the years.

“They are the ones that sit with the architects and explain things such as the need for extra capacity in the roof because we have to hang things from the ceiling. All that engineering is being done by K&A with input from APF and Dragone,” he says.

“Every space has its own difficulties,” he adds. “Here one of them was that K&A and (construction contractor) HLG had never built a theatre before.

When you’re building a hotel it’s ‘cut and paste’. But no two square metres of this building are the same so it’s very difficult to get a rhythm going with the labour force. You have to watch them all the time because it’s a more complex building.”

Access to the building posed another challenge for contractors. The theatre is locked between hotels on three sides so the only point of access was from the side of the building facing the residential towers. Incredibly, that access has now been sealed off and the space is enclosed 28

This theatre is designed specifically for one type of show”

Steven Dubuc, Project Manager bar a few entry points that are too small to get large equipment through.

“We have kept a hole in the wall that’s covered by a finished hotel and when we need to bring our scenic pieces in they will have to unbolt a finished wall to let us bring them inside the building before closing it back up again,” Dubuc says.

Access issues have posed an additional logistical headache. For example, the proscenium doors had to be assembled inside the building before being lifted into place. A special drawbridge that gives performers access to the

// construction business news me // February 2017

stage had to be assembled on scaffolding because the floor was not built yet.

Though the site is busy 24/7, the bulk of construction happens during the day with clean up and dismantling taking place at night. When Construction Business News visited HLG had around 250 workers on site while steel and structural contractor Cleveland Bridge had around 40-50 workers, down from a peak of 350. Though the show does not open until mid-2017, the theatre will need to be finished well in advance to allow for rehearsals and testing of all the specialist equipment.

Dubuc arrived onsite in May but his involvement on La Perle goes back much further than that.

“I worked on the project when it was in the concept phase,” he explains.

“Then I left Dragone for a year and when it was time to oversee the final 8-10 months they asked if I was available to come back, so I did.”

The project might be drawing to a close, but Dubuc won’t necessarily be leaving town when it’s done.

“I have another offer here in Dubai so we’ll see,” he says.

One thing looks certain though; this won’t be the last venue of its kind to be built in Dubai.

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Qatar National Museum Doha, Qatar

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// Interview

A Clear Vision Linesight started life as Bruce Shaw in Ireland 40 years ago as a small cost and project management company - predominantly quantity surveying. Times were tough in 1980s Ireland but the government introduced tax incentives that eventually attracted large US corporations. Working with these multinationals was the start of a journey that would take Linesight beyond Irish shores. Over the past 12 years the company has expanded internationally and now has 17 offices around the world.

Niall Greene, Managing Director Middle East, spoke to Jason O’Connell about the company’s journey and where it goes from here.

What does Linesight offer its clients?

Our primary service offering is cost consultancy and project management. Having been in relationships with some of the large multinationals, we had to expand our offering because they were looking for us to do more. So we had two choices. We could either curtail our service or expand it to compliment them and at the end of the day it’s all about meeting the client’s requirements. So we expanded our scope of services to programme management, development management, project controls and then the cost consultancy – all of those complimentary to each other.

In the last couple of years we’ve found there’s a demand for services here that we were offering back in Europe when we were dealing with distressed projects. Banks have released significant funding to the market and they don’t know when they’re going to get their money back or whether it has gone to the project they’ve funded. Has it funded other projects that the contractor or indeed the de30

veloper has started? So one of our growth areas in the last 18 months has been in that area of due diligence of projects.

When did you come to the Middle East?

I came out here at the back end of 2008. At that stage we were predominantly an Irish business and it’s only in the last few years we started to expand into the International market.

Unfortunately 2008 was when everything fell off a cliff. We had two options: to go home or to stay. So we moved our focus to Abu Dhabi but that never really took off. We were faced with a number of tough choices.

Whether to develop locally within the UAE or branch out.

We decided to look at Bahrain which was going well at the time but at the end of 2009 that went through a difficult period as well.

Saudi Arabia was still going strong so we got involved there on a large KAUST university project supporting them on the cost and the close out of some of the major contracts with Saudi Oger and Saudi Binladin. That gave us

// construction business news me // February 2017

Bahrain Marina

€60m Linesight's annual turnover

a foothold there and over the last eight years KSA has been the strongest market in the region for us.

Dubai came back strong in 2011 and we got engaged on a couple of large projects such as the W Hotel on the Palm Jumeirah which gave us a good foothold in the hospitality sector here. We now have a number of large scale hospitality projects in the region such as the Four Seasons in Bahrain and the Katara 800-bed hotel in Qatar and we’re doing a variety of hotel projects in Mecca.

Which sectors do you focus on?

Some of our competitors cover several sectors whereas we are very focused on sectors that we know we’re good at and know we can add value. Those would include the tier one sectors such as hospitality,

Bruce Shaw was a very strong brand but we needed a new brand to bring us on the next part of our journey” healthcare and technology/ life science. We’ve done a lot of data centres here, for example. We’ve done a lot of hotels and right now we’re doing the two largest healthcare projects in the region – one in KSA and one in the UAE. Around 75 percent of our turnover in recent years has been on the basis of repeat business with clients. We have clients that started out with us back in Ireland 30 years ago such as Microsoft and Hewlett Packard and

we’re still working with them globally. We’re in the business of identifying key clients and developers where we know they have a good history of paying consultants and we have a history of delivering good key projects.

How many people work at the company?

We looked at this and whether to grow organically or through acquisition. The model we chose was to employ very se-

nior guys. At the moment we have about 500 senior execs within the organisation. We’re not in the business of hiring lots of lower cost people. Yes it impacts on fees but we’re going after a different market as a business.

What was the thinking behind the name change to Linesight last year?

Bruce Shaw was a very strong brand but we needed a new brand to bring us on the next part of our journey of expansion. In order to continue to grow we needed a brand that we completely owned globally.

There was a small practice owned by a guy whose name happened to be Bruce Shaw – doing the same business. If you work with large multinationals and they do a search on you and they find a few Bruce

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// Interview

Shaws that doesn’t help so we needed another name.

The Linesight name is now legalised in 40 countries.

We surveyed our clients and got feedback saying that we’re a very safe pair of hands and the right guys to go to at the start of a project. So we came up with the idea of Linesight, from the concept of looking through a telescope and having a clear and consistent vision to bring you on that journey. We provide a client with a select number of services or an all-encompassing service. We try and work to a flexible model to clients.

What’s your outlook for the year ahead?

There’s no question 2016 has been a difficult year across all markets, especially in Saudi Arabia and even Dubai has been a flat market but I do think we should see around Q3/Q4 this year that the market will recover very strongly and certainly here in Dubai with 2020 coming we should see enhanced construction activity. There are already signs of that with a significant number of government announcements in the past six months.

We hope to grow by another 20 percent this year with major growth in the US and Asia. We expect to grow by around 4 to 5 percent here. We see strong growth from 2018 onwards so on average over the next five years we should see 1215 percent growth.

The people that will give you a good indication of where the market is going are the funders who we are supporting with their due diligence. They are putting more and more influence on projects to make sure the 32

Featured Project Linesight provided cost management services for construction of the $2bn Alef Residences and five star W Hotel on Palm Jumeirah, Dubai. The ultra-high end project is spread across three buildings, covers 200,000 sq m, and is scheduled for completion by the middle of this year. A joint venture between Qatar’s Al Mana Global and Saudi Arabia’s Al Sharq Investment Group, the Alef Residences development consists of 104 homes priced from $3.5mn to $14mn.

feasibility stacks up, the procurement strategy is workable, the availability of contractors is there, etc. They are asking far more questions now about how a project will be built and how the income stream is coming into projects. They are building more confidence into the project financing. Lenders have been badly burnt in the past so now they’re being far more rigorous.

Will that continue even when the good times return?

I think so, yes. Developers also increasingly need our

// construction business news me // February 2017

services because they are under pressure from funders.

The clients used to be able to go in with a two page report but now they have to go in with a properly detailed and thought out plan. That can cause delays in projects but we’re delighted with that in some ways because all of the hard decisions are being made at the beginning and they are creating a proper strategy. So that’s one thing that gives us some level of comfort that the UAE market will rebound in the second half of the year. Overall the outlook for the region is not

overwhelmingly positive but it’s not negative either. We’re here for the long haul. We came here at a difficult time so the experience we gained then is helping us now.

What’s the biggest challenge for the industry in 2017?

Everyone needs to be selective about who they work with. For example, some contractors are underpricing projects and buying turnover.

The client might see that as being very attractive but he’s only buying a bag of stress in our opinion. Some

Lenders have been badly burnt in the past so now they’re being far more rigorous”

of our own competitors are even buying turnover. The feedback from that is that some clients are getting bad service. We would rather not do a job than do a bad job and get a bad name.

What are the key trends to look out for this year?

Project financing will be key, particularly in markets like Saudi. We are talking with the government about ways of generating project delivery and the obvious one there is project finance and using a PPP or PFI type of model

which has been successful in Europe and has been used for a number of projects here in the GCC region. For example, Medina Airport was developed into a PPP model and they’re looking at widening that now to education and healthcare projects in Saudi. It could be a success but the challenge around that is the risk. The guys putting up the finance need to make sure that the risk is shared evenly.

Where are the big opportunities for you?

The oil crisis won’t be there

forever and in Dubai there’s a lot of major projects in the pipeline with 2020 coming and in Qatar with 2022.

We’re advising in KSA on the 2020 vision and there is a lot of real thought being put into initiatives to stir a recovery in the absence of oil as funding. It won’t happen overnight but over the next 18 - 24 months there will be some real opportunities emerging in Saudi.

It’s an enormous economy with a young population that’s growing and they need major infrastructure just to sustain the organic

growth of the economy.

Hospitality will be a growth sector here in the region and particularly in the UAE. We are working on a number of large scale projects to the tune of 6,000 to 7,000 hotel rooms at the moment at early stages of pre-concept. These are mainly 4 and five star hotels. We have one very exciting project in Mecca with 106 hotels that’s part of a new district for pilgrims.

You’d never see anything like it anywhere else in the world. It’s going to be a 10year development plan supported by the government because of course this type of tourism is an alternative source of income.

Is Qatar on your radar?

We’ve done some work in Qatar but our strategy was to hold back because of issues with payment. We have one major project there and we are suffering a little bit on that. There is good opportunity on infrastructure but that isn’t a sector that we’re pushing here in the region. There are project delays and if you’ve got people on the ground there and you’re paying out salaries and there’s no money coming in from the client then that’s a problem. It was on the agenda about five years ago to open an office in Qatar but when we looked into it a bit more we decided to focus on the markets where we have a strong presence which is Saudi, Bahrain and Dubai. We are doing work in Kuwait and we are looking at Oman but right now we are focusing on those three markets which have been good to us.

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// Cover Story

How the UAE’s new Fire and Life Safety Code will improve safety in tall buildings.

Jason O'Connell reports

B

uilding fire safety in the UAE has become a hot topic in recent years following a number of high profile fires in tall buildings. A carelessly discarded cigarette sparked a blaze at the 34-storey Tamweel Tower in Jumeirah Lakes Towers (JLT) in November 2012. In February 2015 a fire started in an apartment on the 50th floor of the 79-storey residential Marina Torch 34

Tower and quickly spread upwards, destroying around 100 apartments and scorching large sections of the building’s cladding. And in July 2016 a fire broke out at Sulafa Tower, also in Dubai Marina, only yards away from the Torch Tower.

While each of these cases made headlines around the world, without doubt the most striking incident of all was the blaze that hit The Address

// construction business news me // February 2017

Hotel Downtown Dubai on New Year’s Eve 2015, just metres from where a spectacular fire work display was set to take place at the Burj Khalifa at midnight. Live images of the incident were beamed around the world.

Unsurprisingly the incident sharpened the focus of the authorities on producing an updated version of the UAE Fire and Life Safety Code. Though the new document was initially slated

to be launched in April 2016, it was not until last month’s Intersec 2017 - a leading trade show for the security, safety, and fire protection sector - that the revised code was finally unveiled.

UAE Fire and Life Safety Code – An Evolution The UAE issued the first edition of its Fire and Life Safety Code in 2011 and followed up with some amendments in 2012 that made it mandatory to use fire-rated facade cladding in buildings taller than 15 metres.

Prior to this it was common for developers to use non-fire rated Aluminium Composite Panels (ACP) which consist of a plastic filler sandwiched between two sheets of aluminium.

Experts have consistently pointed the finger at the flammability of the plastic component as the reason why in some cases fires have spread quickly across the outside of high rise buildings. It is estimated that as much as 70 percent of Dubai buildings constructed prior to 2013 may be fitted with non-fire rated ACPs and thus present a greater fire hazard than those built since.

The new code is the result of an extensive consultation by the authorities with a large number of key stakeholders within the construction sector over the past couple of years. In fact the process of revising the code began well before The Address fire sparked the attention of the world’s media.

However that incident, which thankfully resulted in no fatalities, increased the urgency to not only issue a revised code but to produce a thoroughly researched document that could be clearly interpreted by the construction and real estate sectors.

The result of this lengthy consultation is a UAE Fire and Life Safety Code with 20 chapters, just one more than the previous edition though at 1,564 pages it will be more than twice the size of the older code which contained 707 pages. The main reason for this is that the number of illustrations and diagrams within the new code has risen to 784 from 296 previously.

Due to increased construction and infrastructure activity in the UAE, we want to keep up to international safety standards, and we constantly strive to evolve and be better than yesterday” Lt. Col. Ali Al Mutawa, Dubai Civil Defence And yet, at the time of going to press there was still a limited amount of information available about the new code as an English language version had not been made available.

A spokesperson at the Dubai Civil Defence (DCD) booth at Intersec told Construction Business News it would

take a further 10 days to two weeks before a copy would be available to download. In the meantime it’s been possible to glean a certain amount of detail from interviews and press events given by DCD officials as well as from industry experts.

At a press conference to mark the launch of Intersec 2017, Lt. Col. Ali Al Mutawa, Assistant General Manager for Smart Services at DCD confirmed that a new code was imminent.

“Due to increased construction and infrastructure activity in the UAE, we want to keep up to international safety standards, and we constantly strive to evolve and be better than yesterday,” said Al Mutawa. “Chapters that have been updated include those relating to fire doors; cladding in buildings; access for Civil Defence trucks to reduce incident response times; and educating consultants, contractors and end-users on the latest modifications.”

New regulations governing alarm systems in houses and tourist facilities in Dubai Marina are included and there are also specific requirements regarding the storage of flammable liquids and renewable energy.

But possibly the most significant development is that the new code does not oblige building owners to retrofit older buildings with newer, fire-rated facade cladding panels, despite persistent rumours to the contrary in the months leading up to the release of the new code. Instead, Lt. Col. Al Mutawa said the revised code would focus on the installation of cladding rather than the type of cladding itself.

“Most people think that these big fires are a result of the cladding used. But the cladding doesn’t cause the fire. We discovered that the main reason for the quick spread of the fire is the way the contractor has installed the cladding on the building. That’s why we and Dubai Municipality are introducing stricter rules on installation of cladding.”

What we know Alexander Castellanos is Associate Director – Fire & Life Safety, Middle

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// Cover Story

Timeline of high profile building fires in the UAE

November 2012 - Tamweel Tower, JLT (above)

February 2015 - Torch Tower, Dubai Marina (above) December 2015 - Address Hotel, Downtown Dubai (pictured, right) July 2016 - Sulafa Tower, Dubai Marina December 2016 - Oceana Residence, Palm Jumeirah

36

East at WSP | Parsons Brinckerhoff, which advised the Civil Defence on multiple chapters of the 2017 code.

He says the main focus of the new document is on clarifying a number of points and to make it easier for the industry to understand.

“There have been enhancements or clarifications for every chapter,” he says. “The big focus is on making it more straightforward to interpret the written text with supplemental figures.

This was the original intent of the code but there were discrepancies between the figures and the text so what they’ve done is to make the images more representative of what the text states. That’s why there are so many more pages.”

So despite being far bigger in terms of pagination, the new code is not

// construction business news me // February 2017

meant to be more complex, says Castellanos. In fact quite the opposite.

It’s designed to be more prescriptive and easier to understand.

In addition there have been major updates to the smoke control chapter.

“The requirements for smoke control are actually very different for certain occupancies but it’s a clarification of what the intent was originally and it’s part of the lessons learned from recent fires,” says Castellanos.

The new code will also have a major focus on material certification to make sure that any building materials with a fire performance are made to the same specifications and meet the same safety standards, whether they are produced in Europe, the Middle East or China.

“Materials need to be certified in

The morning after the night before The Address Downtown Dubai

accordance with an international standard and in addition they need to be certified locally,” says Castellanos.

“And that’s what’s previously been ignored so there’s more focus on that now and hopefully it will have more enforcement as we go forward.”

Andy Dean, Head of Facades, Middle East at WSP | Parsons Brinckerhoff, is not surprised that the new code does not require retrofitting of older buildings.

“Renovating an existing building to the extent that you replace the cladding is a huge undertaking,” he says.

“It means having everybody move out of the building, stripping it down and then getting people to move back in again. If you take the cladding off you open the building up to the environment. That’s a complete

building change.”

However, while owners of older buildings will not automatically be required to upgrade these buildings to comply with the new regulations, if and when they do decide to renovate they will then need to be compliant with the new code. This has led to a situation where owners could be discouraged from making building improvements due to the cost of having to carry out an extensive renovation.

“I would say that it’s incredibly important that people do look at their existing buildings and review the risks that they have,” Dean says.

“Let’s say you have a 15-year-old building and you decide that you want to make it safer. Not necessarily right up to code but to make it safer.

Isn’t that a good thing?

“Everyone would agree that it is.

But there are sticking points to making that happen. For example, if you start changing a building here you are affectively making a modification and you need authority approval to do that. If you’re going to start working on a building it needs to be fully code compliant so it’s potentially putting a barrier in front of developers to improve their buildings.”

Dean says the authorities now need to consider putting a mechanism in place that would allow for the existing building stock to be upgraded without requiring that owners go to the huge expense of a full refit.

“At the moment there isn’t that ability to go half way,” he says. “And I think we need to find a way, with the help of the authorities, to improve existing buildings without having to completely change them to meet new code compliance. That’s something that has to happen as a next step.”

It will take a little time for the industry to digest the new fire and life safety code and to assess the implications as a whole for various stakeholders. What is clear is that the authorities have taken the time needed to carry out a wide ranging review that has resulted in a document that takes full account of the views of the industry while improving safety for residents. And though cladding panels have been the subject of much media scrutiny, the new code goes far beyond this one issue to address all relevant areas of safety.

“The code has been enhanced based on lessons learned, not necessarily to make it more complex but to clarify ambiguities in the previous code and to really address the growth of especially high rise buildings,” says Castellanos.

“And part of addressing that is that materials specification and certification is fundamental. Every material that has fire performance whether internal, external, structural, interior finish, everything. It’s a comprehensive solution, not just one thing you need to deal with.”

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// Event review

Safety

In Numbers Thousands flock to Intersec 2017 security, safety, and fire protection trade show in Dubai

P

roduct launches, live demonstrations, deals and the launch of an updated UAE Fire and Life Safety Code were among the highlight of this year’s Intersec in Dubai.

The 2017 edition of the world’s leading trade show for security, safety, and fire protection concluded January 24 with a new record in exhibitor and visitor participation during the threeday event.

Organiser Messe Frankfurt Middle East, said Intersec 2017 attracted 33,501 visitors from 127 countries, as they sourced solutions and networked with 1,304 exhibitors.

More than 150 exhibitors launched products across the seven show sections of Commercial Security, Fire & 38

Rescue, Safety & Health, Homeland Security & Policing, Information Security, Smart Home & Building Automation, and Physical & Perimeter Security.

Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “In an industry that is constantly evolving, and where more and more projects are being released into the market, the need of the hour is to be present at the right time with the right solution.”

Dubai Civil Defence had a strong presence at this year’s exhibition, where it announced the latest updates in the UAE Fire Protection and Life Safety Codes, along with some key initiatives.

The most eye-catching of these was undoubtedly the Dolphin, a firefighting system incorporating a jetski and

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a jetpack that will allow the Civil Defence to tackle blazes from the water.

Dubai Civil Defence also unveiled the use of smart services to collect data from across Dubai to help authorities and agencies deal with fire and safety issues.

Other key features at Intersec 2017 included an Outdoor Demo Area & Drone Zone, a Jobs & Careers Pavilion, the Techtextil Pavilion, a Safety Design in Buildings Pavilion, and a Smart Home and Building Automation Pavilion.

A three-day conference programme meanwhile was spearheaded by the Fire Safety Conference on January 22, and the Security Industry Regulatory Agency (SIRA) Forum on January 24, where details of Dubai’s new Regulation of Security Industry Law were outlined.

Intersec news Roundup K5 building $100mn fire safety factory in Ajman K5 Middle East, a firefighting products, solutions and technologies company, revealed at Intersec that it is investing $100mn to build its first manufacturing facility in the Middle East.

The factory in Ajman will address the demand for fire safety solutions in the Middle East which analysts say is growing at an average of 15 percent and will hit $3.15bn by 2020.

The UAE accounts for 34 percent or $476mn of the GCC’s $1.4bn fire safety market, driven mainly by the local construction boom.

Alex Perfiliev, CEO, K5 Distribution, said: “We foresee a high demand for innovative fire safety solutions in the UAE as Dubai

Civil Defence’s Strategic Plan 2017-2021 to reduce fire incidents by 10 percent and the ratio of death caused by fire per 10,000

people by 15 percent.

“While the UAE remains our key market, we will explore other potential market in the region, including the KSA, Qatar, Bahrain, Kuwait and Oman to bring our annual sales from this region to $100mn per annum.”

Evgeny Gabov, Director, K5 Middle East, said the state-of-the-art manufacturing facility will produce paints, foams, coatings and construction materials equipped with fire extension capacity, alongside K5 SAFETY PATCH and K5 PATCHPAINT.

Ducab unveils new fire cable testing lab UAE-based cable manufacturer Ducab unveiled a stateof-the-art laboratory for testing Ducab FlamBICC range of Fire Performance cables.

The new facility is offers various fire and smoke tests in accordance with BS8519 Code of Practice.

IEEE 1202 is specifically used for testing Ducab NuBICC range of nuclear grade cables making it the only facility to conduct this test in the region.

The BS EN 50399 test is a new requirement to meet CPR (Construction Product Regulation) for assessment of the ‘reaction to fire’ per-

formance of cable which will be mandatory across Europe by 1st July 2017.

Mohammed A. Al Mutawa, Ducab’s Chief Commercial

Officer, said: “Ducab commits to meet and adhere to all new certification standards as laid down by the UAE and international authorities, and

we are confident of meeting the new standards in the UAE as well.”

Ducab’s FlamBICC range can be used across various applications such as in schools, shopping malls, mass transit systems, special equipment in hospitals, and in essential safety circuits such as fire detection, fire alarms, and voice alarms.

The cables are installed for power supply to equipment used in fire-fighting, elevators, sprinkler pumps and in large complex buildings, where fire strategy involves evacuation of occupants in a phased manner.

construction business news me // February 2017 //

39

// Event review

BRISTOL VMD partners with Bronto Skylift BRISTOL Vehicles Manufacturing Division (VMD), the Abu Dhabi-based firefighting, rescue and safety vehicles manufacturer, announced a service and after sales partnership with Bronto Skylift, a specialist in truck-mounted hydraulic platforms.

The company will run the Middle East’s largest authorised service centre for Bronto’s range of aerial work platforms, which are typically used to fight fires in industrial and high rise areas.

Concorde – Corodex Group, the parent company of BRISTOL VMD, will act as the official sales agent of Bronto in the UAE. Dedicated areas of BRISTOL’s 30,000 square metre facility in Abu Dhabi and 20,000 square metre facility

in Dubai will provide 24/7 service support to Bronto’s extensive client base throughout the GCC and Middle East.

Mahmoud Awad, Managing Director of Concorde - Corodex Group, said: “Now, for

the first time, Middle East clients will have access to a locally-based authorised service center providing around the clock after sales and service support. This makes a tremendous difference in the ongoing effort to improve

the region’s ability to control potentially destructive fires.”

The partnership was signed during a ceremony on the opening day of Intersec in the presence of His Highness Sheikh Mansoor Bin Mohammed Bin Rashid Al Maktoum.

Centurion launches global rebrand and ME focus Centurion, a specialist in protective head gear, unveiled a major global rebrand and revealed plans to focus on the Middle East market.

The move follows the company’s decision to open a production site for the region in Saudi Arabia, the first head protection company to do so.

Centurion’s commitment to the Middle East was further underlined with the appointment of a dedicated Sales Manager for the Middle East and Africa.

This was the first time the company had exhibited at Intersec, which doubled as 40

the backdrop to unveil its new vision to key customers and industry insiders.

Jeff Ward, CEO at Centurion, said: “With a constant

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flow of major infrastructure projects planned throughout the region, there has never been a greater need for continuing advancement in

head protection systems to ensure workers can deliver their best.

“This year, we look forward to driving innovation in the protective headwear market, and ensuring that above-theneck protection continues to remain of paramount importance in the industry.”

Ahmed Kamel, Sales Manager for MEA at Centurion, said: “We’re hearing from customers that this is the right time to really cement our focus in the region, and our manufacturing presence in the Kingdom of Saudi Arabia is a testament to this.”

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// Vehicles

Nothing like the real thing MAN Truck & Bus Middle East tells buyers they are risking their businesses if they buy fake parts.

By Matthew Treanor

B

uying cheaper priced spare parts may seem tempting, particularly when the business environment gets tougher, but you could be putting drivers and other road-users in harm’s way. Non-OEM parts are not subject to the same rigorous testing or supply chain management procedures of their pricier authentic counterparts, leaving your company prone to increased incidences of faults at best or, in the worst case scenarios, at risk of causing costly and potentially dangerous accidents.

Unfortunately, the Middle East market is vulnerable to the importation of fake or counterfeit automotive parts. Recent research by global black market analyst Havocscope estimates the value of fake or counterfeit parts in the Middle East to be worth $1 billion. Other estimates suggest the figure could be as high as $2 billion.

The region is also open to exploitation by traders operating in the so-called grey market. As the name suggests, this is a murkier aspect of the global trade of auto-parts where seemingly authentic parts are distributed via non-authorised dealers. The grey market promises considerable discounts on parts that can enter into the region unsuitable for the harsh climate and are often poor imitations of the real thing. Use of untraceable grey market parts can also affect the future resale value of a vehicle – a critical consideration for all fleet owners.

MAN Truck & Bus Middle East always recommends that its customers opt for its own range of MAN genuine parts.

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“Whoever decides on a truck or bus/ coach from the MAN brand associates maximum expectations of quality, performance, safety and longevity with the decision. Justifiably, as MAN repeatedly occupies the top spots in national reports (for example, the TÜV report for Germany) in the category of ‘lowest percentage of faults’,” says Franz von Redwitz, managing director, MAN Truck & Bus Middle East.

“The aim of MAN is to provide the absolute best in quality when it comes to genuine parts, as in all other areas of its business, so that customers' vehicles are not only safe and efficient to drive, but will retain their value.

Always offer our customers MAN genuine parts to ensure we fulfil our promise of quality and to maximize the service life of customer vehicles,” comments Franz von Redwitz.

MAN Truck & Bus Middle East acknowledges that there is no doubt that non-OEM parts will cost less compared to original parts. However, these lower prices can usually only be achieved by cutting corners in terms of quality and safety standards: “This is because grey market manufacturers tend to get MAN genuine parts duplicated by unnamed producers in low-wage countries.”

Franz von Redwitz continues: “In most cases, these producers will not have an in-depth understanding of the specifications and requirements in relation to the genuine parts. It is therefore highly unlikely that parts will have been subjected to quality and endurance tests, constituting a safety risk for the vehicle and driver. All these mentioned checks and approvals

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Genuine parts are designed specifically and manufactured precisely for specified vehicles, this ensures that the installation of these parts is simplified and provides confidence of a long service life.”

Franz von Redwitz, managing director, MAN Truck & Bus Middle East

are not done by aftermarket companies which try via reverse-engineering and use of lower-quality materials to approach customers.”

As a globally operating OEM vehicle producer, MAN Truck & Bus works exclusively with recognized suppliers worldwide who manufacture their parts subject to its own demanding specifications. Spare parts only get a MAN item number once they have undergone and successfully completed MAN endurance and laboratory tests.

As such, only a MAN genuine part can guarantee the perfect fit, the best quality as well as maximum efficiency and service life. For this reason MAN service and parts-outlets work exclusively with MAN genuine parts.

“With genuine parts it is not trial and error, OEMs know every part that every vehicle was constructed with.

MAN provides the correct part first time with a quality customers can doubtless trust. All MAN genuine parts are backed with an international spare parts warranty, due to the rigorous quality controls MAN genuine parts are monitored under,” says Franz von Redwitz. “Genuine parts are designed specifically and manufactured precisely for specified vehicles, this ensures that the installation of these parts is simplified and provides confidence of a long service life.”

Customers’ total cost of ownership can be controlled easier by utilizing its extensive range of genuine parts. They know they are receiving: exceptional state-of-the-art quality; certified safety; security of investment in vehicle; driving safety and purchasing confidence (with manufacturer's warranty); high reliability and accuracy of fit.

“Indeed, each MAN vehicle is an intelligent investment which always benefits customers in the long term.

However, it is still possible to increase the value retention and efficiency of this investment once again. Thanks to the comprehensive MAN genuine parts and service, downtime can be significantly reduced and uptime will be increased.”

MAN Genuine Parts - Engine Kit

MAN Genuine Parts - Filter

MAN Trucks

construction business news me // February 2017 //

43

// Take 10

Take 10: Cultural Projects Gulf states are planning and building a number of impressive cultural destinations designed by top international architects.

1 Louvre Abu Dhabi The finishing touches have been put to the stunning, space ship like roof structure of the Jean Nouvel-designed Louvre Abu Dhabi while the sea now laps at the side of the building itself. Set to open this year after four years of construction, the $500mn project will be the jewel in the crown of the new cultural quarter on Saadiyat Island.

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2

Dubai Opera

Dubai Opera has been a big hit with audiences since opening its doors at the end of August last year. The 2,000 seat venue in Downtown Dubai has a diverse cultural programme that includes opera, theatre and concerts. Designed by Atkins in the shape of a Dhow, the project involved over 100 architects from the company’s different offices around the world.

3 Sheikh Jaber Al Ahmad Cultural Centre, Kuwait Kuwait inaugurated the $775mn Sheikh Jaber Al Ahmad Cultural Centre in December. Designed and project managed

by SSH, the building is the stunning centrepiece of a new cultural district in central Kuwait City close to historic Flag Square. It took just 22 months to complete the design and construction of the project.

construction business news me // February 2017 //

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// Take 10

4 Museum of Islamic Art, Doha Standing in Doha bay on its own custommade island, the Museum of Islamic Art houses the largest collection of Islamic art in the world. It was designed by architect I.M. Pei who was famously responsible for the renovation of the Louvre museum in Paris with its iconic glass pyramid. Construction of the building by Baytur Construction Co. (Turkey) was completed in 2006 but the museum was not officially opened to the public until December 2008.

5 Etihad Museum, Dubai HH Sheikh Mohammed bin Rashid Al Maktoum inaugurated Dubai’s new Etihad Museum in December and doors opened to the general public in January. Dubai’s Roads and Transport Authority (RTA) commissioned Al Shafar General Contracting (ASGC) to construct the memorial project which consists of a large museum complex incorporating eight distinct sections each corresponding to a specific historical period or theme.

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6

Oman Cultural Complex, Muscat

Comprising 15 independent buildings, the Oman Cultural Complex in Muscat will house a variety of cultural institutions including the National Documents and Archives Authority, the National Theatre, the National Library, the Children's Library, the Literary Forum, and the Youth Art Club. French firm AS. Architecture-Studio is the designer while UK-based consultancy firm Mace was appointed as the project and cost manager in July 2014. However a construction contract has yet to be awarded.

7 Guggenheim, Abu Dhabi More than 10 years after it was first announced, there is still no sign of substantial construction starting on the Frank Gehry-designed Guggenheim Abu Dhabi located in the Saadiyat Cultural District.

The structure’s distinctive cones recall the region's ancient wind-towers, which both ventilate and shade the exterior courtyards in a fitting blend of Arabian tradition and modern design. The museum will house a permanent collection that will celebrate the very finest examples of global art dating from the 1960s to the present day.

construction business news me // February 2017 //

47

// Take 10

8

Museum of the Future, Dubai

The motto of the $136mn Museum of the Future is ‘See the future, create the future’. True to its word the project will, at least partly, be built using the latest 3D printing technology. Plans for this project, earmarked for a site next to Emirates Towers, were announced in March 2015 and the project is scheduled to be complete in December 2018.

9 Zayed National Museum, Abu Dhabi The Foster+Partners-designed Zayed National Museum is the third of the trio of museums planned for the Saadiyat Cultural District along with the Louvre Abu Dhabi and Guggenheim Abu Dhabi.

The halls of the falcon inspired design will document the story of the late Sheikh Zayed bin Sultan Al Nahyan, the founding father of the UAE, as well as the story of the unification of the Emirates.

10

Sheikh Mohammed Bin Rashid Library

Dubai announced last year that the emirate is building what will be the largest ever cultural project in the Arab World.

Designed in the shape of a Rehl, the traditional lectern that holds books in general and the Koran in particular, the AED 1bn ($272mn) Sheikh Mohammed Bin Rashid Library is set to launch in 2017 and will house more than 4.5 million books. Completion is expected sometime in 2018.

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// construction business news me // February 2017

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// Legal Viewpoint

EPC Contracts: Key-Points to Consider Careful consideration of provisions is necessary to achieve a dispute-free project, says legal expert Heba Osman

E

The most important element when preparing an EPC Contract is to clearly define the scope” 50

ngineering, Procurement and Construction (EPC) Contracts (also referred to as “design and build” or “turnkey” contracts) are no longer a novelty and are used extensively in connection with infrastructure projects whether in the MENA region or further afield.

Owners have many good reasons to choose this method of procurement, as opposed to the traditional designbid-build, as it helps them to control the costs of the project through establishing a fixed lump sum price, fast track their project through combining the design and construction phases, shift risks that are typically associated with design in traditional construction to the Contractor and reduce the owner’s burden in respect of coordinating the project works.

In choosing this method of procurement, owners and contractors alike must have a clear understanding of their respective responsibilities and be vigilant in respect of the terms they agree to or include in their Contract. This article sets out some of the key issues that must be carefully considered at the time of drafting and negotiating EPC Contracts; which in turn will reduce the possibility of future claims or disputes between the parties:

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1

Scope of EPC Works: The most important element when preparing an EPC Contract is to clearly define the scope.

There are many standard EPC forms of contract available that can be used; but none of these standard contracts will be of any value if the scope of works is not precisely defined. EPC Contracts are typically used with revenue-generating infrastructure projects, and thus it is important not to only define the scope of works, but to set as clearly as possible the outputs required from the Project at completion. The contractor’s responsibility under EPC contracts is not limited to completing the project on time and within the agreed lump sum; but extends to delivering a project with specific outputs and quality. Consequently, defining the exact testing and commissioning that the project needs to go through on completion is also very important to ensure that the project is completed in the manner required. The definition of the scope of works is also highly relevant to fit for purpose provisions typically found in EPC contracts and without a clear scope of works this provision may be watered-down and of little value to owners.

2

The Role of Owner’s Team: it is true that one of the great features of EPC Contracts is that it frees the owner from the responsibility of coordinating or supervising the contractor’s works, however, some of the standard EPC/Turnkey Contracts still appear to call for the appointment of an engineer or an owner’s representative. The owner must make a conscious decision in this respect.

An engineer’s role under an EPC Contract should be, as much as possible, limited to the tender phase (preparing studies, contract documents and the owner’s requirements). After the award of the contract, the contractor assumes most liability under the contract and should be given the opportunity to carry out the works in the manner it deems feasible in accordance with the contract. The role of contract administration should be taken on by the owner’s representative and an appointment of a standing DAB (Dispute Adjudication Board) to resolve any disputes that may arise during the course of the Works.

3

Extensions of Time for Completion: EPC Contracts sometimes contain a contractual provisions guarantee that the works would be completed by the contractor at a specific date. However, as construction takes place over an extended period of time, events that can cause delay to the completion date must be taken into consideration and dealt with in the contract. Removing extension of time provisions totally is not advisable as there will be events that are out of the contractor’s control that would warrant the award of an extension of time. Examples of such events can be force majeure, exceptionally adverse physical conditions that were not foreseeable by an experienced contractor, delays or actions caused by the owner or the owner’s other contractors.

4

Increase to Fixed Lump Sum: typically a fixedlump sum price should not be increased except in specific circumstances. In an EPC Contract, the risk of incorrectly assessing the fixed-lump sum price falls on the contractor. However, this does not mean that it is not permissible under an EPC Contract for the lump sum price to be increased. By way of example, if there is no provision in the contract allowing for price increase on account of force majeure this could open up the contract for review by the relevant courts. As such, it is advisable to list the situations in which this fixed lump sum price can be increased or adjusted in a fair manner.

5

Owner’s Risk: As Sir Michael Latham states “No construction project is risk free. Risk can be managed, minimised, shared, transferred or accepted. It cannot be ignored”. Under EPC Contracts, the contractor assumes the bulk of the risk; however, this does not mean that the Owner is risk free. Typically the owner risk includes events that can be considered as a force majeure such as wars, revolutions, natural disasters … etc. Many contract drafters appear to think that that force majeure has the same definition everywhere. This is not true. For example, a revolution can be expected in certain parts of the world due to the instability of that jurisdiction. So a revolution would not automatically

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// Legal Viewpoint

qualify as a force majeure. It is, therefore, essential to define the exact risks that the owner would carry.

6

Responsibility for Owner’s Designs: whilst EPC Contracts tend to hand the entire responsibility of the design to the contractor, some contracts allow for the owner to use some of its designs. In such an instance, the contractor’s liability is diminished and the risk associated with the owner’s design stays with the owner. If this is not the intention of the parties, then it is important to include the owner’s designs as part of the owner’s requirements and require that the contractor review such designs and decide on its feasibility and whether such designs can be incorporated within the contractor’s works.

7

Completion of Works: as mentioned earlier EPC Contracts should specify the project outputs and what testing and commissioning should be passed to be able to consider that the project is completed. Therefore, a clear definition of the state of the works at completion should be added.

8

Defects Liability: typically construction contracts contain a defects liability clause requiring the contractor to remedy any defects (attributable to the contractor’s fault) that may arise in the works for a certain a period after completion. If the contractor fails to remedy the defects, this would entitle the owner to hire another contractor, at the contractor’s expense, to remedy the defects. EPC Contracts are no different and typically require the contractor to remedy any defects that appeared during the defects notification period.

However, as EPC Contracts usually contain new technology it would not always be easy to source another contractor to remedy the defects and it is therefore important for owners to consider how such a situation would be dealt with, should it arise.

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9

O&M responsibilities: following completion of the EPC works, the contractor tends to have responsibilities in respect of operating and maintaining the project. This is a departure from the typical construction contract. Training owner’s staff to use the facility or new technology of the project is essential to ensure the continuation of the project and its feasibility,

10

IP Rights: as EPC Contracts tend to bring new technology which the contractor holds its IP rights, it is important to ensure that the owner is given access and/or given suitable rights to the IP rights related to this works to be able to continue to operate and maintain it. An owner does not want to be surprised at the end of the project that it has no rights in respect of the technology provided and may be required to pay royalties or fees to utilise this Project.

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An owner does not want to be surprised at the end of the project that it has no rights in respect of the technology provided ” In conclusion, a good standard form of contract is an excellent starting point; however, careful consideration of the provisions contained is necessary to achieve a dispute-free successful project.

// Supplier News

Facades

Mulk boosts output of fire rated panels

U

AE-based conglomerate Mulk Holdings is investing over $20mn to expand and upgrade its existing production line of aluminium composite panels (ACP) in Serbia.

The move will provide the Alubond U.S.A. brand with increased revenue of $70mn from the sale of the fire rated facade panels and help to maintain the company’s double digit growth.

Mulk Holdings recently hosted a high level delegation led by Serbian premier H.E. Tomislav Nikolić at its

office and factory at the Hamriyah Freezone in Sharjah.

The company plans to set up a state of art ACP production line with A2 fire rating at the factory in Serbia along with a coil coating line with a production capacity of 12,000 tons.

In addition to the Serbia facility, new production bases planned in Sri Lanka and Saudi Arabia will increase the supplier’s global installed capacity of the panels to over 25 million square metres and coil coating capacity to over 20,000 tonnes per annum.

Hyundai Elevator bags $30mn KSA deal Hyundai Elevator Co. has clocked up a $30mn order from the Saudi Arabian government to install elevators and escalators in Security Forces Medical City, a large-scale medical complex currently under development in capital city Riyadh.

The Korean company will supply its products in stages from the third quarter of this year through the end of 2018.

An official from Hyundai Elevator said:

“Saudi Arabia is a main market of our globalization strategy. So, it is meaningful in that we bagged the deal at the moment when the economy of Middle East is contracted due to lower oil prices.”

The official added that the contract win put Hyundai Elevator in pole position to secure another Saudi government deal for a similar complex to be built near Jeddah.

Events

Fischer hosts calendar launch and media meet

G

erman manufacturer Fischer has organised its first media meet & calendar launch at its headquarters in Jebel Ali, Dubai.

The event started with the Fischer 2017 calendar launch which was based on ‘The Back to School Campaign’ – A CSR initiative to provide children with a platform to express themselves through art. Children from regular and special needs schools combined to produce the 2017 calendar.

The event was hosted Alexander

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Bässler – Fischer’s Regional Director for Asia and the Middle East, Jayanta Mukherjee – Managing Director for the Middle East operations and Kusum Rawat – Regional Marketing Manager – Fischer Middle East.

After the calendar launch the kids were rewarded for being shortlisted as the top 13 winners out of 400+ entries for the “Back to School – Junior Engineering Contest”. The event was followed by a media briefing on Fischer and an office tour of the company’s set up in Jebel Ali.

Software

Aconex software used for Kuwait causeway

A

conex software solutions is being used in the construction management of the $2.6bn Sheikh Jaber Al-Ahmad Al-Sabah Causeway.

One of the largest transportation infrastructure projects in the Gulf, the causeway will connect Kuwait City with an area across Kuwait Bay known as the Subiyah New Town or the City of Silk.

Project owner Kuwait Ministry of Public Works approved the selection of Aconex by contractors Hyundai Engineering & Construction Co. of South Korea and Combined Group Contracting Co. (CGC) of Kuwait.

Other members of the consortium include Systra, based in France; AECOM in Hong Kong; Dar Al-Handasah (Shair and Partners), headquartered in Beirut, Lebanon; TYLN International; and SSH International. Work began in November 2013.

Eng. Mai Al Messad, the project engineer, said team settled on Aconex because the collaboration platform is project-wide, neutral and easy to use.

Lifts and Escalators

KONE wins order for Bahrain airport expansion

KONE Corporation has won an order to supply the new passenger terminal building at Bahrain International Airport (BIA).

The Finnish firm will provide 85 elevators, 40 escalators, and 20 autowalks equipped with KONE E-Link monitoring.

The order is part of an extensive renovation project aimed at turning

the development into one of the most modern and futuristic airport buildings in the world. Following the expansion BIA will have the capacity to handle 14 million passengers annually up from the current nine million.

The BIA modernisation program is expected to be complete by the second quarter of 2020.

Schneider tops Navigant Research report Schneider Electric has been named a leader in the Navigant Research Leaderboard Report on Building Energy Management Systems (BEMS).

For the second year in a row, the company received the highest overall score for strategy and execution among 15 companies that have demonstrated a strong track record in the BEMS market.

Schneider Electric’s SmartStruxure solution, powered by the company’s StruxureWare Building Operation software, was recognised for its advanced capabilities in analytics that promote the development of intelligent buildings and optimise energy management.

Laurent Bataille, Executive Vice President, EcoBuilding Division, Schneider Electric, said: “As the intelligent building market continues to grow, solutions like SmartStruxure will serve as the digital backbone of building environments and drive new levels of energy and operational efficiencies.”

GCC governments, which are heavily investing in infrastructure, are committed to leveraging technology and smart solutions, given the increased emphasis on sustainable and green building, Schneider said.

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// Supplier News

Events

Raimondi Cranes eyes North America

Domenico Ciano, Technical Director, Raimondi

R

aimondi Cranes is looking to boost its profile in North America by exhibiting for the first time at the upcoming CONEXPO-CON/AGG tradeshow in Las Vegas, Nevada.

The Italian crane company’s entire executive team, along with technical specialists and export and aftersales care experts, will descend on the event which

runs from March 7 – 11.

“This is the first time in the history of Raimondi Cranes that we’ve taken steps to increase our visibility in North America,” said Eng. Domenico Ciano, Technical Director, Raimondi Cranes.

“By confirming our participation in the 2017 edition of CONEXPO-CON/AGG, we are signaling to the markets of Canada and the United

States that we are looking to cultivate strong, new relationships, while simultaneously developing upon cooperative efforts with our existing client base.”

Raimondi will be situated onsite at Silver 1-2, booth S5035 for the duration of the event.

“As an Italian heritage brand that has now transitioned into a more advanced technical space by implementing re-

Altaaqa Global recognised for energy performance Altaaqa Global Caterpillar Rental Power has become the first power rental company in the world to achieve ISO 50001:2011 certification from TÜV NORD, the ISO-accredited certification body headquartered in Germany.

The certification specifies steps companies must take to improve their energy management within operations and projects.

Peter den Boogert, CEO of Altaaqa Global,

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called upon the rental power industry to take up the cause of energy responsibility.

“Being in the business of providing electricity, the onus is upon us, temporary power providers, to conscientiously mitigate the environmental effects of our operations.

We are proud to have blazed a trail in energy performance and fuel efficiency in the IPP industry.”

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search-based design into our latest product launches, the luffing LR213 and the MRT159, we believe it’s now time to increase our North American activities,” added Ciano.

“The 2017 CONEXPOCON/AGG, co-located with the 2017 IFPE exposition, is a terrific opportunity for Raimondi to further its reentry in the respective North American markets.”

Events

Caterpillar rolls out new lines at CONEXPOCON/AGG 2017

Vehicles

W

ith 40 machines on display in two different exhibit areas totaling 60,000 square feet, Caterpillar’s presence will be among the largest at CONEXPO-CON/ AGG 2017 in March.

Cat® Connect Technologies for machine control and monitoring will share the spotlight with the machines it enhances—ranging from a skid steer loader to a 96-ton excavator.

Eight Cat machines will make their debut at CONEXPO and a half dozen more machines introduced recently will be on display for the first time at an equipment show.

The newest Cat machines

to be displayed include excavators, wheel loaders, a dozer, an articulated truck, a telehandler and cold planers. Caterpillar will also introduce new remote control technologies and connectivity technologies at the show.

In the large North Hall exhibit, booth 10924, the display will focus on excavating, grading, paving and aggregates mining and handling. The Gold Lot exhibit, booth 4490, will feature small machines used in building construction. A handful of large machines displayed in the Gold Lot will represent general construction and aggregates product lines.

S

KSA’s Atheryon partners with Al Habtoor Motors

audi Arabia’s oldest truck reseller has signed an agreement with Al Habtoor Motors to sell new FUSO trucks.

Atheryon International Corporation has built its reputation by selling used trucks and machinery, with special auctions 3 days a week, for buyers to purchase trucks at bargain prices. Now it is expanding its service by offering brand new FUSO trucks from light duty to heavy duty.

The company has also agreed to build a new FUSO operation in Qassim city to sell trucks and maintain them with service facilities and Genuine Parts sales.

Al Habtoor has trained the sales team at Atheryon to

have sound understanding of FUSO products and to be able to provide the best solutions for customer needs.

Simon Monahan, Al Habtoor Motors Saudi Arabia Country Head, said: “Al Habtoor Motors has received a warm welcome from truck resellers in Saudi Arabia. We are delighted to have Atheryon International as our official reseller.

“This partnership helps us serve truck operators better by making sure that service facilities are close-by, to reduce fleet costs, so we are excited to welcome Atheryon as our partner in Riyadh and Qassim to deliver the best possible FUSO customer care.”

construction business news me // February 2017 //

57

// Supplier interview

Hot Property

Alberto Torner, Regional Manager – Middle East and Africa, Ariston

The challenge here is that customers want the best quality at the lowest price

Tell us about your product offering Ariston is a privately owned company based in Italy, close to Rome with a turnover of $1.4bn. We’ve been operating here in the Middle East for the past 40 years.

We specialise in water heaters – that means electro water heaters, solar panels, heat pumps and gas boilers.

Our bread and butter is the electro water heater and now we are introducing bigger capacity heaters with two heating elements, 9kW in total.

We are also one of the few players to introduce gas condensing boilers because we find that some projects in this region, especially hotels, are pushing for gas because of the electrical load.

What is your client base?

Our products can be used in either domestic or commercial projects, depending on the capacity of the product. From single villas to labour accommodation and big hotels, they 58

can serve all needs. We sell the products retail and of course we do direct business with the project sector – construction companies, consultants, etc.

How is the market right now?

Last year was a good year for us.

The performance was better than 2015 and better than we forecasted.

I would say the project side of the business was stable. It’s the other part of the business that grew. Now solar is mandatory for each villa in Dubai so we are growing a lot on the renewable products side, not only solar but also heat pumps.

There is also a growing necessity to reduce the electrical load which means that developers and contractors are looking for higher efficiency products.

What challenges are you currently facing?

The challenge here is that customers

// construction business news me // February 2017

want the best quality at the lowest price. This is a problem because contractors are bringing the value of our industry to the minimum level.

This is not good. They are not creating value for our products.

We are one of the biggest manufacturers of electro water heaters and we are investing in technology to supply greener products and of course you have to invest a huge amount in R&D in order to supply the market with smarter products.

But over here there is the tendency to be very focused on price.

And this is a pity because in the end you have to provide good quality products.

Are you seeing much competition in the market?

We find a bigger number of unstructured, unorganised companies in the market. But we are aiming for quality. We have 22 production sites and every site provides the same quality.

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// Save the date

Save the date Mark your calendar

March

6-8

March

7-8

March

7-11

60

Kuwait Build 2016 Kuwait International Fair, Kuwait City Kuwait Build Exhibition & Conference will feature over 200 local and international companies in the building and construction sector showcasing the latest products and services in residential and commercial property infrastructure in a business platform of over 4,500 sqm of exhibition space.

Middle East Rail 2017 Dubai International Convention & Exhibition Center Middle East Rail is the region's largest rail exhibition and conference.

Run in partnership with the National Transport Authority and Ministry of Public Works UAE, the event will bring together GCC government authorities, rail operators and contractors who are driving regional rail projects forward.

CONEXPO-CON/AGG 2017 Las Vegas, Nevada Where every major construction industry is represented amongst 2,500+ exhibitors over 2,500,000 square feet and more than 140 education sessions including asphalt, aggregates, concrete, earthmoving, lifting, mining, utilities and more.

// construction business news me // February 2017

April

3-4

April

18-20

May

8-11

Middle East Road and Bridge Forum Dubai, UAE Middle East Road and Bridge Forum will gather heads of design, construction, projects, maintenance, asset management and safety from the transport infrastructure sector to address their challenges in achieving an increasingly cost-efficient, durable and safe transport network.

Cityscape Abu Dhabi 2017 Abu Dhabi National Exhibition Center The UAE capital’s largest and most influential property exhibition is back.

With hundreds of developments from Abu Dhabi and overseas being showcased, Cityscape Abu Dhabi 2017 is the home of real estate investment for the residential, retail, hospitality and commercial sectors.

Project Qatar 2017 Doha Exhibition and Convention Centre Project Qatar is Qatar's leading construction fair.

In 2016 over 1,050 companies and brands from 38 countries exhibited at the show and even more participating companies are expected in 2017. The event provides a unique platform to network and generate new business opportunities in the Qatar construction sector.

// Editor's pick

Tower Power

China leaves the Middle East trailing when it comes to building skyscrapers.

For the first year since 2006 the Middle East did not see the completion of a single supertall (300-plus-metres) building in 2016. However “optimistic projections” by The Council on Tall Buildings and Urban Habitat (CTBUH) show as many as nine supertall buildings completing in this region in 2017.

The Middle East contributed nine of the record breaking 128 buildings of 200m height or greater that were completed around the world in 2016, matching its tally in 2015, The Council said in a report. This continues a steady trend of completions in the region but pales in comparison to the Middle East’s all-time high of 23 in 2013.

Unusually, the United Arab Emirates (UAE) did not have the greatest number of 200m-plus completions in the region for the year. That accolade went to Qatar, with four towers completed in 2016 followed by the UAE with just two completions, and Saudi Arabia, Kuwait, and Bahrain tied with one each.

However, the UAE did complete the tallest building in the Middle East last year in the form of the 255m Regent Emirates Pearl in Abu Dhabi. The building includes a hotel with 377 rooms and suites and 60 furnished apartments. Emirates Pearl for Development and Investment, a joint venture between TDIC and Atlas Telecom, delivered the project which was built

by Arabian Construction Company (ACC).

Worldwide, only 10 of the 18 to 27 supertall buildings projected to finish construction complete in 2016 actually did complete, partly as a result of construction delays typical of buildings in this height range. Nonetheless, 2016 still saw the third largest number of supertall completions of any year and the Council anticipates between 12 and 20 supertall buildings to complete in 2017, primarily in Asia and the 62

buildings taller than 200 metres completed in the Middle East in 2016 2016 World Ranking

Tower

Location

Height

27

Regent Emirates Pearl

Abu Dhabi

255m

41

Central Bank of Kuwait

Kuwait City

240m

46

Hilton Double Tree Sinyar Tower

Doha

230m

63

Qatar Petroleum District Tower 7

Doha

223m

89

The 118 tower

Dubai

212m

118

Gateway Towers AQ-1

Doha

201m

118

Gateway Towers AQ-2

Doha

201m

120

United Tower

Manama

200m

120

Burj Damac

Riyadh

200m

Middle East.

The 128 buildings bigger than 200m that were completed in 2016 beat the previous record high of 114 completions in 2015, said The Council, bringing the total number of 200mplus buildings in the world to 1,168 compared to just 265 in 2,000.

Ten buildings entered the list of the top 100 tallest building in the world in 2016, all of them above the 300m threshold, increasing the average height of the 100 tallest buildings from 357m in 2015 to 362m in 2016.

// construction business news me // February 2017

For the ninth year in a row, China had the most 200m-plus completions with a record 84. Lagging way behind in second place was the United States with just seven, followed by Korea with six completions, Indonesia with five, and both the Philippines and Qatar completing four.

Shenzhen had the highest number of 200m-plus completions of any city in 2016 with 11 while China’s Chongqing and Guangzhou, and Goyang, South Korea tied for second place with six each.

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