Construction Business News - November 2015 by BNC Publishing

NOVEMBER 2015

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

Cities are the economic powerhouses of society and home to more than half the worldâ&#x20AC;&#x2122;s population. As they continue to grow, how will they adapt and change to new technologies, climate conditions and the population demands of the future?

NEWS

700+ Projects Delivered

LEED Platinum, LEED Gold and LEED Silver Capability

s n o i t u l o S d e t a r teg End to End In

project experience

130+ years of

ISO 9001, 14001 and OHSAS 18001 certiďŹ ed

Pioneering Engineering Construction since 1881

For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world.

Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.

www.drakescull.com 2 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

CONTENTS 6 EDITOR’S NOTE 8 NEWS 16 CIA AWARDS AFTER MONTHS OF

PREPARATIONS AND HUNDREDS OF NOMINATIONS, 20 COMPANIES WERE AWARDED FOR THEIR ACHIEVEMENTS AND CONTRIBUTIONS TOWARDS THE ADVANCEMENT OF QATAR AT CONSTRUCTION INNOVATION AWARDS

24 ANALYSIS ZANE HEDGE EXAMINES

CONSTRUCTION PROJECTS IN THE MIDDLE EAST AND HOW DELAYS SHOULD BE RIGHTFULLY TACKLED WITH TIME IMPACT ANALYSIS

44 PROJECT REVIEW AS TURKEY CARVES ITS

REPUTATION AS A GCC INVESTMENT HOTSPOT, CEYDA CARMIKLI, EXECUTIVE BOARD MEMBER OF NUROL REIT, SPEAKS WITH CONSTRUCTION BUSINESS NEWS ME ABOUT SUSTAINING THE PACE

32 TAKE 10 WHILE THE SMART CITY

ITSELF CANNOT BE DEFINED BY A SINGLE MEASURE, INVENTION OR INITIATIVE, THE COMBINATION OF CUTTING EDGE TECHNOLOGIES AND INTEGRATED SERVICES IS TRANSFORMING URBAN HABITATS. TAKE 10 LOOKS AT THE TOP TECHNOLOGIES FROM AROUND THE WORLD

cover story

26 URBAN SHIFT CITIES ARE THE ECONOMIC POWERHOUSES OF SOCIETY AND HOME TO MORE THAN HALF THE WORLD’S POPULATION. AS THEY CONTINUE TO GROW, HOW WILL THEY ADAPT AND CHANGE TO NEW TECHNOLOGIES, CLIMATE CONDITIONS AND THE POPULATION DEMANDS OF THE FUTURE?

CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 3

Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Director Wissam Younane wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

44 38 COUNTRY FOCUS WITH A BOOMING TOURISM SECTOR AND RISING ECONOMY, TURKEY HAS SOON BECOME A HOTSPOT FOR MODERN REAL ESTATE. CONSTRUCTION BUSINESS NEWS ME EXAMINES THE MARKET AND HOW THIS COULD AFFECT COUNTRIES WITHIN THE GCC

47 48

SUSTAINABILITY

MYTH VS FACTS: COMMON MYTHS IN GREEN CONSTRUCTION, BY HOLLEY CHANT, EXECUTIVE DIRECTOR, KEO INTERNATIONAL CONSULTANTS DR MOETAZ EL HAWARY COMPARES GLOBAL STANDARDS OF GREEN CONSTRUCTION WITH KUWAIT’S GROWING SECTOR

50 TECHNOLOGY DR ASIF SHARIF LOOKS THE AT THE MATTER OF DATA HOSTING,

OWNERSHIP ISSUES AND THE QUESTION OF WHAT HAPPENS TO DATA AS PROJECTS COME TO AN END

54 Q&A STEVE COCKERELL, INDUSTRY MARKETING DIRECTOR OF RAIL AT BENTLEY

SYSTEMS, SPEAKS WITH CONSTRUCTION BUSINESS NEWS ME ABOUT THE IMPORTANCE OF TRUSTED INFORMATION

41 COMMENT MARCOS BISH ANALYSES FUTURE DESIGN TRENDS AND HOW

SUSTAINABLE DESIGN AND CONSTRUCTION COULD MAKE WORKSPACES MORE PRODUCTIVE

58 60 62 66

MACHINERY SUPPLIER NEWS EVENT PREVIEW EDITOR’S PICK

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Group Editor Melanie Mingas melanie@bncpublishing.net Editor Lorraine Bangera lorraine@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Mostafa Abdo mostafa@bncpublishing.net +966 56 6695 333

Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 6745378

Marketing Executive Mark Anthony Monzon mark@bncpublishing.net

CONTRIBUTORS Stuart Matthews

Marlow McGuinness Ltd ------Joanne Bladd

SUBSCRIBE subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact

sales@bncpublishing.net T +971 55 339 5097 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com

EDITOR’S NOTE

LET’S GET WIRED Over 70% of the world’s population will be concentrated in urban areas by 2050, according to UN reports. In 2014, the World Health Organisation (WHO) claimed the percentage of the world’s total population in urban areas had already reached 54% compared to 34% in 1960. We are moving at a faster rate at this point, with the introduction of smart technologies and gadgets, which have literally and virtually transformed the entire world. The word ‘smart’ has been redefined and the allure for smartness has been grasped by one and all. The East and Southeast Asia has relatively picked up pace, embracing new technologies and investing in their talent pool. The GCC on the other hand seems to be leading the way. According to EMC Middle East and International Data Corporation (IDC), countries within the GCC are widely expected to have one of the highest urbanisation rates in the world ranging from 80 to 100%. With speedy preparations for World Expo 2020 in Dubai, UAE government in particular has been taking several measures to adopt technology. Earlier this year, Khaleej times reported that Dubai Municipality is set to spend AED3bn on sustainability and smart city projects this year. While the Dubai Roads and Transport Authority (RTA) told The National that 408 signals in the city were connected using 3G technology. IDC pre-

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dicts that by 2020, the world will see more than 30 billion connected devices. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai also launched the Mohammed Bin Rashid Smart Majlis in October this year. The majlis is set to be the largest smart and integrated platform in Dubai connecting 30 entities to receive suggestions, comments, and ideas. Krishna Iyer, CEO of I3ISAM, at the 5th Municipalities and Smart City Summit urges there is a great need for embracing new development strategies to improve the structural layout of cities and make them susceptible to suit the changing demographics. Not only is “smartness” affecting construction, it is transforming it. At this year’s Gitex Technology Week, digital construction sites and connected homes were a highlight. With the total number of projects in GCC's pipeline (planned and underway) in 2015 is set to reach values of $2.8 trillion, according to a recent report from Deloitte, there is a huge scope for smart technology moving forward. As these developments continue to redefine urban planning and regulations, as well as driving fit out demand across the end-user spectrum, the need for the construction industry to innovate, will only grow.

LORRAINE BANGERA Editor

CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 7

NEWS

ALSTOM TO WORK ON DEWA’S CLEAN COAL POWER PLANT Harbin Electricity International and ACWA Power, preferred bidder of Dubai Electricity and Water Authority’s (DEWA) Hassyan clean coal power plant in Dubai, has chosen Alstom as the lead EPC contractor. The plant will be the first ultra-supercritical (USC) coal power plant in the Middle East. It will be operational by March 2021 with a net output of 1.200MW, representing a 12.5% boost of the Dubai current grid capacity. Alstom will provide its popular ultrasupercritical technology which is boiler and steam turbine generator, and will have dual fuel capacity that is able to fire both sub-bituminous coal and natural gas as back up fuel. The technology enables the power plant to run at a higher steam temperature and pressure than regular coal-fired plants in order to improve the plant efficiency and to decrease stack-emissions, particularly CO2 per unit of fuel burned. The power plant will produce sufficient electricity to power nearly 250,000 households in Dubai.

NAKHEEL’S NET PROFIT INCREASES BY AED1BN Nakheel has announced a net profit of AED3.61bn for the first nine months of this year, which is reportedly a 39%, or AED1bn increase of profits one year ago (AED2.6bn). The increase, according to the developer, is mainly due to continued strong performance and ongoing handovers of properties to customers. The company’s growing retail, leasing and leisure businesses also contributed to the overall financial results for the first nine months of 2015. Nakheel chairperson Ali Rashid Lootah said: “The significant increase in our net profit for the first nine months of 2015 compared to the same period in 2014 is a sign of stability in the local real estate market. “We have announced more than AED3.1bn worth of construction contracts in the last three weeks alone, highlighting our commitment to contributing positively and effectively to Dubai’s real estate sector.” He added that the company’s strategy of continuing to create more cashgenerating assets will further boost the business and financial results in the coming years.

Saudi’s need for innovative construction solutions increases With some of the largest construction projects in the pipeline, the Saudi construction market is set to expand by 7.8% in the next four years. Most upcoming projects belong to the social and transport infrastructure sector. Sustained growth, rising population and economic prosperity along with government support have boosted the demand for construction material, equipment and services within the country. Experts observe that the lucrative market will soon pickup project activity with increasing private and public investment. As the need for innovative, sustainable and cost-effective building and construction solutions increases, Saudi Build held from 26 to 29 October this year aims to focus on the best ways to deliver these solutions.

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Jumeirah Golf Estates appoints contractor for Alandalus development Jumeirah Golf Estates awarded Al Habtoor STFA Soil Group LLC the contract for the construction of Alandalus. Alandalus is Jumeirah Golf Estates latest development – a collection of 674 mid-market affordable luxury apartments and 54 townhouses. Construction is scheduled to begin before the end of October and be completed before the World Expo 2020 in Dubai. This appointment marks the beginning of the next

phase of development for Jumeirah Golf Estates. The development will combine luxury lifestyle of a golf development with mid-market housing. Alandalus will consist of 674 apartments and 54 townhouses at prices starting from AED597,000; along with retail, hospitality and food and beverage outlets. This news comes following the recent announcement of Jumeirah Golf Estates first retail centre, which is scheduled for completion in Q4 2016 and will feature a grocery store and hospitality outlets.

EGBC CONGRESS DISCUSSES THE ‘SILENT HEROES’ OF UAE’S GREEN ECONOMY The fourth annual Emirates Green Building Council (EGBC) Congress discusses diverse aspects of sustainable built environments. Held under the theme, ‘How do green buildings scale up? Bridging the gap between green buildings and sustainable cities,’ the congress highlighted the role of green buildings as ‘silent heroes’ in contributing to the UAE’s green economy.

Saeed Al Abbar, chair of EGBC, said: “This year, we have scaled up the scope of discussion to identify comprehensive solutions that drive the development of sustainable cities. Green buildings, no doubt, are the silent climate change mitigation heroes in this, and lending momentum to building sustainable environments is important to achieve the ‘green vision’ of the nation.”

The second day of the EGBC Congress includes a visit to The Sustainable City, a 5 million sq.ft project that was conceived to be a world-class example of what can be achieved through a commitment to sustainability. The delegates will also attend a workshop on net zero energy buildings and sustainable cities cofacilitated by EmiratesGBC and The Sustainable City. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 9

NEWS

DSE SECURES AED224M PROJECT AWARD IN DUBAI Drake and Scull Engineering (DSE) was awarded an AED224m project to deliver MEP works for a hotel complex and the expansion of a prominent retail mall in Dubai. The development of the mall extension will include a new high rise hotel tower and a low-rise podium that includes a hypermarket, cinemas, and additional retail space, all within a total built up area of 192,000 square metres. The company has already started working onsite and will oversee supply, installation, testing and commissioning of complete MEP works which is scheduled to handover by 2018. Ahmad Al Naser, managing director of DSE, said that the hotel complex and mall expansion is a welcome addition to iconic projects being delivered by DSE in the UAE including Habtoor City, the Jewel of the Creek and the Louvre Museum. “The project win also reflects our position in the engineering sector as the preferred partner for large scale retail malls which is enhanced by our previous work on prestigious retail developments like Abu Dhabi’s Central Market and the Sahara Mall Expansion.”

Ahmad Al Naser, managing director of DSE

CATERPILLAR AND MAN IN LATEST DJSI

Man Truck & Bus Manufacturing in Ankara

Caterpillar Inc. has been named to the 2015 Dow Jones Sustainability Indices (DJSI), recognising Caterpillar as a sustainability leader in the Industrial Engineering sector. This marks the 16th time Caterpillar has been included in the DJSI list. “Sustainable products, services and solutions are very important to our employees and customers,” said Doug

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Oberhelman, Caterpillar chair and CEO. “And we’ve been improving and integrating sustainable practices and solutions for a very long time because – in addition to being important – we know that creates value.” MAN has also been included again in the ranking, with noticeable improvements in talent attraction, human resources development, customer re-

lationship management, and supply chain management. The annual DJSI process involves a thorough analysis of corporate economic, environmental and social performance factors, assessing issues such as innovation management, supply chain management, climate strategy, product stewardship, labor practices and health and safety.

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NEWS

GEMINI ENERGY MAKES MAJOR FORAY INTO UAE REAL ESTATE Gemini Energy Group will be branching into UAE’s real estate sector with a series a luxury projects in the coming months. The group’s real estate division, Gemini Property Developers, will soon announce the ground-breaking of its maiden project, a high-profile luxury residential building. Sudhakar R. Rao, managing director of Gemini Property Developers, pointed out that diversification into real estate was a natural progression and a strategic business move aimed at leaving a mark on the UAE’s property business. “Dubai’s real estate market has come full circle since 2005, having experienced both the boom and bust cycles. Growth has stabilised in 2015, and with further tightening of the rules for off-plan sales by RERA, the market is showing signs of maturity. Gemini will seek to satisfy investor and end-user demand for quality residential properties in strategic locations across the GCC.”

CLADDING OF DAMAC TOWERS IN SAUDI CLOSES COMPLETION Damac Properties’ Damac Esclusiva and Damac Tower by Paramount Hotels and Resorts projects on King Fahd Road has completed 75% of the cladding works. More than 16,000 square metres of glass has been installed on the outside of the two towers with the cladding consisting of reflective glass, aluminium, tri anti-steel panels. The total amount of glass across the two towers to be installed will exceed 22,000 square metre, enough to cover three football pitches. Work on the front panels and back panels glass elevation has reached level 29 for Damac Esclusiva, and level 34 for Damac Tower by Paramount Hotels & Resorts. Both projects will be completed and handed over next year. “We are delighted with the progress of the construction work at our two projects in Riyadh, which will be one of the most luxurious projects in KSA, when we hand it over next year,” said Niall McLoughlin, SVP, Damac Properties. “We are offering this opportunity to Saudis because we believe in the benefits of investing in the luxury real estate sector in Saudi Arabia. Buying a fully managed property in the Saudi capital, offering all services needed for individuals or families is an excellent competitive advantage by all means.”

Milaha reports net profit of $264m

From left: Sailesh Jatania, Sudhakar Rao, and Prabhakar Rao

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Qatar Navigatin (Milaha) announced its financial results for the nine months ended September 30, 2015. The company has made a net profit of $264m for the first nine months of 2015, a 17% increase compared to the same period in 2014. “We are very pleased with our operating results for this reporting period. We have remained focused and disciplined in executing our strategic priorities, and as a result, we continue to deliver strong financial performance and create value for our shareholders,” said H.E. Sheikh Ali bin Jassim Al Thani, chair of Milaha.

NEWS

TORRE ARCOBALENO RESTORED TO MARK EXPO 2015 Dating back to 1964, Torre Arcobaleno (Rainbow Tower) at Porto Garibaldi was once an anonymous water reservoir on the site of the important FS Milano Porta Garibaldi railway station. The tower was first renovated ahead of the football World Cup held in Italy in 1990, a project that turned a downtrodden public works into a highly recognisable urban beacon. Since then, the Torre Arcobaleno has been a distinctive symbol of Milan’s colour and creativity, and has gradually become known as a major landmark. Now as then, in 1990, the project was prepared and the works organised by the Architecture Division of the Milan firm Original Designers 6R5 Network, represented by Francesco Roggero, Albino Pozzi, Rita Alfano Roggero and Kiyoto Ishimoto. The renovation - all the costs of which were met by the project’s partner companies and architects - is a gift to Milan and the millions of visitors it will be welcoming during Expo 2015. The works were completed in just 71 days, employing 37 workers. The Garibaldi zone of the nearby Piazza Gae Aulenti is the acknowledged nerve centre of the city’s Business, Fashion and Modern Architecture scenes. The zone, now restyled by futuristic skyscrapers, has adopted the Torre Arcobaleno as its “Colourful Ceramic Totem”, there to remind people of Italy’s Master Potters and the craft origins of an industry famous all over the world for its Italian Excellence.

Barry Ebrahimy, Head of Commercial, AHRED and Charles Weston Baker, Head of International Residential Agency, Savills

AL HAMRA INCREASES INTERNATIONAL REACH RAK-based Al Hamra Real Estate Development has teamed up with international real estate service provider Savills’ network of more than 600 offices worldwide. Al Hamra’s flagship portfolio projects include the multi-million dollar luxury Falcon Island development, Bayti townhouse community, and shoreline apartments Bab Al Bahr and Royal Breeze. Al Hamra Real Estate Management Services (REMS) will work with the London-based international residential team at Savills. “We are confident that this will open up new markets for us and, in turn, drive increased awareness and interest in Ras Al Khaimah as a quality destination, with value-driven investment opportunities, with solid and sustainable returns,” said Barry Ebrahimy, head of commercial at Al Hamra Real Estate Development. Ras Al Khaimah’s residential sector reported strong sales in Q2 2015, with consistent demand for its high profile projects and robust occupancy and rental rates for its quality competitively priced villas and townhouses.

Manazel Real Estate appoints chief financial officer UAE-based Manazel Real Estate announced the appointment of Balaji Prasad as chief financial officer. Manazel’s CEO Hassan Fahmi said: “Being a seasoned finance professional, Balaji’s significant financial and industry-wide experience will be invaluable to our business as we capitalise on the growth opportunities that exist here in the UAE and across the wider Middle East.” Prior to joining Manazel, Prasad was chief financial officer for Sobha LLC, where he led the company’s financial strategy, fund raising and treasury functions in addition to supporting the company’s overall business strategy.

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ALMOOSA EXAMINES DUBAI’S REAL ESTATE MARKET Salem Almoosa, chair and general manager of Falconcity of Wonders, attributes Dubai’s resilient real estate market to several key factors, including the city’s status as a top commercial and tourism hub, a continuously rising local population, a strong appeal among international investors, and substantial government funding of major infrastructure projects. With real estate transactions worth over AED64bn were recorded for Q1 2015 alone, Almoosa says that it is a significant number initiated by foreign investors. He added that the removal of the rental cap and limited supply across prime locations, among others, have been driving growth in residential demand. He anticipates additional major investments into the

tourism, leisure and hospitality segments – a prediction backed by Dubai’s recent ranking as the top growth market for the MENA hotel industry in a global construction pipeline report. These and other catalysts, Almoosa said, will continue to sustain Dubai’s dominance of the Middle East’s real estate landscape and will be further magnified as Dubai Expo 2020 draws near and casts the global spotlight on the emirate as an unrivalled leisure, lifestyle and business haven. “The durability of the market will only be strengthened as Dubai Expo 2020 approaches and we attract a global audience to the diversity, flexibility and magnitude of the emirate’s property offerings.”

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Hall #4 Stand D191 23-26 November 2015 Dubai World Trade Centre CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 15

QATAR AWARDS

CONSTRUCTION I N N OVAT I O N AWARDS After months of preparations and hundreds of nominations, 20 companies were awarded for their achievements and contributions towards the advancement of Qatar at Construction Business News MEâ&#x20AC;&#x2122;s inaugural awards ceremony, Construction Innovation Awards at the Ritz-Carlton Doha on October 18

Wissam Younane, Managing Partner, BNC Publishing

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P L AT I N U M A L LY

ctivity in Qatarâ&#x20AC;&#x2122;s construction sector has increased at such a rate over recent years that it is now one of the worldâ&#x20AC;&#x2122;s most active construction markets, with a project pipeline valued in excess of $280bn. Projects include Doha Metro, New Doha Port, Valley City, and of course the most anticipated projects in the region, the 2022 FIFA World Cup stadia. These projects cover transport, infrastructure and energy needs, and address ambitions to keep Qatar on the map well beyond 2022, as a place to do business, a place to experience world class entertainment and leisure, and a place to live. Under the Qatar National Vision 2030, economic, social,

GOLD ALLIES

environmental and human development will be prioritised by the government and placed at the heart of everything the Gulf state accomplishes. Construction Innovation Awards Qatar aims to recognise and celebrate the firms and individuals who have, and continue to, play a part in the transformation of Qatar. The night commenced with a speech by the guest of honour, Mr. Mohammed Bin Ahmed Bin Towar al Kuwari, the vice chairperson of Qatar Chamber. After which, managing partner of BNC Publishing Wissam Younane welcomed distinguished guests and allies including platinum ally, Raimondi and gold allies Famco and Arcadia Engineering. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 17

WW I IN NNE R N’ S CEI RRC L E' S QATAR AWARDS

YOUNG ENGINEER OF THE YEAR

ENGINEER OF THE YEAR 2015

RAMESH KRISHNASAMY, FROM ATKINS

ENG. KHALED ELSHAZLY FROM QATAR AUSTRALIAN CONSTRUCTION

Krishnasamy is a mechanical engineer with significant experience in both design consultancy and construction, involved in the delivery of many successful, major projects. He holds an MBA in project management, and has worked on a range of projects over the course of his time with Atkins.

PROJECT MANAGER OF THE YEAR

Elshazly joined the firm to a steady growth in Qatar. Most recently, under his responsibility, the company diversified its portfolio and was awarded two big projects.

INDUSTRY ECOSYSTEM INNOVATION AWARD

Award collected by SAK Holding group deputy CEO, Abdul Rahman Al-Najjar

SIMON ELLERAY OF BROOKFIELD MULTIPLEX

SAK HOLDING

Elleray ensures the project team operates as one seamless group, where communication lines and objectives are well defined and understood by all. He has developed strategic methods to keep the project staff motivated, has created new methods to improve the financial strength of projects, and therefore has improved the operational performance of his firm.

SAK Holding received the award for industry ecosystem innovation for its “Partner with Us” initiative to support investors and generate returns in Qatar’s real estate sector. The scheme was welcomed by the industry as a measure which can benefit a piece of land, an existing or ailing project, or any property ready for development.

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S CIRCLE P L AT I N U M A L LY

SUPPLIER OF THE YEAR

GOLD ALLIES

HEALTH AND SAFETY INITIATIVE OF THE YEAR

Award collected by Emad Shawky, general manager Qatar for BASF

Award collected by Nicolas Dumas, construction risk manager, ALEC

BASF

ALEC AND GULF CONTRACTING COMPANY

BASF has been supporting the construction industry in Qatar for over 30 years. Over the last eight years, the company has made a firm commitment to the market and created brand new facilities to cater to increasing demands for local production.

Maintaining an impeccable safety record across all its projects, both companies have become an industry leader in the promotion of well-being in the work place, recognising the important role workforce health plays in productivity.

SUBCONTRACTOR OF THE YEAR

Award collected by head of business development Mairead Hughes and CEO of Al Malki Holding Vasanth Kumar.

ARABIAN MEP Al Malki Holdingâ&#x20AC;&#x2122;s flagship company, Arabian MEP, has been active in the Qatar market for nearly two decades. The firm has rapidly expanded and grown from strength to strength, delivering exceptional performance and earned a reputation as a highly dependable specialist MEP contractor in Qatar. The firm is registered with an approved by: Ashghal, Q-Rail, Qatar Airways and Qatar Petroleum, among others.

FM COMPANY OF THE YEAR

Award collected by Subha Reddy, director of operations and Dinesh, assistant general manager at EMCO.

EMCO EMCO is one of the most highly regarded FM companies in Qatar, with a quality assurance team working to meet the highest degree of quality and accuracy for each drafted project as per the defined quality standards. The company possess the expertise in providing facilities maintenance and management to industrial, commercial and residential complexes and services include, air-conditioning, electrical, mechanical, civil and low current. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 19

WINNER'S QATAR AWARDS

CONSULTING FIRM OF THE YEAR

SUSTAINABLE PROJECT OF THE YEAR

Award collected by general manager of Tadmur contracting, Bashar A. Nimry

Award collected by vice president and directors of projects, Michael Jameson.

TADMUR HQ IN ENERGY CITY, LUSAIL

HILL INTERNATIONAL Since its establishment, Hill International has become a trusted leader in the fields of project management services and construction claims services around the world. In Qatar it has won contracts for Doha Metro Green Line, Lusail District, Mall of Qatar and Salwa Resort, to name a few.

REGIONAL MARKET PENETRATION AWARD

Award collected by Taher Abu Eid, area general manager at DSI Qatar.

The Tadmur HQ project utilises a hybrid system of 250 south-facing photovoltaic modules, to achieve substantial energy savings. It provides an exemplary benchmark for other such projects, which support environmental systems and look to achieve the highest standards while innovating the practice of sustainable construction.

ARCHITECTURAL FIRM OF THE YEAR

Award collected by Badih Touma, architect and executive director at LACASA

DRAKE AND SCULL INTERNATIONAL

LACASA

The award recognises the scope and status of projects awarded to a firm which has participated in the urban development of the GCC since 1996. Drake and Scull is an industry expert in the fields of MEP and water and power, with experience that dates back to 1881 in the UK. Today Drake and Scull International and its subsidiaries oversee a wide variation of projects across the GCC, Middle East, North Africa, South Asia and Europe and in the Middle East has grown to be part of the regionâ&#x20AC;&#x2122;s most monumental and iconic landmarks.

Founded only eight years ago by Emad Jaber and Nabil Al Khaja, the firm has become one of the most accomplished multidisciplinary architectural design firms in the region with a diverse portfolio spanning all types of developments. The talented team of Architects and Engineers with various professional backgrounds, it has designed over 250 projects consisting of residential, commercial, hospitality, and mixed-use developments as well as master plans and interior designs. In Qatar, these include Sharaka Holdings Building, Waldorf Astoria and Abu Hamour Shopping Village, among others.

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S CIRCLE P L AT I N U M A L LY

ENGINEERING FIRM OF THE YEAR

GOLD ALLIES

CONTRACTOR OF THE YEAR

Award was collected by Renier Breitenbach, general manager at Brookfield Multiplex

Award collected by Samer Hudhud, chief projects officer of Arab Engineering Bureau

ARAB ENGINEERING BUREAU

BROOKFIELD MULTIPLEX

This Bureau was formed in 1966, as the first architectural and engineering consulting firm in Qatar. The awardwinner consists of architects, urban and master planners, interior, landscape and structural designers, engineers, quantity surveyors and project and design managers with a truly inimitable portfolio. The firm had six employees, when it was acquired by its current CEO Ibrahim Jaidah, after which it grew to the current figure of over 500 highly qualified professionals.

Brookfield Multiplex was one of the first international construction businesses to establish offices in the Middle East during the late 1990s. Now, based from head offices located in Qatar, as well as Abu Dhabi and Dubai, the company has built a reputation for fast delivery and high quality through the design and construction of some of the most challenging projects in the region. This year marks an important milestone for BM â&#x20AC;&#x201C; its 10th anniversary since commencing operations in Qatar.

MEP CONTRACTOR OF THE YEAR

Wissam Younane presents the award to Dawood Bin Ozair, senior managing director, Engineering and Technology, Al Futtaim

AL-FUTTAIM ENGINEERING The firm is a multi-disciplinary operation with a portfolio of projects which spans Qatar, the UAE, Saudi Arabia and Egypt. Most recently the firm was awarded a multi-million Riyal contract for Festival City, with its joint venture partner Voltas Qatar.

COMMERCIAL MANAGEMENT FIRM OF THE YEAR

Award collected by managing director Campbell Gray

FAITHFUL + GOULD A subsidiary of the Atkins group, it provides integrated project management, program management and cost management consulting services throughout the Middle East across the property, transport and industry sectors. Active in the Middle East for over 18 years, projects in Qatar have included Shaza Kempinski, Doha Oasis and The Pearl. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 21

WINNER'S CIRCLE QATAR AWARDS

P L AT I N U M A L LY

INDUSTRY INFLUENCE AWARD

Award collected by Vice Chairman Mr. Rashi Al Kaabi

GOLD ALLIES

STRUCTURAL INTEGRITY INNOVATION

Award collected by T.T.M. Middle East commercial manager, Johnny Bnaity

AL SRAIYA HOLDING GROUP

T.T.M.

Established in 1975, Al Sraiya Holding Group has built its core business on the idea of “Innovation”, earning its rank as one of the top in Qatar, offering a range of integrated services that cater to the infrastructural development of Qatar, the Group diversified itself through individual groups of companies each operating independently and specialising in its field of expertise. This year the group has been awarded projects worth 4 Billion Qatari Riyals, covering: Energy City Qatar and three new educational establishments.

Founded locally in 2001, the winning company of the next award has 50 years’ international experience in the steel industry, including manufacturing, development and research. The winner’s projects support the ambitions of project designers and engineers by creating high quality products for major projects. With a company aim to provide a wide range of products and services, the winner also offer quality solutions for major works.

OVERALL PROJECT OF THE YEAR

Award collected by Shem Krey, Deputy MD, Urbacon

DIVERSIFIED PORTFOLIO INNOVATION AWARD

Award collected by Kamal Efranji, general manager of National Industry Contracting Company

MALL OF QATAR BY URBACON

NBK CONSTRUCTION HOLDING

Qatar-based UrbaCon Trading & Contracting (UCC) offers turn-key design, build, finance and operative services. The company has been involved in several projects over recent years and the portfolio includes Anantara Doha Island Resort; Lekhwiya Sports Club Doha; Souq Wakif Theme Park Doha; Lusail Office Tower and, of course, Mall of Qatar.

As a result of its unfaltering performance and high standards, the firm has taken on the responsibility for executing many multi-billion dollar construction projects.including multi-storey buildings, mixed-use compounds, deluxe villas, pump stations, factories, workshops, sea ports and beach resorts. For over five decades, it has remained true to its pledge to proactively and strategically contribute to building a thriving Qatar.

ANALYSIS

TIME TO START LOOKING

FORWARD

Zane Hedge examines construction projects in the Middle East and how delays should be rightfully tackled with time impact analysis

n her July 2015 article my colleague from Deloitte, Cynthia Corby, identified a number of critical issues which commonly affect the construction industry. In addition to the issues identified by Cynthia, it is no secret that many construction projects are delivered late as a result of critical delay. In my role as a delay analysis expert one area which often causes a significant amount of disagreement is the methodology to be utilised when analysing the causes of said delay. In particular when one faces the challenge of whether to look forwards (a prospective form of analysis or entitlement-based approach) or whether to look backwards (a retrospective form of analysis or fact-based approach). The delay analysts have available to them a selection of methodologies which can be utilised, either prospectively or retrospectively, all of which may be argued to be appropriate given the correct set of circumstances. A mistake which is often made is the selection of an incorrect delay analysis methodology. Notwithstanding legal arguments, the experience of the delay analysts, the time and/or budget which is available, as well as strategic or tactical or other external dynamics, can all influence this decision. Historically this deci-

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ZANE HEDGE Based in Dubai, Zane Hedge is head of construction and real estate disputes at Deloitte Corporate Finance Limited (Regulated by the DFSA). Hedge is a chartered construction manager who holds Masters’ degrees in construction law and dispute resolution, as well as project management. He has been involved in a wide variety of projects, including; building, civil engineering, bridges, utilities, residential, retail, commercial, health care, airports, power stations, desalination, process plants and oil and gas projects.

sion has also not been helped by the fact that until June 2015 The Society of Construction Law Delay and Disruption Protocol (D&DP) ostensibly recommended the use of time impact analysis (TIA) for the analysis of delays in all circumstances. However, in July 2015 the Society of Construction Law (SCL) issued Rider 1 of the D&DP which provided much needed clarity in relation to the other delay analysis methodologies which are available, and guidance as to the most appropriate use for each. Something which should be considered positive is that despite previous criticism, and there was a significant amount of this in certain circles, TIA still has its place which has been arguably reinforced by Rider 1 of the D&DP. That place being on a live project when one can take account of the contractor’s actual progress in order to identify the critical impact of employer delay events. This approach is common in other jurisdictions and under certain standard form building contracts (SFBC), such as NEC 3, the use of TIA is mandated for the contemporaneous time and cost assessment of “compensation events”. However, if the parties are not familiar with this type of SFBC, or if they are of the “wait and see” school of thought, then this TIA method of analysis, along with its admi-

rable intentions, may be somewhat alien or indeed unpalatable. Construction projects in the Middle East region could benefit significantly if the impact of employer delay events are assessed taking into account the contractor’s actual progress at the time. Indeed, one might argue that disputes could be avoided altogether if, as is the case under NEC 3, the time and cost impact of employer delay events is agreed contemporaneously under the “one bite of the cherry” principle, thus permitting the parties to concentrate on completing the project in a timely manner as opposed to getting embroiled and entrenched in, often unsustainable, commercial and/ or contractual positions. Such negative action invariably diverts commercial resources and management time away from their primary purpose which after all is to deliver the procured project within the contracted framework of time, cost and quality. Why then do we not see TIA being widely used on live projects in the region? Probably for the same reason that we do not see building information modelling (BIM) being adopted on every project. Both require collaboration which for many employers, and/or their representatives and advisors, will require a sea change in attitude or a wholescale re-thinking of their existing procurement strategies which, based on my own experience, unfortunately continue to be dominated by illusionary “lump sum” type contracts which seek to pass all of the risk onto the contractor without properly considering, or perhaps appreciating, the impact that this may have on the success of the project and/or the relationship between the parties. It would be wrong to suggest that other jurisdictions are more advanced in this area as one is not comparing “apples for apples” in terms of market maturity. Indeed, there are still a considerable number of construction disputes in countries such as the UK where SFBCs such as NEC 3 are common place. However, it is disappointing that given the regions desire, and proven ability, to deliver world first projects, in timescales which would likely be unachievable elsewhere, that we do not see more collaboration or early

contractor involvement. Both of which are proven steps to reduce disputes and better ensure timely project delivery. It would also be wrong to suggest that TIA is some form of “silver bullet” for the prevention of construction disputes. There are numerous other considerations, both practical and legal, which can dramatically affect the reliability of the resultant delay analysis. However, if carried out properly by experienced professionals, and within the correct

commercial and legal framework, TIA certainly has the potential to significantly reduce the number of construction disputes which result in arbitration or litigation, and which in turn should result in a “win-win” scenario for employers and contractors alike. Something which is essential if the construction industry is going to focus its energy and resources, as it arguably should, on the critical issues which were identified by Cynthia previously. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 25

COVER STORY

URBAN SHIFT Cities are the economic powerhouses of society and home to more than half the worldâ&#x20AC;&#x2122;s population. As they continue to grow, how will they adapt and change to new technologies, climate conditions and the population demands of the future? Stuart Matthews

26 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

t’s 2045 and, like an estimated six billion other urban dwellers, you live in a city. As a lucky citizen of the developed world you may look forward to a commute involving a combination of mass transit and smaller scale node transport to get you from office - or remote hot-desking work station - to home. A driverless metro system or electric bus may cover the big distances, dropping you at a solar-powered taxi rank, where self-driving electric cabs let you share a ride home with a few other locals. You’re dropped off mere minutes from your 3Dprinted home, made of recycled and recyclable materials, roofed with solar panels storing their excess power in the grid. You might work from home some days or maybe, just maybe, you walk to work. It’s a future that is in view and yet just out of sight, but decisions the planning, design and construction industries make now will impact people’s lives for decades to come. As the pace of innovation quickens, so too must the industry’s responsiveness to change if it is to produce urban environments that match and better people’s widely differing views of what the future will look like. As the economic powerhouses of nations, cities

“We are quite often seeing developments in the GCC emerge a bit quicker. And we’re seeing it around physical infrastructure because the investment in that infrastructure has the biggest positive impact on GDP.” - Christopher Seymour, head of markets and development Middle East, at Arcadis.

are crucial to driving economic growth and sustaining large populations, but they also have to work like machines and change like a living organism if they are to be successful. Best-case scenarios, where development is done “right”, paint a picture of thriving and sustainable metropolises. “The city of the near future will be a great place to be,” says Joseph Danko, CH2M’s SVP for urban environments and sports. “More than the sum of its parts, the city will be a vibrant, accessible community that attracts business and provides an environment where people want to live, work and play. “The city is focused on current and evolving needs to create a place that enables long-term prosperity, social wellbeing and wise use of natural resources. This future city features a transit-oriented and walkable town, water and energy conservation, renewable power sources, and a healthy quality of life while maintaining the area’s unique cultural heritage. There is tremendous potential for all citizens.” It’s a text book description that relies on a city being more than just buildings and streets. What CH2M refers to as ‘plac-

CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 27

COVER STORY

Dubai is the first smart city in the Middle East

es in between’ have come to be symbols of the successes and failures of some cities, as they try to bring their populations together in useable public spaces. They are spaces that can have a huge impact on how a city is perceived by its residents and show that attracting investment and generating growth is as much about the public experience as the transportation, buildings, and other infrastructure. “Integrating the historic and cultural fabric with creativity and innovation will create a sense of place in the public realm. This is what creates community – that sense of belonging to something special about ‘my place’,” says Danko. “This is what attracts and retains the people and ultimately enables a city to thrive.” Dank believes that the future industry will have to deliver urban design grounded in local culture and diversity, involving public, private, and other partnerships to foster creative, practical innovation, with inclusive housing strategies encompassing all income levels. “We must accentuate what is unique about each city and intentionally build from their special assets and ‘strengthen their strengths’,” he says. “This will enable them to attract investment and cre28 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

“This future city features a transit-oriented and walkable town, water and energy conservation, renewable power sources, and a healthy quality of life while maintaining the area’s unique cultural heritage. There is tremendous potential for all citizens.” –Joseph Danko’s CH2M’s senior vice president for Urban Environments and Sports

ate long-term core jobs consistent with their special qualities.” Smart technologies will have a growing role in creating the cities of the future, making mobility easier and also enabling city control centres to better manage traffic flow, natural resources and operating costs. The Internet of Things (IoT), big data and smart cities are the new buzzwords, while sensor technology provides real-time data that can influence everything from personal comfort to clean water and energy. The trick though is bringing all of this information together and deploying the insight it can bring alongside a host of other considerations spanning social, environmental and economic benefits. “It’s really the harmonisation of technology with a sustainable environment in the broadest sense of the word - including the social, economic and environmental aspects - by knitting together technology to deliver ease of living and economic success,” explains Christopher Seymour, head of markets and development - Middle East, at Arcadis. As technology stands today, Seymour believes the greatest impact the idea of the smart city might have will be found in the management systems that drive

COVER STORY

everything from governance to physical infrastructure, urban mobility, waste, energy and even parking. It’s an area where the developing cities of the GCC have a distinct advantage. “The GCC is quite young in development terms, so they are probably going to take on the systems faster than the West because they don’t have legacy [systems],” says Seymour. “It means that we are quite often seeing developments in the GCC emerge a bit quicker. And we’re seeing it around physical infrastructure because the investment in that infrastructure has the biggest positive impact on GDP.” A boost to GDP, alongside other economic benefits, are the key areas where advances in planning, infrastructure and the associated technologies can have a significant impact. “It’s been proven on a number of occasions that investment in mobility particularly has one of the biggest positive impacts in GDP there is,” says Seymour. “Transport oriented design is really something that knits together mobility and the best of very modern urban living and when you connect those, then you start to see the real advances that smart cities can make. The easier you make something the more people use it, the more it improves economic success.” Delivering this kind of success in the development of the smart city is likely to take more than just technology. While technology can look impressive in isolation when you come down to the practical use, its limitations can be exposed. Companies which can achieve the balance may be best placed to create the greatest impact with their ideas, as Seymour explains. “Not only do companies need to have a vision, they need to have their feet on the ground. I've seen suggestions that have been well worked around technological improvement for a city and would have an impact in a number of ways, but when you actually think about the practicality the need is low: sometimes you find a technological improvement that is an answer looking for a question. “We've got to make sure that is not

FAST TRACK

Baz Gharibi, head of Transport Planning, WSP | Parsons Brinckerhoff shares his views on how the cities of the future may take shape Technology can help achieve greater efficiency of resources, maximise the capacity of existing infrastructure and at the same time make living easier for residents. In essence, technology is one of the pillars that supports ‘sustainability’. It also opens opportunities for people to collaborate and engage to solve problems.

WHAT WILL THE CITY OF THE NEAR FUTURE LOOK LIKE? The city of the future brings to mind an image of a highly technologically advanced environment with driverless cars zooming past and intelligent machines managing daily chores in silent synchronisation. Urban areas, including Dubai are consistently moving towards the concept of ‘smart’. Cities are exploring all avenues to utilise technology, either through the vast amounts of information that can be used for better decision-making, or through the interconnectivity possible between different systems. This move towards ‘smart’ makes a lot of sense, considering the challenges that the future holds for cities. The United Nations estimates that nearly all population growth over the next 15 years will occur in the cities. This unprecedented level of urbanisation will place a burden on the limited natural resources of a city, such as food or energy. Not to forget the onslaught of waste and pollution that comes along population and development growth.

HOW WILL THE INDUSTRY ADAPT? As transportation planners, we are key stakeholders in the future of our cities and its transportation infrastructure. Our role goes beyond developing conventional solutions such as building new roads - we are here to bring the innovation and take the current transport management systems to another level. We will see more mobility management – from developing mobile apps that enable better transport choices to implementing remote working policies that reduce commuter trips from the road – as well as Intelligent Transportation Systems (ITS) such as smart traffic signal systems that optimise green times and improve street mobility. But technology, progressive policy or advanced implementation methods are essentially remedial in nature. We can do our bit to prevent the need for additional infrastructure – by redefining the pattern of our developments so that we create mixed-use neighbourhoods and walkable communities, which reduce the need to travel in the first place. WHAT SKILLS AND KNOWLEDGE WILL THE INDUSTRY NEED TO BUILD THEM? Technology brings with it a tremendous amount of data, which our industry can effectively analyse to understand our complex and dynamic infrastructure systems and forecast problems. Data analytics and modelling will therefore continue to be a prime skill set to have. We can fast-track our progress by collaborating with researchers and universities to implement the advances that are fresh out of the laboratory. More importantly, we will increasingly have to take up the role of educating and building awareness within the wider industry, clients and the community regarding the challenges that the future holds, as well as the vast spectrum of solutions that can be developed to address these. It is only with partnership that a vision for a better living environment can be achieved.

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COVER STORY

As cities like Doha innovate, smart tech will be vital

the case. Those systems which have the greatest impact are those that are simple and tackle real needs.”

Advancing tech But with these technologies comes the need for more information about every step in the development and operation of the built environment. While BIM has gradually caught on in the GCC it represents the tip of the information iceberg. BIM can model a building but those models are being extended to cover an entire environment, adding details to build a picture that takes in each and every asset. As technology develops and, crucially, integrates, everyone from landowners, tenants, residents and visitors could gain a greater understanding of what a city has. It’s an area of development that could have a significant impact on contractors. “The contracting companies that need to create these assets have to start first with the base technology,” says 30 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

Seymour. “We’re seeing a very rapid up-skill in the construction sector already, with people who understand how to develop and build information models, not just as a design tool, but as a tool which will enable that asset to be built and helps actually run the building. If you can run the building you can extend that and run the city. “I have seen a significant advance in that type of staffing, with that expertise, over the last year in a lot of construction companies and it’s driven by need.” As well as finding the right people a key challenge will be finding the right time and place to deploy the technologies, with the biggest opportunities occurring around new city areas. There new ideas can be woven into designs and if included at an early stage can be in a stronger position to provide good economic outcomes at the end. “It’s really a matter of knowing about it early,” says Seymour. “It’s very similar

to the environmental challenge where it is possible to show very easily there’s a very low increase in cost in terms of achieving an environmental standard if you think about it early enough.” Retrofitting may present more of a challenge. Although in the case of energy conservation there is a clear need and a usually definable payback period, it is a tougher economic equation than in most new builds. The benefit of the investment has to be considered in the much longer term. “Generally speaking retrofitting usually looks a very long term play,” says Seymour. “Whereas if you are incorporating ideas in new designs you are getting an impact pretty quickly, with a much faster payback. One of the reasons we sometimes see the developed world being a bit behind in smart solutions - sometimes further behind than developing regions - is it’s really about bang for the buck and how fast you're getting that bang that really matters.”

Clarifying the concept Bundling these ideas into a future environment labelled a ‘smart city’ is a tough ask, not least because there is so little clarity about what a smart city might actually be. There is no one definition and interpretations change to align with agendas, with much of the discussion driven by tech companies. Without clarity anything substantive may be tough to deliver. “There’s a lot of exploration trying to figure out what ‘smart cities’ actually mean,” explains Steven Velegrinis, director of urban design, Perkins+Will. “A lot of people don’t have a clear idea of what it means, including most professionals in the industry.” Velegrinis cites a project experience where a development had been identified as a pilot for smart cities. With few people clear on what that meant, much investigation and research was needed to identify the factors that would help to deliver a meaningful result. “Smart is not necessarily about information technology, but really looking at every disciplinary area, every aspect of a city and trying to build smarter cities,” he says. “It’s an approach that’s saying everything has a relationship through smartness.” The impact of climate change and how it is handled will be crucial to the future development of cities. As people think about the future of their cities and the environment around them Velegrinis suggests the idea of resilience in terms of climate change and how a city might responded will be crucial. “That translates to smartness about the way cities are designed,” says Velegrinis. “I think there’s some parts of the world, such as the US and Europe, where there’s very advanced thinking about resilience. In other parts of the world, like a lot of the emerging markets in the Middle East and Asia, there’s not a clear understanding of how important it is and how much it means.” Addressing issues of resilience could mean anything from looking at seasonal flooding problems, or examining the potential impacts of sea level change, while facilitating urban development at the same time. Future solutions may involve

“The construction industry needs to evolve into one that understands that everything they do is an addition to an existing city, which is a conceptually challenging idea for companies that typically just want to have and work on defined tasks.” –Steven Velegrinis, director of urban design, Perkins+Will floating buildings, or adjustments to ground level for plots close to the coast. “Those examples are looked at in a multitude of ways and we need to look at a multitude of issues, usually revolving around energy cycles, water cycles, or material cycles,” explains Velegrinis. “Locally we've worked on projects where the project is coastal and in particular there’s a clear understanding of how we should plan for future sea level rises. “One project we've worked on in the Western Region required that the levels of the site be increased from the current one metre above sea level to two metres, as a platform. So there’s already a lot of things happening regionally and locally, but there is a very poor understanding in the industry about how we respond to those things.” It’s an approach that could influence how the various disciplines that make up the wider design and construction

industry work together. Velegrinis describes the challenges of resiliency as being multidisciplinary, requiring a combination of the skills of master planning, engineering, landscape architecture and hydrology among others. Catering to such a broad array of skill sets means companies have to think differently about how they hire, in order to be able to grasp with the complexities of the challenges future cities will face. “It’s a shift in the way that urban planning in particular is happening,” he says. “We recognise that you don’t know what you don’t know. You don’t know what the city of the future will be, you don’t even know what will happen in the development industry in ten years’ time. The kind of approach we’re taking accepts that the masterplan can and must evolve over time. So what you design is really a robust framework and a vision for what it will be - you accept there will be significant change - and a system that’s open enough to accommodate as much change as possible.” If you have to accept that a city will change in unexpected ways how will organisations be able to deal with the challenges this will create? Velegrinis says that one of the challenges is that the construction of infrastructure and other developments is often separate: there are companies that deal with one or the other. “The construction industry needs to evolve into one that understands that everything they do is an addition to an existing city, which is a conceptually challenging idea for companies that typically just want to have and work on defined tasks,” says Velegrinis. “They need to understand that everything they do has an impact outside of the place they are working.” Companies which grasp this and other evolving ideas that will influence the development of urban habitats stand a greater chance of being the ones building the cities of the future. Regardless of what form they take or what technologies they contain, the only certainty is that these cities will be full of people. Making a successful, comfortable and sustainable environment for them remains the challenge. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 31

TAKE 10

SMART

INITIATIVES

While the smart city itself cannot be defined by a single measure, invention or initiative, the combination of cutting edge technologies and integrated services is transforming urban habitats. It is predicted there will be 88 smart cities worldwide by 2025, up from 21 currently. Construction Business News ME looks at the top 10 technologies from around the world In contrast with the expectation, smart cities are not all about running the world with robots and can bring a touch of sustainability to the urban environment. The UN says the world’s cities product 75% of the planet’s natural resources, but the cities of the future will be engineered to minimise this – and drastically so. Earlier this year plans were unveiled to transform Paris from urban jungle to replica rainforest with the installation of a number of green walls that would transform the environmental quality of the city, while preserving its history. The idea has already begun to take hold in cities like New York.

Marwan Bin Dalmouk from du demonstrates to Muammar Khaled Al Katheeri, Executive Vice President - Engineering Management at Dubai Silicon Oasis Authority

Lighting the way

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Green wall in Paris

The UAE’s first smart street lights and smart building technologies were installed in Dubai Silicon Oasis last month. The installation was a joint initiative between Dubai Silicon Oasis Authority (DSOA), and telecoms provider du. Using motion sensors provided and programmed by du, the smart street lights will provide 25% visibility, until triggered to full power by approaching vehicles and pedestrians, allowing for less energy consumption that will prolong the life of electric bulbs and reduce operational costs and carbon impact. Additional sensors can be added to the street lights to collect and share information and data on the surrounding environment, such as pollution and weather conditions – or even relay CCTV, advertising messages and/or safety warnings.

If a single technology can be credited with catapulting cities into the future, it would be WiFi. In Barcelona, WiFi underpins the Internet of Things (IoT) initiatives which have automated everything from irrigation points in public parks (which are triggered based on the collection of live data on humidity, temperature, wind velocity, sunlight, and atmospheric pressure), to traffic lights. The award winning city is widely referred to as one of the smartest in the world and even has an app to help residents find an empty parking space.

Barcelona

It isnâ&#x20AC;&#x2122;t just services and facilities that are integrated in a smart city, but the energy mix, too. While Barcelona uses solar power to heat water and sea water to cool buildings, other cities favour a mix of renewables and fossil fuel derived energy to enhance air quality and reduce emissions, and this includes hybrid transportation and even, in the Netherlands, a cycle path which doubles up as a solar power generator. The use of hybrid over electric cars allows for faster implementation as things like vehicle charging stations are not necessary.

Integrated Power

Always Connected

WiFi connections are also a vital part of the smart city, not just for connecting individual technological elements but also the inhabitants; both residents and visitors. In many Asian cities the sight of commuters streaming HD video on their mobiles, via public transport public WiFi is a common sight and its spurring similar infrastructure to be installed in Middle Eastern and Western cities too. However, despite the advances in the East, the largest WiFI-in-motion network in the world is in Porto, Portugal with 600 connected city busses.

CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 33

TAKE 10

The roll out of contactless payment systems has defined recent months and is supported by technologies like the Beam Wallet and smart watches. Bringing the convenience of payment systems like Dubai’s Nol and London’s Oyster to every day purchases the integration of non-specific cards with transport payment systems for example, will be integral to future proofing public transport networks and erasing the need for ticketing.

Contactless payment

Driverless Transport

While their pledge to eliminate road rage may not be realised for a while, the introduction of driverless transport has triggered many debates about the safety and application of such technology. However a study by Intel has concluded that 44% of Americans would like to live in a city with driverless cars and one third of those people think it will happen in the next decade. In the Middle East the driverless Dubai Metro and automate LRT system at Masdar City already lead the way.

Dubai Metro

Smart Palms

Earlier this year, Dubai rolled out a network of “smart palms”, giant flower like structures which emit a WiFi signal and can be used to charge phones. The solar powered stations were created by Dubai-based business DIdeas and 103 will be erected in the city over the coming months.

8 Smart Palms in Dubai

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Co generation plant Cogeneration, a.ka. Combined Heat and Power, is when a single fuel source is used to generate electricity and thermal energy (heating). If cooling is also generated from this source, then the process is called trigeneration. Both technologies have a number of benefits such as cutting back greenhouse emissions, less electricity lost during distribution and more efficiency. Using a variety of fuels including biogas, biomass, natural gas, coal, and petroleum products, cogeneration and trigeneration can be up to 80% more efficient than conventional energy sources. In addition, the plant produces around 60% less

carbon emissions. Facilities in Australia tend to use natural gas or biomass such as sugar cane waste. There are many examples of cogeneration and trigeneration plants used in properties such as hospitals, hotels, cinemas, industrial, manufacturing, commercial and retail facilities According to Clean Energy Council Australia, Australia has approximately 3305 megawatts (MW) of cogeneration installed, with another 18 MW of trigeneration. It reports that as demand for heat and electricity stays consistent, these technologies is expected to help reduce pressure on the country’s national grid.

Innovation space

Upcoming Medellinnovation District

The Medellinnovation District in Medellin, Columbia, aims to be the innovation capital of Latin America by 2021. The project will transform the northern part of the city to an innovation hub for businesses and institutions. The city has undergone a ‘smart’ movement where it has (under the Medellinnovation Strategy) made a Great Pat for Innovation in collaboration with the universities, private organisations, and government bodies. The district is set to increase levels of investment in innovation and sustainability. The main goal is to increase the investment to 2% of the city’s GDP by 2018, creating a real innovation DNA in the ecosystem and adding more value to the different products, services, business models, and general well being to its citizens.

CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 35

NEWS FOCUS COUNTRY Istanbul, Turkey. Image courtesy Viacheslav Lopatin

TURKISH DELIGHT With a booming tourism sector and rising economy, Turkey has soon become a hotspot for modern real estate. Construction Business News ME examines the market and how it could affect countries within the GCC

s Turkey’s thriving real estate sector receives international attention, GCC investors are vying for a piece of

the action. “In 2014, Gulf investors spent $4.3bn in Turkish real estate, reaching a total investment influx of $16.29 over the past six years,” says Wouter Molman, director of Cityscape Group. According to him, Turkish participation in Cityscape Global has grown by 50% this year and there are no signs of it slowing down. This year’s Cityscape Global welcomed more than 50 Turkish exhibitors. Turkish Statistical Institute reported

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that the number of house sales to international investors increased 22% in the first half of 2015 compared to the same period last year. Diana Dogan, head of research, CBRE Turkey calls the country a “second home holiday market” with a significant increase in GCC investments in the country's northwest, particularly the Marmara Sea and Black Sea regions, as well as Istanbul, Bursa and Yalova. “Mediterranean coastal cities and Istanbul invite GCC investors due to their close links with the region both geographically and culturally,” adds Molmab.

Fatih Ergüven, managing partner at Reality Port Istanbul says that Turkey's strategic location and favourable climate have made it an attractive hotspot for investors. “In the last three years real estate investment has become the centre of attention for both domestic and overseas investors and it has now established itself as one of the leading real estate markets in the world.” Ugur Dumankaya, board of directors and chairperson at Dumankaya, describes Istanbul as an attractive real estate market for foreign investors. “With its economic stability, social welfare, geographical position and re-

Esas Aeropark in Istanbul, designed by Tabanlioglu Architects

“This law permits foreigners to acquire property in Turkey unconditionally, and be given the same rights and policies on their investments as the locals.”

Loft Garden in Istanbul, designed by Tabanlioglu Architects

Ceyda Carmikli, executive board member of Nurol REIT turn on investment all pointing in the right direction, buyers from around the world are flocking to take ownership of prime developments in the city and surrounding areas.” He says that from 30% of Dumankaya’s total sales are to foreign investors, the majority from the Middle East and Gulf countries. Ceyda Carmikli, executive board member of Nurol REIT, says that with the reciprocity law in affect, there has been a major influx of GGC investment in Turkey. “Just by the example of Nurol Holding and its sister companies, it is evident that Turkish companies have raised the bar high for other construction and real estate companies on an international scale.” Ibrahim Kahraman, chief financial officer at KOY urges that Turkish companies have a lot to offer to GCC countries, because due to their growing populations and their need to diversify their economies. “They are looking at investments in new affordable and middlesegment housing supply and major infrastructure projects.” Kahraman observes that the Turkish residential real estate market has shown

“Political and business relations, cultural affinity and past experience provide an important competitive advantage for Turkish construction companies in regional markets. This advantage is visible from the large volume of construction and development projects undertaken by Turkish contractors and developers in GCC countries as well as the Turkish and Russian markets.” Ibrahim Kahraman, chief financial officer at KOY CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 39

COUNTRY FOCUS

“Turkey has a population of eight million, but we still need five million more residential units.”

Agaoglu’s upcoming project in Istanbul

Regional director at Agaoglu, Idris Demirhan high and resilient growth in recent years due to consistent demand generated by the growing population and the necessity to renew the old housing stock up to the standards of the rising middle class and the earthquake code in effect. Carmikli states that Turkey’s residential property market is now one of Europe’s best performers due to the country’s beneficial geographical location. “Being in the middle of Europe and the Middle East, widespread urban renewal and development; large capacity and strength in construction, population growth and demographic advantage, and ease of doing business, all contribute to making it a lucrative market.” Demirhan says that one of the most anticipated projects in Turkey, released at this year’s Cityscape Global, has been the Istanbul Financial Center. “It is going to be the biggest regional international financial centre and placed strategically in between Singapore, Hong Kong and Japan, and New York and London.” Carmikli analyses that the strategic plans and future projects in the pipeline 40 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

offer huge potential for investors. “Turkey is also the 6th most popular tourist destination in the world, making it an ideal investment location.” In contrast with the UAE, she says that Turkey’s real estate market secures investments through the reciprocity law. “This law permits foreigners to acquire property in Turkey unconditionally, and be given the same rights and policies on their investments as the locals. The passing of the law has brought in huge revenue to the Turkish government in the form tourists, and foreign investors will also receive a residency permit for one year.” GROWING CONSTRUCTION “After China, Turkey is the second largest construction industry,” says regional director at Agaoglu, Idris Demirhan. “Turkey has a population of eight million, but we still need five million more residential units.” The big demand for properties, he attributes to people’s need for newer homes, lifestyle, and compound proj-

ects. “The population is growing, demand is growing, but the supply has been less which is why we have one of the biggest construction markets today.” According to Kahraman the Turkish construction industry has a proven track record with developing and executing complex projects undertaken in difficult political, geographic and market conditions in regional and international markets. He observes: “Political and business relations, cultural affinity and past experience provide an important competitive advantage for Turkish construction companies in regional markets. This advantage is visible from the large volume of construction and development projects undertaken by Turkish contractors and developers in GCC countries as well as the Turkish and Russian markets.” Carmikli says that the Turkish market for construction and real estate are highly competitive, and successfully so. “Many of them have internationalised, and set offices in other countries to cater to their clienteles from those regions.”

COMMENT

Design matters Marcos Bish predicts the latest UN Development Goals will all but end unsustainable construction and fit-out. Writing for Construction Business News ME, he analyses the design trends that will shape the future and the role of sustainability in the make-over of the workplace

oday, design is about more than aesthetics and functionality. It is, more than ever, about helping businesses create value. Dark, dull, monotone offices are fast becoming a thing of the past. With today’s employees spending more than 30% of their lives at work, building a flexible and creative environment that nurtures individual wellbeing, has a clear positive impact on a business’ bottom line. Not only are companies using office design to attract and engage the best talent in the market, they recognise the workspace is an expression of a company’s visual identity and should reflect their brand image and reputation. There are several movements driving change in the workspace and these will have an impact on the way offices will be designed and fitted-out over the next few years. The overarching principle impacting all levels of the construction industry globally is sustainable development. We expect that in the next 15 years, with the recent adoption of the new United Nations Sustainable Development Goals for 2030, to see a total shift in the construction and fit-out industries towards sustainability models. New regulations will be adopted, higher standards and consumer demand will increase pressure on the industry to implement environmentally-responsible practices, and awareness and understanding of green practices at all levels of the construction chain will increase. In the near future, sustainable projects will be the norm, not the exception. The green building movement has picked up in the UAE too, with sustainability being at the core

of UAE’s strategic plan Vision 2021. Local contractors will have to step up their game when it comes to integrating sustainability into their processes, there will be more eco-products available in the market and legislation will also tighten up. Another important change we see happening in workplace design is the rethinking of the use of space. The focus is shifting towards building facilities that will support cross-team collaboration and which allow teams to reshape the workspace to meet their evolving needs. For example, until recently open plan offices were considered the best environment for employees – encouraging collaboration, innovation and team work. Now many studies have proven that a lack of privacy negatively affects concentration levels, productivity and creativity so designers will start to create spaces that provide a perfect balance between collaboration and privacy. Many companies have yet to implement these changes, but designers, architects and workspace experts are introducing these principles into their projects. We will see more recreational areas, more spaces for individual retreat, more attention given to design elements that can have an impact on employees’ creativity, engagement and loyalty. Technology has had a huge impact on workplace design and fit-out over the past decade, and we expect the smart building movement will pick up considerably in the next few years. Technology is shaping the way we communicate and interact with each other. Employees are increasingly more connected and mobile, switching between laptops, smartphones and tablets.

Smart buildings mean that a higher degree of automation is now included in all projects. That’s why space and furniture can no longer be built the same way it was years ago. Modern, sustainable office buildings will be cost-efficient, integrating the latest technologies and mobility strategies. The space will be designed to consolidate a higher workplace density and will offer, at the same time, greater transparency and interaction. The workspace of the future will have to be efficient, sustainable and healthy, the right environment for a creative, productive and engaged workforce. In terms of aesthetics, we see a growing demand for contemporary, minimalistic design solutions. Furniture design will see more use of materials such as glass and steel, with ready-made furniture being designed to offer a much greater degree of flexibility. This means less demand for bespoke offerings, which is not bad a bad thing in our opinion. Prefabricated furniture, that allows for flexibility of configuration, ensures more consistent product quality and minimises production time since there is no need for shop drawings, approvals, sourcing of materials or managing different lead times. This not only reduces the risk of project delays, but responds to businesses’ needs to build more with less, and at a reduced cost. Looking ahead, we expect to see the most substantial area of “green building” growth to occur in new commercial construction, followed by institutional construction; that is education, healthcare and government. The role of design and fit-out industries will be to incorporate wellbeing into the workplace. We will create space, furniture and tools that will nurture employee wellbeing and will help organisations to align social, economic and environmental impact of their business with the company’s culture, creating value for all stakeholders. Marcos Bish is a co-founder of Summertown Interiors, a UAE-based fit out contractor. Bish completed his university studies in Leiden and Paris, obtaining his Bachelor of Business Administration in International Business. He is passionate advocate of sustainability, working long hours to educate and inspire other organisations to adopt green principles. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 41

PROJECT REVIEW

Turkish venture

Carving its reputation as a GCC investment hotspot, international real estate sales in Turkey increased 22% in H1, according to the Turkish Statistical Institute. Ceyda Carmikli, executive board member of Nurol REIT, speaks with Construction Business News ME about sustaining the pace

urkey-based Nurol Gayrimenkul Yatırım Ortaklıgı A.S. (Nurol Real Estate Investment Trust) has a significant active portfolio, including Istanbul’s finance and business centre Nurol Plaza; most luxurious housing project in Ankara; and Karum Business and Shopping Centre, among other notable projects across the country. The company is now bidding for more GCC investment for its upcoming projects, Nurol Life, Nurol Tower and Nurol Park. With the Turkish economy demonstrating strength, the developer expects an influx of potential real estate investors who have long-term investment perspectives. Carmikli says that Nurol REIT’s entry into the region invites GCC investors to form a business or build a home base in Turkey. It isn’t the only developer promoting the opportunity; with an estimated 25,000 real estate sales for foreign buyers annually, currently only 3.5% of Turkey’s annual real estate output is sold to non-nationals. “The Turkish market has many advantages for GCC firms and individuals, such as the country’s growing economy in parallel to the young age demographic, as well as the new rules and regulations that enables foreign companies to merge into the market. The reciprocity law has attracted a lot of foreign, especially GCC, investors to invest in the Turkish real estate market.” In addition, she says that Turkey is centrally located, close to both the Middle East and Europe, and shares similar customs and cultural similarities that can be advantageous to GCC investors. The company believes that GCC investors can greatly

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Nurol Tower

Ceyda Carmikli, executive board member at Nurol REIT

Nurol Park

Nurol Life

contribute to the Turkish business world as well as benefit from the political will of their respective countries to enhance their economic cooperation. On another hand, while global investments have also been most welcome, Nurol is focussed on the GCC as of now. She says: “We are always looking for foreign investment in Turkey to boost and improve the Turkish business worldwide, therefore we are always on the lookout for any potential investors but currently we are mainly targeting GCC investors.” In terms of benefits, Carmikli assures that from a general return on dollar basis and investment point-of-view, an investor has the possibility to reap over a 5% return over a five (or more) year period. The reciprocity law enables foreign investors to acquire in Turkey unconditionally, giving outside investors the

same rights as local Turkish citizens, and protecting their investment purchases. She explains: “All foreign investors have the same structural advantage and legal framework as Turkish citizens in Turkey. There are some alternatives of corporate entity structural possibility which may create different taxations. But generally, all the investors are under the same protection from the same legal framework.” Nurol Real Estate Investment Trust (Nurol REIT) was founded in September 1997 and by December 1999, 49% of its shares were offered in an initial public offering. With these developments in handNurol REIT’s asset size reached $491m and $830m as total investment by the end of 2014. Nurol Holding has been present in the GCC for over a decade with Nurol Construction offices and construction projects in Abu Dhabi and Dubai. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 45

PROJECT REVIEW

Nurol REIT has currently opened investments for three mixed use projects in Istanbul, Turkey.

NUROL TOWER Nurol Tower is located in one of the commercial center of Istanbul, Mecidiyekoy, and built on 7,000m2 of land. The multi-purpose building offers first of its kind “HomeOfficeHome®” concept, providing the ideal homeoffice location to be productive whenever needed. It also includes Nurol Tower Bazaar, which has cafes, restaurants and shops, such as pharmacy, hair dresser, dry cleaner, as well as banks’ ATM. Nurol Tower is also a candidate of LEED Gold, striving to create an environment-friendly environment with 20% efficiency in energy consumption. It will be completed in the third quarter of 2015.

NUROL LIFE Nurol Life rises over a 9,500m2 land plot in Seyrantepe, Istanbul. The structure is an aspiring concept of style and serenity by award-winning architect, Hakan Kiran, who is known for his contemporary work. The mixed use project will be 50 storeys high, and will comprise of 440 tower flats and 26 terrace homes, along with 50 offices. It will house recreational amenities such as a pyramid shaped roof bar, pool and café, for its residents. The project will be completed by Q1 in 2017.

NUROL PARK Nurol Park, situated in Gunesli, Istanbul, covers an area of 55,000m2 and offers easy access to the two main highways in Istanbul that connects Asia and Europe. The mixed use building includes 43,200m2 landscape area, eight residential units, one office block, 84 Loft, 884 Tower, 544 Residence spaces. Facilities such as indoor and outdoor pools as well as fitness centres create a community and neighbourhood life, the concept is to cater to all the basic needs of a family and have everything within close proximity and at ease. The project is planned for completion in 2016.

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SUSTAINABILITY

MYTH BUSTER

Myth vs Facts: Common myths in green construction, by Holley Chant, executive director, KEO International Consultants

he biggest myth in green construction is that sustainability adds significant capital cost due to “bolting on” environmentally sustainable, yet financially expensive, technological solutions to buildings. The notion that cost in sustainability projects comes from requiring “technology” is misguided. The most sustainable buildings in the world have no mechanical systems whatsoever, and as such, use no electricity for cooling or heating. Most people wouldn’t think of that as “high tech”. Historic buildings, such as the Bait Ghaith bin Abdullah bin Yousef house in Kuwait, use passive design strategies to keep the buildings habitable for occupants year round. The myth that sustainability has to be expensive exists for several reasons. Firstly, before teams and owners became educated about the integrated design process that starts at concept design, the idea to “go green” would many times be an afterthought. For example, an owner might decide they want a LEED rating just as they are about to go to tender. This is the worst possible time to do cost-effective sustainable design; it’s akin to buying a plane ticket the day before a flight. The reason is that architects drive cost-effective sustainable design. It is not possible for them to use passive design (i.e., building orientation and massing techniques) and cost-neutral sustainability strategies on a design that has already been completed and is ready to tender. In order to do so, a project team would have to “buy LEED points” by adding technological components to the building without redesigning the form.

This is a very expensive approach, and it is rarely satisfying to an owner. Secondly, in the early days of LEED, GSAS and Estidama sustainability ratings in the GCC, contractors didn’t have experience with green construction. Therefore, they increased their prices to cover their perception of risk regarding new requirements. This is no longer the case. Contractors now have sustainable design professionals in house and many of them proudly advertise that they can achieve a LEED Gold rating for the same price as a LEED silver rating, an Estidama three Pearl for the same price as a two Pearl rating, or a GSAS three Star for the same price as a GSAS two star rating. Lastly, there was a time when using renewable technology, such as PV, was expensive. This isn’t the case anymore. PV prices continue to fall on an almost-monthly basis. In countries where energy isn’t subsidised and consumers pay the true cost of electricity, renewable costs look very cheap

indeed. Previously in the GCC, feeding renewable energy back into the grid was a challenging topic. However, this is changing. In Dubai, for example, DEWA is now working diligently via Smart City initiatives to get as many households and businesses connected to the grid as possible. Other GCC countries such as Kuwait and Qatar will no doubt follow suit soon. Another significant myth is that due to energy being cheap in most GCC countries, that sustainability in construction isn’t yet important to its citizens. But the fact is that sustainability is critical to the success of all of humanity’s future right now. To quote the Climate Mobilization Organization, a sustainability advocacy group which I support, “Climate change is an unprecedented challenge…It is causing immense human suffering and damage to the natural world.” We live in a rapidly warming world, and with it comes sea rise, environmental degradation, and water shortages. Like last year and the year before, this year has broken records as the hottest year to date since climate records began. Meanwhile, our global population keeps expanding, which compounds the need for sustainability in all areas of development — not only in the built environment projects, products and services that we experience at Big 5 Kuwait. People consistently desire a “better future”. However, if we do not have the courage to see the dangerous trajectory of this climate crisis, and if we don’t make a conscious choice to do our part to slow warming, the world as we know it will change dramatically. Most climatologists today will tell you the change will not be for the better. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 47

SUSTAINABILITY

GREENING KUWAIT Dr Moetaz El Hawary compares global standards of green construction with Kuwait’s growing sector

‘

Going Green’ is the hottest trend in the global construction sector. In fact, a recent Green Building Trends survey states that 51% of respondent firms have committed to incorporating sustainability into more than 60% of their projects by the end of 2015. A ‘green’ building not only results in better health and increased productivity but also minimises its impact on the environment by limiting emission of greenhouse gases (GHG) over its entire lifecycle. It incorporates designs, technologies and raw material that make efficient use of non-renewable resources such as oil, gas and water. US Green Building Council statistics indicate that conventional buildings consume almost 36% of total energy, 65% of electricity, 30% of raw material, and 12% of potable water. Moreover, they are responsible for 30% of GHG emissions and 30% of waste outputs amounting to 136 million tonnes a year.

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Current global trends in green building include green architecture, zero-energy buildings, use of sustainable construction materials, water and wastewater management, low-emittance windows, and cool roofs. Green architecture efficiently uses materials, energy, and space to minimise the negative environmental impact. Zero-energy buildings, on the other hand, use a mix of biodegradable, recycled and sustainable construction materials as well as avail of renewable energy such as biofuel through specialised equipment such as solar cells and panels and wind turbines to save power and reduce GHG emissions. Since buildings utilise 13.6% of the world’s potable water (15 trillion gallons per year), it is essential to incorporate water-efficient technology such as rainwater harvesting, reuse of greywater, and on-site sewage treatment. Likewise, low-emittance windows and cool roofs bring down heating, ventilation and air condi-

tion (HVAC) costs and reduce the heat island effect in urban areas, thus decreasing the amount of GHG emissions by deflecting sunlight and heat. Aside from enhancing the safety, comfort and health of its occupants, a sustainable building also results in affordability, quality and competence over the long-term. Unlike in the past, technological innovations have made it possible to make cost-effective ecofriendly homes. Green buildings are being adopted to control operating costs and reduce GHG emissions in the Middle East and especially in the GCC. GCC governments have come up with their own green building codes, standards and practices, with the UAE taking the lead. There is growing concern and awareness about environmental issues and sustainability within Kuwait’s government, professional bodies, researchers and construction companies. The Kuwait Council of Ministers’ Decree No. 1145, dated August 16,

Kuwait City

Dr Moetaz El Hawary, associate professor at Kuwait University

2010, established the National Committee of Building Codes of Kuwait (NCOBC). The committee plans to draft its own codes following a rigorous review of leading international and regional ‘green building’ codes such as Leadership in Energy and Environmental Design (LEED), Building Research Establishment Environmental Assessment Methodology (BREEAM), Estidama, and Global Sustainability Assessment Team (GSAS). Currently, a local government project – EPWD Building – is under construction using the GSAS Rating System. Being built on a 4,670 square metre plot of land with a built-up area of 33,000 square metre at a value of $43m, the office building will feature three basements, a ground floor, nine storeys, and a parking bay for 220 cars. The building will accommodate 275 employees and visitors. In addition, Kuwait’s new international airport will set a

new environmental benchmark for airport buildings since its design is inspired by local architectural designs and materials and responsive to the country’s hot climate. The terminal building aims for LEED Gold certification and become the world’s first passenger terminal to attain a high environmental accreditation, establishing Kuwait as the region’s leading air hub. Moreover, electricity stations that utilise solar energy are being installed, with research projects being conducted to improve the efficiency of such facilities. The concept of green buildings is still in the early stages within Kuwait’s construction sector compared to neighbouring UAE, Saudi Arabia and Oman. Intensive support from both government and private sectors is required to implement the concept, strengthened by effective governmental policies and legislations to ensure 100% implementation in future projects. The main respon-

sibility lies with the government to encourage the implementation and adoption of sustainable construction to ensure the least impact on the environment. Improving the knowledge and level of awareness of sustainable applications should be undertaken, with a focus on issuing proper guidelines, organising trainings and workshops, and providing incentives to promote green construction. Dr. Moetaz El-Hawary is an associate professor in the department of civil engineering at Kuwait University. He earned his B.Sc. with honours from King Saud University, Saudi Arabia in 1980 and his M.Sc. and Ph.D. from the University of California at Davis, USA in 1982 and 1987, respectively. He is a member in many international associations including ACI and ASCE. He is a board member and president of ACI, Kuwait Chapter, in 2006 and 2010. He is a voting member in ACI committee 130, Sustainability of Concrete. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 49

TECHNOLOGY

TALKING COLLABORATION

In the final installment of a three-part series on construction collaboration technologies, Dr Asif Sharif looks the at the matter of data hosting, ownership issues and the question of what happens to data as projects come to an end

In previous installments we highlighted the relatively low adoption rates for systems in the GCC – based around recent research carried out by CONJECT. Part two titled ‘Not All Collaboration Systems are Built the Same’, looked closely at the different capabilities of the many different systems available on the market. Leading 50 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

on to this third installment which discusses the important issue of data. Many industry practitioners argue that the structure of a collaboration system should follow the traditionally “paper-based” model of information sharing on a project where in essence you only see what you have been sent.

By labouring this argument we’re almost admitting that we believe “paper-based” systems work best and we have no need for improved efficiency in our processes. Traditionally we didn’t have collaboration software, so management teams were unaware the complex and rapid flows of information which delivery teams have to

contest with on a daily basis. Having the ability to understand these information flows, plus interdependencies of the various design and construction disciplines give us much better ability to make informed decisions in a timely and proactive manner. Collaboration systems are now available to us, designed to improve efficiency and improve communication, and thus enhance collaboration between project team members. We should be embracing the fact we now have an abundance of (software) tools that allow us to manage, share and develop very rich libraries of asset information, and not be sacred about it; instead embrace systems, because ultimately they will enable us to develop and deliver a much better quality of end product to the client. The collaborative effect of BIM This collaborative aspect becomes very relevant particularly with the emergence of Building Information Modelling (BIM) in our industry, which is all about integrating teams, engaging operators and facilities managers into the design and construction process to produce a more fit for purpose end product and a more productive operational building. With BIM, we’re actually talking about creating better design and built solutions, assets that operate effectively the way we expected them to operate and at the right cost and efficiency levels. Procurement, access rights and ownership of data When it comes to the selection of a collaboration system for a project, the decision is one of paramount importance, but also one that’s frequently based on the past experience of the project team members and/or cheapest price. Responsibility for procuring the system is usually left to the main contractor or the lead consultant, as software is often viewed as an overhead (rather than an investment), and therefore gets built into their fees for other cores services. There are of course clients

“What’s really important is that the client has all of the auditability and all of the reasoning behind why decisions were made in the design and construction process” who do recognise the value of such systems, and will lead the initiative, but far too often the final decision is based on the lowest price tendered. Rarely are decisions based on critical issues such as who has ownership and custody of the data, or to ensure that the proposed systems conform to the contractual terms that need adhering to when engaging with clients. In the UAE market, most consultancy and construction appointment contracts are non-standard and are usually client specific. These contracts are also driven around the concept that the client is “king”. Take an example of a design consultant; they may design the building and own the Intellectual Property (IP) rights to that design. However, the agreement entered into often gives the client the ‘license’ to reproduce that building in the future, without the need to necessarily secure his services again. Much of this is to do with the way that the contracts have been written, where the client keeps hold of all the rights to the data as their projects come to end. Although when selecting a collaboration solution, the ownership requirements of the client is often not considered up front. Those of us who work on construction projects are usually delivering to a single party whether it be the main contractor, or the client; ultimately this is the one who’s paying our bills and who we’re contracted to. As mentioned earlier, it’s this party who in the main owns everything. As construction teams work on a many different collaboration platforms, there’s a bit of schism as different systems (and their inherent licencing arrangements and architecture), might mean that the many parties involved

could own different piece of data. As such, one of the key issues that we want to talk about and explore further is who does own the data. The data produced during the design and construction of a project doesn’t always go along with the asset once the project completes. Collaboration platforms over time end up holding huge amounts of valuable asset data with detailed audit trails. It’s our view that this rich library of information gathered should always be passed to the client or ultimate future owner. A point also worth noting is that the owner of a project may change. A project could begin with the developer who later sells on the asset to an owner occupier, who could potentially sell it on to a further owner or operator who may be is responsible for running that asset. All of these owners and stakeholders need access to the historical project data library for the running of the asset, as it’s this valuable information that plays a part in significantly reducing their future refurbishment and maintenance costs. Again it’s really about addressing whether people understand the importance of this information at the start of a project and realising the benefits of reusing this information at the end of the delivery phase so that it becomes part of the built asset and has real value. It is true to say that not all collaboration tools are the same in terms of who owns the data and who has access to that data. Where does the data reside? A critical feature of hosted systems relates to data; where is it hosted and how it is managed. When using Software as a Service (SaaS) solutions for the first time it’s important to understand if your data is being hosted locally or in a foreign country which could be a major deciding factor on which solution to adopt. A couple of very key additional points to consider are: • Is the data and the solution hosted in a relatively simple, generic data storage environment? CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 51

TECHNOLOGY

• Or is data hosted in a business critical environment, managed and supported 24/7 with the appropriate data security standards, available from wherever and backed up by a Service Level Agreement which doesn’t compromise your business. With the maturing of the market for hosted solutions, many clients are quite happy that their data is managed in a very effective and efficient way, by a third party in a fully controlled and audited environment and delivered to them as a service. There is alternative scenario, where some clients believe it’s important for software to be procured and managed locally (self-hosted on their premises) and if that’s a requirement then that’s something that needs to be addressed. This type of approach will no doubt reduce options for collaboration offerings, as a main characteristic for this software is that it’s hosted and delivered as a service to projects by an independent third party vendor. At the end of the project where does that data go? Clients should set about with a 52 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

“When selecting a collaboration solution, the ownership requirements of the client, is often not considered up front.” minimum expectation that they will to be delivered a full set of structured project data at the end of the project so that it can be reused readily by themselves, their maintenance teams and/or future owners. This is far more challenging to achieve in practice as not all collaboration solutions share information in the same way. There are certain collaboration platforms whereby all the information that resides in that platform is only owned or accessible by the organisations that produced it or that received it, that’s it! On the other hand these are other solutions which are more open and (as the name suggests) collaborative allowing the organisation that has procured the solution to retain control of all of the project information. In our view, what’s really important about the latter type of platforms is

that the client has all of the auditability and reasoning behind why certain decisions were made in the design and construction process to create the building in the way it has been delivered. Ultimately it’s about giving our Clients an efficient operational building that runs at a cost effective rate…. and access to the historical data is a big part of this. What should be discouraged is selectively hiding information in the system from the client due to the fact it was not directly issued to them. The simple rule should be that if it’s been submitted on the client provided platform, then it should be available for them to review and proactively report upon. By having a solution that is quite constrained in the client’s visibility of their own data, somewhat defeats the object of having a collaboration platform in the first place. On that note, I do think sensibility should prevail and that we are reasonable about what it is the client should expect from us, as service providers to them.

CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 53

Q&A

INTEGRATED SOLUTIONS

Steve Cockerell, industry marketing director of rail at Bentley Systems, speaks with Construction Business News ME about the importance of trusted information and consider the consequences in terms of time, cost, quality, and safety performance.

What is driving the increased awareness of and reliance on building informational modelling (BIM) in the GCC? As an industry marketing director, I look at the GCC market as being one of the youngest, yet fastest growing and most aspirational rail markets in the world today. Yet the budgets for the many planned rail projects, while 54 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

substantial, are likely to be tight. Meaning the pressure to control cost and time certainty will be greater than it has ever been. Rail projects have complex ecosystems, with delivery partners, programme managers, consultants and contractors, plus other stakeholders. In this type of scenario, it is particularly important to evaluate risk exposure

What are the major challenges faced by BIM users or potential users in the market today? These major capital projects will increasingly need distributed projects teams. Whether it is between the different phases, disciplines, or stakeholders, communication and effective management of the supply chain is crucial to the success or failure of the project. With everyone fully aligned with the project objectives, the possibility of problems such as late changes causing delays, are more easily avoided. Organisations need information to make informed decisions, produce a more reliable solution, understand the risk they are exposed to, improve efficiency, drive productivity and quality, and understand what it is they are building and maintaining â&#x20AC;&#x201C; plus when and for how much. You can say then that increased awareness and demand for BIM is fuelled by the need for reliable information, whenever and wherever it is needed: in the office, site hut, or field. Many get hung up on what BIM is, so it is important to understand that BIM is not a software product or solution, nor is it limited to just design and construction. BIM is about people and processes.

Q&A

Organisations should ask themselves what it is they are hoping to achieve through the use of BIM. What are the required outcomes? Then look at the technology required to support and deliver these. BIM enables both the consistency and mobility of information from one phase of the project to the next, removing wasted time and effort. When everyone uses the same set of standards and processes – instead of the “my way” approach – with technology that is interoperable and supports information mobility, the information created and collected can be leveraged across the project and asset lifecycle, improving quality and reducing risk at every stage. Could you tell us about your role as an industry marketing director and what excites you most about your job? I’m very lucky that my role gives me the opportunity to work around the world, meeting with, listening to, and learning from our many users, about the different ways in which they have deployed our software to solve the challenges they face on a daily basis with their transportation projects. We are committed to helping infrastructure owners maintain and operate their networks more effectively. Therefore, a significant amount of my time is spent working with these organisations to increase awareness of asset information and performance management software in the industry, and helping build the level of trust they demand in technology partners given the commercial pressures faced. It is not secret that workforce planning is in critical need for efficient management. what are the most pressing issues which arise from this? Because of the shortage of skilled labour, it’s no surprise that workforce planning is becoming a growing concern and affecting project performance. Labour constitutes roughly 40% of project costs, so tool time has to be efficient. Our Project Wise Construction Work Package

Server, which includes ConstructSim, provides a structure for execution planning directed at the workforce. It facilitates collaboration between engineering and construction so work can be planned down to the installation level. ConstructSim’s interactive virtual 3D model lets you visualise the status of a project, so you can see exactly what is being worked on and what has constraints, and make sure the work you plan is logically executable. For instance, you can see when a work package is approved and issue it only when work crews are available, or when weather conditions allow. Your project’s productivity and safety will increase by assigning resources only when materials are in place and work is ready to be performed. ProjectWise Construction Work Package Server automates your work packaging process. The simple Webbased portal gives your entire project team the visibility needed to perform work, and your project stakeholders the ability to quickly assess project performance and mitigate risk. How does Bentley Systems’ flexible licensing options set it apart from its competitors? We historically sold and continue to sell some of our solutions through perpetual licenses together with an attached SELECT subscription. SELECT offers benefits that include software upgrades and technical support, but it also offers subscribers annual portfolio balancing. Annual portfolio balancing entitles organisations to exchange licenses, or any portion thereof, for other software in our portfolio on an annual basis. In this way, Bentley users can vary their license mix as business needs change, providing them with the freedom to use a variety of software solutions during the license period. While upgrading software, how much significance does market feedback hold? Feedback is vital. Bentley takes the feedback from our users, the leaders

in their respective markets around the world, very seriously and captures it many ways, with varying degrees or formality applied to the processes involved. As I mentioned before it is part of my role to listen and learn from our users about how they solve the complex 3D challenges faced in their work. I sometimes get asked whether it is possible to extend the software’s capability to achieve a different outcome. This type of question is passed to the appropriate product manager who considers its value and if appropriate, the priority assigned to its inclusion in a product. Bentley also uses advisory panels. In May of this year, I was fortunate enough to join Bentley’s Middle East Construction Advisory Panel meeting in Abu Dhabi. The event was hosted by Technip and senior representatives from the regional construction firms gathered to hear about how technology available today might increase return on investment in their respective businesses, and also to provide valuable input to product direction. Advanced Work Packaging and ConstructSim were the main topics of interest. How does using Bentley’s software directly affect the construction industry? Bentley offers software that supports the delivery of construction projects of any size, complexity, or type. Our solutions span the project lifecycle from design to handover to help solve industry challenges in delivering successful projects. Challenges such as isolated project data, distributed project teams, gaps between engineering plans and construction realities, and field mobility limitations. Bentley offers collaboration, work process management, modelling, and mobile device solutions to make projects more manageable. When everyone has the right information in the right place at the right time, productivity increases, safety improves, and projects perform better. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 55

COMMENT

OVERSUPPLY WOES OR BUSTLING SUCCESS? Editor of Hotel News Middle East, Sophia Soltani reviews the colossal number of hotel rooms under construction in the Middle East and what this means for the landscape of the hospitality industry

With a reported 175, 574 rooms under construction in the Middle East according to STR Global, it is no surprise that the skeptics are out in force, raising the alarm and harping on about oversupply issues. But according Dubai’s Department of Tourism and Commerce Marketing (DTCM), we need this many rooms to fulfil Dubai’s 2020 vision of welcoming 20 million visitors to the region. So who is leading the way in the Middle East and eager to pique interest in their region by diversifying their hospitality offering? You might be surprised to hear that it isn’t Dubai alone, but in fact Saudi Arabia and the UAE combined. Saudi Arabia is also set to become home to the world’s largest hotel, the Abraj Dubai in Makkah and will boast 10,000 rooms and 12 separate towers. Designed by Dar Al Handasah, the project has a total built area of 1.4 million square metres and will be set in the Manafia area in Makkah's central zone. The $3.5 billion hospitality project is already on site and comprises of 12 towers with a total of 10,000 rooms, 70 restaurants, rooftop helipads, royal floors and a full size convention centre, all roofed under what will become one of the largest domes in the world. With top projects like these it is no wonder that the UAE and Saudi Arabia are leading the hospitality industry in the Middle Easte region with a combined pipeline of more than 50,000 hotel rooms under construction according to the latest data released by STR Global. Saudi Arabia reported the most rooms 56 CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015

under construction with 28,050 rooms in 64 hotels. The UAE then followed with 22,724 rooms in 90 hotels. Qatar closely following behind with 6,383 rooms in 26 hotel and was in fact the only other country in the region to report more than 5,000 rooms under construction. It just goes to show the sheer number of hotels under construction in the Middle East, and how rapidly it continues to grow, considering that there were 653 hotels totalling 159,945 rooms under contract in the Middle East and Africa region in May 2015 compared to August 2015’s revelation of 175, 574 STR Global Construction Pipeline Report. This figure represents a 16.1% increase in rooms under contract compared with May 2014 and a 40.4% YOY increase in rooms under construction. PwC’s second Middle East hotel forecast also warned that with so much new supply coming on stream across the region, the question is whether this upswing is sustainable in the future. “With over 54,000 rooms under construction and another 72,000 planned for the re-

gion, supply could well start to outstrip demand, putting ever greater pressure on both occupancy and ADR,” PwC said in a recent report. And according to the latest figures issued by DTCM, Dubai’s hospitality industry is poised to enter a new growth trajectory with rooms predicted to surge to 140,000-160,000 keys by 2020 from 93,030 which was the figure reported as of January 2015. In 2014 alone, of the 44 new hotels and hotel apartments comprising 27 hotels and 17 hotel apartments, 13 hotels came from the four-star sector and nine of the new apartments fell into the standard classification. The boom in mid-market hotels has been spurred on by Dubai government’s incentives including 10% fee waiver. In 2014, Dubai’s hotel portfolio grew from 611 hotels and hotel apartments to 659 a 7.8% growth over the course of the year. So by the end of 2015, it will be interesting to see how much growth and development has arisen in the region. So with Dubai having received more than 8.2 million international overnight visitors during the first seven months of 2015, representing a 9.3% increase on the same period in 2014 according DTCM, the burgeoning pipeline of hotels under construction in the Middle East are well in line to cater for the anticipated 20 million visitors by 2020. January issue of Hotel News ME will carry the Project Pipeline supplement, with exclusive data and insights on the region’s next wave of new hospitality stock

CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 57

MACHINERY NEWS

PROJECT WITH A VIEW THE CRANES

verlooking the waters of the Marmara Sea, a mixed use project intended to drive economic growth in the area is taking shape. The enclave of branded hotels, restaurants, shops and 1,463 luxurious homes is developed and constructed by Turkey’s indigenous Dap Yapi Construction

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– the name behind Centro Futura, Adam Kule Tower, and Taksim Petek Residence – with handover scheduled to begin from December 2016. Constructing the five sea facing towers – each over 150 metres tall – are Raimondi’s MRT 144, MRT 111 and SRT 85 models, with lifting capacity of 10, eight and six tonnes respectively.

Standing tall over the marina, the flat top models can advantageously erect and operate in close proximity with each other, solving most of the on-site difficulties faced by the contractors due to space limitations. According to the crane manufacturer, this was key to landing a deal with Dap Yapi Construction. A common advantage cited by

Image courtesy of Raimondi Cranes

Eng. Domenico Ciano, technical director at Raimondi Cranes, is the ease of assembly and shorter installation time when compared to a traditional cat-head crane. Commenting on the minimum overlap jib clearance required, he explains: “Traditional cranes have the cusp and tie rods extruding above the jib, whilst the flat top have the

cusp within the jib parameters.” Placing cranes in close proximity may raise some safety issues. However, with Ascorel as their anticollision partner, Ciano ensures Raimondi takes all the necessary safety measures and precautions. Ciano says: “To ensure extra safety measures, all of the flat top cranes are equipped with anti-collision sys-

tems which includes sensors, control units, and radio units. The systems are installed on all of the cranes to avoid collision due to potential operator error.” With extensive global experience, the Milan-based crane manufacturer has a record of manufacturing and distributing over 15,000 cranes worldwide. CONSTRUCTION BUSINESS NEWS ME NOVEMBER 2015 59

SUPPLIERS NEWS

OFFICE SPACE EVOLVES AS GCC CONSTRUCTION MARKET GROWS

trong demand for high quality office space will drive the GCC’s construction market to values of $125bn by 2016. In the GCC, large, small and medium-sized enterprises are expanding and upgrading offices, as the GCC’s construction sector is set to grow by 38% from 2013 to 2016 according to Alpen Capital. “GCC companies of all sizes are upgrading their office space, placing employee productivity on top,” said said Santosh Vallil, sales manager of Hunter Douglas Middle East, the multinational ceiling manufacturer. In Dubai alone, office supply is set to increase from 7.6 million square metres in 2014 to 9 million square metres by 2017, according to a recent report by JLL. Hunter Douglas’s new lightweight sound-absorbing ceiling solution, TechStyle Islands, is now available in the Middle East. Reducing reverberation to comfortable levels, TechStyle Islands can absorb 75%

of sound at frequencies between 250 and 4,000 Hertz, which includes the frequencies for human speech and the sound of a telephone. “TechStyle Islands was developed in response to a need for an affordable, simple and flexible solution for acoustic problems in existing buildings. It certainly is a simple solution; for smallscale application, you don’t even need an architect or installer. The next step, as far as I’m concerned, will be to integrate lighting in the islands,” said Adrian Stieger, director of Hunter Douglas Switzerland and inventor of TechStyle. Consisting of fibre glass tiles attached to U-shaped aluminium, TechStyle Islands weigh 25% less than traditional ceiling islands, making them easier to install and reducing the overall load on the building structure and cost to transport. Sound-absorbing ceilings can be used in both existing buildings, and new buildings with concrete core activation.

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RAK Ceramics fully acquires Indian subsidiary UAE-based RAK Ceramics acquired 8% minority shares of its subsidiary RAK India, and now fully owns operations in India. The company setup operations in India nine years ago to capitalise on rising demand, growing construction projects, high urbanisation rates and government direction towards sanitisation. It has three production lines in India, with a current capacity of 8 million square metres of tiles. The announcement follows RAK Ceramics’ recent 100% acquisition of its Iranian operations. In 2014, RAK India operations contributed 16% of total tiles sales volume and 13% of sanitary ware. Based on these results, the company now aims to expand in India by 52% for sanitary ware to reach 1.1million pieces by 2016. Abdallah Massaad, CEO of RAK Ceramics said: “India is a strong market with great potential for us. It is among the fastest growing markets in the world and has witnessed a dramatically renewed optimism for its economic prospects with a rising demand for building materials and construction projects; a very promising sign for RAK Ceramics.”

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