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MAY 2019 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
THE PLACE TO BE
Big Project Me joins AECoM for A tour of iCD brookfiElD plACE, DubAi’s lAtEst lAnDMArk towEr
2015, 2016 & 2018
Contents
Issue 158 May 2019 12
14
16
24
36
44
04 MEConstructionNews.com OnlIne
The biggest stories from Big Project Middle East’s home on the web
14 SME opportunity in construction 36 Value Engineering Summit analysIs
Karim Dakki explains how technology is opening doors for SME firms in construction
eVenT reVIew
Big Project ME recaps the second edition of the VE Summit
06 KSA invests $35bn in leisure 16 Chris Roberts
42 The evolution of the PM
10 Damac gets $229m bank loan 24 The Place To Be
48 Top Tenders
The bIg pIcTure
KSA to invest $35bn in the culture and leisure sector by 2020, since lifting cinema ban InTernaTIOnal news
In prOfIle
Big Project ME speaks with Eltizam’s CEO about property managers improving efficiency sITe VIsIT
TechnOlOgy
Joe de Klerk explains how technology will help in advancing project management Tenders
Damac secures $229m bank loan for landmark project Damac Tower in London
Big Project ME visits the ICD Brookfield Place with AECOM in the DIFC area
12 UAE construction industry
34 Modernise or become obsolete 52 Managing Energy
MarkeT repOrT
ProTenders report examines the UAE’s construction industry’s Q1 2019 performance
experT VOIce
Neil Shackleton urges the construction industry to take a leap into the future
Big Project ME lists the Middle East’s biggest construction tenders for May 2019 lasT wOrd
Ashraf Yehia discusses the importance of an efficient future in power management May 2019 1
Introduction
GROUP MANAGING DIRectOR RAZ ISLAM
Let’s talk
W
hen it comes to working on complex construction projects – especially ones that are planned as landmark developments for a city or neighbourhood – it’s essential that communication be crystal clear. The role of a project manager on these types of projects isn’t necessarily the most technical one, but it is possibly the most essential one. It is incumbent on the PM to lead collaboration efforts, whether that’s through heading up weekly planning meetings, or through ensuring that all the stakeholders on the project are up to date with the latest developments on-site. If a PM isn’t on the ball, everything can and will go pear-shaped, leading to time and money lost and irretrievable delays to the construction schedule. This month, we see how crucial the role of a PM can be on a project, when we visit ICD Brookfield Place with AECOM. With a number of stakeholders involved on this project and with several moving pieces and elements on-site, overseeing the coordination and collaboration is no easy task. However, we learn how being proactive and engaged as a PM can go a long way towards alleviating the stress that comes with such a complex task. In this issue, we also speak to Chris Roberts, CEO of Eltizam Asset Management Group. While asset management isn’t really an area we’ve focused on previously, Eltizam’s focus on investing in and developing technology to help manage and
2 May 2019
raz.islam@cpitrademedia.com +971 4 375 5471 eDItORIAL DIRectOR VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 eDItORIAL eDItOR GAVIN DAVIDS gavin.davids@cpitrademedia.com +971 4 375 5480 JUNIOR RePORteR ANGItHA PRADEEP angitha.pradeep@cpitrademedia.com +971 4 375 5479 SUB eDItOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVeRtISING cOMMeRcIAL DIRectOR JUDE SLANN jude.slann@cpitrademedia.com +971 4 375 5714 DeSIGN ARt DIRectOR SIMON COBON simon.cobon@cpitrademedia.com
maintain the built environment is certainly worth looking into, given how prevalent BIM is becoming. The key takeaway from my conversation with Roberts is that he firmly believes that asset managers need to work in tandem with contractors and developers to ensure that they have access to all the data generated during the construction process. He explains that this data is crucial to the operations and maintenance of a property, and without it, asset managers are effectively working with one hand tied behind their backs. It comes down to communication again – and how vital it is that we all talk to each other.
DeSIGNeR PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOtOGRAPHY MAkSYM PORIECHkIN MARKetING MARKetING MANAGeR SHEENA SAPSfORD sheena.sapsford@cpitrademedia.com +971 4 375 5498 cIRcULAtION & PRODUctION PRODUctION MANAGeR VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DIStRIBUtION MANAGeR PHINSON MAtHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WeB DeVeLOPMeNt MOHAMMAD AWAIS SADIq SIDDIqUI FOUNDeR DOMINIC DE SOUSA (1959-2015) PRINteD BY ALSALAM PRINtING PRESS LLC PUBLISHeD BY
Licensed by tECOM to registered company, CPI trade Publishing fZ LLC whose registered office is 207 – 209, Building 3, Dubai Studio City, Dubai, UAE
Gavin Davids editor gavin.davids@cpitrademedia.com @MecN_Gavin
www.cpitrademedia.com © Copyright 2019 CPI trade Media. All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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MOST POPULAR
ReAdeRS’ COMMeNTS
feATURed
CONSULTANT
‘BUILd whAT They wANT ANd They wILL BUy IT,’ JLL’S PLUMB TeLLS CITySCAPe ABU dhABI
Saudi Arabia unveils Expo 2020 Dubai pavilion design
Such a great soundbite ‘Build what they want and they will buy it’ and so true! We recently had some family travel over for a visit in Dubai.
CONSULTANT
It was their first time in
Aldar launches waterfront development in Abu Dhabi
a couple of years, and they couldn’t believe how many different projects had popped up in that time. They were also
feature: Best of Bauma – digitisation of the industry
puzzled as to who will actually live in them. It is reassuring to hear, then,
CONSTRUCTION
that Abu Dhabi appears
Foundation stone laid for AASTMT facility in Khor Fakkan
to have found a balance between the ambitions of developers and the reality of the real estate market. Hopefully, Craig Plumb is correct that the market is now providing property priced at where
CONSTRUCTION
the demand is – largely
Losberger De Boer launches modular temporary structures for KSA cinema sector
the middle part of the market and not super expensive properties. The capital has a lot going for it from a resident’s point of view, so let’s hold onto this sensible thinking. We don’t want to be entering a new decade with the potential of a collapse in
CONSULTANT
Damac says $229m London tower is a ‘major vote of confidence’ in the UK 4 May 2019
Interview: Roofing experts BMI looking to make an impact in region
the property market. Name withheld by request
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The Big Picture
Period of transformation The Kingdom has entered a period of transformation driven by Vision 2030, with economic and social development and improving the quality of life of residents key focuses for the government.
KSA to invest $35bn in culture and leisure Lifting of 35-year ban on cinemas opens up opportunities for investment The government of Saudi Arabia intends to invest $35bn in its culture and leisure sector by 2020. The move comes as part of the Kingdom’s efforts to create a “true cultural community to enjoy theatres and cinemas”. The investments are part of a bid to ensure that Riyadh, Jeddah and Dammam become among the top 100 cities in the world for quality of life (QOL), QOL is a programme which aims to develop and diversify entertainment opportunities to meet the needs of the population and develop the Saudi contribution in both arts and culture. In the Kingdom, the programme will be responsible for an increase in the number of out-of-home entertainment venues from 154 to 260 by 2020. It also aims to raise the available retail space in shopping malls from 0.15sqm to 0.19sqm per capita.
According to experts, the Kingdom’s decision to lift the 35year ban on cinemas in December 2017 has opened opportunities for international and regional companies to help develop the domestic entertainment industry. “The cinema sector in Saudi Arabia will see significant growth, especially with the Saudi General Commission of Audiovisual Media (GCAM)’s continuous efforts to facilitate and promote national and foreign investment to enter the sector. “At the same time, GCAM is working toward achieving the QOL programme’s goal by opening 45 cinemas by 2020, with emphasis on providing various different entertainment opportunities for everyone, which will enhance and contribute to diversifying the economy,” said Bader Alzahrani, CEO of GCAM, in a statement.
Waleed Khaled, regional sales director at Losberger De Boer Middle East, said that the Kingdom has entered a period of transformation, driven by Vision 2030. “Saudi Arabia is focusing on economic and social development and improving the quality of life of its residents. One of the social reforms implemented was the lifting of the decades-long ban of cinemas in December 2017. “Saudi Arabia’s General Authority for Statistics estimates the kingdom is home to more than 32m people, the majority of whom are under the age of 30. The population spends $30bn, equal to 5% of Saudi Arabia’s gross domestic product, per year on tourism abroad,” he said. Providing new entertainment options such as cinemas aims to redirect some of this spending back into the kingdom. PwC
estimates that Saudi Arabia’s box office market value could increase to $950m by 2030 and the cinema industry could potentially generate revenues in excess of $1.5bn. This provides the opportunity for cinema operators and the government to access a highly lucrative revenue stream. “Following the 35-year cinema ban being lifted and GCAM’s approval of the issuance of licences to open cinemas, big-name chains are looking to enter Saudi’s upcoming entertainment sector. “Vox Cinemas opened its first multiplex cinema in Riyadh in May 2018 and announced plans to launch a further 600 screens. According to the Quality of Life Programme 2020, more than 45 cinemas will be launched in Saudi Arabia by 2020, and DIEC aims to open up to 100 cinemas throughout the kingdom by 2030,” concluded Khaled.
“Following the 35-year cinema ban being lifted and GCAM’s approval of the issuance of licences to open cinemas, big-name chains are looking to enter Saudi’s upcoming entertainment sector” 6 May 2019
Etihad Towers | Abu Dhabi | UAE
The Big Picture
ZonesCorp begins Phase II of Rahayel City Developer also launches two new investment projects in Abu Dhabi and Al Ain Abu Dhabi-based economic and industrial project developer ZonesCorp said it had launched the second phase of Rahayel City. Described as a world-class auto hub at the centre of Abu Dhabi’s three major urban areas of Khalifa City, Shakhbout City and Mohammed Bin Zayed City, the development spans 12.3sqkm and is intended for automotive manufacturers, distributors, new and used cars showrooms and auction marts, service providers and dealers operating in the UAE capital. Scheduled for completion in Q1 2020, Rahayel City is the first smart economic zone in a dynamic environment that allows automotive businesses to thrive while enhancing the shopping and service experience of customers and providing a diverse and attractive range of related investment opportunities, said ZonesCorp in a statement. “Designed in collaboration with experts in the automotive industry, the city will feature
serviced land and smart buildings that meet the needs of investors and customers alike. Rahayel City will also provide the full spectrum of services related to automotive commercial activities, including licensing and maintenance by modern workshops that comply with the highest global technical and operational standards, in addition to specialised training programmes with attested certificates,” the firm added. ZonesCorp also announced two new and modern investment projects in Abu Dhabi and Al Ain at Cityscape Abu Dhabi 2019. The new projects will cover a total area of two million sqm and support
12.3 sqkm
Total area of the development
an extensive range of industrial and commercial activities. The first project is planned for ICAD Zone 3 and comprises the ICAD Business Park (1.1m sqm), ICAD Gate (470,000sqm) and a 234,000sqm prefabricated factory project. The second – Al Ain Investment Complex in Al Ain Economic Zone – will extend over a total area of 155,000sqm, the firm added in a statement previewing the announcement. “The new projects will boast world-class infrastructure, accessibility and connectivity in strategic locations that comprise more than 650 industrial and commercial projects and offer preferential local and international market access for investors seeking world-class industrial zones that combine excellent services within a mixed-use development. Each of the projects will include an incubator and specialised units equipped to host industrial activities that cater to the needs of SMEs.”
“ZonesCorp’s strategic planning and objectives aim to attract further local and international investments in line with Ghadan 21, the $13.6bn three-year development programme launched in 2018 by His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces,” said Saeed Eisa Mohammed Al Khyeli, director general, ZonesCorp, adding that the initiative focuses on four main tenets – business and investment, society, knowledge and innovation, and lifestyle. “ZonesCorp is the ideal partner for local and international investors in the private sector,” he went on. “Our new projects offer immense potential in terms of market access and growth opportunities for businesses and innovators looking to establish or expand their presence in Abu Dhabi’s rapidly growing non-oil sectors, including ventures led by Emiratis as well as SMEs.”
World-class infrastructure The new projects will have world-class infrastructure, accessibility and connectivity in strategic locations that comprise more than 650 industrial and commercial projects.
8 May 2019
Sheikh Zayed Grand Mosque | Abu Dhabi | UAE
The Big Picture
64
Construction on a 64-storey residential tower is set to begin in Burnaby, making it the tallest residential tower in western Canada
1. Damac ProPerties secures $229m bank loan for lonDon Project Damac Properties announced that it has secured a bank loan of $229m for its landmark project in London – Damac Tower, scheduled for completion in 2020. The funding for the luxury tower was acquired from three major banks: Barclays Bank, which acted as the UK lead bank; Burgan Bank; and Emirates NBD. Hussain Sajwani, chairman of Damac Properties, said: “In a vote of confidence in the UK and Damac’s track record, we have secured significant support to complete our distinctive residential development in London.” The $729m tower, conceived by architecture firm Kohn Pedersen Fox Associates, will be the first in Europe designed by Italian fashion house Versace. The 50-storey building will be located at Nine Elms on South Bank, part of a wider multi-billion-pound regeneration scheme. This includes the redevelopment of Battersea Power Station as well as the location for the new US Embassy. Nine Elms Property Limited is a wholly-owned subsidiary of Damac International.
10 May 2019
1
160MW
Engie North America has started construction of the 160MW Jumbo Hill wind project in Andrews County, Texas. It is scheduled to go online in 2020
2. egyPt’s 1.5gW benban solar Plant begins Partial oPerations Norwegian firm Scatec Solar has grid-connected and commenced commercial operations for 65MW of its 400MW Benban project in Egypt. Scatec Solar is the largest contributor to the 1.5GW Benban site – the world’s largest solar park.
The Benban solar power plant is Scatec Solar’s largest project under construction as well. Scatec Solar, along with partners KLP Norfund and Africa 50, signed a 25-year power purchase agreement with the Egyptian government for six solar plants, equivalent to 400MW. Commenting on the progress of the power plants, Raymond
Carlsen, CEO of Scatec Solar, said in a statement that the estimated annual 870GWh of electricity produced from its plants in Benban will eliminate 350,000 tons of carbon dioxide emissions per year. It is also capable of providing energy for more than 420,000 households in Egypt. All six power plants are due for completion in H2 2019.
The Big Picture
4. abDul latif jameel starts oPerations at australian solar Plant
$2bn The data centre construction market in Southeast Asia is expected to reach $2bn by 2024
3 2
$12m Construction work on the $12m Kimugu Water Treatment Plant, which will be situated in the Duka Moja area of Kenya, has begun 4
3. ksa gives $1bn grant to DeveloP iraq’s infrastructure Saudi Arabia has announced a $1bn grant to Iraq in order to develop its infrastructure through major projects. The projects will include the Arar border port between the Kingdom and Iraq, and the construction of a sports city.
“The new sports city is a gift from Saudi King Salman bin Abdulaziz Al Saud to the people of Iraq,” remarked Commerce and Investment Minister Dr Majid bin Abdullah Al Qasabi. He added that the land for the project had already been allocated and that work was likely to start soon. The grant is part of a Saudi
plan to contribute to Iraq’s development and the country’s renaissance, explained Al Qasabi, who was heading the Saudi delegation at the second session of the Saudi-Iraq Coordination Council. With regard to the port project, the minister said the Arar border port project would be completed within six months.
Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, announced that its latest project in Australia has been operational since March 2019. Located in the Queensland Central Highlands region, the Lilyvale solar plant will generate enough power to supply 45,000 houses with clean energy and is the second large-scale solar installation of FRV in the region. This is the fourth project by the company in Australia with a total of 276MWAC under operation. The company stated that it signed a PPA with Ergon Energy Retail for the full plant capacity in January 2017, and the project was financed in September 2017. Financing was undertaken by the Banking Group of Australia and New Zealand (ANZ), the Bank of Tokyo and Mitsubishi UFJ, Ltd (MUFG) and Sumitomo Mitsui Banking Corporation (SMBC). “FRV is delighted to participate in the country’s ongoing energy transformation and transition to sustainability and care for the environment,” said Carlo Frigerio, managing director of FRV in Australia. He highlighted the importance of this project in the generation of green energy in the country.
May 2019 11
Market Report
UAE ConstrUCtion projECts stAtUs And sECtor vAlUE ProTenders report examines the Q1 2019 performance of the leading sectors of the UAE construction industry
The urban construction sector is one of the UAE’s most active markets. Despite a few setbacks over the last few decades, the real estate market is expected to witness stable growth and development.
Investors and developers are optimistic in the longer term due to various government initiatives and regulations announced – 100% foreign ownership of onshore companies, as well as
12 May 2019
new 10-year visas for investors and professionals. The tourism sector is poised to further accelerate the region’s real estate market, with favourable policy decisions being implemented by the government, aimed at reducing oil dependency and improving the economy. The oil & gas sector accounts for more than a third of GDP, and Abu Dhabi National Oil Company (ADNOC) has the capacity to
increase production by several hundred thousand barrels per day if required, to meet any potential supply shortage. Natural gas will remain the main source for generating electricity, generating 70% of all capacity by 2020. Dubai Plan 2021 aims to increase the use of natural gas, as it has a substantially less adverse effect on the environment than does oil. UAE infrastructure, which
includes the transport sector, is going through a major upgrade. Government initiatives to upgrade airports and roadways to cater to the expected numbers of tourists for the upcoming Dubai Expo 2020 will be a major driver of transport projects. With a pipeline of about $306bn of future projects planned across the region, there are plenty more opportunities to look forward to.
Market Report
“With a pipeline of about $306bn of future projects planned across the region, there are plenty more opportunities to look forward to�
Total
$306
Urban Buildings $238.3
Urban Buildings $129.7
Total
Design $152.7
Tender $72.6
Top 5 developers by value ($BN)
Total
Top 5 contractors by value ($BN)
Top 5 consultants by value ($BN)
6
15
10
4
10
5
2
5
Arabtec Construction
Abu Dhabi Department of Transport
Hyundai Engineering & Construction Company
15
Korean Electric Power Corporation
20
China State Construction Engineering Corporation
8
Samsung C&T Corporation
20
RTA
25
ADNOC
10
Emaar Properties
25
Abu Dhabi General Services PJSC
Infrastructure $116.5
$420
Atkins
Under Construction $420.1
Oil & Gas $59.9
KEO International Consultants
$1.01
Infrastructure $81.3
Dar Al Handasah Consultants
Oil & Gas $100.5
Planning $80.8
Upcoming projects by sector ($BN)
WSP
On Hold $284.7
Ongoing projects by sector ($BN)
Fluor Corporation
Value of projects by status ($TN)
Construction contract award forecast Q2 2019 ($BN)
Source: ProTenders
Oil & Gas $21.6 Infrastructure $4.9
24
21
18
15
12
9
6
3
Urban Buildings $3.7
May 2019 13
Analysis
The SMe OppOrTuniTy in COnSTruCTiOn Karim Dakki, chief financial officer, ProTenders, explains how technology is opening doors for SME firms in the construction industry Technology has transformed the vast majority of industries, with some embracing change faster than others. According to a McKinsey report, construction– an industry worth $10 trillion–remains a glaring exception. Despite accounting for 13% of global GDP, construction is still one of the least digitised sectors in the world. While other industries have modernised, adopting the latest IoT (Internet of Things) solutions, 14 May 2019
construction is sporadically moving towards integrating technology, at a snail’s pace. The construction sector remains the most stagnant, continuing to practise the 19th-century method of manual tendering, contracts, payments and the like. As a result, transactional delays have increased over the years, causing over 65% of projects to fail. Two other significant factors are shortage of workforce and lack of trust, while there is still
an increase in demand. Studies show that construction projects take on average 20% longer to finish and experience 80% cost overrun. While these are a few of the many reasons for the construction sector remaining stagnant, the core is a lack of technology investment to improve efficiency and productivity. Typically, for construction projects, payments are made as a combination of advances against bank guarantees (obtained
beforehand and tracked during the project) and milestone payments upon delivery. These payment streams, while well documented in the initial agreements, are normally released after an acceptance certificate signed off on by many stakeholders. Payment and its systematic delays in general are a major concern for the whole construction value chain, not only in the Middle East but globally. There is little transparency in
Analysis
under-investing in technology Construction companies have histor ically under-inves ted in technology, with figures showing that in 2016, 70% of const ruction firms dedicated just 1% or less of reven ue to technology, says Karim Dakki.
Lost in transition Paper documents going back and forth from field to project office, and from project office to central finance teams, can often get lost along the way.
the process of approving work done for a milestone, and the release of the payment involves several approvals at various stages. First, the site construction team validates the work that has been delivered to actually qualify for a milestone payment. Then the project management team that oversees the entire project is supposed to approve the milestone. Finally, the finance project accountant does their part before payment is released.
The process might seem fairly sequenced here, but on average it takes about 123 days – and can take up to six months – for payments to be processed. During this time, contractors are caught up collecting the payment instead of building. Because the industry relies heavily on paper to manage its processes and deliverables such as blueprints, design drawings, procurement and supply chain orders, equipment logs, daily
“Many startups outside the Middle East have seized the opportunity to develop new solutions and tools that address some of the challenges that have dogged the construction industry for decades” progress reports and punch lists, information sharing is delayed and may not be universal, making the acceptance process very lengthy and complex. Paper documents going back and forth from the field to the project office and from the project office to the central finance teams are sometimes lost in drawers. When milestone payments are claimed by subcontractors, the payment ballet starts, sometimes putting
the project at risk when the subcontractor is cash-trapped. New technology startups like ProTenders are actively looking at solving these problems, which cause billions of dollars of productivity loss globally. Construction companies have historically under-invested in technology. In 2016, 70% of construction firms dedicated 1% or less of their revenue to technology. However, things are shifting, and recently in the US we have seen a surge in investments and M&A activities in PropTech. Digitisation is on the rise According to TechCrunch, “Investors are taking notice. Funding in US-based construction technology start-ups surged by 324% to nearly $3.1bn in 2018, compared with $731m in 2017, according to CrunchBase data.” Many start-ups and construction technology firms outside the Middle East have seized the opportunity to develop new solutions and tools that address some of the challenges that have dogged the construction industry for decades. In 2016, just 44% of construction leaders reported that their organisations had adopted digital technology, a number they expect to reach 70% by the end of 2019. The Middle East has already started to implement blockchain solutions and cryptocurrency. The UAE and Saudi Arabia launched a first-of-its-kind joint SaudiEmirati joint pilot cryptocurrency early this year and have also implemented the solution for other initiatives. More companies have developed software solutions aimed at streamlining processes and increasing productivity, and we are confident that the construction industry, while slow-paced, will catch up with technology very soon. May 2019 15
In Profile
16 May 2019
In Profile
“This is The nexT sTep. AT The momenT, we cApTure big dATA buT we’re using iT from A mAnAgemenT And mAinTenAnce perspecTive. The developer should be using ThAT informATion AT The sAme Time, To go And plAn for The nexT building or projecT”
Big Project ME speaks to Chris Roberts, CEO of Eltizam Asset Management Group, about how asset and property managers are using data and technology to work with contractors and developers to improve efficiencies and reduce the costs associated with running properties May 2019 17
In Profile
30 years ago, when a real estate developer in Dubai built a property, the intention was always to lease it out straight away, with minimal regard for how the project was maintained or operated. In fact, it was not uncommon to see buildings less than 15 or 20 years old being demolished to make way for newer, larger developments. But once Dubai’s real estate industry started gravitating towards building projects that were larger and higher in scope and size than anything that had come before, this model was no longer sustainable. With mega developments like Business Bay, Downtown Dubai and Dubai Marina coming up, it was no longer viable to go back to the drawing board every couple of decades or so. Developers had to start thinking long-term and viewing the longevity of their real estate assets as an essential part of their business model and strategy. This is where facility and asset management firms came in – tasked not only with building operation and maintenance, but also with ensuring that essential systems such as MEP and fire and life safety systems operated efficiently and effectively. “When I came here in 2006 originally, it was very much about implementing the FM model and Dubai was the first one to accept the FM model. Then 2008/2009 happened and things became very restricted in terms of cash, and therefore by the cost of maintaining that asset. Then it became about looking 18 May 2019
rapid expansion Having started out in Abu Dhabi in 2009, managing just 14 buildings, Eltizam has now expanded its operations to 155 buildings, 44,000 units and operations across the region.
at the lifecycle of the whole asset,” says Chris Roberts, CEO of Eltizam Asset Management Group, a UAE-based company that consists of a range of building service providers that manage and maintain thousands of buildings across the country. “Developers are fantastic at building great projects, but they don’t think about how they can maintain it and add life to it. Back in 2006/2007/2008, you had a lot of developers building something because [they could]. It was a case of ‘I can build it, stick my name on it, and off I walk’. “But by 2008/2009, you had all these developers who realised that they were going to be here for years. They weren’t going to build just one building, they were looking to build 15 towers for instance, and therefore they wanted to protect their brand. They could create their own internal teams to do that and have the huge costs associated with that, or they could find a partner who’s going to take on the
“As an organisation, we weren’t really pushing ourselves to the boundaries, we were just doing particular projects. Once I joined in February 2014, we decided to do a complete strategic change and we created Eltizam”
asset for the long term,” Roberts says. “You can have PM and FM companies, but Eltizam looks at the whole asset and therefore there are no complications when you’re looking at a 25-year or 30-year lifecycle project, because we know how it’s going to be maintained, how it’s going to be managed and how we can plan around that.” Despite the plethora of facilities management and asset management firms in the market, Robert believes that having a long-term view for its project portfolio gives Eltizam a competitive advantage in a rapidly changing market. Established in Abu Dhabi in 2009, Eltizam was initially set up to manage and maintain real estate assets. Over time, it has expanded from an initial 14 buildings to 155, and from 300 units to a mammoth 44,000. It is now expanding into Saudi Arabia, Oman, Kuwait and Bahrain. Shortly after Roberts joined the company, there was a complete strategic change within the organisation, leading to the establishment of several companies within the group – Tafawuq Facility Management, Tafawuq Project Services, Three60 Communities, Three60 Leisure, Three60 Energy and Three60 Real Estate. “As an organisation, we weren’t really pushing ourselves to the boundaries, we were just doing particular projects. Once I joined in February 2014, we decided to do a complete strategic change and we created Eltizam, which is a physical asset management company. By that, I mean that we take an asset that’s already been built, and we manage and maintain it, and add life to it. “We now have just over 115 buildings in the UAE and five large communities in the UAE
In Profile
strategic step Eltizam will use a $55m fund for mergers and acquisition activities in the GCC in 2019 and 2020.
and Oman that are between 3,000 and 5,000 units each. We’ve gone from approximately $8.13m in revenues in 2013, to this year alone touching nearly $81.6m. It’s quite significant growth for us.” Having established itself as one of the leading physical asset management companies in the GCC, Eltizam now manages assets worth in excess of $16.3bn and currently employs 1,400 people after starting out with
just 140. Revenues are forecast to surpass $136.1m by 2021, as a direct benefit of its ambitious Vision 21 programme. Launched in 2017, Vision 21 is a five-year business strategy programme that will oversee Eltizam’s transition from a growth company to a customer company. The group recently announced that it has set aside $55m to fund mergers and acquisition activities in the GCC in 2019 and 2020.
Viewed as a natural strategic step for the company, the fund will allow it to acquire companies from multiple sectors, including facilities management, owners’ association management and property management. There are already strategic joint ventures and M&A agreements in place to facilitate expansion in Oman, Kuwait and Saudi Arabia, the company says, adding that it is in discussions with several
companies and aims to finalise deals by the end of the year. Another crucial part of the Vision 21 programme is Eltizam’s investment of $5m in next-generation property technologies over the next three years. Roberts firmly believes that this investment will help solidify the group’s status in the market and give it an increased competitive edge, especially as the way buildings are constructed is changing in the region. With regional governments and municipalities now mandating the use of BIM on construction projects, there is now a wealth of data generated during the construction process, he explains. This data is crucial information for companies like Eltizam, which relies on it to plan and structure its operation and maintenance plans for the assets under its control. “I would say that [the use of BIM] has been the biggest fundamental change in the last four years. You used to have an FM consultant who’d come in, do
data goldmine With regional governments and municipalities mandating the use of BIM on construction projects, there is a wealth of data being generated that can be crucial for asset and property managers.
May 2019 19
In Profile
the overarching design and plan, and then pick an FM company [to operate and maintain the building]. Nobody looked at it as a whole asset. I want to see [the data] from a management perspective, I want to see it from an owners’ association or property management perspective. I want to see how the building is put together. “For example, we took over a project a few years ago and we got the BOQ for the assets. We then did a review of all the assets in 2015. [According to the BOQ], we had 91,000 assets on our books that we had to maintain on that property. Now, this all came from the contractor, who insisted that we had 91,000 assets. But when we took a couple of months to do a quick review, we found that all of a sudden, we had 146,000!
investing in technology Eltizam is spending $5m over the next three years on technology investment, research and development.
“So, my lifecycle model changes completely, in the sense that it’s now not valued at $4m every three years [for example], but it’s actually valued at $6m. I’ve now got to make sure that my
fund is healthy enough to replace these assets over the time period. “That part of the technology is really vital, as is how you – as an asset manager – interact with the contractor and the developer
to get that information in the first place. That sets out, in the long term, the planning of the building and the whole asset. The asset is like a big data machine and what you need to do is
“I want to see [the data] from a management perspective, I want to see it from an owners’ association or property management perspective. I want to see how the building is put together”
20 May 2019
Free attendance for industry professionals. Register online rhcsummit.com
Building retail and hospitality With major events on the horizon, the GCC’s hospitality and tourism sectors are expected to see strong growth and contribute significantly to the construction and real estate sectors in key markets.
30 September 2019 The Oberoi Hotel Dubai, UAE rhcsummit.com
Retail & Hospitality Construction Summit and its entities are a product, owned and operated by CPI Trade Media. Š 2019 CPI Trade Media. All rights reserved.
March 2019 21
In Profile
capture all of that big data from the building,” Roberts asserts. Traditionally, several models are used to operate and maintain a real estate asset, each addressing specific needs and wants that a property or facilities manager might have. However, this is a cumbersome, time-consuming process and Roberts reveals that Eltizam’s investment in technology includes the development of a streamlined system that has all the data from the building fed into it and translated into information that can be used by its asset management teams, as well as property owners and tenants, all easily accessible on smartphones or personal computers. “You can take someone on a complete journey – if they want to lease a particular unit, they can go into the app, find a property they like, do a 360-degree viewing of that property, compare it to other properties within that price range, and see how the building is graded as well.” Users can even get their Ejari done using the system, he adds, and tenants can register interest in flats, negotiate and pay landlords, and even hire movers. The functionality of the app means tenants can also use it to enhance their living experience, whether by booking fitness classes or cleaners, or highlighting faulty equipment or maintenance issues. Furthermore, the app is also beneficial to owners and owners’ associations, he adds, as it allows them to communicate directly with property managers, check on multiple apartments, keep track of service charges, and so on. “When you get to the corporate perspective, I can look at one building and see the exact cost of the FM running there, how it’s being maintained, and the additional costs being 22 May 2019
making things more efficient Chris Roberts says that asset and property managers can contribute to Dubai’s smart city ambitions by making buildings more efficient, streamlined and effective through the use of technology and data analysis.
incurred. Monthly reports to the owners’ association can also be produced, while the asset manager can look at the data and see what the costs are from an energy management perspective. It takes over the whole CAFM system as well, thereby driving the maintenance plans and reducing the utilisation of manpower.” Finally, Roberts stresses that the industry is on the cusp of a paradigm shift in how technology is used to manage built environments and make cities smarter. With the company exploring how the Internet of Things (IoT), artificial intelligence (AI) and blockchain technologies can help the business over the coming months and years, a pilot project involving the deployment of IoT temperature and water sensors at one of its flagship projects in Abu Dhabi is already underway. While the data generated from the pilot project will be used to aid in FM operations for the property asset, Roberts says
“Whatever we’ve done previously from a property or facilities manager perspective in the past 10 years, that’s not what is going to happen in five years’ time, it’s not what’s going to happen in the next year”
developers and governments need to pay attention to how the capture and use of big data can inform future construction and development. “I think this is definitely the next step. At the moment, we capture big data but we’re using it from a management and maintenance perspective. Actually, the developer should be using that information at the same time, to go and plan for the next building or project. “The thing about smart cities is that it’s not just techdriven. It’s driven by driving down efficiencies and making it a lot easier to do business in the city. Dubai is probably at the forefront of the movement, in that it’s not taken a 50,000sqm or 1,000,000sqm project and called it a smart city. Instead, it’s taken the whole city. In fact, the UAE is looking at it as a whole – how they do business here and how they can make it more efficient to do that. “It comes down to pathways – we’ve made it very easy for a developer to go and build a building and we’ve made it very transparent for owners to go and buy in that building, but what’s Eltizam’s responsibility? To maintain and manage the asset, to make it very easy and transparent, but to also utilise technology to make it very efficient. “Whatever we’ve done previously, from a property or facilities manager perspective in the past 10 years, that’s not what is going to happen in five years’ time, it’s not what’s going to happen in the next year. Now we’re thinking about what’s going to happen in five years’ time and how we can get smarter in this environment, while cutting down on manpower and therefore the cost of managing and maintaining an asset,” he concludes.
Advertorial
Optimism prevails
Mark Raymont, partner at Pinsent Masons, outlines the results of a GCC-wide construction survey that looks at the industry’s outlook for 2019 Companies in the GCC’s construction sector are expecting to receive more orders this year compared to 2018 – according to Pinsent Mason’s GCC Construction Survey. The survey reveals that 58% of respondents have experienced an increase in their order books so far in 2019.
According to the annual survey, KSA is the number one market expected to deliver growth in 2019, with 55% of respondents expecting the country to provide the most opportunity over the next 12 months, compared to 29% in 2018. Presented to industry professionals at Pinsent Masons’ annual Construction and Engineering Law Conference, the report provides a snapshot of opinion from the GCC construction sector, where the majority of the companies are involved in projects with a value between $27m and $136m. While the number of disputes that respondents were involved in remained unchanged from the previous year, it was revealed that the sector continues to face key challenges around liquidity/ payment issues, with the majority of respondents (81%) highlighting this as a major short-term disruptor in the sector. Over 80% of companies also believe that there is not enough investment allocated to training and developing professionals in the GCC construction sector. “The outlook of the GCC’s construction sector remains continuously optimistic, despite the hit taken by the three-year oil price slump,” said Mark Raymont, head of Middle East Construction Disputes at Pinsent Masons. “While challenges remain in this region, we anticipate an
“The outlook of the GCC’s construction sector remains continuously optimistic, despite the hit taken by the three-year oil price slump” increase in infrastructure projects, particularly in KSA,” he continued. Notwithstanding concerns regarding financing and market liquidity, the findings revealed that almost 40% of those surveyed across the GCC do not anticipate
being involved in public-private partnerships (PPPs) this year, despite the fact that these partnerships are a means of attracting more inward investment. It was also noteworthy that when asked if they intended to
81%
50%
of respondents believe that key challenges around liquidity and payment issues are a major short-term disruptor in the construction sector
of respondents believe that a specific construction law is required for the UAE, which addresses payment terms and faster dispute resolution
expand their reach and pursue operations in Sub-Saharan Africa, over 60% of respondents said this was not a consideration. It was also revealed that over 65% of respondents have not used and are not planning on using the new Technology and Construction Court in DIFC Courts, even though almost 60% of companies have been involved in a mediation or other alternative form of dispute resolution in the past 12 months. It should also be noted that over 50% of respondents believe that a specific construction law is required for the UAE, which specifically looks at payment terms and conditions and more efficient and faster dispute resolution, etc. Respondents felt positive in terms of the objectives of their company and the regional construction industry as a whole; when asked if they believe the regional construction industry is doing enough to improve health and safety practices, over 60% said yes. Comparably, when asked if a respondent’s company was making significant investment that encourages gender diversity in key roles in the construction industry, almost 60% said yes. The UAE continues to rank first when it comes to ease of doing business, respondents added. When asked which GCC countries were the top three easiest to do business in, the overwhelming majority (96%) of respondents chose the UAE as their first choice, up from the 89% recorded last year. Oman followed in second place at 47%. 64% also see Dubai as the most appropriate venue for regional dispute resolution, with KSA coming in second at 43%.
May 2019 23
Site Visit
24 May 2019
Site Visit
The Place to Be Big Project ME visits ICD Brookfield Place with AECOM, the project manager tasked with overseeing the construction of one of the most eyecatching towers in the DIFC area. Gavin Davids reports from site
May 2019 25
Site Visit
E
arly in 2016, at the press event announcing the launch of ICD Brookfield Place, one of the key messages hammered home about the project, was that it would be a truly inspirational building that would showcase the finest elements of architecture and design. Fast-forward to April 2019 and these words continue to ring true, with the 53-storey tower rapidly approaching completion and dominating the skyline on Al Sa’ada Street in the DIFC area.
Designed by architect Foster + Partners, the glass office tower takes on the form of a sharp prismatic structure, with the façade appearance transforming in synchronisation with the position of the sun over the course of the day. With the building core now topped out, Big Project ME visits the site with AECOM, the project manager, to learn about the progress being made and the processes put into place to ensure the smooth delivery of the project. “Tenant fit-out commencement is going to be in Q2 2019, while phased completion is going to be Q4 2019,” says Alan Anderson, project director for AECOM on ICD Brookfield Place, speaking at AECOM’s site offices opposite
StAtS: Total office space: 91,974sqm Total retail space: 13,006sqm Tower max height: 283m Parking slots: 2,700 Structural steel: Approx 24,000 tonnes Façade panels: Approx 8,000
the construction site. “The tower core has been topped out. In a few months, we’ll be finishing the steel frame at the top of the tower. That will allow us to remove TC1 and complete the external façade.” As the name implies, the project client is a joint venture between the Investment Corporation of Dubai and Brookfield Properties. Furthermore, the contractor is also a joint venture, this time between Multiplex and SsangYong. In addition, the lead consultant and architect of record is BSBG, Robert Bird Group is the structural engineer, and AESG is the LEED consultant. In addition, AECOM’s MEP practice is the MEP designer on the project.
“Tenant fit-out commencement is going to be in Q2 2019, while phased completion is going to be Q4 2019. The tower core has been topped out. In a few months, we’ll be finishing the steel frame at the top of the tower” 26 May 2019
Site Visit
Leading the way AECOM is overseeing a collaborative management approach with all key stakeholders to ensure effective communication, timely turnaround of information and decisions, resolution of key issues and risks, and coordination between consultants, client and contractors.
Given the number of companies involved and the complexity of the project, AECOM has been tasked with overseeing a collaborative management approach with all key stakeholders to ensure effective communication, timely turnaround of information and decisions, resolution of key issues and risks, and coordination between consultants, client and contractors. “AECOM’s role is project management and cost management,” says Anderson. “We have two construction managers to push the works on-site and to also check on manufacturing – they go on factory visits to check on the production of various components and to make sure they’re being manufactured on time, in line with programme requirements. We have a total of 14 people here – that consists of nine on the project management side and five on the cost management side.” As part of its role as PM, the AECOM team is tasked with senior management meetings between the client, contractor and consultants, holding Smartboard design workshops, Webex and conference calls with the team, which is split between two geographies, he explains. “We have fortnightly progress meetings with the full project
KEy FEAturES OF thE BuIlDInG: Summer Garden: A new retail connection and public garden will link the food emporium and public realm at ICD Brookfield Place to the existing DIFC Gate precinct. The North Podium: Will include shopping, dining and private club facilities within the five-storey frontage on Al Sa’ada Street, featuring multiple external terraces. Executive floors: The top three levels of the tower will comprise the sky-view suites, a crowning feature of the building.
team and weekly planning meetings with the contractor and the client, whereby we scrutinise procurement, manufacturing, productivity, look-ahead programmes and monitor the progress of key milestones for the forthcoming months. Regular LEED/commissioning and MEP procurement meetings are also held, as well as ad hoc meetings as and when required, to ensure we are communicating as a team. “In addition, Foster + Partners’ key decision-makers are based in London, as is the design director from Brookfield, so we have weekly Smartboard meetings which allows us to share the screen and comment on drawings or designs either from Dubai or London. “We’re on target for achieving a LEED Gold rating. We also have a number of other consultants directly contracted to the client. In some projects, you
In the loop The AECOM project team organised fortnightly progress meetings with the full project team, and weekly planning meetings with the contractor and the client.
May 2019 27
Site Visit
Coordination challenge All of the consultants involved in the project are directly contracted to the client, which has made coordination a lot more challenging for the project management team, Anderson says, highlighting the need for greater collaboration.
have a lead consultant and the subconsultants will usually be under them. On this project, however, all of the consultants are directly contracted to the client, which makes coordination a lot more challenging. As such, we have to collaborate more,” Anderson asserts. As part of this collaborative process, he confirms that BIM is being used on the project, with the contractors producing a fully coordinated model. Once the project is completed, the model will be handed over to the client for operation and maintenance purposes. When it comes to operations on-site, the challenges become much more pronounced, Anderson explains, pointing out that the main service road for the project site is very narrow and right behind the hoardings separating the site from the main road. “That has been the main access and egress point for 28 May 2019
“The site is very congested. You’ve got Al Fattan Currency House on one side, Gate Avenue and the Ritz-Carlton hotel at the back, so it’s something that needs to be managed very closely, in collaboration with DIFC”
deliveries of materials and it’s very constrained. It has been a huge challenge and the contractor has had to manage it very closely, to make sure that they’re timing deliveries and carefully plan the logistics. “At the initial outset of the project, there wasn’t enough space for laydown of materials. That was an initial challenge for them to deal with, but as the building came up out of the ground, they’ve started to use the basements to store materials. “The site is also very congested. You’ve got Al Fattan Currency House on one side, Gate Avenue and the RitzCarlton hotel at the back, so it’s something that needs to be managed very closely, in collaboration with DIFC. They’ve got construction guidelines that we’ve got to work within as well, for safety and logistics as an example. Another key challenge has been managing and monitoring the
StAtS: Client: Joint venture between ICD (Investment Corporation of Dubai) and Brookfield Properties Partners Main Contractor: Joint venture between Multiplex & SsangYong Project & Cost Management: AECOM Middle East Ltd (Contract Administrator/Engineer) Main Supervision Consultants: Foster & Partners (Design Architect), Brewer Smith Brewer Gulf (AOR and Lead Architect), AECOM MEP (MEP Design Consultant), Robert Bird Group (Structural Engineer)
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Site Visit
construction noise levels around the neighbouring buildings. We make sure that we work to Dubai Municipality regulations as far as noise is concerned,” he adds. One of the biggest challenges the project team encountered on the project was right at the beginning, with logistics, removal of soil and safety associated with the deep basement excavation. “This project has one of the deepest basements in Dubai, so that threw up a lot of challenges. There was also a previous abandoned development here, whereby we had the previous existing piles and an existing D-wall. Some of those piles were reused on the new pile raft foundation,” Anderson explains, adding that this was achieved through engineering and testing to incorporate the existing piles into the new piled raft design and construction. Another construction challenge is the steel structure, not very common in highrise buildings in the region. The superstructure of ICD Brookfield Place has a central
30 May 2019
Key location ICD Brookfield Place will link up with Gate Avenue, creating a strong retail element for the project and the surrounding area.
PrOjECt PrOGrESS: Structural steel progressing at top of tower crown, targeted to complete within the next few months; completion of façade will follow. Internal fit-out progressing up to level 36 (male & female WCs and lift lobbies only), with snagging in progress up to level 16. Façade panels progressing in tower (up to level 50), South and North Podium. Tenant fit-out commencement: Q2 2019.
concrete core and a structural steel frame, he outlines, adding that the stability of the system includes a plant zone outrigger acting collaboratively with the external steel A frame and core. The relative stiffness of this system was tuned such that the single steel node of the A frame was within 70 tonnes, Anderson explains. This load was chosen to match the capacity of the world’s largest luffing crane and to avoid the timeconsuming complication of stand-jacking a heavier node. “If you look at the top of the tower, the steel structure is very complex. You’ve also got an outer façade and an inner façade on Level 51. This has presented very big challenges in the sequence of works. We’ve also got a plant space on Level 54, so that means that there are multiple tradesmen working in quite a confined space, obviously at a very high level of the building. “This has presented quite a lot of challenges in terms of logistics, safety and also for the manufacturing of the façade. To overcome this, the contractor manufactured large modular frames around 14m x 6m in
Site Visit
size, which were lifted by the crane and bolted into place. This reduces the lifting time and helps with the progress of works.” There are an estimated 8,000 panels used in the façade, with the largest glass panel being circa 3m x 8m, while the structural steel weighs in at around 24,000 tonnes, he adds. “There are two main facade systems – there’s the unitised system, whereby a complete unit is pre-manufactured and brought to site and then dropped in by crane and fixed to the structure. The other type is the stick system, whereby the frame, mullions and transoms are installed on-site, and then the glass is brought in and fixed to the frame.” Finally, as Anderson brings the tour of the site to a close, he
KEy FACtS: One of the deepest basements in Dubai (c. 29.25m DMD). The seven-level basement sets a new benchmark for Dubai and a legacy that will provide future developers with options not previously considered for underground car parking in this region. The world’s largest luffing jib tower crane – the Favelle Favco M2480D – was used on the project for its lifting capabilities and was required to lift the steel A frame nodes weighing up to 70t each.
focuses on the HSE aspects of the project. Although AECOM has more of an auditing and supporting role, as per its policy and safety values it has a dedicated safety officer on the project one day a week, so that they can attend safety walks, manage the closure of Lifeguard observations, attend weekly safety meetings, review or audit safety documentation, investigate incidents and support the PM/ project team to drive safety as the number one priority. “We have worked closely with the lead consultant (BSBG) and the main contractor for the management of all aspects of HSE. Recently, the project team celebrated a key safety milestone in achieving 15 million worked hours without a loss time incident, which is a great
achievement by the team given the complexity and logistical constraints of the project and having an average of 3,000 labourers on-site,” he says. The AECOM Lifeguard system is implemented on-site by the consultant/contractor. Observations are uploaded via a mobile app or online and issued to the contractor, who responds with action taken to close out the observation. The AECOM safety officer reviews and closes on acceptance of the appropriate close-out action. “Monthly Senior Safety Management meetings are held with key senior personnel from the client, BSBG, AECOM and the contractor, so as to focus on upcoming safety concerns and initiatives,” Anderson concludes.
Celebrating safety The project recently celebrated a key safety milestone in achieving 15 million worked hours without a loss time incident.
May 2019 31
Expert Voice
Market leaders provide valuable insights and opinions for the construction industry
turning the industry on its head Manufacturing in a factory means that technology can be leaned on throughout the process, resulting in transparency and live information.
Modernise or BecoMe oBsolete
Neil Shackleton, project director at ALEC, urges the regional construction industry to take the leap into the future Steering anything in the construction industry can at times feel like we have our hands on the wheel of a juggernaut. Our industry has been described as thoroughly dormant when it comes to collaboration as well as innovation – lead-footed at best. Yet when we lift our heads up, there are most definitely refreshing pockets of progress
34 May 2019
being made in construction. Volumetric modular assembly of a construction product is one of those ‘aha’ moments, and it’s not new. The ability to manufacture a fully fitted-out and complete construction product inside a world-class facility, and to translocate it globally, is thought-provoking, challenging and exciting.
When one analyses what needs to happen in order to fully manufacture a building product in pieces and then assemble it at the point of destination, it seems plausibly easy on the face of it. But the reality is that it is a road fraught with problems, challenges and historic carnage. To start with, modular assembly turns our industry’s
bad habits on its head – get the design right up front and no changes. If you are a client that doesn’t know what you want and changes the design as the building progresses, modular won’t work for you. In a modular assembly approach, all the design thinking is done up front, the materials are chosen, and the BIM model is developed to an LOD 400.
For more information, please visit the ALEC website at: www.alec.ae
“It’s not the biggest or strongest that will survive, it’s those with the ability to navigate change and provide efficient solutions in the future” More time is focused on the critical thinking and problemsolving before procurement and assembly. The focus is on getting the hard yards done up front, using the skills of experienced, innovative people and then assembling a product in a short time span, in a sequential logical and organised manner. This manufacturing model employs skilled-up resources that work systematically and efficiently. Modular is about going long. There are many stories of companies and projects that have failed on the road to try and solve the modular Rubik’s cube, but the success frequency is starting to level out. It’s no longer about first mover failures; it’s more about getting the system
and the product right to achieve a superb level of finish to an incredibly well-designed space. Design is becoming ever more important as space becomes a luxury on our crowded planet. A carefully selected palette of finishes with space used discerningly gives the end user a sense of place and desirability with a very practical view of living, especially with a family. So what are the problems that modular manufacture addresses? It’s simple, really: Speed – a facility can manufacture units much faster than on a construction site. Efficiency – assembly is organised in a plant, and materials arrive JIT in the sequence required.
Quality – the same teams work on the same activities, ensuring zero rework. Environment – work is executed indoors rather than on-site, and sustainable reusable materials are planned into the works. Safety – systematic activities are executed with safety requirements staying the same in a controlled space. Design – we get it right up front. Delivery – we can deliver an artisan assembled product into a region that has few skills or resources. Technology – manufacturing in a factory means we can start to lean on technology throughout the process,
using BIM in design, and an ERP system in procurement/accounting/ programming and assembly. This means we have an end-to-end integrated IT resource platform, which means transparency and live information. RFID tags can be used, as well as exploring the opportunities in automation within the assembly process. The construction sector has the ability to be agile and is becoming more innovative. It’s not the biggest or strongest that will survive the longest, it’s those with the ability to navigate change and provide efficient and well thought-out solutions in the future. Innovation is the key.
May 2019 35
Event Review
Value engineering Summit 2019
Big Project ME looks at the second annual VE Summit, which focused on value engineering in construction and infrastructure, and how technology will continue to affect this growing facet of the construction industry More than 200 delegates from across the Middle East gathered together on April 9 at the Oberoi Hotel in Business Bay, for the second edition of the Value Engineering (VE) Summit organised by CPI Trade Media. The conference brought together speakers and panellists constituting consultants, contractors and government authorities, and
36 May 2019
provided them with a platform to discuss and debate the issues and challenges of improving efficiency in construction. Chaired by Nicky Dobreanu, managing quantity surveyor at C-Quest, the event included three panel discussions, two presentations and two CPDcertified sessions, followed by a networking lunch. Ahmed Abdalla Al Hammadi,
director of the Federal Roads Department at the Ministry of Infrastructure Development, gave the keynote speech before the day’s discourse started. Scott Coombes, director at AESG, kicked off the event by moderating the first panel discussion, which focused on design and build (D&B) contracts becoming increasingly popular across the region, compared to
traditional construction contracts. The key points reviewed were the pros and cons associated with D&B projects, while industry experts talked about creating clear communication and working in a collaborative environment for successful VE implementation. Overall, the panellists believed that D&B is growing within the organisational culture, but pointed out that the way a D&B
Event Review
contractor thinks should be very different from the way a traditional contractor thinks. Scott Beth, senior manager, Project Development at Select Group, said, “I strongly feel that D&B contractors should be more creative and have a deeper understanding of the processes at work.” Paul Doherty, UAE country director at Faithful + Gould,
felt market maturity is still an issue throughout the whole construction process, with respect to D&B projects. In conclusion, the takeaway was that D&B projects will receive a lot more support in the future and that D&B is a great solution for fulfilling particular objectives in a contract. One of the topics discussed in the first panel was what
constitutes value in a D&B contract. Hence, the first presentation of the day was by Fernando Freitas, associate director at Omnium International, who elaborated on the importance of ‘value’ in VE and the relationship between functionality/quality and cost. The next panel discussion was on the application of VE in private-public partnership
(PPP) infrastructure projects, moderated by David Clifton, director for Strategy and Growth (Construction Services) at AECOM. To start off the discussion, Rita Allan, senior associate at Pinsent Masons, stated that there are a lot of projects that are already of the PPP nature, not by name but by cooperation. She stressed multiple times during the panel
May 2019 37
Event Review
discussion that a PPP is designed to be a life asset when compared to other projects, and that it is usually for a very long time and involves a big investment. The council went on to discuss how governmentimplemented laws and project financing mechanisms will provide support to vital projects. Most of the debate was about determining how a successful PPP seeks to align the risks to that party most suitable to bear them. The recurring theme was that everyone involved needs to collaborate in a controlled environment and adopt a holistic approach to VE and hitting key performance indicators. Participators maintained that how we approach VE and which PPP model should be incorporated for a project is crucial. Mohammad Tanbouz, executive director (Operations) at Lacasa Architects & Engineering Consultants, 38 May 2019
“I think it’s going to accelerate, and people’s jobs will change. They will not disappear, but they will evolve, and it’s only by adopting technology that we will be able to deliver more” added, “There are legal entities present to scrutinise the project in terms of liabilities, risks and gains, and to control the interests of all the stakeholders involved.” He elaborated that
PPPs are unique, and that the culture needs to be more developed in the Middle East than other parts of the world. The panel ended on the idea that during a VE exercise every aspect must be scrutinised, and that stakeholders must have a realistic approach to the issues and risks associated with lifecycle costs and government benchmarks. The panellists stressed the importance of understanding that PPP projects are life assets and must be treated as such during the VE process. The third panel for the summit was about using technology and software during the VE process. Dobreanu returned onstage to moderate the debate on the use of analytics and technology in finding the most value-added solutions. The committee also had a healthy dialogue on calculating return on investment on the financial, social and environmental fronts, and the benefits they bring in terms of CapEx and OpEx.
Nithin Thomas, senior BIM manager at Shapoorji Pallonji International, made an interesting point about how understanding technological barriers is the key to making everything work efficiently and effectively. Meanwhile, Naji Atallah, head of AEC and Manufacturing (ME and Turkey) at Autodesk, was of the opinion that trusting technology won’t be an option going forward. “I think it’s going to accelerate, and people’s jobs will change. They will not disappear, but they will evolve, and it’s only by adopting technology that we will be able to deliver more.” With this thought in mind, the final panel of the second edition of the VE Summit concluded. The second presentation for the day was delivered by Venugopal Nanjan, CEO – Centre of Excellence at S&T Global Engineering Services. He elaborated on how technologies such as big data, BIM (building
Event Review
BigProjectME_92x120mm_op.pdf
information modelling), VR (virtual reality), GIS (geographic information system) and blockchain are disrupting the AEC industry, especially in the area of VE. This was followed by two CPD-certified sessions. The first was on a win-win strategy for successful VE by Maged Louis, managing partner at Implement Engineering Consultants. His
“I strongly feel that D&B contractors should be more creative and have a deeper understanding of the processes at work�
case study was about a hospital project where both parties felt that they got good deals. He expanded on the differences between cost-cutting and VE. Summit chair Dobreanu returned to give the final CPD-certified presentation for the day, which discussed how companies must adopt collaborative practices and behaviours to facilitate collective learning and building trust in the pursuit of value. He noted how current construction practices are difficult and cumbersome, and talked about what could be done to change this. With this, the second VE Summit organised by CPI Trade Media ended on a resounding success. Attendees were able to share their experiences and ideas with industry experts as well as network with government officials, key industry figures, influencers and solution providers during a buffet lunch at the venue.
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May 2019 39
Value Engineering
MaxiMising EfficiEnciEs
Paul Wallett, regional director, Trimble Solutions Middle East & India, elaborates on a key talking point from the Value Engineering Summit 2019
How can IPD improve the industry’s inefficiencies and bottlenecks?
While other manufacturing industries globally have been growing in productivity, construction has only seen a minor improvement of around 1% in the last two decades, primarily due to the traditional design bid build contracts that our construction industry works on. The design bid build contract inherently creates contractual silos, requiring third parties to communicate among the various stakeholders rather than a collective combined stakeholder team. All parties to the IPD contract have a vested interest to be transparent with each other, as a tri-party agreement whereby additional bonuses for contracts completing on time can be distributed from a contingency budget, or if overruns occur, paid from the budget from a joint risk or reward model. The IPD model fits perfectly with the intent of BIM processes where more constructible information can be incorporated into the design to detail-level model, and encourages open
40 May 2019
communication. All the stakeholders are brought on much earlier in the process, allowing design problems to be addressed and collectively resolved as communication and collaboration become driving factors of the contract itself. How can IPD be used to design and build future-proof projects?
Since IPD integrates all stakeholders, systems and people with best practices into the design, the fabrication and construction processes in turn increase value to the owner by reducing waste and maximising efficiencies. The highest achievable sustainability goals should be reached through the collaborative process. As information flow is available to all for the benefit of the contract, informed decisions are easier to reach and will be established much earlier in the design phases. What are the biggest challenges to IPD becoming the norm in the construction industry?
IPD-driven projects are far and few in the UAE at present, but interest in this project delivery method is
“The IPD model fits perfectly with the intent of BIM processes where more constructible information can be incorporated into the design to detaillevel model�
increasing due to success stories from other countries. The increasing sustainability goals, coupled with a steep rise in increasing material, labour and equipment hiring costs, makes IPD a serious discussion point which we are hearing more of. The traditional design bid build delivery following FIDIC rules has been the overriding and most commonly used method in the Middle East. Since many companies are very well accustomed to this contractual method, changing the process is challenging and indeed a huge cultural paradigm shift. Along with the adoption of BIM in the region, there is a need for one mandated standard to work to. As we have seen with adoption of BIM in the region, there is still no one mandated standard to work with, and use of BIM on projects is varied. Since BIM was mandated back in 2014, we now see requirements for BIM. The same could be said for IPD, since it is recognised as a much better delivery method in terms of collaboration and overall success for a project.
Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ
Threat & Risk Assessment Gap Analysis Security System Design IT/AV Design Master Planning & Development Operational Requirements
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Testing & Commissioning Control Room Design System Integration Policies & Procedures Site Surveys & Audits Crisis Management
Technology
The evoluTion of The PM
Joe de Klerk, regional executive at CCS, explains to Big Project ME how technology will help in advancing project management methodologies and principles, and contribute to improving the built environment
What are some of the unique challenges that construction poses to project management? And how do you think the industry itself is not meeting those challenges?
One of the challenges in project management is working in silos. There is a lack of communication between the teams, not only on the site but between the site team and the engineering team that represents the owners. And in some cases, this can result in financial losses or not being able to identify problem areas accurately. Another challenge is if the project teams are not wired to deal with the constant changes happening, or if they are mismanaged. This results in delays and losses on the project. I always say the only constant in project management is change.
42 May 2019
One of the other things I have seen is unrealistic expectations from management. For example, too little time or not enough budget, which puts the project team under pressure to perform. Also, due to a lack of accountability, people are often not held responsible for their actions and therefore don’t apply proper principles. But when you hold people accountable, you can improve all the above and the project can be executed properly. With technology starting to make some headway in the industry, how can the technology that CCS is developing affect the way project management is being done on the construction site?
In terms of how the technology impacts us, we should have a
system that gives us control. So it’s not just that a solutions provider should provide you with a piece of software; they have to be a part of your business and should develop the software for you. Now, if you take our systems into account, we provide a complete solution where we go from feasibility study to project close. So we deal with the takeoff, estimation, subcontract management, cost control, value engineering, procurement, payroll, construction accounting, equipment management stores. This helps our customers analyse the information, draw down any problem areas and then take preventive action. This will then give them control and provide them with a complete understanding
of their budgetary amount, quantities, rates and actual cost. How does CCS operate on a project with its clients? Can you walk me through educating not just your direct client, but everyone, on the supply chain and its importance?
Education is everything. You can have the best system in the world, and if people don’t know how to use it then they will not be able to get the value out of that, which is why we do a hand-holding process. We provide a full range of training courses, from estimation to planning to project management to management overview courses. We present those courses to the relevant people and we see progress. Once our clients win a project,
Technology
our consultants will work with the project team to start setting up for project management. We have a 24-hour call centre manned by industry-qualified consultants who are civil engineers, project managers, etc who understand what our clients are going through. They have worn the hardhats and walked the sites in their careers. We hold monthly webinars to educate a broader range of candidates. And finally, we will guide our clients through the process using their own information. After implementation, we have service teams staffed by individuals who are construction accounting experts, to help our clients with any queries.
“I believe that for project managers, life will become easier because they will have more information at their fingertips in real time�
How do you expect the role of a project manager to evolve in
the near future?
inform ation is knowledge, and knowledge is power Joe de Klerk says that projec t mana gers will see their jobs become easier once system s have enough information to begin working on their behalf.
I believe that for project managers, life will become easier since they will have access to a lot of information in real time. Information is knowledge and knowledge is power. With systems working on their behalf, I think it will be easier, but on the other hand I think it might also become more complex, because they need to start understanding the technology at their disposal. Overall, I think it will become easier, with the right information at the right time for better and timely decision-making.
Eltizam and its subsidiaries jointly provide integrated asset management solutions across a wide range of industries and sectors. Our aim is to bring life to your assets by controlling, protecting and increasing return on investment.
Driving Asset Management Forward
May 2019 43
Event Review
Big Project Me golf Days 2019
Professionals from the industry met at the Trump International Golf Club for a competitive day on the greens For the 2019 editions of the Big Project ME Golf Days, CPI Trade selected a new and more challenging venue for players, the Trump International Golf Club in Dubai. The Contractor’s Cup took place on March 26, and the Consultant’s Cup took place on March 26. This year’s Contractor’s Cup saw 72 players from across the contracting sector attend, while
44 May 2019
the Consultant’s Cup welcomed 67 players from the region’s top firms – including, for the first time, an all-women’s team. The finale, which will pit the best players of each event against each other, is scheduled to take place at the same venue on December 12. “Our golf days have been growing steadily over the years and are now highly anticipated by consultants and contractors
across the industry. This year, we were pleased to see more women competing on the greens – we’re strong believers in greater gender representation in the construction industry and hope to see more female professionals participating in these events in the future. I’d like to offer special thanks to our sponsors and partners for all their support, and I look forward to welcoming
the winning players back to the greens for an exciting battle in December,” said Raz Islam, publishing director at CPI Trade. Both the 2019 Contractors and Consultants Cup were sponsored by AESG, Airolink, CCS, Globus, Ithra Dubai, LACASA, Omnium International and RSP. On the greens, several winners were recorded and
Event Review
awarded. For the Contractors, Mark Harris, Craig Laidlaw, Ibrahim Anwar and Gavin Dawbney formed the winning team, while for the Consultant’s Cup, the winning team consisted of Corne Botha, Leonard Mulvaney, Jack Martin and Greg Scott. The second-placed teams were Kobus Dreyer, Tyrone Evans, Alexis and Jesper Uhlin (Contractors
Cup) and Craig Vance, Shabir Yakub, Amit Jog and Sami El Binni (Consultant’s Cup). The players in the winning team each walked away with a free round of golf, while the players in the second team each won a complimentary weekend stay for two at the Sandy Beach Hotel and Resort in Fujairah. The teams that placed third were Peter Mladenovic,
Henk Blankespoor and Ammar Khalid Jameel (Contractor’s Cup) and Nicholas Byczynski, Kenneth Heney, Mike Cairney and Nigel Cann (Consultant’s Cup). Each was given a voucher for complimentary beach and pool access at the Double Tree Hilton in JBR. The winners of the Nearest to the Pin competitions were Campbell Brown and Craig
Vance, who received a health and wellness package from Bright White Dental Clinic and CRYO. The Longest Drive prize winners, were Ibrahim Anwar and Paul Barnard, also respectively walked away with two individual green fee playing vouchers from Trump International Golf Course, and a health and wellness package courtesy of Bright White Dental Clinic and CRYO.
May 2019 45
Comment
Suhail Arfath
Notre-Dame: re-builDiNG the past Autodesk’s Suhail Arfath on the technology that could restore the cathedral to its former majesty Donations close to a billion dollars are pouring in from across the globe for the restoration of 850-year-old medieval Catholic cathedral Notre-Dame de Paris which was undergoing renovations at the time of the fire. While investigating agencies are hard at work to decipher the cause that might have turned one of the finest examples of French Gothic architecture into an inferno, French authorities have announced that they want Notre-Dame rebuilt in five years. Considering the complexity and pressure to deliver the project close to its original design and feel, five years to rebuild one of the most recognised symbols of the French nation may not seem to be a lot to ask considering 46 May 2019
the fact its initial construction began in 1160 and was largely completed by 1260, followed by several modifications and alterations in following decades. However, one may argue that with so many technological advancements and evolution of overall construction industry, can’t these latest technologies help to rebuild and reopen the most-visited monument in Europe to over 12 million visitors a year sooner with its original design and feel? Design Accuracy and Precision is Everything One of the biggest challenges in rebuilding the cathedral is to get the design accurate and truly precise to its original version. Using traditional methods would
take a long time and may not be precise or accurate, particularly in the case of unique details resulting in rework and inefficiencies. This is where the latest technologies and advancements like Artificial Intelligence (AI), laser scanning, photogrammetry, and Building Information Modelling (BIM) can help and play a vital role. With photo-to-point cloud creation or laser scanning, we can gather millions of points simply by camera-equipped unmanned aerial vehicle (UAV), hand-held device, or laser scanning device. We can also create photo-textured meshes, photo-based point clouds with geolocation, and high-resolution orthographic views with elevation maps. Through automation and the
computing power of the cloud, the software is speeding up and automating the once tedious process of registering (stitching) and editing captured information. Finally, we can combine these captured data from all the sources, if needed with an amazing level of detail. This combined digitised 3D model mapped onto an XYZ coordinate system, providing a more intelligent survey output to export for use. By facilitating the creation of highly accurate virtual models that can be imported and used to further develop/convert into a Building Information Model teams can deliver the project with accurate execution of the design vision. Let us look at the example of the ancient city, Volterra in
Comment
recreating history Authorities can utilise a vast array of technology, incluing 3D scans, interactive models, artificial intelligence and cloud computing to digitally recreate the monument and use that as a baseline for its restoration.
Italy, built over 3,000 years ago with historic sites dating back to the 4th century BC. In 2016, an international team of architects, engineers, historians, and students embarked on a journey to digitally reconstruct many of the historically significant architectural treasures of this ancient city. They used innovative technologies including drones, photogrammetry, and laser scanning reality capture techniques, together with Autodesk ReCap 360 software, to digitally record and produce spectacular photo-realistic virtual replicas which may be used to share the experience of the city to anyone in the world and for the city to have precise documentation for potential
future reconstruction. The project consisted of three phases; digitally recreating historical and archaeological artifacts, creating Building Information Models of historic buildings and architectural features, and creating 3D interactive models of ancient historical sites. Research at VolterraDetroit Foundation In the case of Notre-Dame, apart from the ancient official blueprints of the design, a gaming company have announced they have also got a 3D scan of the infrastructure which they recorded in the process for one of their games. Also, authorities may also want to consider reaching out to the millions of the tourists who have
visited the monument in the past and request to share any photographs to feed the intelligent automated and cloud-powered software for the tedious process of registering (stitching) and editing captured information. Finally, combine these captured data from all the sources to develop a Building Information Model as “Single Source of Truth” of the original design with very high accuracy and precision. This not only will save time and effort to build an accurate and precise design, but the design can be verified and validated way before the shovel hits the ground; not to mention getting the authorities and public involved and approvals faster. Finally, this approach will give an exceptional
“One of the biggest challenges in rebuilding the cathedral is to get the design accurate to its original version. Using traditional methods would take a long time and may not be precise or accurate, particularly in the case of unique details”
opportunity to reproduce every corner and detail of this historical and cultural heritage that is unique and unrepeatable characteristics precisely as it was before. The assets like NotreDame Cathedral, are not only important to a country but to whole humankind, as it is evident by the reach out from various countries, companies, and individuals offering to help. I am proud our company Autodesk and CEO Andrew Anagnostalso have offered to help. “Autodesk will be contributing money to the restoration fund and our expertise and software to the restoration efforts,” he said. “May the beauty and majesty of NotreDame grace the skyline of Paris for many generations to come.” May 2019 47
Tenders
Top tenders Zuluf OffshOre Oilfield expansiOn prOject Budget $5,000,000,000 project number MPP2959-SA territory Saudi Arabia client Saudi Arabian Oil Company (Saudi Aramco) address P.O. Box 5000, Dhahran 31311 phone (+966-13) 872 0115 / 874 2222 fax (+966-13) 873 8190 / 874 1655 email supplierHelpDesk@aramco.com Website www.saudiaramco.com description Engineering, Procurement and Construction (EPC) contract for the expansion of an offshore oilfield comprising a central processing plant with two trains with a total capacity of 600,000 barrels per day. period 2022 status New Tender
tender categories Gas Processing & Distribution, Oilfields & Refineries tender products Oilfields Exploration & Development
Oyster 7-star resOrt prOject Budget $1,000,000,000 project number WPR2058-U territory United Arab Emirates client Dubai Holding Group address Umm Suqeim Road, P.O. Box 66000 phone (+971-4) 362 2000 fax (+971-4) 362 2091 email mail@dubaiholdinggroup.com Website www.dubaiholding.com description Construction of a 7-star resort. period 2020 status New Tender
tender categories Construction & Contracting, Hotels, Leisure & Entertainment, Marine Engg. Works & Seaports tender products Hotel Construction, Marina Development
Gas BOOster statiOn 160 upGrade prOject Budget $270,000,000 project number MPP3136-K territory Kuwait client Kuwait Oil Company (KOC) address P.O. Box 9758, Ahmadi 61008 phone (+965) 2398 9111 fax (+965) 2398 3661 email kocinfo@kockw.com Website www.kockw.com description Upgrading of a gas booster station. status New Tender tender categories Gas Processing & Distribution tender products Gas Exploration & Production
MarMul pOlyMer phase 3 (Mpp3) prOject Budget $265,000,000 project number WPR3073-O territory Oman client Petroleum Development Oman address Mina Al Fahal Street, P.O. Box 81, Muscat 113 phone (+968) 2467 8111 fax (+968) 2467 7106 email external-affairs@pdo.co.om Website www.pdo.co.om description Engineering, Procurement and Construction (EPC) contract for the extension of off-plot and on-plot production facilities associated with around 500 producing and 75 injector wells. status Current Project tender categories Gas Processing & Distribution, Oilfields & Refineries tender products Offsites & Utilities, Oilfields Exploration & Development
Burj rOyale tOWers prOject – dOWntOWn duBai Budget $100,000,000 project number WPR3971-U territory United Arab Emirates client name Emaar Properties PJSC address Emaar Business Park, Bldg. No. 3, Shaikh Zayed Road, Dubai phone (+971-4) 367 3333 fax (+971-4) 367 3000 email customercare@emaar.ae Website www.emaar.com description Construction of a 65-storey tower featuring 520 apartments and a 20-storey tower featuring 120 apartments. period 2022 status New Tender tender categories Prestige Buildings tender products High-rise Towers
48 May 2019
PROJECT INTELLIGENCE, TENDERS & SUPPLY CONTRaCTS IN ThE MIDDLE EaST
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Tenders
Middle East tenders UAE WOrOud residential BuildinGs prOject – uptOWn al Zahia Budget $50,000,000 project number WPR3779-U territory Sharjah client Sharjah Holding PJSC (Sharjah) address 21st Floor, Bel Rasheed Tower, Corniche Street, P.O. Box 5557 phone (+971-6) 575 9999 fax (+971-6) 575 9222 email info@sharjahholding.ae Website www.sharjahholding.ae description Construction of five residential buildings. period 2022 status New Tender tender categories Construction & Contracting tender products Residential Buildings
cO-Operative sOciety WarehOuse cOnstructiOn prOject – KiZad Budge $5,000,000 project number WPR3918-U territory Abu Dhabi client Al-Ain Co-operative Society address Al Ain phone (+971-3) 764 4555 fax (+971-3) 764 4556 email info@alaincoop.com Website www.alaincoop.com description Construction of a warehouse. period 2020 status Current Project
50 May 2019
Main consultant Bainona Consulting Engineering Office (Abu Dhabi) Main contractor Abu Dhabi International Contracting Company (ADICC) tender categories Construction & Contracting tender products Warehouse Construction
f3 independent pOWer prOject (ipp) – fujairah project number MPP3117-U territory Northern Emirates client Department of Energy (formerly ADWEA) – Abu Dhabi address ADWEA Building, AlFalah Street, P.O. Box 6120 phone (+971-2) 694 3333 / 207 7777 fax (+971-2) 642 5773 / 671 3750
email info@doe.gov.ae Website www.doe.gov.ae description Construction of an Independent Power Project (IPP) with generation capacity of approximately 2,000MW, together with associated infrastructure. status New Tender tender categories Power & Alternative Energy tender products Independent Power Plants (IPP)
Saudi Arabia
(Saudi Arabia) Jeddah phone (+966-12) 653 4385 fax (+966-12) 651 1039 email info@zakifarsigroup.com Website www.zakifarsigroup.com description Construction of 2 residential towers, each comprising a ground floor and 35 floors. period 2020 status New Tender Main consultant Zaki Farsi Group (Saudi Arabia) tender categories Prestige Buildings tender products High-rise Towers, Residential Buildings
farsi eiGht tOWers prOject – OBhur Budget $60,000,000 project number WPR3668-SA territory Saudi Arabia client Zaki Farsi Group
uthaManiya suBstatiOn prOject Budget $35,000,000 project number WPR4194-SA
Tenders
territory Saudi Arabia client Saudi Electricity Company (National Grid SA) – Central Region (Saudi Arabia) address Burj Al Faisaliyah Bldg., Floor 22, King Fahad Road, P.O. Box 22955, Riyadh 11416 phone (+966-11) 4619030/4619009/ (+966-92) 0000222 fax (+966-11) 403 2222 email informus@se.com.sa Website www.se.com.sa description Construction of a 115/13.8kV GIS substation. period 2021 status New Tender tender categories Power & Alternative Energy tender products Substations Construction
Oman rOse villaGe tOWnhOuses cOnstructiOn prOject – Muscat hills
Construction & Contracting tender products Villas Construction
sOlar 2022 independent pOWer prOject (ipp) Budget $25,000,000 project number WPR3756-O territory Oman client Oman Power & Water Procurement Company SAOC address Floor 5, Bldg 5, Muscat Grand Mall, Tilal Complex, Al Khuwair Al Janubiyyah, P.O. Box 1388, Ruwi PC 112 phone (+968) 2450 8400 email ahmed.busaidi@omanpwp.com Website www.omanpwp.co.om description Development of a Solar Independent Power Project (IPP) with a capacity of 500-1,000MW. period 2020 status New Tender tender categories Power & Alternative Energy tender products Independent Power Plants (IPP), Solar Energy
Bahrain
tender products Retail
Marassi Galleria retail district prOject – Marassi al Bahrain
Khaleej al Bahrain Basin develOpMent prOject
Budget $70,000,000 project number WPR2064-B territory Bahrain client Diyar Al Muharraq WLL (Bahrain), P.O. Box 5070, Manama phone (+973) 7733 3444 fax (+973) 7733 3445 description Construction of a shopping mall. period 2018 status Current Project Main consultant Dar Al Handasah (Shair & Partners) – Bahrain design consultant Grimshaw Architects (UK) Main contractor Shapoorji Pallonji Mideast LLC (Abu Dhabi) Main contractor(2) Cebarco Bahrain WLL (Bahrain) tender categories Construction & Contracting, Leisure & Entertainment
project number WPR4147-B territory Bahrain client National Oil & Gas Authority – NOGA (Bahrain) address National Oil & Gas Authority Bldg, Al Maared Street, P.O. Box 1435, Manama phone (+973) 1731 2644 fax (+973) 1729 3007 email info@noga.gov.bh Website www.noga.gov.bh description Development of an oil & gas field. status New Tender specialist consultant Chevron Corporation (USA) tender categories Gas Processing & Distribution, Oilfields & Refineries tender products Gas Exploration & Production, Gas Processing & Separation
Budget $35,000,000 project number MT/001/RV19-O territory Oman client Maysan Properties SAOC (Oman) address Villa 222, 18th November Street, Azaiba, Muscat PC 112 phone (+968) 9552 1563 / 2449 7055 fax (+968) 2449 3073 email projects@maysanproprties.com Website www.maysanproperties.com description Construction of 39 townhouses. tender cost $1,282 period 2020 status Current Project Main consultant Lines & Visions International Engineering Consultant (Oman) tender categories
May 2019 51
Last Word
Managing Energy Ashraf Yehia, managing director at Eaton Middle East, discusses the importance of an efficient future in power management and sustainable energy with Angitha Pradeep How does Eaton help with energy management in different industry sectors? Eaton brings customised solutions and turnkey installation services to the oil & gas industry, as well as to the growing use of alternative energy sources, such as solar power. We have more than 10,000 patents and we are constantly working to develop or evolve products to meet specific market needs and help in energy management. The focus in the region is shifting towards sustainable, reliable and efficient energy. Our power management products, medium voltage and low voltage switchgear are ideal for complex projects which are being developed across the region. For example, we have a user-friendly monitoring system for emergency lighting which aims to eradicate the cost and time pressures associated with manual
52 May 2019
maintenance checks. Another major focus in the Middle East is energy storage. The technology enables customers to increase their use of renewable energy and lower energy bills by up to 50%. It works optimally when used alongside solar panels. What is microgrid technology, and how does it benefit energy management? Microgrids are standalone electrical systems consisting of multiple generating sources and defined loads that can operate independently from the primary utility grid. They provide a reliable, efficient solution to unexpected power loss by effectively balancing spikes in energy demand and optimising energy usage for more reliable power. They also help in reducing operating costs and carbon emissions. Microgrids, in various forms, have been around
for decades. But in recent years, multiple factors have converged to make microgrids increasingly viable and urgently necessary. The digital economy, driven by vast data centres; growing (and sprawling) urban centres; the Internet of Things and interconnected machines – they all put mounting demands on the ageing power grid, while the opportunity for cyberattack only increases. With this demand for more power comes rising energy prices. Municipalities, power companies and customers alike are looking for new energy management capabilities to offset costs through sophisticated demand response and peak shaving technologies, as well as the ability to harness the greater availability of renewables and improved technologies. Can you elaborate on recent developments in energy storage with
respect to mechanical, electrical and hydrogen technologies? Energy storage is a key factor in helping to address grid stability and peak demand challenges. As renewable energy sources continue to be integrated into the grid, energy storage technology can negate the need to build dedicated peaking power plants, while reducing greenhouse gas emissions. The drive towards renewable energy is a given. Few countries in the GCC have not already set goals to increase their energy mix, and they are actively looking for ways in which to drive the use of cleaner, more renewable energy sources. What is the future of energy management in 2019 and the next few years? The global energy market is undergoing a low-carbon transformation, with grid-scale battery-based technologies providing reliable alternatives
to traditional peaking power plants and pumped hydroelectric storage projects. Across the world, power station upgrades are starting to deliver a dependable and costcompetitive means of balancing load and bringing renewable energy onto the networks. The transition to renewable energy has accelerated in recent years, led by the rapid evolution and falling costs of these clean energy sources. As a result, the energy system is moving rapidly from a centralised to a distributed structure and, according to a recent BNEF economic study commissioned by Eaton, this trend will only accelerate. As the region continues to ramp up its goals of meeting renewable energy targets, energy storage becomes a strong contender in dealing with energy demand, efficiency and sustainability.