Licensed by Dubai Development Authority
163 October 2019
MEConstructionNews.com
THE BUSINESS OF CONSTRUCTION
The Extra Edge
SALEH ABDULLAH LOOTAH, CEO OF LOOTAH REAL ESTATE DEVELOPMENT REVEALS HOW HE STAYS AHEAD OF THE COMPETITION
1
CONTENTS
October 2019
08
16
20
24
30
38
ANALYSIS
FEATURES
INSIGHT
08
The briefing
24
38
Green Facades
The big picture
Big Project ME sits down with Saleh Abdullah Lootah, CEO of Lootah Real Estate Developments, discusses how the developer is evolving with the market
42
Comments
49
Tenders
52
Progress report
Industry experts from the water efficiency and construction technology sectors discuss the importance of knowledge sharing
12
Providing a wrap-up of the biggest local, regional and international construction news stories
16
Market report
20
News analysis
ProTenders report finds that government spending and increased oil production will drive the UAE’s construction sector
Industry experts react to the recent announcement by Dubai’s ruler to regulate the city’s real estate market
In profile Saleh Abdullah Lootah
30
Project profile Race against Time
Big Project ME profiles how HPBS helped to deliver the Arab Academy of Science, Technology and Marine Transport campus in Khorfakkan, Shajrah within just 120 days
Big Project ME examines the case for green facades on buildings and whether they actually impact efficiencies and performance
The industry’s brightest minds share their thoughts on a variety of topics and issues impacting the construction industry
Big Project ME, in association with ProTenders, provides the biggest tenders for the month of September 2019
Ithra Dubai provides an update on the installation of a crucial phase of the One Za’abeel project
MEConstructionNews.com | October 2019
2
WELCOME
Introduction
Bringing balance to the market
F
ollowing the announcement by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, that a higher committee would be formed to regulate the real estate market, I was intrigued to see how market insiders would react to the news. Gratifyingly, the announcement has been met with almost universal praise and acknowledgement that it was time, and past time, for such a move to be made. As Saleh Abdullah Lootah, CEO of Lootah Real Estate Development, put it when I spoke to him for this month’s cover interview – the time has come for developers to build projects that will add value to Dubai’s real estate landscape. For too long have there been projects of similar size and scale clogging up the project pipeline, many of them in direct competition with the other. Lootah is right, Dubai is now a maturing market and as such, developers
October 2019 | MEConstructionNews.com
need to start delivering projects that meet the needs and demands of the population. Dubai will always look to build the spectacular – that is a given and it is an ambition that should be applauded. However, given the current market environment and the challenges facing the real estate sector, perhaps it’s time that developers start listening and anticipating the needs and wants of their customers – both local and international. While this may result in fewer eye-catching and headline-grabbing announcements, what it will do is bring a semblance of balance to a market that desperately needs it. Looking ahead, by the time you read this, our first-ever Retail and Hospitality Construction Summit will have been completed. While I am grateful for the support shown by the industry, I am a bit disappointed that there wasn’t greater involvement from some of the larger developers in the region. We’re all facing similar challenges, and the only way we can overcome them is if we all communicate and collaborate with each other.
Gavin Davids
GROUP EDITOR gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news
ON THE RIGHT ROAD? Does it feel like your project budget and schedule are on a bumpy road? Are you continuously hitting potholes? Heading in the wrong direction? Let CCS put you in the driver’s seat and on the highway to success. For over 35 years, CCS software solutions have been developed by contractors for contractors. At the leading edge of industry trends, Candy and BuildSmart put you in complete control of your construction project – from start to the finish line.
“
” Some roads aren’t meant to be travelled alone Call us on +971 4 346 6456 or Email info@ccsgulf.com
4
Licensed by Dubai Development Authority
163 October 2019
MEConstructionNews.com
THE BUSINESS OF CONSTRUCTION
Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com EDITORIAL DIRECTOR Vijaya Cherian vijaya.cherian@cpitrademedia.com
Editorial
The Extra Edge
SALEH ABDULLAH LOOTAH, CEO OF LOOTAH REAL ESTATE DEVELOPMENT REVEALS HOW HE STAYS AHEAD OF THE COMPETITION ON THE COVER
Big Project ME sits down with Saleh Abdullah Lootah, CEO of Lootah Real Estate Development, to discuss how the developer is evolving with the market
GROUP 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 HEAD OF KEY PROJECTS Andy Pitois andy.pitois@cpitrademedia.com +44 7816 843610
Design ART DIRECTOR Simon Cobon simon.cobon@cpitrademedia.com DESIGNER Percival Manalaysay percival.manalaysay@cpitrademedia.com
Photography PHOTOGRAPHER Maksym Poriechkin maksym.poriechkin@cpitrademedia.com
MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news
Marketing MARKETING MANAGER Sheena Sapsford sheena.sapsford@cpitrademedia.com +971 4 375 5498 ADMINISTRATION EXECUTIVE Zaara Khan zaara.khan@cpitrademedia.com +971 4 375 5470
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
The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2019. All rights reserved.
October 2019 | MEConstructionNews.com
Web Development WEB DEVELOPER Mohammad Awais mohammad.awais@cpitrademedia.com WEB DEVELOPER Sadiq Siddiqui sadiq.siddiqui@cpitrademedia.com FOUNDER Dominic De Sousa (1959-2015)
OPTIMISE YOUR COMMERCIAL BUILDING OPERATIONS WITH GRUNDFOS ISOLUTIONS
GRUNDFOS iSOLUTIONS PUMP
CLOUD SERVICES
CONNECT TO INTELLIGENT SOLUTIONS To truly optimise system performance in buildings applications, it’s time to look beyond individual components to intelligent solutions that take care of the entire system. With Grundfos iSOLUTIONS, you get intelligent pumps, cloud connectivity and digital services all working seamlessly together to reach a new level of performance with high energy efficiency, reduced complexity, low life-cycle costs and more. Discover more at grundfos.ae/isolutions
6
ONLINE
MOST POPULAR
READERS’ COMMENTS
FEATURED
CONSTRUCTION
THE POWER OF EFFECTIVE COMMUNICATIONS IN CONSTRUCTION
Empower announces construction of Jumeirah Village plant is 80% complete
I read this article with a lot of interest and, while this centres largely on marketing, it occurred to me just how difficult it is to avoid being reactive and relying on gut instinct in
CONSTRUCTION
daily work without a clear
Neom awards Construction Village contracts to AlTamimi Group and Satco
communication strategy across the organisation. This isn’t just a fault of the construction industry but
Feature: ‘Class Of Your Own’ launches ‘Design Engineer Construct!’ in Dubai
of business as a whole. As individuals we often fall back on our experience to make informed
CONSTRUCTION
decisions but how much
Sliding phase on world’s largest cantilever begins at One Za’abeel
better would they be if we kept a clear head when all around were losing theirs? Managing upwards, sideways and downwards through effective communication is absolutely essential in construction and
CONSULTANT
can act as a check and
Abu Dhabi residents to use e-scooters to help keep communities green
balance against the often entrenched views you may find on a project. So, whatever service or product you bring to the construction team, clear messaging from the start is vital and that stays true
CONSTRUCTION
Tasmim’s Habitat project on track for Q1 2022 completion October 2019 | MEConstructionNews.com
Insight: JLL’s Thierry Delvaux on Dubai’s new higher committee for real estate planning
through to the end. Name withheld by request
8
THE BRIEFING
HVAC
Energy Optimisation RAS AL KHAIMAH
Kostas Poulopoulos of Grundfos speaks to Big Project ME about the wider potential impact of an energy audit it will carry out for Ras Al Khaimah Municipality October 2019 | MEConstructionNews.com
A
few weeks ago, Ras Al Khaimah (RAK) Municipality signed a memorandum of understanding (MoU) with Denmark’s Grundfos to provide an energy audit for HVAC, irrigation, water supply and disinfection pumping systems across 50 of its buildings and operational facilities, including largescale sewage plants. The energy audit will be overseen by the municipality’s
Energy Efficiency and Renewables Administration (Reem), which is also coordinating the implementation of the RAK Energy Efficiency and Renewable Energy Strategy 2040. In addition to the seven-week energy audit, Grundfos will also conduct systems certification and maintenance for RAK government building managers and supervisors. In an exclusive interview with Big Project ME, Kostas Poulopoulos, Grundfos area managing director for
9
Energy audit The seven-week energy audit will be conducted for key energy users, including a variety of government and semigovernment entities.
Optimise consumption The audit will evaluate the equipment and assets to improve performance and efficiencies.
Gulf, Levant and Pakistan, lauds the ambition shown by the municipality. “This is exactly what we need from all entities – either government or private, that they have big responsibilities and ambitions in terms of energy management. We have cooperated with RAK before, for the RAK Wastewater Agency (RAKWA) on their wastewater treatment site, so we already had different contact points, but when we realised that there is an area for cooperation, Grundfos approached the RAK municipality for the energy audit.” Through an energy optimisation exercise, one can achieve 20-70% energy savings on an application, depending on the existing asset and based on the solution that will be implemented, he adds. Andrea Di Gregorio, director, Energy Efficiency and Renewables office in RAK Municipality, comments in the same vein: “Typically in energy efficiency, while government intervention is important to set strategy and frameworks and activate the programmes, private sector participation is fundamental, as it works as a multiplier of those initial efforts from the government and allows the programmes to achieve much larger benefits.” He explains that the audits will be conducted for key energy users, including a variety of government and semi-government entities, while project opportunities will be evaluated on a case-by-case basis. Regarding the actual process, Poulopoulos says an energy check or energy audit will be conducted to evaluate the equipment and assets, while a dedicated team will analyse the data. “We also have some algorithms and a process where we stimulate the savings and return of investment for each of these assessments. From our side, we are sure that we can identify opportunities related to pumping applications, where we can optimise the energy consumption, either in a building itself – which will mainly be HVAC – or in the irrigation and water management side.” While it’s difficult to forecast the results of an energy audit, Poulopoulos observes that with its experience in the UAE, he is confident that Grundfos can identify significant energy-saving potential as well as a good return on investment (ROI).
We know this market, we understand it and we have been part of the evolution here, while also starting the energy optimisation and retrofit initiative by creating awareness and putting pumps into the picture” “I think there are opportunities that could happen tomorrow that have a payback in a few months, while some opportunities could come depending on the type of application or system we are looking at. But normally we say we have a good case when the ROI period is in the range of one to two and a half years,” he
says, adding that there are also different ways of financing depending on what clients want. “For example, in this case the RAK Municipality has cooperated with energy saving companies (ESCOs).” Poulopoulos also outlines the benefits of an energy audit such as this for the environmental profile of companies. “It’s all about carbon emission, first of all. We all know it’s extremely energyconsuming to produce water. Water is not available as clean water in the UAE, so every single cubic metre we are utilising is desalinated, which is an extremely energyintensive exercise. So by optimising that part, we can reduce the CO2 emissions that are coming from the power plants that are contributing to this and also reduce our carbon footprint in the process. “Our activities and solutions are contributing towards the focus set by the government, including the Dubai Integrated Energy Strategy 2030, which is about reducing water and energy consumption by 30% in Dubai and achieving 5% share of clean energy with renewables,” he concludes.
MEConstructionNews.com | October 2019
10
THE BRIEFING
Advancing BIM knowledge MIDDLE EAST
Craig Garrett, academies manager, Digital Advancement Academies at Bentley Systems, talks about creating a neutral environment for knowledge sharing and collaboration within the Digital Advancement Academies around the world
October 2019 | MEConstructionNews.com
8
8% of construction stakeholders believe that building information modelling (BIM) can enable better design insight and that it will be the catalyst for a fundamental change in how we manage, design and develop a construction project. Meanwhile, the construction industry in this region is plagued by several problems, such as delays and cost overruns; however, it has been predicted that adoption of BIM will enhance performance and profitability in the built environment. A lot of BIM standards in the region come from the UK, but how mature is the market here in the Middle East? “It’s a known fact that the maturity is less here in the Middle East, but
that is not necessarily reflective of all organisations or the whole industry,” says Craig Garrett, academies manager, Digital Advancement Academies at Bentley Systems. “What you may find is, there is a high level of BIM implementation and maturity in those organisations involved with complex projects that are pushing the boundaries, for example, Museum of the Future; it was commented that the bar was set very high on that project. This is because the client on that project was very knowledgeable and very sure of what they wanted the BIM requirements to be, but unfortunately that is not a true reflection of the whole industry.” He emphasises that this is exactly what Bentley Systems is interested in
THE BRIEFING
4,000 current number of London academy physical attendees
Engaging academia The Digital Advancement Academies work with universities to engage with young engineers in the region.
doing with the Digital Advancement Academies, to reach that supply chain to educate them and raise that maturity so that everyone starts to get a bit more aware. “One of the things we do at the academy is to engage a lot with academia, and from research we have understood that working with universities and students has proven to be very important. We are working with several universities here in Dubai as part of the academy to deliver sessions and network with students, graduates and young engineers in the region,” he explains. “We have seven global connected academies which lets us reach industry experts anywhere in the world, which means we can get an industry expert from London to present at an academy here in Dubai, while we have an online audience in Singapore, all on the same session. “We have had more than 4,000 people go through the London academy physically, let alone the connections we have got with different academies around the world digitally, and to me that is fantastic knowledge sharing and collaboration, which of course is the whole point. “Moreover, quite often people who are involved in the design and build part of a project – contractors, consultants and architects – have no real understanding of the full lifecycle of BIM. A number of sessions we deliver here in the academy are on educating people about the bigger picture we need to consider.” Garrett asserts that people who are doing this job have access to this information, but those stakeholders – clients and operators – can maximise their benefits from this level of understanding: that cost involved in construction is minuscule compared to the operation and maintenance required in the long run. “With the sessions in the academy, we try to showcase the best practices in the industry, and for this, we get experts from the construction industry to share those stories and case studies that best showcase the adoption of technology and the benefits they have achieved
with it. The academy provides a neutral space that people feel at ease to come into and share knowledge, understand and focus on the process and the ‘why’ – it’s the education part that focuses on the ‘why’ that we are interested in.”
We have seven global connected academies which lets us reach industry experts anywhere in the world, which means we can get an industry expert from London to present at an academy here in Dubai, while we have an online audience in Singapore, all on the same session”
11
Garrett observes that BIM is a concept that includes lots of different technologies as well as various applications and implementations, which sometimes makes it complicated to understand. But BIM, he says, is a word we need to swap for ‘digital’ – digital thinking is what we really should be using, as it better describes the process. He notes that previously people asked what BIM meant, but now the same question is being asked of digital twins. “One of the things about digital twins is that live connection between the physical and the virtual, and how this data that you are receiving from the physical asset is directly linked to the virtual twin. This allows you to do analytics or processes on your virtual asset that you can transfer back to changes that can be made in the physical world. The context is that there is a live link together and this information of data that flows between the two.” “Once there is a clear understanding of what BIM is and what it can do, then you can look towards the future, and digital twins is absolutely an integral part of that future,” Garrett concludes. MEConstructionNews.com | October 2019
12
THE BIG PICTURE
01 CANADA
03 SOUTH AMERICA
Mobilinx consortium selected for $1.06bn Hurontario LRT project in Canada
Enel JV begins construction on geothermal expansion project in Chile
Mobilinx consortium has been selected by Infrastructure Ontario (IO) and Metrolinx as the preferred proponent to design, build, finance, operate and maintain the Hurontario Light Rail Transit (LRT) project, which is expected to cost $1.06bn and includes 18km of new rapid transit between Port Credit GO Station in Mississauga and the Gateway Terminal at Steeles Avenue in Brampton. A maintenance and storage facility will also be constructed. The project is expected to be completed in 2022.
02 NORTH AMERICA
Doumani to break ground on $850m luxury resort in Las Vegas Las Vegas developer Lorenzo Doumani received unanimous approval from Clark County Commissioners in May 2019 and subsequent approvals in August for the $850m Majestic Las Vegas branded resort. Construction is scheduled to commence in May 2020 and the project is slated for completion in early 2023. The five star, 720-room, all-suite resort will be located on the 24,281sqm site formerly occupied by the Clarion Hotel. The four-level, 6,503sqm fitness, nutrition and med spa facility will serve as a medical wellness destination.
Geotérmica del Norte, a joint venture between Enel Chile subsidiary Enel Green Power Chile (EGPC) and Empresa Nacional del Petróleo (ENAP), has begun construction on a 33MW expansion at the Cerro Pabellón geothermal power plant in Chile. The plant is in the Atacama Desert in the Antofagasta region. Its nominal power generating capacity is 48MW; by adding 33MW, its overall capacity will increase to 81MW. At an estimated cost of $100m, construction of the third unit could be completed in the second half of next year.
04 UNITED KINGDOM
06 FINLAND
Edinburgh Council plans $387m transformation of city centre
Construction commences on first downtown arena in Finland
The City of Edinburgh Council has sought approval for a $387m plan for the transformation of Edinburgh city centre over the next 10 years. Developed by the City of Edinburgh Council, the Edinburgh City Centre Transformation Strategy (ECCT) has full funding in place for the first five years. The strategy is expected to deliver benefits worth $518m over a 25-year period through investment in improved public spaces, including access to and prioritisation of travel on foot, by bicycle and on public transport.
October 2019 | MEConstructionNews.com
05 FRANCE
Siemens wins $503m contract to build new power plant in France Siemens has secured a contract worth about $503m from special-purpose company Compagnie Electrique de Bretagne, owned by Total Direct Énergie (TDE), for the construction of a new combined-cycle power plant in France. Located in Landivisiau, the plant will be executed as a turnkey project and will have an installed capacity of 446MW. Siemens will be responsible for the supply of an SGT5-4000F gas turbine, an SGen52000H generator, an SST5-3000 steam turbine, an SPPA-T3000 control system and the heat-recovery steam generator.
Construction began on the City of Tampere’s new district, which is being built over the railway tracks in Tampere city centre in Finland. Tampere Deck Arena, the landmark for the Tampere Deck district, will be the biggest sports and event venue in Finland, set for completion by the end of 2021. The development will comprise residential services, business and trade premises, a hotel and an event venue. The Tampere Deck district is expected to be completed in 2025.
THE BIG PICTURE
13
06 04 01 05
07 02
09
08
08 NIGERIA
07 GREECE
Hill International to design and manage Greek port expansion project A consortium led by US project manager Hill International has won a contract to provide design and project management services for the expansion of Thessaloniki Port in northern Greece. Hill International will work with Greek consultant Rogan Associates on the expansion of the port’s marine works infrastructure on Pier 6. The project includes the building of a 440m-long, 17.6m-deep quay wall and the construction of a yard. The consortium will manage the procurement process and supervise construction work.
Nigerian government gives green light to Ebonyi International Airport The government of Nigeria has approved plans to build an international airport in Ebonyi state in the southeast of the country. The airport will be built near the state capital of Abakaliki. The southeast of Nigeria is presently without an international airport, following a government decision to close down Akanu Ibiam International Airport in neighbouring Enugu state. It will remain closed for an indefinite period while repairs are carried out to its runway. The project will be state-financed.
09 EGYPT
ATIP New Capital, ACUD to develop $20bn Entertainment District in Egypt ATIP New Capital Entertainment (ATIP Entertainment) has won a contract from the Administrative Capital for Urban Development (ACUD) for a $20bn Entertainment District spanning 17sqkm in Egypt’s New Administrative Capital. ITEC Entertainment (ITEC) has secured a contract to provide design, entertainment technology and management for ATIP’s development of the district, which will be constructed in three phases over a period of seven to 10 years and is expected to create 700,000 jobs.
MEConstructionNews.com | October 2019
14
THE BIG PICTURE
14
16
10
11 12
13
17
15
10 SAUDI ARABIA
12 INDIA
IHG and Rikaz Properties ink deal for new hotel in Al Khobar, Saudi Arabia
L&T Construction wins contract for Navi Mumbai International Airport
InterContinental Hotels Group (IHG) has inked a management agreement deal with Rikaz Properties to develop its fourth Holiday Inn Hotel in Al Khobar, Saudi Arabia. The group signed deals for two Holiday Inn properties in Madinah and Jeddah earlier this year. The latest development is said to be part of IHG’s dedicated efforts to increase its mid-scale portfolio in the region and cater to a diverse guest profile visiting the country, the statement said. A further 41 properties are said to be in the development pipeline.
October 2019 | MEConstructionNews.com
11 UNITED ARAB EMIRATES
Motherson Sumi breaks ground on new UAE manufacturing unit Motherson Sumi Systems (MSSL), an Indian company that manufactures automotive wiring harnesses, has broken ground on a production facility at the Ras Al Khaimah Economic Zone (RAKEZ) Al Hamra Industrial Zone in the UAE. MSSL will manufacture a range of products, including wiring harnesses, rear-view mirrors for passenger cars, and injection moulded products. The firm acquired more than 21,000sqm of land for the factory, and construction has already commenced.
Larsen & Toubro Construction (L&T Construction) has won an EPC contract from Navi Mumbai International Airport (NMIAPL) for the Greenfield Navi Mumbai International Airport in Mumbai, India. Major works will include cut and fill works, and airfield development works including a 3,700m south runway, apron systems, taxiway systems, airfield ground lighting and other facilities. Development works also include terminal works such as departure and arrival forecourts, and landside facilities.
18
THE BIG PICTURE
15
14 RUSSIA
Russia’s Novatek gives go-ahead to $21bn Arctic LNG plant 13 MALDIVES
Standard International opens new resort in Maldives US hospitality firm Standard International has announced the opening of The Standard, Huruvalhi Maldives resort. It is the brand’s first property in Asia and is located on a naturally protected island between the Raa and Baa Atolls. It is a short seaplane ride away from Male and comprises of 115 private villas. The Standard, Maldives is part of the company’s extensive global pipeline, which includes resorts in cities such as Milan, Paris, Lisbon, Bordeaux, Koh Samui, Phuket, Hua Hin, Mexico City and Chicago, among others.
Siberian energy company Novatek has given the green light to a $21.3bn LNG plant in Russia’s Arctic region, which is expected to be completed in phases between 2023 and 2026. Named Arctic LNG 2, it will use “innovative gravity-based structures” and will source most of its equipment from manufacturers in Russia. The plant, which will be built on the Gydan Peninsula in western Siberia, will liquify natural gas extracted from the Utrenneye field. It will consist of three liquefaction trains with a total production capacity of 19.8m tons a year.
15 INDONESIA
Crown Group unveils plans for $679m vertical waterfront city in Indonesia Australian developer Crown Group has unveiled plans for a $679m luxury waterfront residential precinct on the Jakarta waterfront. The first of its kind in Indonesia, it will comprise 2,000 luxury homes and its own marina, beach club and dining precinct at Ancol. Under the agreement, the JV will construct a series of towers on a 47,000sqm site. The company is expected to submit plans to the Indonesian government for approval later this year, and work on the project is likely to commence in 2020.
17 SINGAPORE
16 JAPAN
Heatherwick Studio unveils plans for a ‘pergola’ complex in Japan Design and architecture studio Heatherwick Studio has unveiled designs for a ‘planted pergola’ complex at the heart of the new Toranomon-Azabudai district in Tokyo, Japan. The Mori Building Company’s $5.54bn city quarter will have a total floor area of 860,400sqm. The site area is approximately 81,000sqm and will have a ground area of 63,910sqm, while the total green space will be around 24,000sqm. Construction has already commenced on the major scheme, and the project is expected to be completed in March 2023.
UK’s Linde breaks ground on $1.4bn manufacturing facility in Singapore British industrial gases and engineering company Linde has broken ground on a $1.4bn integrated manufacturing complex at its gasification facility on Jurong Island in Singapore. The new complex will quadruple the company’s production capacity in Singapore. Linde Engineering has developed the process concept and design, as well as the full EPC. Construction of the facility will be executed out of the company’s hubs in India, China and Germany.
18 AUSTRALIA
Lendlease Engineering wins $439m contract for Western Sydney Airport Lendlease Engineering and its joint venture partner CPB Contractors have won a contract worth $439m to undertake a major bulk earthworks package at the federally funded $3.7bn Western Sydney International Airport. Works include delivery of design and construction of earthworks and drainage for the airport, and topographical design for the airport precinct. The project will be one of the largest bulk earthworks infrastructure projects to be awarded outside of the mining sector in Australia.
MEConstructionNews.com | October 2019
16
MARKET REPORT
Industry outlook
UAE Q3 Construction Market Forecast UAE
ProTenders analysis finds that government spending and increased oil production will drive the UAE construction sector
I
nvestment in the UAE construction industry in the next five years is likely to be driven by an increase in crude oil production and government efforts to diversify the economy. The industry,
October 2019 | MEConstructionNews.com
which recovered last year following two years of contraction, is expected to rise at a compound annual growth rate of 4.64% between 2019 and 2023. Investment in transport, energy and social infrastructure development projects under various programmes – such as the Ministry of Education Strategic Plan 2017-2021, the National Strategy for Higher Education 2030 and Education 2020 Strategy, the Energy Strategy 2050, the Sheikh Zayed Housing Programme, and the Dubai Tourism Strategy – will support the industry’s expansion over the forecast period. The UAE hospitality sector is all geared up for World Expo 2020, with a significant capacity boost by adding 56,701 rooms that represent 33.6% of the country’s existing
supply over the next year. A $408.4m budget has been allocated by the Ruler of Dubai to build next-gen schools in the country. The UAE’s Ministry of Infrastructure Development is supporting the drive as part of its five-year development plan for the country’s east coast. The government is focusing on the development of a hyperloop transport system, to provide a faster, sustainable and efficient way to move people and goods. The UAE energy sector is undergoing a transformation. As announced in the UAE Energy Strategy 2050, the emirate is expected to double the contribution of clean and nuclear energy in the total energy mix and reduce the carbon footprint of its power generation processes by 70%.
MARKET REPORT
VALUE OF PROJECTS BY STATUS ($BN) Design
ONGOING PROJECTS BY SECTOR ($BN) Urban Buildings
Planning
197.9
1,188 Total
UPCOMING PROJECTS BY SECTOR ($BN)
Infrastructure
473.2
130.2
17
134.3
Urban Buildings
Infrastructure
238.6
149.5
732.5 Total
455.5 Total
Oil & Gas
Oil & Gas
Tender
127.5
Under Construction
732.5
125.0
67.5
The UAE hospitality sector is all geared up for World Expo 2020, with a significant capacity boost by adding 56,701 rooms�
10
4
12
5
2
6 WS Atkins
Arabtec Construction
Dubai Electricity and Water Authority (DEWA)
Eng. Adnan Saffarini Office
18
Petrofac
6
Korean Electric Power Corporation (KEPCO)
15
China State Construction Engineering Corporation
24
Samsung C&T Corporation
8
Roads and Transport Authority (RTA)
20
Abu Dhabi National Oil Company (ADNOC)
30
Emaar Properties
10
Abu Dhabi General Services PJSC (Musanada)
25
Dar Al Handasah Consultants (Shair and Partners)
TOP 5 CONSULTANTS BY VALUE ($BN)
WSP
TOP 5 CONTRACTORS BY VALUE ($BN)
Fluor Corporation
TOP 5 DEVELOPERS BY VALUE ($BN)
CONSTRUCTION CONTRACT AWARD FORECAST Q3-Q4 2019 ($BN) Urban Buildings
27.0 Infrastructure
Oil & Gas
30
25
20
15
10
9.0 5
Source: ProTenders
11.0
MEConstructionNews.com | October 2019
20
ANALYSIS
Real estate
Righting the Balance
UNITED ARAB EMIRATES
Big Project ME speaks to leading developers and analysts to understand how the market views the recent establishment of a higher committee for real estate in Dubai October 2019 | MEConstructionNews.com
A
t the start of September, HH Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Ruler of Dubai, announced that a higher committee for real estate, headed by HH Deputy Ruler Sheikh Maktoum bin Mohammed and senior property developers, would be formed to help strike a balance between supply and demand in the emirate’s real estate sector. Sheikh Mohammed added that the body will aim to avoid the duplication of projects and ensure that they add value to the economy. In addition, he said that Sheikh Maktoum will ensure that semigovernmental real estate companies do not compete with the private sector and
that over the next decade, a strategic comprehensive plan will be developed for all property projects in Dubai. The initiative came in the wake of an open letter published by Sheikh Mohammed, which listed six main points addressing government work and Emiratisation, services and the country’s economy. “We are not one of the countries that move according to the average economic rates. We are a country that seeks to achieve time-saving economic leaps,” HH wrote in the letter. “In the next phase, we need [to pitch] quality projects, exceptional ideas to boost our economy. Real estate projects need to control their pace to bring added value to the national economy so as
20,000
dwellings per annum – the average level of residential completions in Dubai over the past three years
ANALYSIS
21
Taking inventory of what’s been built, looking at Dubai’s economic ambitions and indicators for the next five to ten years and linking this to a methodical approach, measuring population growth and job creation, will certainly help reduce the chances of protracted market declines” not to become a burden and a source of imbalance in our economic process.” Since 2014, the UAE property market has slowed, thanks to falling oil prices and ongoing concerns of an over-supply of properties. However, following a raft of reforms such as long-term visas now available to investors, initiatives such as Ghadan 21, changes to freehold property law and, of course, the expected impact of Expo 2020 Dubai, there has been a rise in market sentiment. As such, the announcement of the higher committee has been met with positivity by the real estate sector, with Theirry Delvaux, CEO of JLL MENA, welcoming the news as it represents a positive step towards achieving a more balanced market in the emirate.
Adding value Real estate projects need to control their pace to bring added value to the national economy rather than becoming a burden.
60,000 dwellings in Dubai scheduled for completion in 2019
“High levels of recent supply are being felt across both the commercial and residential sectors, and while not all proposed projects will complete on schedule, we do expect to see a significant spike in project completions across the residential and commercial sectors over the remainder of 2019,” he says. The average level of residential completions in Dubai over the past three years has been around 20,000 dwellings per annum, while as many as 60,000 dwellings are scheduled for completion in 2019 alone. A similar increase in new supply is also being witnessed in the retail sector, where completions this year could exceed 600,000sqm, compared to an average of 233,000sqm over the past three years, JLL added in a statement.
“The extent to which this new committee can regulate and achieve an improved balance of supply and demand remains to be seen, but recognition of the current imbalance and the implementation of a plan to counteract this problem are key steps towards making a change,” Delvaux points out. Rahail Aslam, CEO of Select Group, a Dubai-based private developer, adds that the announcement of the committee is a prudent move for any market, and especially for Dubai. “Taking inventory of what’s been built, looking at Dubai’s economic ambitions and indicators for the next five to ten years and linking this to a methodical approach, measuring population growth and job creation, will certainly help MEConstructionNews.com | October 2019
22
ANALYSIS
The very fact that the government is looking is in itself a positive for landlords, occupiers and investors. Supply and demand are out of kilter. Although activity continues, growth in supply across all asset classes appears to be higher than the equivalent growth in demand”
October 2019 | MEConstructionNews.com
reduce the chances of protracted market declines,” he explains. “Having said that, every developer has a responsibility to keep a close eye on data and plan with plenty of due diligence before committing to any development.” Ahmed Alkhoshaibi, CEO of Arada Developments, agrees with Aslam, pointing out that such a move is critical in a market that is becoming increasingly mature, especially when compared to its neighbours. “It is critical that in a market where the supply-and-demand situation is already a matter of concern, that only projects that have the right scope and quality are allowed to proceed. We are yet to fully understand what the full mandate of the committee will be, but any initiative that brings developers and government closer together will only help streamline processes, improve urban planning and create better opportunities for buyers, tenants and visitors.” While Nicholas Maclean, managing director of CBRE MENAT, says that the impact of the committee on the real estate market will only be seen once it begins to take action, he adds that it is refreshing to see that when aspects of the market reach an imbalance, the government is prepared to intervene with the creation of a committee to seek solutions. “The very fact that the government is looking is in itself a positive for landlords, occupiers and investors. Supply and demand are out of kilter. Although activity
600,000
new retail sector supply this year in sqm, an increase in average completion of 233,000 sqm over the past three years
Seeking solutions The government is looking to take action and seek solutions to correct the imbalance in the market,says Nicholas Maclean.
continues, growth in supply across all asset classes appears to be higher than the equivalent growth in demand. The resulting compression of pricing, although in the short term welcome to occupiers, will depress the investment and development markets and will, over the long term, affect the quality of stock. Therefore, developers should welcome the initiative, because ultimately the potential market intervention will be designed to embrace market performance from all participants,” Maclean says. Alsam chimes in to add that he expects the market to react in a better way over the next 12 to 18 months, in the wake of this positive step by the Dubai government. “As a developer with ambitions to enter the Dubai market in the future, this is exactly the sort of message that we want to hear. I also believe that other developers, both locally and internationally, will also be encouraged by this news, which will result in greater foreign direct investment into Dubai over the long term.” In conclusion, Delvaux adds that while the ‘build it and they will come’ model has served Dubai well, the time has now come for it to review this approach and create a more balanced market. “Achieving this objective will inevitably require more controls on the level of future supply than have been implemented in the past, but it is an initiative set to improve the country’s long-term economy,” he asserts.
OBEROI HOTEL, BUSINESS BAY / DUBAI / UAE
A prestigious recognition of excellence of the foremost building contractors in the region
Scan here to nominate now
BigProjectMEAwards.com
26 November 2019
PLATINUM SPONSOR
GOLD SPONSOR
GOLD SPONSOR
GOLD SPONSOR
GOLD SPONSOR
SILVER SPONSOR
SILVER SPONSOR
SILVER SPONSOR
INTELLIGENCE PARTNER
KNOWLEDGE SPONSOR
KNOWLEDGE SPONSOR
ORGANISED BY
24
IN PROFILE
Saleh Abdullah Lootah
“We have always tried to have an extra edge compared to others, whether in terms of quality, finishes or offering. We always try to create the ‘wow’ effect for our customers” BIG PROJECT ME SITS DOWN FOR AN ENGAGING DISCUSSION WITH SALEH ABDULLAH LOOTAH, CEO OF LOOTAH REAL ESTATE DEVELOPMENT, WHERE HE REVEALS HOW THIS VENERABLE FAMILY-OWNED FIRM IS KEEPING PACE WITH A RAPIDLY CHANGING REAL ESTATE SECTOR October 2019 | MEConstructionNews.com
25
MEConstructionNews.com | October 2019
26
IN PROFILE
arlier this year, Lootah Real Estate Development (Lootah) announced the launch of the region’s first leaseto-own industrial warehouse model in Dubai, with clients offered pre-built industrial warehouses at 2% down payment, with custom options available for different business. Clients will have full ownership of their warehouses within 10 years, the developer says. This initiative is characteristic of Lootah’s approach to identifying and capitalising on what it perceives as gaps in the market. In the case of Senaeyat, the industrial warehouse development project, the company identified that clients were looking for custom-built, targeted warehouses with modern specifications and features, and was quick to move in response to the growing demand. Being an early mover in the UAE real estate market has been one of the
October 2019 | MEConstructionNews.com
defining characteristics of Lootah’s long history in the country. Although the real estate developer only began operations in 2002, its holding company was in existence long before that, with operations and interests in fields as diversified as construction, energy, financial services, logistics and fast-moving consumer goods. “With Lootah, we have been pioneers in different projects – Dubai Islamic Bank was founded by our founder – and if you talk about the SS Lootah Contracting Company, it is one of the first construction companies to be launched in Dubai. We have been pioneers with a lot of projects that we’ve launched in Dubai,” says Saleh Abdullah Lootah, CEO
Forced to adapt Although LRED enjoyed a successful 2018, the current market dynamic has pushed it to adapt and make strategic business decisions.
2% down pay-
ment on Lootah’s pre-built industrial warehouses
of Lootah Real Estate Development, in an exclusive interview with Big Project ME. “Seeing the competition in the residential sector, we decided not to stop working in the sector, but to also divert our focus towards the industrial sector. This is where we came in with our latest product – Senaeyat. It is mainly focused on the industry sector, for the economy, which is something that everybody is looking for. It is considered to be the first project of its type in the industry. Going into the industrial sector, we have positioned this project based on our research, which is that 70% of warehouses that are being operated by main players in the market are on lease, i.e. they are not the owners. “That means that in Al Quoz, JAFZA, DIP and all the other areas, 70% of the operators are leasing their warehouses. Most of them have been here in the market for the last 10 years, some for 20 years. They have been here for a long time, they have a reputation, a good name. They don’t want to leave Dubai, but they’re renting their warehouses. If the prices go up, if the owner of the warehouse decides to increase the price, then their business gets affected and they are at risk,” he says. “So we came up with the solution of telling them, why do you want to rent warehouses when you can own them? It came at the right time, with the government offering a lot of incentives to business owners. That’s why we began lease-to-own, which was the first such model to be
IN PROFILE
launched on the industrial side. “We’ve seen lease-to-own in the residential sector, but this is the first project focusing on and targeting the industrial sector. Instead of them paying rent every year without getting any benefit from it, we are giving companies the opportunity where, after 10 years, they have a 90-year ownership,” Lootah asserts, adding that the project has been divided into three phases, with the first set to be finalised by the end of the year. However, despite its pivot towards industrial real estate, Lootah continues to focus on its core business, the development of residential and commercial properties for the UAE market. To that end, Saleh Abdullah Lootah says last year was a good one for the developer, with several projects launched already sold in the market and a satisfied customer base. However, he acknowledges that the current market environment has posed some new challenges for the company, which in turn has pushed it to adapt and make strategic business decisions. “In 2019, as you can see, the real estate market is going through difficulties in terms of offerings. This is why you see that HH Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and the Ruler of Dubai, has gotten involved lately. He has stepped forward and talked about the challenges the real estate sector is going through, which in reality a lot of big developers are facing. “HH is now involved in making sure that there is a balance between supply and demand, which is good for the industry. Now, I think, especially with the semigovernment and private sector in the market, you see a lot of the main players are the semi-government firms. I think, in a way, we have realised that competing with each other is not helping anybody in the market. The supply is way more than the demand, and prices are coming down. Balancing it is good for everybody. “What we have done in Lootah Real Estate is that from day one, whatever we have launched – from The Edge, to The Waves, to Shamal Terraces and Residences – we have wanted to introduce something different.
27
We have realised that competing with each other is not helping anybody in the market. The supply is way more than the demand, and prices are coming down. Balancing it is good for everybody”
86 total
number of buildings comprising Ewan Residences Extra edge Lootah says LRED aims to offer its customers an extra edge with its projects, and create a ‘wow’ effect for them.
We did not want to compete headto-head with whatever is in the market. We have always tried to have an extra edge compared to others, whether in terms of quality, finishes or offering. We always try to create the ‘wow’ effect for our customers,” Lootah says, adding that developers need to find value-adds or USPs that allow them to position themselves differently to their competitors, which is part of the reason he pushed for the firm to explore different avenues of growth. Furthermore, he adds that given the current market conditions, developers need to start understanding their markets better and listen to their customers,
so that they can gear their offerings to where the greatest demand is. “I’m talking about really listening to your customers for exactly what they want, because sometimes one size does not fit all. Because there are a lot of offerings, our customers have become very selective in what they choose. Unless you go the extra mile, and unless you create the ‘wow’ factor, you won’t be able to sell [your product]. “When we introduced the loft concept, it was a little ahead of everybody and not everybody liked living in a loft. But when we started marketing it to the right customer profile, we found that the demand was very high. [So the
MEConstructionNews.com | October 2019
28
IN PROFILE
The government is trying their best to stabilise the market, but we see a lot of projects that are not able to be finished. Why is that? Because of payment plans. A lot of projects have struggled to finish because of this over-promising” lesson is that] you cannot sell what you would be selling to an Asian customer, to a local customer. Selling to a local and to an expat Arab would be different, while Europeans and Asians would have different [tastes and demands]. Each one of them has their own uniqueness in terms of selling to them,” he asserts. In the wake of the announcement of a higher committee to regulate Dubai’s real estate market, Lootah believes the move will allow private companies to contribute more towards the building of the economy, as they will have room for bigger margins and to do better business. “Dubai has been built by the private sector. The government was not totally involved in business, and it only just started lately to be a part of the real estate development and the trading sector, through a lot of initiatives. It was something a little bit sensitive; a lot of the private sector do not like governments coming in and participating, because it’s a bit of a threat to them. “HH Sheikh Mohammed bin Rashid Al Maktoum has been asked, why did Dubai’s government get into the real estate sector? Why are government or semi-government companies competing with the private sector? He answered a very good answer – he said it’s because he did not see the private sector have the readiness to go and take bigger risks than what they were taking. The private sector is always concerned about their capital, and this is where their vision is. October 2019 | MEConstructionNews.com
“Nobody from the private sector will come and build the Burj Khalifa. Nobody from the private sector will build the Dubai Airport. The private sector will always have their concerns and calculations. HH said that because he did not see them having the readiness to go with these big dreams, he contributed and pushed semigovernment companies to participate. “But now, I think he has realised that things have become this big, you don’t want to have repetitive projects without really adding value to Dubai. He is now saying that he doesn’t want the same growth, he wants unique and ‘wow’ projects which will add value to Dubai. This is the right move, in my opinion.”
4,285 square
feet area in each Shamal Terraces townhouse
Adding value Lootah says projects in Dubai will now have to add value to the market if they are to succeed.
More work still needs to be done, he points out. While the move to regulate the market is a welcome and necessary step, Lootah stresses that an issue that needs urgent addressing is the way payment plans are structured in the market. “The government is trying their best to stabilise the market, but we see a lot of projects that are not able to be finished. Why is that? Because of payment plans. A lot of projects have struggled to finish because of this kind of over-promising. I think RERA and the Land Department have learned from these mistakes. “You see a lot of these attractive payment plans and aggressive sales tactics coming from semi-government developers, which is a lose-lose scenario. Nobody wins. The government is losing, Dubai is losing, with these kinds of aggressive sales tactics. I think reducing the supply [will help] build back the economy. Dubai is going back to its roots with the government playing a main role by being an enabler for the private sector, and businesses will be able to do their business without competing head-to-head [with the semi-government developers]. Once the cost of living and cost of doing business in Dubai is reduced, you will see more people being able to come and live and do business here,” he highlights. Given how the real estate sector is changing so rapidly, Lootah says that for his company, there is only one option – to evolve with the times. While Senaeyat is one step into the future, he
IN PROFILE
tells Big Project ME that Lootah Real Estate Development can do more to adapt to the new world it finds itself in. One such initiative is Souq Extra, which was established in 2008 and integrates contemporary retail planning with lifestyle developments, engaging with local communities to deliver locally tailored real estate services. In addition, Lootah says the company is looking to expand further afield, with Saudi Arabia and Egypt earmarked as two major markets where it can add value, but adds that it is waiting for the right time. “The market is forcing you to change. If you talk about smart cities, for example, or about artificial intelligence, or if you talk about how technology can help, then we have been very active in that regard. We have just launched our CRM platform and finalised our ERP systems. We have been putting a lot of investment, both time- and money-wise, into raising the capabilities of our IT infrastructure so that we can make sure that our customers can reach us faster and in a more convenient manner.
Anticipating needs Part of LRED’s challenge is to anticipate and answer customer needs, even before it is asked to deliver on them.
“We try to listen as much as we can to our customer needs. Sometimes it’s not only about listening but also anticipating what the customer wants, which is even more difficult. Now you have to give him things he doesn’t say that he wants, but
29
he does want it. To that end, we do a lot of sessions with our customers, we do a lot of brainstorming internally and with brokers, we try to do a lot of qualitative interviews with end users to make sure that we can really address their requirements,” he says. “If you are giving a customer something that he did not say he wants, but he sees you’re already giving it to him without saying anything – that is something that will create a difference. “For us as Lootah, we have grown with Dubai and we have been here for the last 100 years, and we will be here for many years to come. We have been able to compete because of the trust that a lot of customers have in us. They know the name; they know the family and they know that this company is here to stay. What we have to be careful about is really making sure that our reputation is not being harmed because of what is happening in the market. It doesn’t mean that we can fulfil all the demands, but at the end of the day, we try to satisfy our customers with value for their money,” he concludes.
Tafawuq provides technology driven integrated facilities management solutions to a wide range of clients in various sectors focusing on residential, commercial and mixed use communities. 800 839 |
www.tafawuq.ae
Driving Asset Management Forward
MEConstructionNews.com | October 2019
30
| MEConstructionNews.com | MEConstructionNews.com September October 2019 2019
PROJECT PROFILE
31
AASTMT CLIENT: Government of Sharjah MAIN CONTRACTOR: UNEC PRECAST CONTRACTOR: HPBS TOTAL BUILT-UP AREA: 71,350sqm DATE OF HANDOVER: September 2019 DATE OF INAUGURATION: October 2019
Race against Time BIG PROJECT ME LEARNS HOW HPBS HELPED BUILD THE ARAB ACADEMY OF SCIENCE, TECHNOLOGY AND MARINE TRANSPORT CAMPUS IN KHORFAKKAN, SHARJAH WITHIN 120 DAYS | September | October 2019 MEConstructionNews.com MEConstructionNews.com
32
PROJECT PROFILE
uly 2018 saw the issuing of an Emiri decree by HH Sheikh Dr Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, which established the Arab Academy of Science, Technology and Maritime Transport (AASTMT) in the Emirate of Sharjah. The decree stipulated the establishment of an academic institution in the east coast city of Khorfakkan, part of Sharjah. According to an MoU signed between the Sharjah Government and AASTMT, the new branch will qualify graduates specialised in various maritime transport sciences and technologies, in addition to international transport, logistics and maritime law. State-of-the art specialised education programmes will also be provided, a statement from AASTMT adds. A regional university operated by the Arab League, the AASTMT runs programmes in marine transportation,
business and engineering. As per a news report by WAM, the new branch will grant students bachelor degrees in applied and theoretical sciences. Once the decree was issued, work on the development of the campus in Khorfakkan began rapidly, with the MoU stating that the government of Sharjah will provide an appropriate plot of land and the necessary educational and administrative buildings, equipping them to the latest international standards. AASTMT will deliver the curricula, teaching materials and educational tools, as well as qualified staff. Also part of the MoU was an agreed start date of September 2019, which meant
| MEConstructionNews.com | MEConstructionNews.com September October 2019 2019
Academic focus The AASTMT campus in Khorfakkan, Sharjah will qualify graduates specialised in various maritime transport sciences and technologies.
6,279 total number of precast elements used
the entire campus needed to be built from scratch and ready for operations within 120 days. This short timeframe didn’t leave the main contractor, UNEC, with many options when it came to getting the project built in time. Therefore, the UAE contractor turned to its long-time partner and supporter on several other projects to help get the job done – HPBS, a subsidiary of ASGC and one of the leading precast companies in the UAE. “To be honest, for us it was a sudden move. When we talked about the project at first, we considered it impossible to be done. To finish this volume of cubic metres of concrete within three months
PROJECT PROFILE
– we’re talking about 22,000 cubic metres – at the first meeting, we said ‘This cannot happen, it’s impossible’,” relates Bashar Abou-Mayaleh, managing director of HPBS. “However, we have a very good relationship with the main contractor, UNEC, a business partnership if I may say. We have completed three projects with them, and we currently have another three running. That’s how good our relationship with them is. “Without even tendering the project or asking for quotations, they came to us directly and said, We know that you are the only precast company that can do this job. We know we can’t do it cast in-situ, which is the conventional method of concreting.
“[Because of this relationship], we kept digging into it. It was very challenging. Half the people present at the table for that initial meeting were saying that this could not be done in precast. “But we kept talking about it, discussing it, and after a few days of studying the preliminary drawings – this was a design and build project by us as well – we redesigned the buildings themselves,” he reveals. While the architecture and concepts were kept the same, the structural elements were changed. Abou-Mayaleh explains that larger, thicker elements of the design were taken out, with lightweight and sustainable parts replacing them.
120 total
working days on the precast project Impossible challenge Having initially looked at the project, the HPBS project team deemed it to be an impossible challenge due to its size, scale and complexity.
33
“The preliminary drawings for the project contained some parts that could not be installed. They could not be lifted by our cranes, and it would not be feasible to bring in a 200- or 500-tonne crane for the project. Instead, we thought about how we could optimise the project, and that’s how the value engineering started. All the teams shared their comments, we discussed it in a big workshop, including the production, design and transport limitations, then we started the project.” As Abou-Mayaleh explains, HPBS approached the project as a design and build contract, given the amount of rework required in order to ensure the company’s factory and production lines could create the precast segments as per the client’s requirements. The initial drawings revealed several complexities in the design, with cladding over panels, several arches and intricate designs, he says. “There are a lot of complexities, which resulted in the draft of one drawing for this project taking about 20 times longer than what a draftsman would normally take for an average drawing. The details are unbelievable,” he says, highlighting the arches as one example, explaining that on this project, they’re so complex that they have different radiuses. “For this to be implemented through design and into production was something new for us. These types of arches, you cannot do them in steel moulds, so we had to use a mix between materials for some of the moulds.
Half the people present at the table for that initial meeting were saying that this could not be done in precast. But after a few days of studying the preliminary drawings, we redesigned the buildings themselves” MEConstructionNews.com | October 2019
34
PROJECT PROFILE
“We needed to have everything in place for this design. For the structural stability to be there, it’s not easy to do when you have to make everything lighter and with all these different shapes. Everything has to be 100% in place, and you have to think about details like the connections, which have to be hidden. For other projects, you might not care as much, because you can carry out repairs and modifications, but for this one, everything had to be perfect. Everything required much more steel and much more reinforcement. I think it was about 40% to 60% more than a normal reinforcement would require. “This resulted in huge problems for us in production. More reinforcement meant more headaches, not only in terms of productivity but also of pouring the concrete and the vibrations that result in lower quality, which is something that’s forbidden for this project. Our design team faced a lot of these issues and really did a good job on this project,” he asserts. In many ways, the success of HPBS on this project was down to the extensive use of construction technology on the project, Abou-Mayaleh says. Due to the high quality and speed demanded for the project, the company had to use all its technological resources. Not only did this include the use of physical assets, such as an automated Avermann system and a fabrication truck, but it also included the extensive use of BIM throughout the design process, he adds.
October 2019 | MEConstructionNews.com
We are using REVIT; we have 3D models for each and every building. When you have arches, door and window openings coming in just in one piece, how can one person work on a 2D platform to imagine and realise this?” Difficult shapes The many arches and intricate designs posed significant challenges during the casting process.
6.23 tonnes of
elements produced for the project
As Bahaa Ibrahim, GM – Technical, explains, the two main challenges the team faced were around design and time. In addition to the buildings being extremely ornate and complex, there were also a large number of them – 12 in total – with each one distinctly designed. “This project actually belongs to the Sharjah government and most of the buildings are related to the Arabic/ Islamic style with many arches and huge openings and domes. The floor height is huge, up to seven metres, so everything really was very difficult. “And we had several buildings, and we’re talking about difficulty in design for each one of them, as each building is
unique. There were design difficulties, untypical elements and a huge number of elements. Everything was big – the concrete dimensions were huge for each one of them, and at the same time there was a time limitation. We started work in April and had to finish everything before September. Not only that, but we had other commitments and other clients and projects to consider. “It was also Ramadan and 50% of the working hours were not there – it was half-day mostly, and most of the people on-site were fasting. We had to deal with all these difficulties, but we had the full BIM process in the design department,” says Ibrahim.
Free attendance for industry professionals. Register online accessandhandlingsummit.com
Wider reach and better handling The Access and Handling Summit will highlight the key aspects of the sectors, bringing the best global and regional practices, solutions, products and equipment to delegates through a series of panel discussions and presentations.
21 October 2019 Ghaya Grand Hotel Dubai, UAE accessandhandlingsummit.com Please scan here to register
GOLD SPONSOR
SILVER SPONSOR
BRONZE SPONSOR
LUNCH SPONSOR
MEDIA PARTNER
MEDIA PARTNER
MEDIA PARTNER
ORGANISED BY
36
PROJECT PROFILE
“We are using REVIT; we have 3D models for each and every building. We could not resolve the design issues we talked about if we didn’t have this facility in the design department. When you have arches, door and window openings and other decorative elements coming in just in one piece, how can one person work on a 2D platform to imagine and realise this? “The BIM process in the design department helped us a lot to imagine and reduce or eliminate the mistakes. When you have a fast-track job with difficult design, you can end up with several mistakes, which can be a disaster for the work on-site. By using Revit and applying our full BIM procedures, you can say that we eliminated mistakes and that there was a 99% accuracy rate.” Another major challenge for the HPBS team was that they were the only party involved with the project that used a BIM platform. With the other stakeholders working in a more traditional way, the team had to transfer everything from 3D to 2D in order to communicate with the other project teams, which was a time-consuming process that hindered the pace of progress. “For every job, you should have coordination between all aspects – architectural, structural, electromechanical, steel structure, etc. If you have all these stakeholders, they have to coordinate and sit together before any work is done. That was another issue because we had a shortage of time.
127 cubic me-
tres produced daily to meet project requirements Eliminating mistakes The use of BIM by the HPBS team allowed them to eliminate mistakes and achieve a 99% accuracy rate.
“At the same time, the client sometimes made changes; while we’re going so fast on-site, we don’t even have time to review the drawings. You have to make sure everything is very accurate and correct from the beginning. [On a project like this], you don’t have time to change or to listen to someone who wants to change something, but how do you say no to the client? “Irrespective of where the issue comes from, the client’s side or our side, it needs to be rectified. That means you have to stop everything, re-do it and then continue,” he says. However, despite this drawback, Bashar Abou-Mayaleh praises the level
of coordination and collaboration the various project stakeholders showed, with every member of the project displaying flexibility and adaptability in the face of tremendous odds. “To be honest, UNEC trusted us a lot. They trusted our design team to even handle the coordination with the MEP. We pushed everyone involved with the project because we felt like this was our own project. “Our design team pushed the MEP subcontractor, for example. They brought them to our headquarters, taught them how the REVIT system and BIM models work, so that we could all be in sync. This also saved time
To be honest, UNEC trusted us a lot. They trusted our design team to even handle the coordination with the MEP. We pushed everyone involved with the project because we felt like this was our own project” October 2019 | MEConstructionNews.com
PROJECT PROFILE
Fabrication Challenges
Some of the complex elements produced for the project included: • Dome walls • Round columns • Minarets • Curved walls • U-shape walls • Double recess walls that we didn’t have. The project was a learning experience for all of us. “It’s a fast-track project, and I can tell you that UNEC was fully supportive. Whatever we asked, they would try and accommodate and facilitate our requests. Many items were finalised after the project started – whether it was our scope or their scope, they were supportive and collaborative,” he asserts. This cooperation extended to UNEC providing space for HPBS to establish a stockyard on-site, for the precast manufacturer to create a laydown area that stored the cast elements to be installed, as well as the necessary equipment needed for the project, such as their cranes.
In addition, a deployment plan was drawn up and executed for all the materials, machine and manpower used on the project, with the HPBS logistical team playing a crucial role in making sure the requirements of the project didn’t exceed the fleet’s limitations, Abou-Mayaleh adds. “We had some special trailers for those elements that reached 23m, while there were a lot of hollow-core elements spanning 18m and 550mm thickness. We are the first company to create this, and we even made some modifications to the machines themselves [to create them]. We have become pioneers in the industry in terms of creating this 550mm thickness,” he states. “We also had a fabrication truck equipped with many new equipment, which was especially for this project due to it having many elements with curves – round columns, arches and so on. We even bought a rolling machine for this project, and the return on investment for this machine was reached and covered within 45 days, due to the complexity of the elements.” With the AATSMT campus now due to be handed over and the university scheduled to commence classes imminently, Abou-Mayaleh can look back on a job well done by his team at HPBS. He proudly states that he believes this project is one of the most important ever done in the company’s history, given the scale, complexities and timeframes that had to be contended with.
Cooperative building All stakeholders were extremely cooperative and collaborative during the construction process, which was essential to the project’s success.
50 precast
elements produced daily on average
37
“We are very happy we have succeeded in this project, and I’m proud of our fabrication teams. When you look at the moulds themselves, they’re pieces of art, honestly. It’s the best marketing campaign that we have done – and not just for us, we have really elevated the precast industry with this project. “The timelines and the complexities that have been tackled demonstrate HPBS’ capabilities to take on really complex projects and turn them around within the required timeframes and budgets, and to provide any support that we can give to developers in terms of design and build, with the technology that we have,” he concludes.
MEConstructionNews.com | October 2019
38
SUSTAINABILITY
Green facades
Green facades – a case of sustainability being only skin-deep? MIDDLE EAST
Big Project ME examines the case for green facades on buildings and their impact on the way buildings are being designed and built in the region, as Paul Godfrey finds out October 2019 | MEConstructionNews.com
I
n 1927, the acclaimed architect Le Corbusier published his Five Points of Architecture, destined to become the core blueprint for the Modernist movement. The second of his five points was the requirement to have a roof garden, which could be either a kitchen garden or a sun terrace. It would be on a flat roof, which should have a humus layer covered with vegetation – which, Le Corbusier observed, ensures constant moisture and serves as a perfect heat and
cold insulator. He also shrewdly commented that a garden of this type can dramatically reduce the building’s footprint on the ground, effectively putting what would otherwise be the surroundings up on the roof instead. Today, architects and planners alike use a very similar language to sing the praises of ‘green facades’ – living walls of vines and plants that maximise a project’s green space with a minimum-sized footprint, creating a vertical landscape and becoming an
SUSTAINABILITY
eye-catching feature that can distinguish an otherwise-bland property. They can also bring environmental benefits to the local community and the building’s occupants alike, providing acoustic buffering (reducing noises from the streets below), lowering ambient wind speeds around the structure and insulating the property and reducing its carbon footprint by reducing dependence on heating or air conditioning. All important factors, because as Benjamin Beer, head of Facades, Ramboll,
Bringing benefits Green facades can bring some environmental benefits to a building’s occupants, with noise reduction and lowered ambient wind speeds around the structure, and reduce its carbon footprint by decreasing its dependence on air conditioning.
comments: “We tend to spend more than 90% of our time in buildings, so the façade is of key importance for human wellbeing, providing shelter from the external environment.” Moreover, it appears that even the external environment itself can be modulated and improved by green facades. Micha Pawelka, managing director, Priedemann, explains: “There are project studies from Asia to Europe showing that ground air temperature can be decreased by around four degrees Celsius, which is a significant number. However, it’s important to note that this improvement can only take place when the green facades are provided in an area of busy pedestrian circulation – a situation we have challenges with in the GCC.” Are there any other regional challenges that could limit the practicality and benefits of green facades? Beer believes that the sheer costs of upkeep can often be detrimental: “The harsh Middle East climate means there are very limited natural resources of sweet water. So with green facades you need to cost in not only the higher maintenance requirements but also the sweet water consumption of the plants and the associated carbon footprint. In the Middle East, most sweet water is gained from seawater desalination plants, and the CO2 emission per cubic metre of sweet water is 0.4-6.7kg CO2 eq/m3 – so green facades tend to have little effect on the overall energy consumption of a building.” Pawelka adds another chastening note, this time in terms of the structural impact: “Remember, the normal structural challenge is to drain water out of the façade – but here, we are intentionally inviting it in. That’s a risk and it needs to be considered and dealt with from the very early stages. This also necessitates a thorough and convenient maintenance strategy. Imagine your living wall is part of your overall U-value calculation. How much value remains if your irrigation system is not maintained and the living plants in your façade die?” While green facades can reduce utility bills for the building itself (if not for its total downstream consumption), they may not be the silver bullet that architects and town planners foresaw.
39
Pollution needs to be closed out, but any facade that meets basic airtightness requirements is able to do that. So we are really talking about protection from pollution, not combatting it” As Agnes Koltay, CEO, Koltay Facades, remarks: “Of course, pollution needs to be closed out, but any facade that meets basic airtightness requirements is able to do that. So we are really talking about protection from pollution, not combatting it. Plus, pollution will still come in through the door or window the second you open it. “The reality is, if you want to combat pollution, go to the sources of pollution – which are the old cars, aged public transport buses, low-technology factories and so on – rather than expecting a facade to work a miracle and cure the city.” STANDARDS AND REGULATIONS While it may be true that green facades have their limitations, and that the GCC’s harsh climate poses extra challenges, the regional authorities were quick to see their potential benefits. The first steps towards regulation have already been taken by the Middle East MEConstructionNews.com | October 2019
40
SUSTAINABILITY
With green facades you need to cost in not only the higher maintenance requirements but also the sweet water consumption of the plants and the associated carbon footprint” building authorities, most notably in the Dubai Green Building Code. Beer says: “There is also the WELL Building Standard being third-party certified by the Green Business Certification Incorporation (GBCI), which administers the LEED (Leadership in Energy and Environmental Design) certification programme and the LEED professional credentialing programme.” These codes are particularly important given the harsh demands of the regional climate, with its ability to corrode and deteriorate materials that would have been perfectly useable elsewhere. Pawelka comments: “It’s no accident that we tend to be most familiar with green facades from developments in Southeast Asia, with its more seasonal climate. In the GCC, green facades need to be developed specially for the local climate, which can limit their use. Of course, this comes at a cost and in a region where many markets are driven by ROI, it is always a challenge to introduce solutions which may be more expensive.” October 2019 | MEConstructionNews.com
NOT THE GREEN ICON WE IMAGINED? “I’d have to say in summary,” says Beer, “that green facades tend to have little effect on the overall energy consumption of a building; however, the local microclimate and occupants’ wellbeing can be enhanced by the greenery and plants.” Perhaps indeed this is the greatest take-away with green facades, as Pawelka adds: “We know how important interaction with nature is for human wellbeing. And we know also that a biophilic design can improve wellbeing, happiness and performance not only at the workplace but in our homes too.” If we’re looking for something more than that, we may be disappointed – or at least looking in the wrong place. A last word here from Agnes Koltay: “Why do we expect the building, with its tiny non-vision facade area, to generate energy like a power station? Let’s build power stations to generate energy, and let’s build buildings to have a nice living environment instead.”
There are project studies from Asia to Europe showing that ground air temperature can be decreased by around four degrees Celsius, which is a significant number”
A GLOBAL SHOWCASE OF THE MOST ADVANCED CONSTRUCTION PRODUCTS IN THE MIDDLE EAST
25 - 28 NOVEMBER 2019 9 Dubai World Trade Centre #BIG5EXHIBITION
INNOV ATIV EP RO DU CT S
ADVANC ED T ECH NO LO GY
GLOBAL
S LUTION O S LE AB N I TA S SU
YEARS
LEA D I N GB R A ND S
Visit The Big 5 and its six co-located events to discover the most innovative construction products and technology brought to the Middle East by global leaders. Co-located with:
REGISTER FOR FREE ENTRY & SAVE AED 200 | WWW.THEBIG5.AE/REGISTER PLATINUM SPONSOR
GOLD SPONSOR
GOLD SPONSOR
SILVER SPONSOR
ORGANISED BY
42
COMMENT
Industry insight
KATHERINE BRUCE AESG
A tall order? Turning the Middle East’s skyscrapers into living buildings
G
iven that buildings are responsible for a large percentage of global greenhouse gas emissions, it’s no wonder that the net-zero energy movement has been gaining steady momentum. So much so, that we’re now seeing the next paradigm shift in sustainable development take root – that of buildings that generate more than they consume. Though the concept has only recently started to resonate, its foundation was laid in 2006 in the form of the Living Building Challenge (LBC), an international sustainable building certification programme created by the non-profit International Living Future Institute. Drawing the parallel to a flower – which is powered by renewable energy (sunlight), harvests all the water it needs on-site and is made from locally sourced materials – the LBC framework lays out seven ‘petals’, representing performance areas. Despite its being considered the world’s most stringent building certification scheme, there are 41 certified projects and over 380 registered projects across 23 countries. Uptake in the Middle East has been minimal, however, with only one registered project to date. This is because the framework is still new to the region and designers are not familiar with the scheme. The Middle East also faces some extreme climatic conditions that are an inhibitor. There are, however, good reasons for developers in the region to consider investing effort and resources in achieving this October 2019 | MEConstructionNews.com
certification. Most important of these is the fact that the high-rise buildings that characterise the skylines of cities across the Middle East have a tremendous and often unseen impact on the environment. The extraction and production of the steel and cement required for these structures contributes to over 40% of the world’s industrial CO2 emissions. The demand for these materials has numerous environmental drawbacks, including land and water stress, species loss, emissions of toxic chemicals and climate change. BARRIERS TO OVERCOME Undoubtedly the most challenging parameters for skyscrapers to achieve under the LBC framework are the energy, water and materials petals – and at least one of these petals needs to be achieved for the full LBC certification. The targets for these parameters are that 105% of the project’s energy should be generated on-site, 100% of the water remains in a closed loop, and/or projects must strictly avoid items from a red list of materials. The energy petal is a particularly challenging petal for tall buildings. In high-density urban areas, there is a lack of available plot space for integrating solar photovoltaic (PV) systems. Although building-integrated solar panels (BIPV) can be explored to maximise renewable energy generation, the horizontal angle of installation significantly limits their efficiency. Then there’s the water-energy nexus – these vital resources are interlinked in buildings, not only at the point of consumption, but also at the point of generation. In the Middle East, water production is a costly and energyintensive process. The sheer height of a skyscraper is a challenge for the energy and water nexus. For example, enabling a resident to bathe on the 70th floor requires energy to be expended in bringing water up to that level. While these challenges might seem daunting, there is a silver lining. Thanks to ongoing advancements in technology and engineering, achieving the LBC certification – even for high-rise buildings – is now not far out of reach for Middle East developers. STEPS TOWARDS CERTIFICATION The systems thinking approach should be applied when pursing the LBC. Mapping out the flows of parameters like energy, water and people in a building allows
architects and engineers to connect the dots within complex systems and make efficiency gains. In particular, mixed-use skyscrapers can benefit from this exercise, as understanding different usage patterns can enable more efficient use of resources. Due to the high energy consumption of tall buildings, a key step is to employ numerous passive measures to minimise energy consumption. At AESG, we have used parametric modelling to optimise the orientation of buildings as well as window-towall ratios. These measures help significantly in reducing overall energy requirements. With 68% of the world’s population expected to live in urban areas by 2050, there is no doubt that we’ll continue to see cities expand, not just horizontally but vertically too. As skyscrapers become more common, frameworks such as the LBC will play an increasingly important role in combating climate change and fostering the wellbeing of building inhabitants and residents. There is perhaps no better business case than this to justify investment in achieving LBC certification. Katherine Bruce is Sustainability Consultant at AESG.
JEFF BENNETT ALLEGION
The convergence of electronic and mechanical platforms
I
nfrastructure today must blend mechanical and electronic solutions to create a holistic experience The UAE is one of the largest construction markets in the GCC today, with the total value of the sector exceeding $1 trillion. At the same time, the construction landscape is marked by various trends, one of
COMMENT
With new technologies available all the time, it can be difficult to know where to begin adopting them to actually derive value” which is the use of new technologies for access control that make day-to-day life easier. According to Mordor Intelligence, the global electronic security market is projected to witness a CAGR of 8.98% between 2019 and 2024. Keeping up with the latest technologies in this area can sometimes lead to a mechanical versus electronic mindset, where mechanical options are seen as mere opportunities to upgrade. But often, it’s more advantageous to consider how the two can complement one another for access control. While it is often assumed that new technology must cannibalise old, customers benefit more when we choose a combination of electronic and traditional mechanical solutions in a way that addresses their specific needs. Ultimately, the decision to integrate electronic options should be based on the specific needs of customers for each door opening. When the unique purpose of each area of a property is taken into account and a blend of mechanical and electronic solutions is used to serve those purposes, a more positive and holistic experience emerges for all parties. While there will always be applications in a property where mechanical is still the best option, the final outcome will depend on what can be achieved with that entry, and what the needs of the building are. It is easy to fall into the trap of assuming the same solution is needed across all doors, but it is really important to tailor the experience to each point in the property. The convergence of mechanical and electronic solutions creates an enhanced user experience. The most successful integration of new technologies happens when they are merged with the mechanical to create an enhanced experience for the end user. One example of successful technological convergence is the automobile. Today’s cars are more reliable than ever, but they also do a lot more than just getting you and the kids to soccer practice on
time. The GPS system guides you to the field while the kids watch a movie on the built-in screen or browse the web by connecting to the car’s WiFi. You know you’ll arrive at your destination as always, but you’ll also have a better experience getting there. Infrastructure today must apply the same concept in order to meet customer requirements. Infrastructure that takes advantage of these new capabilities will stay competitive in a channel that’s rapidly evolving. Ultimately, even the most secure and reliable applications of mechanical hardware will become insufficient if they don’t offer users the level of convenience they expect. In the past, the high cost of electronic solutions prompted many managers to cut costs by using them only at access points where the highest level of security was needed. Today, electronic solutions are affordable enough to implement throughout a property, even at interior doors where security is a minor consideration. In fact, electronics often make sense at many of these doors because they can offer data analysis around who used the door and when, as well as make the whole building operate as one integrated system that is properly secured. It is estimated that the cost of sensors has fallen almost 50% in recent years. The cost of transmitting that information, bandwidth, has come down nearly 40 times, and the cost of processing that information has come down nearly 60 times. This means electronic solutions can offer management more information about what’s happening in their building than ever, at a decreasing cost. The return on investment of these solutions is therefore rapidly increasing, and with more and more customers expecting the convenience of keyless electronic solutions, the onus is on infrastructure to integrate them. With new technologies available all the time, it can be difficult to know where to begin adopting them to actually derive value. The tried and true starting point, however, is with the needs of users – not just within the building in general, but in each area and at each access point. An electronic solution may work best, pairing the solid reliability and high security of mechanical hardware with the keyless convenience and data collection of newer technology. The right blend of these solutions within a property creates a cohesive experience. Jeff Bennett is Commercial Director, Middle East, Africa & Turkey at Allegion.
43
GAMAL EMARA HPE ARUBA
Construction powered by the Internet of Things
T
he computing capabilities of mobile and Internet of Things (IoT) devices have advanced to a level that has made them capable of aiding in the planning, designing and building phases. But turning mobility into an effective tool requires not only computing power, but also connectivity. At job-sites, wired connections are not feasible and cellular networks are not always available, and hence a strong case can be made for developers to use WiFi solutions. These are not only easy to install and manage, but are now also affordable and rugged enough for deployment in harsh construction surroundings. IoT is a huge opportunity for the construction industry, which is constantly processing data and strives for workplace safety as well as efficiency. IoT needs a secure, scalable network to succeed, and WiFi offers what IT departments require for strong construction IoT networking. FACILITATING WORKFLOW With the introduction of tablet devices, mobile project management has emerged. Using apps and the ability to draw from vast amounts of remotely stored data and cloud services, these devices are capable of granting contractors, engineers and supervisors access to blueprints, schematics and other vital documents. Moreover, with the ability to instantly push updates to all members working on the project, mobile computing devices can aid collaboration and revolutionise the building information modelling (BIM) process in real time. With site-wide high-speed wireless connectivity, workers gain the ability to transfer high volumes of data. This significantly MEConstructionNews.com | October 2019
44
COMMENT
streamlines communications while cutting costs and improving operational efficiencies. This could also bear attractive green side effects, as staff no longer have to make regular trips to and from HQ. High-speed wireless connectivity is an enabler of the following applications: SMART GPS Knowing GPS data related to where your equipment is located and how it is being used is important for identifying cost-saving opportunities and keeping your fleet organised. These benefits can be uncovered by analysing GPS data from across your fleet over a period of time. ASSET TRACKING At job-sites, company assets are a major investment and the progress of construction is heavily dependent on their functionality. Heavy equipment is often required to be left on-site overnight, making it a prime target for theft. Asset-tracking technologies help monitor such equipment in remote locations and automatically detect and report suspicious behaviour. Developers can also benefit from automated maintenance schedules, logs and reports. The readiness of cheap and easyto-use RFID technology has made possible the automation of inventory management. By knowing in advance which materials are soon to run out, construction companies can foresee and avoid material deficiencies, thus eliminating losses in productivity. EQUIPMENT INSPECTION Similar to monitoring and repair, equipment inspections can be enormously enhanced with the help of smart sensors. With the advanced sensors available now, machinery can selfdetect the imminent need for a repair before it becomes a larger issue. Lost/late forms, low accuracy and undue internal processing time are no longer an issue with electronic processes. SITE SECURITY Another vital area of a construction site where mobile technology can be applied is in video surveillance. Not only does this enable better collaboration and remote supervision, it is also essential to site security. High-speed connectivity for robust and costeffective camera equipment can mean the ready availability of HD video, making both identification and collaboration easier. Gamal Emara is Country Manager – UAE at HPE Aruba. October 2019 | MEConstructionNews.com
requirements as necessary. There is now no need to invest in an all-encompassing system of which you will use a minor percentage of the functions.
ROB MATHESON CCS
Cloud-based or traditional IT structure: which will benefit your construction business?
T
he world we live in is rapidly moving towards digital for all aspects of business; one of the most aggressive moves is in the construction world. For many years, construction companies have used legacy systems, which have served their purpose. However, with the demand for connectivity and on-demand reports, how would moving to the cloud serve your construction business? Here are the top reasons you should be considering a move to a cloud-based platform: REDUCED CAPITAL EXPENDITURE The move to cloud not only offers an operational cost option for the software, it also reduces the need for infrastructure to support it. Costly hardware and back-up solutions are not required, as they are now provided as part of the software-as-a-service offering. The scale of the infrastructure offered by the service providers generally far exceeds an in-house operation, so it will also increase business accounting security and availability, while reducing your capital outlay. REDUCED TOTAL COST Not only does your online construction system reduce your capital expenditure, it actually reduces the overall cost. Cloud construction solutions can enter the market on a freemium model (base levels of the software are offered free, with the choice to upgrade for more advanced features), or a cost per role/licence model, and can be upscaled based on users and
SCALABILITY A cloud-based system scales to fit your company. Entrepreneurs and SMEs can opt for a very cheap but limited system, yet this can grow to add users and functionalities, as per the requirements of your business and team. The system will grow alongside your company and will allow the addition of functions and resources as required. STAFFING EFFICIENCY With the use of technology, manual tasks can almost be eliminated. This opens up options for a business to allow outsourcing of technical and operational functions. Many manual tasks can now be adopted by the technology, and even with a smartphone. The reduced paperwork and general efficiency allows the streamlining of business expenses and weighty salary bills. REAL-TIME INFORMATION From your project management to your financial directors, the information is available as live. The system allows you to build dashboards and reports tailored to the person using it. A C-level may want to see more of an overview, while a project manager may need more transactional level information. ACCESS FROM ANYWHERE Part of the success of cloud computing is the ability to access information from practically anywhere. The rise of smartphone adoption has given business officials access to key company information as long as they have a form of WiFi or mobile phone internet connection. SECURITY Cloud solutions face the issue of security, and people often think that because a system is out of the office it is less secure. However, exactly the opposite is the truth. The following shows
If you do not have off-site software back-up, you run the risk of losing your data. It is said that 60% of companies that suffer data loss shut down within six months�
COMMENT
just a few of the key security enhancements that a migration to cloud-based accounting offers: • User authentication – two-step authentication for logins and transactions ensures that only with the use of two personal devices can an account be accessed. • Data encryption – industry-level encryption services ensure that information is delivered and translated to correct areas only. • Network security and data centre – economies of scale allow a much higher level of infrastructure and the security that runs within it. This can offer governmental levels of security at a fraction of the price. IMMEDIATE FIXES Most software companies offer an uptime guarantee of >99%. Vast teams ensure that updates, patches and fixes are completed before issues occur. They are also often very responsive to system improvements and thrive on critical feedback. Systems can literally change and improve in front of your eyes. DATA BACK-UP AND RESTORATION One of the largest investments in accounting is data back-up. If you do not have off-site software back-up, you run the risk of losing your data. It is said that 60% of companies that suffer data loss shut down within six months. With cloudbased construction software, servers are based in environmentally perfect surroundings and replicated in similar environments, often in other countries. Only extreme circumstances disrupt these types of systems, and at this point we probably wouldn’t be worried about our project. LIMITATIONS Despite the numerous benefits of applying cloud computing to your business, there may be limitations. The main challenge with cloud computing is that you need access to the internet. With today’s world being always connected, this seems like it wouldn’t affect a business; however, outages can disrupt the ability to work effectively. Also, with some of the file types being so large, upload and download speeds are vital. There are many benefits to the adoption of cloud-based construction, but it is important to consult a reliable construction software company with your exact requirements. They will be able to guide you towards the best solution or mixture of solutions for your business. It is also vital that you choose the right team to help you set up or migrate the services. Rob Matheson is GM of CCS (Construction Computer Software) – Gulf.
45
must see this as a prime opportunity to grow and create more environmentally friendly buildings.
MOHAMED KHALED ARMSTRONG CEILING SOLUTIONS
Sustainable ceiling solutions – one step closer to tackling climate change
C
limate change is without a doubt one of the biggest design challenges we face in 2019, and it will be for many years to come. While the UAE Energy Strategy 2050 aims to convert 50% of its energy to renewable sources and reduce its carbon footprint by 70%, we still have a long way to go. However, by making small changes in the present, we can begin to build a greener future. The government says “the UAE is classified among the categories of countries with the highest rate of vulnerability to the potential impacts of climate change in the world”. Tackling climate change is a long-term priority for the UAE, and the need to create more greencertified buildings has never been greater. Emirates such as Dubai and Abu Dhabi have already taken great strides to create sustainable change. Sustainable City, a new housing development in Dubai, recycles its water and produces more energy than it consumes. Dubai has also launched Green Planet, the first indoor tropical rainforest, which aims to provide the people of Dubai with an opportunity to experience and gain a deeper understanding of the fragile ecosystem of the equatorial regions. Masdar City in Abu Dhabi is one of the world’s most sustainable urban communities. The project focuses on future proofing Abu Dhabi by looking for alternative and sustainable energy sources. While it is evident that there has been development, what if we saw every building as an opportunity for sustainable development? It’s shocking that one third of global energy consumption is in buildings, but companies
SUSTAINABLE CEILING SOLUTIONS Choosing sustainable ceiling materials for buildings is just one way that businesses can minimise climate change while improving health and wellbeing and energy efficiency, lowering emissions and reducing waste. By implementing passive heating and cooling ceiling systems, companies can have better control of creating a constant comfortable temperature around the clock. Similarly, high-reflectance, bright white ceiling systems can play their part in distributing natural light throughout a space, reducing reliance on artificial lighting. Using glass facades provides a balance of heat and cool for thermal comfort, while switching from high-emitting products to low-emitting products can help create better indoor air quality. High-performance acoustics are also essential to deliver an aesthetically pleasing environment and should be a top design priority, particularly in green buildings where the norm is not only to use fewer resources, but to create environments that promote health and wellbeing for individuals. Ceiling solutions with Cradle to Cradle certification have been designed to be endlessly reuseable, taking into account how a product is designed, what’s in it and where it goes after use. Therefore, companies should look out for this certification when specifying building products, as they have been designed for recycling using manufacturing processes which minimise water consumption and adopt renewable energy strategies. And finally, businesses need to be willing to experiment with renewable materials such as bamboo, wood and plant-based fibreglass, all of which can make a huge difference to how buildings operate more efficiently. While there are more factors to consider, these play an instrumental role in tackling climate change while helping to create desirable spaces for people to live, work, relax and shop in. It is fundamental that companies incorporate adaptable spaces into projects and design environments that can be used and adapted all year round. We need to create more living and working spaces that use natural light and sustainable materials, so that there is less reliance on powered sources, thus creating greener buildings that are sustainable for the future. Mohamed Khaled is sales director Middle East for Armstrong Ceiling Solutions. MEConstructionNews.com | October 2019
46
EXPERT VOICE
ALEC
Evolving with BIM
UNITED ARAB EMIRATES
Arsen Safaryan, head of BIM and Digital Construction at ALEC, outlines how BIM is providing the contractor with a competitive advantage in the regional market October 2019 | MEConstructionNews.com
A
LEC started using BIM tools and processes back in 2009 on the Yas Waterpark project, as an effort to coordinate multiple services and disciplines of the theme park. This was an externally sourced service provided by our consulting partners, and at this point ALEC as a construction business started to realise that technology-driven changes were approaching. Hence the next effort in 2013 on one of the infrastructure projects in Dubai Airport, where BIM was implemented with the
help of a consultant by training and upskilling a team of BIM champions from the in-house design department. Since then, many projects have been executed using BIM for engineering deliverables, introducing a number of efficiencies in drawing production. With BIM being a collaborative set of processes, supply chain, subcontractor and even client collaboration was the next obvious step in the maturity of implementation. This came about with the award of the first ALEC Client BIM Mandated project, yet again with one of the airport
FOR MORE INFORMATION Please visit the ALEC website at: www.alec.ae
projects in Dubai. This is when and where ALEC’s BIM capability, lessons learned and the appetite to exhale all catalysed exponentially. Since early 2015, collaborative BIM execution is business as usual for all our projects, including utilisation of industry-renowned tools and processes in a collaborative manner between us, our subcontractors and our consultants and client teams. Today BIM is playing a pivotal role in the digital transformation of the business as it allows us to receive, validate, process and disseminate construction information in a centralised and
controlled manner by enabling us to monitor and track changes, issues and deficiencies of information, as well as coordinate engineering deliverables in advance of the construction execution. Moreover, in the last two years, due to the Organisational BIM Framework and other strategic initiatives adopted, we were able to expand the use cases of building information modelling in about nine different areas of the business, to modernise and digitise legacy processes. What will be the evolution of BIM? The evolution of BIM is already happening, and it’s not BIM! BIM, or building information modelling, is becoming the foundational backbone of all the other data-driven tech that infiltrates and finds its way into the construction industry. Virtual and augmented reality are examples of future tech that are already being exploited and implemented in construction, and BIM acts as a solid foundation for this. Today at ALEC we have a one-click virtual reality capability thanks to BIM, and adjacent gaming technology, out-of-the box, where we are concentrating our energy, taking it to the next level and being ahead of the curve by engaging gaming industry and engineers to help us make BIM more interactive and accessible through virtual reality and gamification. The same is true for automation and artificial intelligence, where data and data visualisation are of paramount importance. BIM is object-oriented and data-driven in nature. This allows smooth integration between different data sets for further use, such as predictive analytics, machine learning and automation of mundane, labourintensive and repetitive tasks. In turn, it also creates a dynamic aggregate of data that drives the construction information deliverables (design, cost, scope, time, quantities, setting-out, etc).
Processes and mindsets are driving the evolution of toolsets by providing constant feedback. So effectively software transforms itself into the vision of people and processes using it” Plug this into a contemporary ERP (enterprise resource planning) system, and your decisionmaking is, apparently, also driven by data sourced from BIM. WHAT ARE THE CHALLENGES AROUND USING BIM?
Before we can discuss challenges, it is worth looking at the key enablers of a technology implementation such as BIM. The three key enablers of BIM and BIM-centric processes are, in reverse order: • Toolsets • Skillsets • Mindsets The toolsets and tools were historically driven by software companies creating the BIM software and tools that we use today. But if we look at the way this has evolved? Processes and mindsets are driving the evolution
47
of toolsets by providing constant feedback. So effectively software transforms itself into the vision of people and processes using it. Skillsets, on the other hand, enable people to transform themselves into a more efficient and demanded workforce that keeps evolving with the same pace or even faster than the industry and the toolsets. It is the human side of BIM, and it needs to stay human. In other words, people need to constantly upskill themselves in order to stay in control of technology. Finally, all the above is driven by mindsets. For me, the mindset is the key enabler of any change, and especially technological change – the vision and understanding of the senior leadership. It is top-down, and it fuels and promotes the change. What are the major trends around BIM in this region? Our region is booming in terms of BIM adoption and implementation. This is driven by a few key factors, such as the complex mega projects, where demand comes naturally amid the competitive nature of the market. One interesting factor was the Dubai Municipality circulars about mandatory BIM use of certain projects meeting or exceeding certain criteria. This created a massive awareness in the UAE construction market. One of the major trends today is cloud-based information management and BIM collaboration in the cloud. In other words, almost real-time collaboration around BIM and information management in general. This and other elemental BIM processes must be implemented first, in order to allow other more futuristic trends in technology to be implemented easily. Blockchainenabled, decentralised distribution and management of BIM-born data will be coming next, and it is sooner than we think. We need to be ready for this.
MEConstructionNews.com | October 2019
Transforming how construction companies Connect, Track & Procure Get SpeciďŹ ed Track & Win Projects Streamline your Tendering
Visit us at The Big 5 25-28 November 2019, Dubai World Trade Centre Main concourse stand #836
To ďŹ nd out more, write to hello@protenders.com
www.protenders.com
TENDERS
Middle East tenders UAE
TERRITORY UAE CLIENT Higher Corporation for Specialised Economic Zones DESCRIPTION The project’s scope of work consists of car repair workshops located at Rahayel City, Abu Dhabi. The project also includes 300 workshops, spare parts retail space, landscaping works and associated facilities. PROJECT COMPLETION 30/12/21
CLIENT Saudi Arabia Ministry of Defence & Aviation DESCRIPTION The project’s scope of work involves the construction of airbase facilities in Riyadh, Saudi Arabia. PROJECT COMPLETION 31/12/21 RETAIL & COMMERCIAL
Century Corner Complex
COMMERCIAL & RESIDENTIAL
Emirates Towers Business Park Mixed Use Buildings BUDGET $105 million TERRITORY UAE CLIENT TECOM Group DESCRIPTION The project’s scope of work consists of 5 residential and commercial buildings each comprising 6 floors located at Emirates Towers Business Park near Dubai International Financial Centre (DIFC). The project also includes retail stores, infrastructure works and associated facilities. PROJECT COMPLETION 30/12/22 RESIDENTIAL
Island Towers BUDGET $125 million TERRITORY UAE CLIENT Emaar Properties DESCRIPTION The project’s scope of work consists of 2 residential towers located at Dubai Creek Harbour, Dubai. The project includes apartments, infrastructural facilities and associated facilities. PROJECT COMPLETION 28/2/22
INFRASTRUCTURE
Makers District Infrastructure Works BUDGET $102 million TERRITORY UAE CLIENT IMKAN Properties DESCRIPTION The project’s scope of work involves the infrastructure works for Makers District in Abu Dhabi. The project also includes road works, bridges, civil works, installation of
49
pumping stations, substations and associated facilities. PROJECT COMPLETION 30/7/23
SAUDI ARABIA AVIATION
Riyadh King Salman Air Base Facilities BUDGET $101 million TERRITORY Saudi Arabia
BUDGET $51 million TERRITORY Saudi Arabia CLIENT RAKAA Holding Company DESCRIPTION The project’s scope of work consists of a mixed-use complex located at King Fahd Street, Riyadh, Saudi Arabia. The complex includes 12 cinemas, bowling hall, entertainment center, hypermarket, restaurants and cafés. PROJECT COMPLETION 30/3/22 INFRASTRUCTURE
Obhur Corniche Development (Phase 2) Infrastructure Work BUDGET $102 million TERRITORY Saudi Arabia CLIENT Jeddah Municipality DESCRIPTION The project’s scope of work involves the infrastructure works for Obhur Corniche located at Jeddah, Makkah Province, Saudi Arabia. The project will include green spaces, open areas and children’s playground, along with associated facilities. PROJECT COMPLETION 30/3/22 ENERGY
INDUSTRIAL
Rahayel City Car Repair Workshops BUDGET $52 million
SoftBank Solar Parks BUDGET $5 billion TERRITORY Saudi Arabia CLIENT Public Investment Fund
MEConstructionNews.com | October 2019
50
TENDERS
DESCRIPTION The project’s scope of work involves the construction of two solar parks located in Riyadh, Saudi Arabia with a capacity of 3GW and 4.2GW. Phase 1 of the project calls for the construction of eight solar photovoltaic plants of 375MW each located near Sudair in Riyadh Province. The project work includes the construction of a substation, control rooms, transmission lines and associated facilities. PROJECT COMPLETION 30/6/23
OMAN INDUSTRIAL
Al Murooj Dairy Collection & Cooling Plant BUDGET $100 million TERRITORY Oman CLIENT Duqm Special Economic Zone Authority DESCRIPTION The project’s scope of work involves the construction of a dairy collection and cooling plant in Dhofar, Oman. The dairy project will allow milk to be purchased from livestock breeders in the Dhofar governorate, and have facilities to cool and process the milk for dairy products. Upon completion, the plant will have an aggregated capacity of 19,027 litres per day of cow milk and 7,827 litres of camel milk. PROJECT COMPLETION 31/5/21
Exploration & Production DESCRIPTION The project’s scope of work involves the construction of storage tanks for Bisat oilfield located at Muscat, Oman. PROJECT COMPLETION 30/12/22
BAHRAIN INFRASTRUCTURE
Ras Rayaa Harbour
ENERGY
Manah Solar l & ll Independent Power Plant BUDGET $250 million TERRITORY Oman CLIENT Oman Power & Water Procurement Company DESCRIPTION The project’s scope of work involves the construction of a solar independent power plant (IPP) in Manah, Al Dakhiliyah, Oman. PROJECT COMPLETION 30/6/22 INFRASTRUCTURE
Al Sharqiya Water
OIL & GAS
Bisat Oilfield Development Storage Tanks BUDGET $60 million TERRITORY Oman CLIENT Oman Oil Company
October 2019 | MEConstructionNews.com
Transmission System Reinforcement BUDGET $102 million TERRITORY Oman CLIENT Oman Public Authority for Electricity & Water DESCRIPTION The project’s scope of work involves the reinforcement of a water transmission system located at Al Sharqiya, Oman. PROJECT COMPLETION 30/12/21
BUDGET $250 million TERRITORY Bahrain CLIENT Bahrain Ministry of Works, Municipalities Affairs & Urban Planning DESCRIPTION The project’s scope of work involves the construction of a harbour located in Diyar Al Muharraq, Bahrain. PROJECT COMPLETION 30/12/23 RESIDENTIAL
Durrat Al Bahrain Residential Islands BUDGET $55 million TERRITORY Bahrain CLIENT Durrat Khaliji Bahrain DESCRIPTION The project’s scope of work involves the construction of 5 atolls and 6 residential islands located at Durrat Al Bahrain, Bahrain. PROJECT COMPLETION 30/12/21 RESIDENTIAL
Janabiyah Villa Complex BUDGET $150 million TERRITORY Bahrain CLIENT Executive Office of the Prime Minister DESCRIPTION The project’s scope of work consists of 42 residential villas located at Janabiyah, Bahrain. PROJECT COMPLETION 30/1/23 COMMERCIAL
Commercial Buildings at Zallaq BUDGET $51 million
TENDERS
TERRITORY Bahrain CLIENT Executive Office of the Prime Minister DESCRIPTION The project’s scope of work consists of 3 commercial buildings located at Zallaq, Bahrain. PROJECT COMPLETION 30/1/22
plants for the period defined by KNPC; and training of staff for operating the plants upon completion of the operation and maintenance contract period. PROJECT COMPLETION 30/9/21 OIL & GAS
Jurassic Wells Integrated Drilling Services
KUWAIT CULTURAL
Sabah Al Ahmad City Cultural Centre BUDGET $100 million TERRITORY Kuwait CLIENT Public Authority for Housing Welfare (PAHW) DESCRIPTION The project’s scope of work consists of a cultural centre in Sabah Al-Ahmad City, Kuwait. The Cultural Centre is designed with a distinctive profile of the dhow, a sailing ship used for many generations as Kuwait’s primary means of export. The whole development is unified by a lily-pad roof canopy which is supported on timber columns, creating a forest of tree-like structures within the central oasis garden. The project includes 2 theaters, 700 seats & 250 seats, for all sorts of theatrical productions; a 200-seat conference centre with flexibility for hosting conferences with different capacities; 250-seat recital hall for music performances; children’s culture centre with many cultural activities for children, including a 150-seat theatre; amphitheatre for outside performances; museum; art gallery for hosting art exhibitions; library; book exhibition for
51
hosting book fairs; oasis; a green air-conditioned large space for public gathering; a cultural café; and other cultural activities. The project is a part of the Sabah Al Ahmed City development. PROJECT COMPLETION 30/6/21 ENERGY
Dabdaba Photovoltaic Power Plant BUDGET $1.65 billion TERRITORY Kuwait CLIENT Kuwait National Petroleum Company DESCRIPTION The project’s scope of work involves the construction of a 1,500MW photovoltaic solar plant located at Al Shegaya Renewable Energy Park, 100km west of Kuwait City. The solar project is part of the country’s plans to produce 15% of power
from renewable energy by 2030. The 32sqkm plant will save burning 5.2m barrels of oil a year and reduce carbon emissions by 1.3m tons annually. The project includes the design of PV plants; procurement of all components including wiring, PV modules, inverters and control system; construction, performance testing, commissioning, operating and maintaining the
BUDGET $170 million TERRITORY Kuwait CLIENT Kuwait Oil Company DESCRIPTION The project’s scope of work involves the integrated drilling services for 29 Jurassic wells in western oilfields, Kuwait. The project includes rig installation and training of Kuwaiti workers and other associated services. The project is a part of plans to boost oil output in that area from 520,000 barrels per day (BPD) to 540,000 BPD in 2019 and 550,000 BPD in 2020. PROJECT COMPLETION 31/12/21 EDUCATIONAL
Institute of Musical Studies & Performing Arts BUDGET $51 million TERRITORY Kuwait CLIENT Kuwait Ministry of Higher Education DESCRIPTION The project’s scope of work involves the construction of an institute of musical studies and performing arts in Mishrif, Kuwait. The scope of the work includes an institute of music studies, institute of performing arts, theatre for music, theatre for the performing arts, main theatre and academy council. PROJECT COMPLETION 30/3/22
MEConstructionNews.com | October 2019
52
PROGRESS REPORT
Final update
Sliding phase on One Za’abeel’s The Link begins Happiness Bridge will be placed 100m above ground and extend 210m in length
I
thra Dubai says the first sliding phase of the world’s largest cantilever – The Link – on its landmark One Za’abeel development began on September 12. The ‘Happiness Bridge’ is being placed 100m above ground level and extends 210m in length, forming a sky concourse that connects the two towers. It will comprise seven steel modules – named Assembly A to G – which must be slid into place before they are lifted to their final position on the building. “After connecting the first assembly to a temporary launching nose (recently completed on top of the retail podium level four in Tower A of
October 2019 | MEConstructionNews.com
One Za’abeel), The Link will then slide from Tower A towards Tower B. Ithra Dubai appointed a sliding and lifting specialist that used heavy-duty strand jacks capable of generating a pulling force of up to 220 tons per jack to slide both Segment A and the launching nose thirty metres along the temporary platform to the edge of the podium. This has created space to assemble the next segment. At 1,742 metric tons and 51 meters in length, Assembly A is the heaviest individual node to be erected,” Ithra Dubai said in a statement. “The primary nodes for each of the bridge’s assemblies were constructed off-site and delivered fully fabricated, to reduce on-site welding. Transporting these nodes entailed significant planning, coordination and execution to move the individual elements to the construction site, with the heaviest weighing in excess of 45 tons.”
1,742
metric tons – Assembly A is the heaviest individual node to be erected
This latest stage in the building’s construction followed the assembly of a temporary launching nose on top of the retail podium level four in Tower A of One Za’abeel. “The Link is an incredible feat of engineering that showcases Dubai’s ingenuity and commitment to creating ground-breaking developments,” said Issam Galadari, CEO of Ithra Dubai. “As the world’s largest cantilever, The Link will provide breath-taking 360-degree views of the city, in addition to the project’s prime location for residences, office space and leisure. The sliding phase of The Link is an incredible achievement that demonstrates Ithra Dubai’s talent and ability to overcome engineering challenges,” he added.
Free attendance for industry professionals. Register online mebimsummit.com
Making BIM Bigger The technology of BIM has transformed the construction industry over the last few years, with every discipline involved in creating and sustaining the built environment changed by it. Now learn how BIM can be taken from developing buildings and expanded into a tool used to plan and create cities, and infrastructure systems.
30 October 2019 Habtoor Grand Hotel Dubai, UAE mebimsummit.com Please scan here to register
GOLD SPONSOR
SILVER SPONSOR
SILVER SPONSOR
SILVER SPONSOR
FEATURED SPONSOR
KNOWLEDGE PARTNER KNOWLEDGE PARTNER ASSOCIATED SPONSOR
FEATURED SPONSOR
MEDIA PARTNER
EXHIBITOR
MEDIA PARTNER
EXHIBITOR
MEDIA PARTNER
EXHIBITOR
ORGANISED BY
EXPECT MORE We have ethos born from a desire to do more, to not just build for function, but to capture aesthetics and design
Follow us on
www.asgcgroup.com
@ASGC