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150
SEPTEMBER 2018 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
“You have to decide what kind of difference You want to make. You need to lead with Your heart and mind, and with Your principles”
Dr rashiD alleem, chairman of SEWA, reveals how he turneD the utilities proviDer into a regional benchmark
Contents
Issue 150 September 2018 08
14
18
26
36
42
06 MEConstructionNews.com OnlIne
The biggest stories from Big Project Middle East’s home on the web
16 The importance of cybersecurity 40 Repairing our industry analySIS
Ronald Nielson analyses why cybersecurity will be necessary for infrastructure projects
experT VOIce
Sean McQue of ALEC discusses the urgent issues facing the construction industry today
08 DSI Group appoints new CEO 18 Dr Rashid Alleem Yousef Al Mulla as CEO to replace Dr Fadi Feghal, who was appointed in March 2018
Dr Rashid Alleem reveals how SEWA revitalised its operations and performance
42 Understanding the difference
12 147,700 hotel rooms in MEA
26 Engineering the Spectacle
48 Top Tenders
14 Abu Dhabi hospitality market
36 Peak Performance
52 Getting what you paid for
The bIg pIcTure
InTernaTIOnal newS
Supply in MEA region expected to continue growing as more properties registered MarkeT repOrT
Property Monitor provides an outlook for Abu Dhabi hospitality real estate market as occupancy rates remain stable
In prOfIle
prOjecT prOfIle
Big Project ME is invited on a behind-thescenes tour of La Perle in Al Habtoor City prOjecT ManageMenT
Imad Ghantous of Hill International discusses his ambitions for the firm and the opportunities in the region
Value engIneerIng
Tom Gilmartin explains the difference between cutting costs and value engineering TenderS
Big Project ME lists the Middle East’s biggest construction tenders for September 2018 laST wOrd
Ian Hauptfleisch provides some tips about achieving quick results on construction projects by using the right software September 2018 1
© 2018 LACASA Architects & Engineering Consultants All Rights Reserved
Sr. Project Manager I’m Zakhour Haddad and I am a
www.lacasa.ae
Change your opinions, keep your principles In an ever-growing construction industry, one must keep an open mind to unorthodox methods, while stressing key foundations and core values.
Zakhour Haddad Sr. Project Manager
LACASA is committed to providing quality-driven designs within a multidisciplinary environment. Established in 2006, the firm has grown significantly over the past eleven years. Today, LACASA boasts a diverse portfolio encompassing all types of developments and across the entire MENA region. While it is said that perfection doesn’t exist, we believe that perfecting design can be achieved by cultivating extraordinary talent.
Introduction
Values matter
C
hange is something we must all deal with in life – we change jobs, we change our lifestyles, we change our homes and we even change our diets. On a personal level, these changes are often welcomed and considered to be positive and lifeaffirming, as many a self-help book or Instagram guru will tell you. However, when you try to implement or propose change to an organisation or an industry, it’s often viewed with suspicion and met with resistance. While it’s obviously a far more complicated process when applied on a larger scale, it can also be a very rewarding one, if implemented correctly and with the buy-in of all involved. The benefits of an organisation embracing change whole-heartedly is something I saw first-hand this month when I met with Dr Rashid Alleem, chairman of Sharjah Electricity and Water Authority, for September’s cover interview. During a tour of SEWA’s offices, I saw how he is striving to change the organisation’s structure and operations, taking it from your standard bureaucratic labyrinth to a customer-focused, progressive trend-setter that is causing other government departments around the region to reassess how they operate. What is most interesting to see was how Dr Alleem is intent on leaving a legacy of change within SEWA. Not only has he established initiatives like SEWA Academy and other training programmes, but he is also taking a personal interest in the development of the next generation. To me, having this sort of attitude is the very essence of what we’re
4 September 2018
GROUP MANAGING DIRectOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 eDItORIAL DIRectOR VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 eDItORIAL eDItOR GAVIN DAVIDS gavin.davids@cpitrademedia.com +971 4 375 5480 SUB eDItOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVeRtISING cOMMeRcIAL DIRectOR JUDE SLANN jude.slann@cpitrademedia.com +971 4 375 5714 DeSIGN
trying to achieve with the Value Engineering Summit. For far too long, there has been a misconception that Value Engineering is just about cutting costs and saving money. But to me, Value Engineering is about creating and developing values that will stand your company in good stead in the long run. By creating a culture that encourages your staff to think outside the box, to communicate clearly and efficiently with each other and with stakeholders, and to always strive to be efficient and transparent, you are already setting your company up for success. I’m looking forward to hearing these ideas and more discussed at the Value Engineering Summit – do come say hello if you spot me!
ARt DIRectOR SIMON COBON simon.cobon@cpitrademedia.com DeSIGNeR PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOtOGRAPHY MAkSYM PORIECHkIN MARKetING MARKetING MANAGeR SHEENA SAPSfORD sheena.sapsford@cpitrademedia.com +971 4 375 5498 cIRcULAtION & PRODUctION PRODUctION MANAGeR VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 WeB DeVeLOPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI FOUNDeR DOMINIC DE SOUSA (1959-2015) PRINteD BY RASHID PRINtING PRESS LLC PUBLISHeD BY
Licensed by tECOM to registered company, CPI trade Publishing fZ LLC whose registered office is 207 – 209, Building 3, Dubai Studio City, Dubai, UAE
Gavin Davids editor gavin.davids@cpitrademedia.com @MecN_Gavin
www.cpitrademedia.com © Copyright 2018 CPI trade Media. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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CONSULTANT
CONSTRUCTiON diSPUTe TiMeS fALL TO LOweST SiNCe 2011 bUT vALUeS SOAR 38%
Yousef Al Mulla to take over as DSI Group CEO as firm announces Q2 losses
It was great to read in the headline that construction dispute times are falling to their lowest (quickest?) since the turn of the decade but more worrisome
CONSTRUCTiON
to hear that: “On a
Two men killed during maintenance of industrial furnace in Jebel Ali
less positive note, the average value of disputes increased over the last year, rising to
feature: Art of Living Mall – The Consultant’s Role
$91 million. This was due to a small number of high-value disputes and a flow of mid-value final account claims.” It
CONSULTANT
is sad we’re still seeing
Dubai Properties energy initiative at Business Bay project to offset 1,450t of carbon dioxide
a small minority of big projects bringing the rest of us down, but I think this is mostly positive news for the industry. We all benefit when disputes are settled quickly, particularly as the industry relies on
CONSTRUCTiON
cash flowing smoothly
UAE launches next phase of Al Badiya Bridge project
in the system and we’ve seen how difficult it can be when it doesn’t. Sad to hear that companies continue to repeat the same mistakes of the past. We’ve clearly still got some room for improvement
CONSTRUCTiON
Construction begins on European Maternity Hospital project in Khalifa City 6 September 2018
feature: Advancing low-carbon urban development in the UAe
as an industry! Name withheld by request
The Big Picture
Second quarter losses DSI Group followed up its narrow profit for Q1 with losses in the second quarter, for a net loss of $49.82m in H1 2018.
DSI Group appoints Yousef Al Mulla as CEO New CEO takes over from Dr Fadi Feghal, who was appointed in March 2018 UAE engineering and construction contractor DSI has announced that current Group CEO Dr Fadi Feghal stepped down at the end of August, and was replaced with former Square General Contracting and Transemirates Contracting Company executive Yousef Al Mulla. The new Group CEO, who officially started on August 26, earned a BA in Civil Engineering in the US and is a certified project director. His appointment comes as the company followed up its narrow profit in Q1 with losses in the second quarter, for a net loss of $49.82m over H1 2018. In its financial statement, DSI said the losses were due to cost overruns in non-performing subsidiaries in secondary markets including Oman and Jordan. The contractor added that it was also experiencing a rise in cost to finance its project debt obligations 8 September 2018
in secondary markets. However, the UAE remains relatively stable. It was also revealed that DSI is continuing to prepare its restructuring plan, which will include the scaling down of operations in noncore businesses and nonperforming business streams. “The board of directors (BOD) further reviewed the strategic objectives of a new restructuring plan that is being prepared, which will constitute an evolution of the ongoing restructuring and recapitalisation efforts that commenced in 2016 and continued throughout 2017 and 2018. The comprehensive plan will be drawn to address the Company and
its global subsidiaries across its core and non-core geographies. “The plan will be considerate of the rights of all stakeholders including financial institutions, suppliers and vendors, as well as current and past employees of the Company, to ensure business continuity of the Company as one of two UAE entities in the contracting sector listed in the local financial markets. The Company will obtain the necessary regulatory approvals and coordinate with the competent authorities to ensure the success of the plan and its timely execution. “The BOD further assures shareholders that it is exerting all its efforts and will continue
$49.82m
Net loss registered by DSI Group in H1 2018
to do so to safeguard the best interests of all its shareholders and to ensure the seamless operation of the Company and its continuity and financial results and the reflection on the return on shareholders’ equity.” Elsewhere, local media reported that the company had sent a letter to the Dubai Financial Market dismissing rumours that it plans to suspend trading. “There have been several rumours circulating in forums and social media, including the possibility of the company’s share being suspended from trading, and may have resulted in the decline,” wrote DSI in a statement. “We hereby confirm that the company has no intention to make such a request to suspend the share and that most of the information that is published in social media forums is incorrect or mere rumours.”
The Big Picture
Construction dispute times fell in 2017
Average length of time to resolve Middle East disputes falls to 13.5 months The average length of time needed to resolve a dispute in the Middle East fell to just 13.5 months in 2017, the lowest since 2011 ( just nine months), according to new research conducted by Arcadis. Despite the speeding up of dispute resolution, their average value was $91m, up 38% from $56m in 2016 and the highest since 2011’s $112m. As part of its 2018 Global Construction Disputes Report, studies by the design and consultancy firm also found that ongoing liquidity issues within the Middle East construction market have resulted in a steady flow of “claims being submitted as contractors take a tougher approach to entitlements; however, the industry continues
to make progress in resolving them more swiftly”. “Over the last year, the average length of time needed to resolve a dispute in the Middle East fell to just 13.5 months. This trend towards swifter resolution was also observed last year and reflects the industry’s focus on trying to improve liquidity across the wider supply chain,” said Arcadis. “On a less positive note, the average value of disputes increased over the last year, rising to $91m. This was due to a small number of high-value disputes and a flow of mid-value final account claims.” According to Arcadis, the most common cause of disputes on construction projects handled by the firm is a failure to make
interim awards on extensions of time and compensation. A failure to properly administer the contract was the second most common cause, with ownerdirected changes coming third. “In analysing the causes of disputes on construction projects in the Middle East, we continue to see a lot of the same issues crop up,” said Rob Nelson-Williams, regional head of Contract Solutions, Arcadis Middle East. “This underlines the need to get the basics right, and the importance of seasoned technical and commercial advice when it comes to contract or claims strategy.” Party to party negotiation and arbitration remain the two most common methods of
dispute resolution in the Middle East, with the use of a dispute adjudication board trailing in third. Nelson-Williams concluded that the construction industry needs to continue to learn from its past mistakes to reduce the number of disputes in the region. “Over the next 12 to 18 months, major regional constructionrelated events loom ever closer. As pressure increases to meet fixed deadlines, the need to make smart decisions around contract and procurement strategies will be even more important. Embracing lessons from the past is key to reducing the risk of disputes, but also in helping the industry move towards a less confrontational contracting environment,” he said.
A tougher approach Ongoing liquidity issues within the Middle East construction market have resulted in a steady flow of claims being submitted as contractors have taken a tougher approach to entitlements.
“Over the next 12 to 18 months, major regional construction-related events loom ever closer. As pressure increases to meet fixed deadlines, the need to make smart decisions around contract and procurement strategies will be even more important”
September 2018 9
The Big Picture
Strong response Aurora Real Estate Development has received a strong response to its Hyati Residence project, it said.
Aurora delivers Hyati Residence to Dubai
Phase II of milestone residential project to be completed in December 2019 Aurora Real Estate Development, a UAE boutique real estate development company, has announced the completion and delivery of its milestone project, Hyati Residence, a premium development offering affordable homes. Featuring a total of 122 apartments and 20 townhouses, the development offers “modern and bespoke living spaces, while upholding a strict emphasis on quality, attention to detail and affordability’, the developer said in a statement. It added that the project has received a strong response from the local market, with only seven units remaining. Valued at $45.7m, the Hyati Residence project offers bespoke refurbishments carried out by ECC Renovations, a subsidiary of Aurora’s parent company ECC Group, which are tailored in response to customer requests. Furthermore, the strong interest in the development has led to construction commencing on the second phase of the project, which is known as Hyati Avenue. This will deliver a further 103 units and 19 townhouses, all targeted for completion in December 2019. “Developments by Aurora cater to clients who appreciate attention to detail, quality design 10 September 2018
and the introduction of highquality finishes provided at an affordable price. All of our projects will demonstrate our promise of quality, attention to detail and a commitment to customer service both pre- and post-completion,” said Cian Farah, CEO of Aurora Real Estate Development. “Following the success of Hyati Residence, Hyati Avenue underscores our dedication to meeting customer preferences and we look forward to delivering another creative concept to the market. We are also set to deliver a new apartment complex, called Lyra by Aurora, in Warsan 4, close to Academic City, which specifically caters to young professionals and students. “Each and every development undertaken by Aurora has helped us to grow and evolve as a company, contributing towards filling a growing market gap for high-quality products, regardless of the price bracket.” To date, Aurora has completed projects valued at $74.5m, Farah said, adding that another $64.7m is under construction. The apartments in Hyati Residence consist of six studios, 82 one-bedroom apartments, 27 typical large two-bedroom
122
Number of apartments at Hyati Residence
20
Number of townhouses at Hyati Residence
103 Number of apartments at Hyati Avenue
19
Number of townhouses at Hyati Avenue
apartments, six two-bedroom linear apartments and a large two-bedroom corner unit. The townhouses are four-bedroom units, each with doubleheight ceilings, presented in typical or corner layout. The corner townhouses also have additional garden areas and a 10m private lap pool. Aurora has also been able to deliver bespoke refurbishment for the units through ECC Renovations, which has allowed buyers to make minor structural changes to kitchens and bathrooms to suit their lifestyles. “Our role in the project was to deliver on individual client requests for their homes. In this culturally rich region, we live among an array of nationalities and therefore Aurora must cater to a variety of different preferences on how homes should support the family’s way of life. We have a great deal of experience working on a variety of projects, ranging from entire office fitouts, through to gyms and domestic housing overhauls,” said Zamahn Sajjad, project manager of ECC Renovations. “For Hyati Residence, we used the full extent of our expertise and all resources available to help make it a truly unique project.”
The Big Picture
3
1. 147,700 hotel rooms under construction in meA Hotel supply in the Middle East and Africa (MEA) region continues to grow, as more than 560 properties have been registered, while 147,700 rooms were under construction in July, a report has found. According to the July Pipeline Report from STR Global, 415 hotels (equivalent to 121,233 rooms) are in the Middle East, while the remainder are in the African region. Dubai was at the top of the list with the largest number of rooms under construction, with the total put at 50,094 rooms. Saudi Arabia has 45,687 rooms under construction, the report added. The Middle East room construction total represents a 27.5% increase compared to July 2017, the report said. It also highlighted projects in the final and planning stages, with a total of 29,145 rooms in 121 hotels registered in the final planning stages, while 56,114 rooms in 2017 properties were recorded as being in the planning stage. This was a 58.4% and a 6.5% year-onyear increase respectively. Africa registered a decline in hotel supply growth in July, with 145 hotels currently under construction, which represents 26,467 rooms, down 7.1% compared to July 2017.
12 September 2018
$35.9m
French-owned specialist building services and FM contractor Spie UK has registered an operating loss of $35.9m for 2017
2. orAscom consortium to build wind fArm in egypt A contract for the development of a 500MW wind farm in Ras Ghareb, Egypt has been awarded to a consortium that includes Orascom Construction, Engie and Toyota Tsusho Corporation/ Eurus Energy Holdings Corporation. According to a statement from Orascom, the project will be delivered on a
build-own-operate (BOO) model. The agreement was signed between the consortium and the Egyptian Electricity Transmission Company (EETC) as the off-taker, and the New & Renewable Energy Authority (NREA) as the land owner. Construction on the project is to begin following the financial close and completion of the necessary documentation, expected in the third and
fourth quarter of 2019. The new wind farm will be the second such project that the consortium is developing in Egypt. The group is currently building a 250MW BOO wind farm, which is expected to be commissioned in the second half of 2019. Prior to the signing of the agreement for the 500MW project, the 250MW project was the biggest renewable energy project in the country.
The Big Picture
$22.3bn
Malaysia has cancelled two Chinese-funded major construction projects - a railway line and a gas pipeline - worth a collective $22.3bn
2 4
1
$29.9bn
Australian construction hit $29.9bn in Q2, but experts have warned that the boom won’t last
3. d3 outlines london design fAir plAns The Dubai Design District (d3) will participate at this year’s London Design Fair with the second chapter of its ‘UAE Design Stories: The Next Generation from the Emirates’. The first chapter was held in Milan at the Salone Del Mobile in April. The London exhibition is being supported by the UAE Ministry of Culture and Knowledge Development and
will be curated by Emirati product designer Khalid Shafar. For the second chapter, d3’s exhibition will be known as ‘Objects of the Past: Today’. Eight designers will be invited to revisit historical photographic archives of the UAE to discover the pictorial history surrounding the region’s nomadic roots. D3 has chosen Abdalla Almulla, an architect; Alia Bin Omair, a jewellery designer; Alia Mazrooei, an interior designer;
Aljoud Lootah, a multidisciplinary designer; Azza Al Qubaisi, a sculptor and product designer; Rouda Al Shamsi, an interior designer; Salem Mansoori, an interdisciplinary designer; and Ahmad Al Areef, a multidisciplinary Bedouin artist. The designers will be charged with interpreting pieces from the archives into modern-day designs, taking inspirations from the UAE’s earliest residents, said a statement from d3.
4. egypt to offer residency to foreign investors The government of Egypt intends to offer residency to investors who purchase property within the country. “The law provides for foreign clients the right to stay for one year in return for buying a property in Egypt worth $100,000, while for three years the property should be worth $200,000, and for five years $400,000,” explained Tarek Shoukry, head of the Real Estate Development Chamber in the Federation of Egyptian Industries. In May last year, the cabinet approved an amendment to the rules for granting residency to foreigners for non-touristic purposes, including granting foreigners a residence in Egypt for one year in the case of buying housing units with the mentioned amount of money. “The application of that law will support the Egyptian economy, which is expected to receive billions of dollars annually from the proceeds of the law. The dollar revenues of the initiative will ease pressure on foreign currency reserves, as it contributes to the provision of billions of dollars to banks from outside the country, which strengthens reserves, especially since the amounts are transferred from abroad.”
September 2018 13
Market Report
ABU DHABI HOSPITALITY mArkeT FOCUS: 2018-2020
Property Monitor report provides an outlook for the Abu Dhabi hospitality market segment as overall occupancy levels remained stable in 2017
Overall occupancy rates remained relatively stable in Abu Dhabi in 2017, showing good demand levels according to the Department of Culture and Tourism - Abu Dhabi (DCT Abu Dhabi). This is not reflected within the achieved ADRs, however, which
continued to slide into 2018. With fixed and variable cost bases, demand levels play a significant role in the performance of hospitality assets. The statistics are representative of a luxury positioned competitive set located in Abu Dhabi. All properties contained within
the set are considered to be city hotels. The value of an asset is intrinsically linked to the profitability of the asset, thus particular attention needs to be paid to the operational performance of the market. Undistributed operating expenses includes all expenses
relating to property operation and maintenance, system costs, utilities, administrative and general, and sales and marketing. Undistributed operating expenses per available room (PAR) in the luxury properties set increased by 3.6%. Departmental profits, which
Developments such as the the Louvre and Yas Island have helped build Abu Dhabi’s profile as a leisure destination. Abu Dhabi has seen positive results, recording a 7.3% increase in guest numbers year-to-date�
14 September 2018
Source: DCT Abu Dhabi, Cavendish Maxwell
Increase in supply At the end of Q2 2018, DCT Abu Dhabi reported a total hospitality inventory increase of 4%, standing at 27,826 from the 26,743 recorded at the end of 2017.
Market Report
Occupancy rates
ADR
Abu Dhabi City
YTD occupancy changes
Abu Dhabi City
74.9% 4.7%
AeD
Abu Dhabi Resorts
Abu Dhabi City
328 7.2%
Abu Dhabi Resorts
71.9% 1.5%
AeD
Abu Dhabi Resorts
639 3.2%
Room supply At the end of 2017, DCT Abu Dhabi reported a total hospitality inventory of 26,743. As of the end of Q2 2018, the total inventory had increased by 4% to 27,826. Notable openings
Abu Dhabi City
4.8%
Abu Dhabi Resorts
0.0%
2017
include all revenue streams linked to rooms, food and beverage, spas and all other operating departments, declined by 10.4% per occupied room (POR). A combination of increased costs (primarily resulting from an increase in utility expenses) and a fall in revenue resulted in the Abu Dhabi luxury sector experiencing double-digit declines in profit levels.
YTD ADR changes
12.8% 3.5%
2018 YTD
during 2018 include Saadiyat Rotana Resorts and Villas, Grand Hyatt Abu Dhabi Hotel and Residences Emirates Pearl. Demand Demand in the form of visitors and overnight guests staying in Abu Dhabi hotels totalled 4.29 millon in 2017. Hotels in Abu Dhabi continue to diversify their offerings to adapt to the change in guest demographic. Historically Abu Dhabi hotels have been heavily reliant on the business sector, but the emirate has experienced a segment shift from business to leisure. Promotion in short-stay vacations and developments such as the
Louvre and Yas Island have helped build Abu Dhabi’s profile as a leisure destination. Abu Dhabi has seen positive results, recording a 7.3% increase in guest numbers year-to-date. Forecast The below graph shows the forecast for hotel room supply. The total forecast supply includes all projects that have progressed to the planning phase. This represents an inventory increase of 19.4% or 5,317 rooms. However, approximately 72% of the total forecast supply is currently under construction and is expected to be completed
by 2020. This represents an inventory increase of 12.5% or 3,486 rooms. Cavendish Maxwell forecasts that Abu Dhabi will continue to grow guest demand by 8%, 6% and 4% between 2018 and 2020 as hotels in the emirate continue to diversify their service offering. DCT Abu Dhabi data shows the current average length of stay is 2.6 days with a double occupancy factor of 1.5. Double occupancy refers to the average number of guests per occupied room. Based on the anticipated supply and keeping the above figures constant, Abu Dhabi can expect the following average occupancies in 2020.
Abu Dhabi demand, millions (2016-18)
Abu Dhabi hotel room supply increase
Hotel occupancy forecast, 2020
5.0
30%
80%
4.0
24%
5,317 rooms (20 projects)
Jun 2018 - Dec 2020 3.0
3,486 rooms (13 projects)
18%
2.0
12%
1.0
6%
2016
2017
Q2 2018
Total supply
2018-2020
Abu Dhabi hotel room occupancy, 2020
Total forecast supply
60%
40%
20%
50%
75%
100%
Forecast supply completed by 2020
September 2018 15
Analysis
Can Optimised smart infrastruCture CO-exist with CyberseCurity? Ronald Nielson, chief technology officer, Cyber and Intelligence at Parsons, analyses the importance of cybersecurity to future infrastructure projects How important will cybersecurity be to future infrastructure projects? It is an often-heard question, but is not a question for tomorrow; it has already arrived in the infrastructure of today. Most, if not all, infrastructure systems already possess a digital footprint. They are composed of systems that are interconnected to gain performance efficiencies, improve customer experience and realise cost savings through automation and connectivity. While these are not all the reasons, it is important to note that many infrastructure systems are increasingly digital and the precursor for this digitisation has nothing to do with cybersecurity. A digitised infrastructure is not the world of tomorrow, but of TODAY. Most reasons to digitise are valid and well thought-out. They provide an improvement to services, performance and costs. The number of Industrial Internet of Things (IIoT) devices now connected to the operational 16 September 2018
technology (OT) systems that comprise our infrastructure is staggering and growing at a rapid rate, but were they put in place while considering potential unintended consequences? Many digitisation measures are already in place and have often been implemented by individual teams to achieve one of these single enhancements to their operations and organisation. We must understand very clearly that this is not a question of IF, but more importantly one of HOW we will react to this digital smart infrastructure. How is the market performing in this transformational time? Are we providing these needed benefits and keeping track of safety, security and indeed the impact cyber will have on this infrastructure? With such a divergent and broad technical understanding required to execute this transformation quickly, it begs the question of how well versed and disciplined we are in applying proper measures.
A recent Parsons survey, Critical Infrastructure Risk Assessment, collected the thoughts and opinions of a broad group of qualified respondents working in this market each day. The opinions provided from the focus group are enlightening and I believe the findings are worth reading. I see no helpful reason to cry wolf or further project the ominous and dire warnings about damaging cyber events, hacks, outages or problems. You are aware of those on your own. We should be talking about solving or improving the work that we do, the difficulty of the task at hand. We should be promoting concepts that deliver positive outcomes and improve this smart infrastructure. So how crucial is it to design in cybersecurity when considering a modernisation or construction project? Very! If those reasons to digitise are valid, then surely the loss of those systems or a compromise to safety and monitoring devices within that
infrastructure would not be welcomed. We cannot continue to receive the desired improvements that digitisation delivers if the system is compromised. A common reaction to this cybersecurity risk is to bolt on some software modification. I call this the shiny toaster method of perceived improvement. I truly believe there are effective cyber tools and that many of them can provide a meaningful reduction in digital risk. They should be considered when the organisation is prepared to do so. In the past, the IT teams delivered digital systems to achieve corporate efficiencies: office tools, email, internet-connected business processes and other improvements to corporate performance and personal quality of life measures. When we tried to bolt on cybersecurity, we often disrupted the performance of the digital systems we were trying to protect. The cyber efforts often collided with system performance,
Analysis
all without even understanding the IT department’s mission of delivering digital capabilities. Today is not much different. If we are to converge cybersecurity with our infrastructure systems, we need to have a unified approach. If we don’t accomplish this, we will just repeat the IT and cyber errors that have been the bane of business delivery and customer satisfaction. Where do we focus our efforts? We must design in cybersecurity when beginning any of our infrastructure projects. I didn’t say cybersecurity systems; just cybersecurity. Cybersecurity begins with design, architectures, configurations, processes, procedures and then tools. Don’t buy the shiny cyber tool unless it is the capability you need, and can be integrated efficiently within your processes and workflow. Don’t buy software-centric tools when you
“When we tried to bolt on cybersecurity, we often disrupted the performance of those digital systems we were trying to protect. The cyber efforts often collided with system performance”
really need mission/performancecentric capabilities that also enhance security. Sometimes the best answer might be a simple design or workflow change. When approaching a project to modernise or build a new infrastructure component, it would be a dream come true if we could start from a clean slate and just build the best system with today’s technology. That is rarely true for any initiative. A meaningful advancement in design and build efforts is to include IT/ cyber personnel alongside your OT engineering workforce. But don’t stop there. Ensure there is operational interaction between these teams to find additional value. Parsons is continually finding synergies in this approach, and we feel it is delivering an optimised ‘system of systems’ in design and performance. By bringing these
workforces together in the early design phase, we are identifying OT/IT system optimisations in performance, situational awareness, safety monitoring and general risk avoidance that fully integrate with physical security efforts. Further advancements employ digital event anomaly detection, big-data analytics and machine learning techniques for system monitoring, which delivers optimised OT/IIoT systems and maintenance scheduling efficiencies, all while employing cybersecurity concepts, tools and capabilities that raise the level of security and resiliency. Cybersecurity will be an important aspect in all infrastructure projects. When combined with professional engineering and an understood mission focus, IT/ cybersecurity missions will also be a productive inclusion.
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September 2018 17
In Profile
“You have to decide what kind of difference You want to make, and how You can bring meaning to Your organisation and to the job You’re doing. You need to lead with Your heart and mind, and with Your principles” Dr Rashid Alleem, chairman of Sharjah Electricity and Water Authority, sits down with Big Project ME to discuss how the utilities provider has evolved its culture and identity to become a benchmark for the region’s government entities 18 September 2018
In Profile
September 2018 19
In Profile
o
ne of the most common stereotypes around the world is that government entities, no matter what country they’re from, are mired in bureaucracy and inefficiency, often resulting in business being done at a snail’s pace across all levels. While it’s understandable that these departments – which often have staff in the high thousands and deal with massive, complex projects – have a number of considerations and obligations to check off before they can reach a decision, it doesn’t alleviate the frustrations of those who have to deal with them on a regular basis. These issues have also been encountered in this region, though considerable efforts have been made to improve performance and functionality in recent years, especially in the UAE. Given the ambitions and targets of the country’s leadership, it comes as no surprise to see that considerable investment and planning has gone into improving local entities, whether through the introduction of smart apps, the streamlining of organisations or training and improving staff. It is because of this desire to improve and evolve that His Highness Sheikh Sultan bin Muhammad Al Qasimi personally brought Dr Rashid Alleem on board as chairman of the Sharjah Electricity and Water Authority (SEWA) in April 2014. In four years, he has turned around the utilities provider, from an organisation facing significant financial and administrative challenges to a smoothly operating 20 September 2018
a wealth of experience Before taking over as SEWA chairman in 2014, Dr Rashid Alleem was in charge of chairing four major departments in Sharjah for almost a decade - Sharjah International Airport Free Zone, Hamriyah Free Zone, Sharjah Sea Ports and Sharjah Customs.
“We believe in agile project management, and value engineering comes under the theme of agile project management. But no one can do it alone. You need someone who’s done it before or is more mature with it”
government entity that has become a benchmark for the entire region. “Before chairing SEWA, I was in charge of chairing four big departments, successfully, for almost a decade. These were Sharjah International Airport Free Zone, Hamriyah Free Zone, Sharjah Sea Ports and Sharjah Customs. I was the only person in the recent history of Sharjah who had been given such trust by His Highness to chair these big organisations, and during my 10 years all of them turned a profit and out-performed other organisations. “However, SEWA was going through a terrible time and there was a need for leadership change, as well as in management style. His Highness wanted to affect a transformation and bring in a quick change so as to overcome the financial and administrative challenges that the organisation was facing. I was hand-picked by His Highness to chair this organisation and to make sure that we do things together to go through this transition.
“He wanted to move the organisation from being a solid and government-owned entity to a corporate culture where it’s run like a private company. That wouldn’t have been possible without guiding principles, so with that in mind, I proposed to His Highness 15 guiding principles, starting with the most basic thing – the internationally known language that I call the Smile Language.” These 15 guiding principles have formed the bedrock of Dr Alleem’s quiet revolution at SEWA, and are so influential to him that he has actually written a book built around them. In The SEWA Way, he outlines how they inform his management and leadership, and translate into a comprehensive set of operating practices, business strategies and cultural norms for his organisation. “We have almost 180 nationalities living in Sharjah and we need to bring them all together. I wanted to engage society by creating a customer-centric organisation, not one that is priceor project-driven. That needs to be culturally accepted, so we needed to go through a very well-structured change management strategy. “It’s not about the software or the hardware [that you use], but it’s about the brain-ware of the people, to really reprogram them to get to where we’re going. That can’t be done without engaging your employees and the community, which is not an easy task for any manager or leader to engage in. We’re talking about more than 4,800 employees, and then you’re serving 1.5 million people living in Sharjah. They all need your services, day and night. Their electricity has to be available 24/7, as well as their water and gas.” This was easier said than done, however, as he explains that one of the earliest challenges he encountered during the transition period was sharing his vision
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“One of our communication methods is to see through our ears. We have a platform on our main website called ‘Communicate with the SEWA Chairman’, where people can communicate with me directly” with SEWA’s employees, as well as the city’s population. It was crucial to clearly communicate the new vision, he says, but equally important to reassure the community that they wouldn’t be negatively affected by the changes, particularly with regard to prices. “The community needs services that are sustainable and not overpriced. That is the last thing I want, so striking a balance between commercial and social elements was the biggest challenge, I think. We told them that they wouldn’t be overcharged because they’re part of the federal system, and reassured them that whatever the Federal Electricity and Water Authority (FEWA) charges are, we’ll charge the same price. That gave them a level of comfort,” he relates. In addition, Dr Alleem introduced new measures and procedures to help improve SEWA’s
image within the community, starting with a process he calls ‘Seeing through our Ears’. “We are the only utilities organisation that has a Customer Listening Centre. We don’t even call it a call centre, it’s a listening centre that operates 24/7. We don’t close it after 5pm or during Eid or any public holidays. We’re available to the people 24/7, in case they have any ideas or complaints. “One of our communication methods is to see through our ears. We listen to our customers. In fact, we have a platform on our main website called ‘Communicate with the SEWA Chairman’, where people can communicate with me directly. It comes directly to my office and within less than 48 hours, we solve the issue as best we can. Some of them, we solve right away. Everything comes to me, and so far, since we’ve started this initiative –
and it’s been a year and a half now – we have exceeded 3,500 emails. They come directly to me, and the full executive office works on them, both in English and in Arabic. “That’s another thing that is there in our organisation – we have 19 different languages. If we get a call from someone who speaks Swahili, for example, then we even have a person here who could work on that customer’s problem. This is very seldom seen in the utilities business, especially since we don’t have competitors in the city, but this is because we really want to be close to our customers. We have created facilities here where people can request to speak to staff in their own languages – we want people to be comfortable,” he asserts. Of course, SEWA is first and foremost a utilities provider, and Dr Alleem’s focus on the development of Sharjah’s utilities infrastructure
hasn’t changed, even as he works to revamp the organisation’s culture and management structure. He points out that the focus is firmly on the continued development and delivery of the Hamriyah and Layyah Power Plant projects, and on ensuring that Sharjah’s future growth and development plans are strongly supported by SEWA. “[As a utilities provider], you are driven by demand, so you need to prepare for the future. Reading the demand, we need to build more substations, lay more cabling and build more banks and tanks. You also need to optimise existing assets that you have, so that they’re ready to go whenever you need them. “We’re living the growth, we’re living with society and we are part of it. We coordinate very closely with the Planning Department, and in fact I’m a board member on the Sharjah Planning Council
serving the market SEWA has been developing its services and offerings to cater to the wide variety of nationalities and people living in Sharjah, including providing services in 19 different languages.
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so as to make sure that everything is well coordinated and planned. “The focus is first on the Hamriyah Power Plant, where we’re building the first IPP – independent power plant. The second is the Layyah Power Plant. Hamriyah is about 1.5GW, while Layyah is about 1GW. This is what we need to satisfy future demand and needs.” These power plants are also an important part of Sharjah’s stated ambition to achieve electricity self-sufficiency by 2021, Dr Alleem adds, having previously pointed out in interviews with national media that the growth rate for the country, especially Sharjah, reached 5% in 2016, with the same expected this year and in 2020, because of the impact of Expo 2020. As such, the emirate needs power self-sufficiency to keep up with the growing population, which is set to reach nearly two million people by 2020. The Hamriyah Power Plant is being developed in three stages, with stage one scheduled to be ready by 2019, followed by stages two and three in 2020 and 2021 respectively. The independent power plant will be developed on the basis of a build-own-operate-transfer model. Furthermore, SEWA has signed an agreement with Sharjah National Oil Company to supply gas to meet the demand for power generation. When asked about progress on these projects, Dr Alleem says work is progressing well on the IPPs, but is reluctant to divulge further details at present. “We’re working day and night on the agenda – there’s a lot of work on the ground, but we want to announce when we have something tangible there. We don’t want to just announce something when we have only hot air,” he remarks candidly. However, when it comes to supporting Sharjah’s economic growth, he is openly vocal about how he sees SEWA as a crucial 22 September 2018
“We have almost 180 nationalities living in Sharjah. I wanted to engage society by creating a customercentric organisation, not one that is price- or projectdriven”
support in attracting foreign investment to the emirate. “In economics, there’s a saying that goes, ‘You and I travel by train, but investors travel via infrastructure.’ When there’s infrastructure, it’s one of the USPs for investors. We have industrialists living here – almost 48% of all industries in the UAE are based in Sharjah, and we have two free zones that attract indirect investment as well. So when you’re providing the three necessities – water, electricity and gas – around the clock, then that’s a selling point for them.” Part of this commitment to providing support to investors and industry includes embracing the use of technology across the organisation, particularly on the emirate’s energy grid, he adds. In the wake of the UN publication of a list containing the
planning for future growth The development of the Hamriyah and Layyah independent power plants is an important part of Sharjah’s plans to cope with expected increased demand over the coming few years.
17 Global Goals of Sustainability in September 2015, he says governments around the world have begun taking the adoption of technology in the utilities sector much more seriously, as they realise it can help them achieve their sustainability targets in a cost-effective and timely manner. “Goal number six talks about the water management and sanitation programme, while goal number seven talks about renewable and efficiencies on energy. It was a call from the UN, telling the whole world to wake up. We have Vision 2030 and we need to work together,” he says. “The energy sector and the water sector are going to run through massive challenges, so we need everybody. There are 197 global leaders who have approved those goals, so this has become a global agenda now and everybody knows that [utilities] is going to have a tough challenge in the years to come. The way out is to adopt the principles of sustainability, efficiency and smart grids.” To that end, in April this year, SEWA began implementation of an integrated plan to replace old meters in a number of commercial and industrial areas with new smart meters. This came in the wake of completing the installation of 48,000 smart meters across various points of the city, a project that will provide accurate readings and results about energy and water consumption, while also creating a smart grid for the authority to effectively manage resources and plan for the future. “To have a smart grid, you need to have smart meters in your system to give you precise readings. These give you the precise historical data about the consumption in each unit, it’s very critical for our grid,” he explains. “[Adopting smart city technologies] is a global initiative, but the agendas are different. The goal may be the same, but
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the way you achieve that goal is varied. This is part of the smart offices plan that we’re moving towards, where you can see how much energy you can save. We will give users credit, which in turn creates more engagement with both employees and customers. “This is one of the things we’re teaching society. A small device which you can connect with anywhere on the globe. You can go through the app and it tells you whether your air conditioning is running or not, whether you’ve forgotten to switch it off, what the temperature in the room is and so on. It even tells you to change the temperature, if necessary. It is pretty much controllable. This is part of the smart cities or smart grid plan,” he outlines. This approach towards engaging customers and employees with smart utilities technology is mirrored in Dr Alleem’s approach towards sustainability. While he’s complimentary about the efforts being made across the UAE, especially by government bodies, to adopt sustainability standards and practices, he is keen
to stress that sustainability should be looked at in a holistic manner – rather than just focusing on environmental impact, sustainability standards need to take into account other contributing factors. “Sustainability is a misunderstood word in the world – people feel that sustainability is just about green initiatives, and that’s wrong. It’s just part of it. Sustainability is about society, the economy and the environment. These three pillars have to have the same weight. You cannot focus on only the environment and say that you’re sustainable, just as you can’t focus on society and say the same thing. If you want to declare that you’re a sustainable economy, organisation or corporation, then you have to have the three pillars working together. They have to dance together at the same speed, they have to move together.” He explains that SEWA works on a scheme that ensures that every machine, whether a small pump or a large turbine or generator, is built with sustainable materials right from the beginning by a trusted global brand with
engaging with technology SEWA has recently completed the installation of 48,000 smart meters across Sharjah, allowing it to better monitor and predict water and energy usage in all areas and sectors of the city.
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ThE SEWA WAY – DR RAShiD AllEEm’S 15 GuiDinG PRinciPlES Smile Teach and Learn Learn from Experience Generate Sound Ideas Instil Core Values Create Positive Emotional Energy Make Tough Decisions Use Vibrant Stories to Motivate Others Face Reality Use KPIs Pour Creative Energy and Dedication into Everything Continuously Generate Leaders Create a Culture of Continuous Improvement Grow Together Achieve a Common Objective through Teamwork
sustainable suppliers and vendors. “At the same time, we try to bring in the most efficient machines that don’t release too much CO2 into the atmosphere. You don’t want to have unsafe plants next to where people are living. In case something goes wrong with those machines, they should shut down and don’t expand the problem to the outside. When it comes to safety, we try and get the safest machines that we can.” Having signed up with more than 35 global brands, and working directly with the likes of GE, ABB, Schneider Electric, Siemens, Samsung and LG, Dr Alleem insists that SEWA and its partners remain committed to working to international best practices. “We have been certified by the UN Climate Change office for conserving more than 1.7 million tonnes of CO2 through the measures that we’ve taken, from something as basic as solar driven street lights, all the way through to using the most efficient machines. Even the specifications for the gas which is supplied to our machines is to international standards.
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“So, for such things, we’ve been recognised internationally. Besides this, we issue a sustainability report every year, which no organisation in the whole government of Sharjah does, or goes to that extent. We don’t need to do it, but we want to show that we’re committed to the environment and to having a health society living around here.” Part of this commitment to best practices also includes ensuring that SEWA continues to develop into an organisation that is efficient and agile, capable of working quickly and providing the best solutions in a timely manner, he says. “We believe in agile project management, and value engineering comes under the theme of agile project management. But no one can do it alone. You need someone who’s done it before or is more mature with it. We have agreements in place with international consultants – some of them have been 100+ years in the business. Take GE, for example, we use them for mega projects, to give us their opinion about how we’re doing on the project, and where value engineering can be added. We discuss how we can be agile on the system, where efficiencies can be implemented.” This attitude towards learning from partners is continued within the organisation itself, with Dr Alleem emphasising how he is keen for SEWA employees to continue to learn and grow professionally within the organisation. This is one of his key 15 guiding principles, and something he is extremely proud of being able to to see take root. “I have built what I call SEWA A, or SEWA Academy, which is a fully-fledged in-house training set-up that teaches employees, both technical and non-technical, engineering and non-engineering, financial and non-financial courses for the 4,800-plus employees that we have. Plus we have tie-ups with local, regional and global
guiding philosophy Dr Rashid Alleem says he is firmly committed to developing and mentoring the next generation of SEWA engineers through schemes like the SEWA Academy and other development programmes.
“To have a smart grid, you need to have smart meters in your system to give you precise readings. These give you the precise historical data about the consumption in each unit, it’s very critical for our grid”
universities. We have reached out to Cambridge, UK, to teach our next generation of leaders, to teach them the latest leadership and management skills. Through the academy, we’re preparing the leaders to come through,” he states. “As for myself, I give coaching and mentoring to those who join us at a younger age. Our induction programme is one of the longest, it goes over the course of a year! That’s how long the job orientation takes. They go to each corner of the organisation. If you’re an engineer, you could spend a couple of weeks working at the purchase department. Then you go to maintenance and then to on-site. You go to the Listening Centre, you work with customers. I want people to know about every corner of the organisation that they’re going to work for.” By establishing this identity and culture throughout all levels of the organisation, he has seen SEWA become a respected benchmark for the entire region over the course of his tenure. He
says a number of organisations, both within the UAE and abroad, have visited Sharjah to see how the authority implements and develops its philosophies and staff. “The culture we’re creating in SEWA is, I would say, one of the best in the country. We’ve seen a lot of organisations within the country and even from abroad; they come here to see what type of philosophies we have when it comes to leadership, management and technical aspects. We’ve received delegations from different parts of the world. The last was from Saudi Arabia and we’re expecting a delegation from Jordan, that’s how far we’ve reached. We even have a couple of students in from Oman for engineering training. It feels good that we’ve become a benchmark for others to come and learn from us,” he relates proudly. “I feel good that we’ve become a benchmark, but we’re still learning. We still go for conferences and programmes, we speak at events. I speak myself, and we discuss the lessons we’re learning – the soft and hard experiences. Almost every week, you’ll see a SEWA team somewhere around the globe, trying to learn. This week, we have a team in Malaysia trying to learn about the latest technologies there, and we have teams going to Germany and the UK after Eid. We do visits and on-site job training, not just here in the region, but around the world. “The world is looking for great leaders who can make a difference, but it’s about what type of difference you want to make. You have to decide what kind of difference you want to make, and how you can bring meaning to your organisation, to the job you’re doing. You need to lead with your heart and mind, and with your principles,” he concludes, highlighting just how far SEWA has come, and just how much further he intends to take it. September 2018 25
Project Profile
EnginEEring the spectacle Big Project ME takes a behind-the-scenes tour of Dubai’s first permanent theatrical show - La Perle by Dragone - to see the engineering that allows the magic to happen
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lmost exactly a year ago, the doors of a show like no other in Dubai opened for the first time, welcoming visitors to a spectacle previously only seen in cities like Las Vegas and Macau. Designed to be a permanent feature of Dubai’s entertainment landscape, the launch of La Perle by Dragone introduced both residents and tourists in the city to a show that combines gravity-defying acrobatics with spectacular water and special effects. Developed as part of the entertainment options at Al
Habtoor City, the show opened in September 2017 and is housed within the V Hotel, a 356-room hotel that is part of the massive hospitality complex alongside Sheikh Zayed Road. Created by Dragone Studios, a Belgian creative company that specialises in large-scale theatre shows, the theatrics and stunts have been built around a theme that reflects Dubai’s cultural heritage, its producers say. Envisioned by Franco Dragone, the founder of the company and a former director of several of Cirque du Soleil’s most famous shows, La Perle takes place five days a week, with two shows a day at a custom-built theatre that houses 1,300 people. While the show itself is visually spectacular and a remarkable combination of talent, athleticism, precision timing and close
“It’s very specific work. We had this huge challenge to build the dome [within the theatre], as every panel is a custom shape. They needed to have a tolerance of within 2mm, as that was the specification”
coordination, the true magic lies in the design, building and operation of the venue itself. Big Project ME was recently invited for a behind-the-scenes tour that reveals the mysteries of the show and highlights how technology and engineering have been used to create a platform for the story to unfold. The starting point is the theatre itself, built around the specific needs of the show. The building is a G+6 structure with four basement levels. It houses a reception area, the theatre and VIP lounges in the public access areas. There are also dressing rooms, a gym and physiotherapy facilities for the actors. Offices and workshops for the production staff are also housed within the structure, while the basement levels hold the show’s heart, with a high-tech pumping
Built for the show The theatre has been built specifically to accommodate the needs of the show, with every element precisely engineered to meet the producers’ demands.
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Project Profile
what the specifications are, and we worked with the theatre consultant and the vendor (Al Habtoor City) to ensure that we had something we could use. “Obviously, we had to voice our opinions or raise the alarm when it comes to final approvals or system acceptance. We clearly stated that we would need a particular volume of water in a particular number of seconds. If that wasn’t achieved, we would have needed to make a decision about whether we had time to change it, or if we could accept it for the show. “Of course, delays sometimes happen, and we did have some delays, because it’s precision work. We had a huge timeframe for all of this. Phase two of construction was what we called ‘dust-free’, meaning that there was no concrete works ongoing. This took about three years, and then there was another year of moving the show in.” HLG Contracting was appointed as the main contractor for the project, he adds, pointing out that it was responsible for subcontracting various facets
hidden in the ceiling The show uses the high ceilings of the theatre to place elements of the show, which will then be lowered and raised as per the narrative, through a complex series of winches and pulleys.
system that allows the core element – water – to be rapidly moved onto and off the main stage. Essential to this process are two 600hp pumps that move water at different pressures to fill up the stage. Capable of operating at 1,000 litres/min, the pumps fit the requirements of the special effects team and are part of a network of pipes and tanks that can simulate waterfalls and thunderstorms while also rapidly filling the stage to up to 20cm. In order to achieve the results they were looking for, Julien Zazzaretta, technical director of La Perle, says that coordination between the team from Dragone and the construction stakeholders was essential to the success of the project. “Most of the time, we design shows that fit the region, and here we have the story of a pearl, which fits the region but is loose enough to be built around everything. It’s something that you identify with this region, and it fits with the architecture of Dubai. The show’s theme is one that represents technology, which is also something that Dubai always wants to present to the world,” he says. “So what Dragone did was to hire a theatre consultant who took care of the construction side and monitored the site coordination. On the production side, we came in to verify things as we know
What lies beneath The stage pool is part of a larger network of pools that have a range of depths and run under the surface of the stage.
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Project Profile
out there – the height is always the same [no matter the theatre]. We need the height for effect. “It’s almost like being in a cathedral, you always look up to the ceiling. That’s what keeps the audience interested. We purposely don’t want to hide too much, because people want to look up and see something and think, ‘That’ll come later in the show.’ Other shows try to hide everything, but we did the opposite.” A key element of the show is the use of artificial fog and water sprays, which means temperature control plays an important part, he adds. As a result, a state-of-the-art BMS system that can manage and adjust the theatre’s HVAC systems is vital to the success of the show. “For us, it’s very important to have good control over the HVAC and the dehumidifier. The audience does need to stay cool, but the performers also need to stay warm. We fought a lot in the beginning to have that balance. “Also, during the show we have smoke effects and we manipulate the draught. If we were just to blast air into the air and make it cool, the fog wouldn’t
safety systems The pool has a number of air lines attached along its walls so that performers have access to air while staying underwater for long periods of time.
of the project. To that end, it appointed Commodore Contracting for the MEP works, while Al Rawda Building Contracting was appointed for drywall and painting and Butler Engineering was contracted to oversee fire and safety works. Khatib and Alami, a local architecture firm, was appointed to work on the design of the theatre, partnering closely with Dragone Studios and Al Habtoor Group to deliver the look and feel of the project. Assisting was theatre design consultancy Auerbach Pollock Friedlander and acoustician Jaffe Holden. “It started with the concrete pouring really, it’s very specific work,” Zazzaretta says. “The pool has to be very specific, the piping systems have to be exact, and then you go from there and build the room. We had this huge challenge to build the dome [within the theatre], as every panel is a custom shape. They needed to have a tolerance of within 2mm, as that was the specification. “The room itself is pretty huge, it’s just been narrowed down to give the feeling of a cave and it then opens up because it’s very high. The audience enters through the atrium and then walks through an area with a low ceiling, and then it just opens up. For us, while this is a medium-sized theatre – there are much bigger capacity ones 30 September 2018
handling the hVac A state-of-the-art BMS system is in place to help the operations team manage the HVAC systems and dehumidifiers during the show, allowing them to control the smoke and fog effects.
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Managing the flow The MEP systems have been designed to flood and drain the stage in seconds to minutes, depending on how much water is actually needed at that point of the show.
“For us, it’s very important to have good control over the HVAC and the dehumidifier. The audience does need to stay cool, but the performers also need to stay warm. We fought a lot in the beginning to have that balance” last a second. It would just go into the audience or wherever it wants to go, even outside if there’s a door open! As a result, we try to balance the room so that whenever we put fog on the stage – and it’s a challenge every show – we can keep it for however long it can be on stage.” All of this, along with the water and lighting effects for the show, is managed from a control room high above the stage floor. From the panels in this room, operators can manage the entire show, Zazzaretta explains. “The operator here controls all the water effects, and for the show has presets in place to switch the HVAC systems on and off. We have three automation operators in the control room; we also have a lighting operator for the moving
lights, and we have a video operator just for the projections. We also have a special effects operator as well. Everything is cued by the stage manager, who looks at the stage and gives cues according to various situations, whether it’s for the music or for the actors.” The most crucial element of the entire production is the pool at the centre of the stage, around which the entire show is built. Fed through an intricate network of pumps, tanks and pipes, the pool is part of a larger underground network that holds 2.7m litres of water. Performers are able to dive into the pool during their acts, and are also able to navigate their way through a series of underwater tunnels into the backstage areas, allowing costume changes and
changeovers without interrupting the experience for the audience. “The pool is five metres deep in the performance area, but we have other areas that go up to 12m deep. This means that there is potential for future expansions to the show. We could have a stage lift and bigger props if we desire – we’ve left our options open. This is a show that can run for 10 years, so at some point they’re going to want to invest money and make it interesting for audiences again. There’s a bit of headroom there for decisions to be made.” This pool system also feeds into other elements of the show, with Zazzaretta explaining that a quick-fill tank high up in the rafters of the hall is used to fill the stage with water at a high velocity. For other effects such as rain, cascades
and waterfalls, a piping system connected to the pool is used. “What happens during the show is that we fill the quick-fill tank, which is above the stage, and then open four valves on a 600mm pipe, and gravity does the rest as water fills the stage. The quick-fill tank holds about 150m3 of water, which is enough to fill the stage. The pumps fill the quick-fill tank and then we drain it into the basin, which is the stage. “We never really lose water – any loss is minimal. We recycle the water and the only time we actually lose water is when we backwash the system and clean the sand filters. But other than that, we try not to lose too many litres. This is because we were allowed to build this theatre in conjunction with not wasting September 2018 31
Project Profile
water. We’re not throwing it away, we filter it and keep it,” he says. One of the most interesting aspects of the construction of the stage is how the floor is used as a drainage system. “During the show, everything is wet, people are coming in and out of the pool, so we have the same surface all the way through. It’s a track and field type surface that’s still got a grip when it’s wet. The only difference is that we have laser cut holes into the material so that water can drip out, allowing the entire floor to work as a drainage system. But if you step on it, it still has grip.” Known as Chemgrate, the material is a type of fibreglass resin that is extremely strong and resistant to the chlorine in the water. However, Zazzaretta says the production staff make sure to disinfect it regularly, so as to protect the performers’ health.
Given the amount of water used in the show, protecting the performers’ well-being is another important aspect, with stringent procedures and systems in place to maintain water quality and level. “There are filtration pumps and there’s a water management system. It’s similar to a swimming pool, but much more upscale. We add water bubbles to the surface of the water for two reasons – one is to hide people, and secondly to soften the water for the performers when they enter it. “There is also an auto-dosing system for the pool that happens four times a day. It’s important for us to keep the water quality to a very high standard, because we have performers in the water. If they even get an ear infection it could complicate things, as they could lose their sense of balance and they wouldn’t be able to perform.”
“Phase two of construction was what we called ‘dustfree’, meaning that there was no concrete works ongoing. This took about three years, and then there was another year of moving the show in”
However, these measures also have a downside as the chlorinated water presents the production team with a challenge to maintain and preserve equipment, he says. “There’s a lot of corrosion protection and a lot of dehumidifying going on. We have winches, disc-brakes and other equipment that needs to be maintained, most of the time in water and steam – everything that is meant to corrode metal! The perfect conditions to have metal corrode is chlorinated water at 32 degrees Celsius, and that’s what we have! Even stainless steel corrodes in these conditions.” This presents an interesting challenge for the engineers and the production team, he says, as not only does the finale of the show include a giant metal globe descending from the ceiling, containing five motorbike stunt drivers performing death-defying
control from up high The show’s production team controls the water and special effects from a strategically placed control room that affords them a view of the entire theatre.
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Project Profile
feats, but throughout the show performers use winches in the ceiling to perform acrobatics at dizzying speeds and heights. “Nothing is hydraulic in the show,” he asserts. “We tried to go away from using hydraulics because of the water elements. It’s a huge challenge to separate hydraulic technology from the performance spaces where people are going in and out of the water. “What we do is have winches that bring the globe down and we put anchors on it and then use tension against it. Twenty tonnes of force pull against the globe, so as to compensate for the five bikes generating G-force inside it. We then have a separate winch which constantly holds the bottom third of the globe, so that whenever we want to split it, we’re still holding tension against it,” he explains. The safety of the performers was taken into consideration
specificall y desig ned The engineers building the theatre have specifically designed the safety system s to be able to withs tand more than four times the actual size of the show.
right from the beginning of the construction design process, Zazzaretta adds. He reveals that the show’s engineers and the building’s engineers worked together to overengineer the safety systems, to ensure no risks were taken with the performers’ lives. “We have 60 winches up in the ceiling that can run at four metres per second. If for some reason we load these winches to the max capacity and run all of them at the same time, and then the power goes out, the force that will be created is a potential risk for the whole steel structure of the building. “This is the worst-case scenario, of course, as we would never do this in the show, but the building has still been designed for this capacity. It’s a massive steel structure that can support four times the size of this show,” he concludes.
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September 2018 33
Project Management
PEAK PERFORMANCE
Big Project ME speaks to Imad Ghantous, SVP, Strategy & Business Development International – EMEA/APAC, about his ambitions for the firm and the opportunities in the region
A
s market conditions in the GCC region become ever tighter, driven by oil prices and economic strife, clients in the real estate and infrastructure development sectors are becoming increasingly aware of the importance of monitoring costs and controlling expenditure. Given the sentiment in the market, it is perhaps the best time for a company that specialises in managing construction risk to step up its operations and ambitions in the region, through the introduction of a new strategy and approach to doing business. This is exactly what Imad Ghantous, Hill International’s new SVP, Strategy and Business Development International – EMEA/APAC, intends to do, following his appointment in March 2018. Operating out of
36 September 2018
the firm’s Dubai office, Ghantous has been tasked with delivering sales and developing a strategy for business development for a vast swathe of territory, overseeing a region that includes Europe, the Middle East, Africa and the Far East. He sits down with Big Project ME to discuss his regional ambitions for Hill International and how he is overseeing the firm’s shift towards becoming a one-stop shop for clients looking to rethink the way they build and develop projects. What are your thoughts on the current market environment? How have client priorities changed in recent years, and how is Hill International adapting to these changes? Clients are really trying to control the supply chain, as well as other consultants, designers and contractors. There is a trend towards commoditisation and there is a risk of becoming just another vendor providing services to a client. Because of that, we find that there is now tremendous
“There is a trend towards commoditisation and there is a risk of becoming just another vendor providing services to a client. Because of that, we find that there is now tremendous competition in the market, and that there is a very competitive approach to work in the market”
competition in the market, and that there is a very competitive approach to work in the market. We feel that if this trend continues, a lot of consultants will not be able to provide the right sort of services to clients. However, we tend to look at the market in a different way. We do not want to be commoditised and we do not want to be in a position where we cannot bring value to our clients. We believe that in order for us to do that, we must give our clients a continuum of services. We don’t want to just do construction or project management alone, we want to provide a continuum of services from the very beginning, all the way to the end – from formulating a business case for a project through to delivering the project to the client. We believe that we can bring value to every stage of the development chain, and I think in that aspect, the total is greater than the sum of the parts. We very much believe in this continuum of services and we believe that in order to help your client, the best and highest
Project Management
September 2018 37
Project Management
use comes when you’re hired at the very beginning. That’s when you can influence the end product – if you’re brought in at the end, you can’t really do much. We prefer to be in a position where we’re right next to the client at the very beginning, advising them as the project unfolds and ultimately being in a position where we are our client’s best asset. That way, they stop looking at us as a regular vendor of services just like anyone else, but start to look at us as an asset that will help deliver them their project. We aspire to be our clients’ development partners. Has this approach resulted in a change in the way Hill International operates? How will it affect the firm’s current offerings and staff? The talent and skillsets have always been there, but it’s just been a question of our clients not really foreseeing the benefits of actually getting us on board early enough. That really hasn’t changed how we look at things or who we hire, it’s just that now clients are beginning to realise that the best and highest value is when they bring us on board at the very beginning, and by allowing us to be their development partners. To be honest, there are clients that have figured it out for themselves, but there are other clients that just don’t know. It’s horses for courses really, it depends on who is the client and his maturity level that we’re working with, and it depends on the country we’re working in. In a region with high barriers of entry, the level of and amount of competition are rather limited, and in that sense, our service value utility is maximised; one is not restricted to the reduced fees offered by 38 September 2018
remotely and efficiently manage and administer the constructor’s contract. It’s basically utilising technology to our advantage. We think of technology just like owning a calculator – it is no big deal. We don’t let technology lead us, but we actively use it to promote our practice. This is how we believe we can reach a successful formula, by exploiting technology to advance our practice.
Focusing on growth potential Imad Ghantous says that Hill is focusing on the growth potential of the Saudi Arabian and UAE construction markets, without diverting attention from other countries in the GCC.
“Hill has developed and honed a lot of processes and procedures over the years that are dependent on technology. These are proprietary technologies that we give the client the advantage of using”
the client. Instead, one may put forward for consideration a proposition that says: “You may hire us as your developer in this market as we can provide all the services you require. Given the complexity of your project, does it make sense to increase the amount of risk encumbered on it or should we look at reducing it?”. How does Hill International use technology to help position itself as a solutions provider to clients? Hill has developed and honed a lot of processes and procedures over the years that are dependent on technology. These are proprietary technologies that we give the client the advantage of using. This is one of our USPs. We do use cutting-edge technology when it to comes to software and hardware – the use of drones, tablets, etc when onsite, so as to monitor project sites
What are your thoughts on the market opportunities in the regions you’re responsible for? When it comes to the Middle East, the elephant in the room is Saudi Arabia. It’s a big target and it’s project-rich. There are phenomenal projects that have been announced and we’ve been in Saudi Arabia for a long time – we’ve been managing King Abdullah Financial District for just under a decade now – so we’re very well versed in working in the Kingdom. We have a very good reputation there and we see Saudi Arabia as being the engine of growth in the region. We also believe that the UAE has a lot to offer as well. We’re focusing on the growth potential of these two markets, but without diverting our attention from other countries in the GCC, which have significant growth plans as well. But we believe that the primary growth engines are Saudi Arabia and the UAE, with KSA probably edging it. In the Far East, we see the engine of growth as India. We’re very much focused on India. It’s a huge market and there’s great potential there, the population is what gives it critical mass. Unfortunately, the price of oil is not helping the economy and is hindering progress, but
Project Management
“When it comes to the Middle East, the elephant in the room is Saudi Arabia. It’s a big target and it’s project-rich. There are phenomenal projects that have been announced, and we’ve been there for a long time” the government is providing the stimulus to the economy by developing huge infrastructure projects such as airports, ports and rail projects, these are huge infrastructure projects in the public sector that are maintaining the momentum of development. The country has a vision – they do want to become transparent, they do want to
fix the whole banking and financing system, and they do want to encourage privatepublic partnerships, they want foreign investors to come in, but that requires certain things to happen first. There are realities on the ground that need to be dealt with, but what we do know is that the country has great potential and we want to be a part of its growth.
In Africa, we are more in northern Africa, but southern Africa is also promising. There’s a lot of countries that have EU and IMF funding, so we really need to look at the whole continent. There are also a lot of countries that have oil, so there’s a lot of influence from China into Africa, as well as from India into eastern Africa.
By virtue of us being a regional company, we can follow our customers, but the major concentration of work is mainly in Egypt, Morocco and Algeria. Libya is in a state of flux at this point, but it has a great future. It has natural resources, and at some point, it will calm down and open up again, and we want to be part of rebuilding the country.
Using proprietary technology Hill International has developed and honed a number of processes and procedures over the years that are dependent on technology. These proprietary technologies are given to clients to use and take advantage of.
September 2018 39
Expert Voice
Market leaders provide valuable insights and opinions for the construction industry
Can we repair our broken industry?
Sean McQue of ALEC discusses the urgent issues facing the local construction industry and outlines what steps need to be taken to resolve a looming crisis
a confrontational environment The current construction and contracting environment has regressed into being complex, confrontational and risk-averse, with rising incidents of claims and disputes.
There is no question, the construction industry is in bad shape and it’s getting worse. Whether you talk to developers, design consultants, project managers, principal contractors, subcontractors or suppliers, they all say the same thing: it cannot carry on this way. Construction, and particularly contracting, is a notoriously highrisk, low-return industry and there are enough high-profile casualties littering our recent past to show just how easily and quickly wellestablished organisations that have been successful over decades can fall victim to their environment. It’s not too late for us to repair what we have broken, but we need to act
40 September 2018
fast, we need to act decisively and most importantly, we need to all act together. We need to understand the many contributing factors and work together to address them in a committed and meaningful way. Not to sound over-dramatic, but our futures do depend on it. Create the right environment Over the years, the construction and contracting environment has regressed into a complex, confrontational and risk-averse place fraught with claims and disputes. Everyone that was building 20 years ago will recall a time when the whole team worked together to deliver amazing projects without even
opening the contract. Fewer people were involved, but they were competent and their agendas were aligned with one another’s and that of the project. Good information was available on time, hardly any letters were written, everyone was successful. Since then, we have seen the creation of new parties such as project managers, there has been an exponential improvement in technologies such as design software, communication platforms, methods and materials, yet we are no better off. Why is this? Our managing director does a great talk that compares the project environment to a fish tank.
At the outset, the owner decides what he needs and wants: the size of the tank, the type of fish, the plants, the equipment to filtrate and aerate the water and so on. Once he has created his tank, it is nearly impossible to change it, and the fish must live with it. If they are unhappy or unable to live in the tank, there’s precious little they can do to change it. They will simply become sick and eventually die, and ultimately the whole tank suffers and fails. It is paramount that the employer create the right project environment for all stakeholders to operate in, so the project can succeed. The right structure, the best organisations, conditions of
For further information, please contact: Tel: +971 4 4290599 Fax: +971 4 4290216 www.alec.ae
engagement that promote the right behaviours, great people and, most importantly, a culture of trust that promotes transparency and true collaboration and allows the team to operate outside the rules in the interest of the project without fear of victimisation. Have realistic expectations During tenders and negotiations, contractors often face unrealistic delivery expectations from clients. When it comes down to the wire, they face agreeing to these requirements or losing the job. More often than not, the result is the contractor taking on the risk of the unrealistic schedule in order to secure the project, then looking for opportunities for extensions of time from day one – hardly an environment with aligned agendas, and not one designed to create the right behaviours. Developers and their agents should pay special attention to this and try to avoid creating combative situations from the outset. Allow decision-makers to make decisions As main contractors, one of the key differences we see between successful projects and those that run into difficulties is having easy access to an empowered decision-maker. Once a large, complex project is underway, things move fast. Inevitably, unforeseen issues arise that require clear and fast decision-making. Without it, there is uncertainty and confusion that often leads to delays, abortive work and eventually claims. The contractors have an important part to play by being proactive in identifying issues and communicating them effectively, giving the employer and its representatives enough time to make the best decisions for the project.
Do your job On a construction project, there are potentially hundreds, if not thousands, of people from numerous organisations involved that all have a responsibility and a role to play. Only when everyone makes their contribution do things come together for a successful project. In today’s environment, parties are being allowed to delegate their responsibilities downstream through specifications and contract conditions. A classic example is shop drawings. In the past, the developer would employ capable designers who would produce and issue information that the contractor could use to build. In today’s environment, contractors are obliged to complete the design. IFC (Issued for Construction) information is not allowed to be used for construction, so contractors have to produce shop drawings at significant cost to be able to proceed with work. These shop drawings are subject to approval and go through rounds of submission, which uses up critical project time and is often used as an opportunity to complete design on the project’s time or make changes under the radar. If developers want their projects to run smoothly and be completed on time, they need to employ the right designers and ensure that the design is adequately complete before construction starts, and that the documents they produce can truly be used for construction. Pay fairly and pay on time For too long, clients have failed to meet their obligations concerning payments, and have done so without consequence. This has brought tremendous pressure to the whole supply chain, which as a result is not able to perform the way it used to. As an industry, we
taking responsibility Sean McQue says the regional construction industry must take responsibility for itself, so as to leave the next generation of builders a better foundation to work upon.
“As an industry, we need to find a way to ensure that cash is available for construction projects and that payment is made fairly and on time” need to find a way to ensure that cash is available for construction projects and that payment is made fairly and on time. In many countries, developers are required to demonstrate that funds are available for projects being undertaken before they start, a practice that would be most welcome here in the Middle East. Furthermore, it is not unreasonable as a contractor to expect a payment guarantee and to be assured that you have some sort of recourse should any default occur. Despite being required to provide performance guarantees and having retention money deducted, contractors in this region would be laughed out
the door at the mere mention of a payment guarantee. This is an issue that probably needs government intervention and regulation if we are to introduce any level of payment certainty to the market. Most payment disputes exist around claims and variations – more specifically, the time taken to deal with them commercially. There is a very bad habit of delaying the agreement of extensions of time and variations until much later in the life of the project, not only leaving the contractor and its supply chain out of pocket, but also creating the ability for the administrators of the contract to act with hindsight, using unreasonable arguments that should not be available to them. It’s okay to make a profit In order for owners to continue building and owning quality real estate investments, they need companies to construct them. Contractors are businesses that need to make a profit in order to be sustainable going concerns. In our region, some clients behave as though contractors are taking a liberty when they expect to make a profit on a project. We need to see a mind shift on this subject, and projects must be approached so that all parties involved make a fair and reasonable return. Conclusion In conclusion, the construction industry has some fundamental issues. The impact these are having is substantial, and a change of some sort is now inevitable. We can choose to pull together and deal with these challenges for the good of all, or we can continue to watch its demise. We need to take responsibility for our industry, so that we can hand it over to the next generation in a better state than we received it.
September 2018 41
Value Engineering
Tom Gilmartin
Understanding the difference between cUtting costs and ValUe engineering Tom Gilmartin of ALEC Fitout outlines the challenge of educating the local construction market about value engineering, and explains the benefits of a structured approach What’s the difference between cost cutting and value engineering? To the various stakeholders on a project, they can mean the same thing! Clients want to save money, and designers push back as they want to protect the integrity and intent of their design. Contractors can be caught in the middle – how can we maintain design and achieve target budget? In the UAE construction and fit-out market, the two very different concepts of cost saving and value for money have over time intertwined into a solution labelled value engineering. Clients 42 September 2018
and developers expect to reduce their budget, thus increase the value of their expenditure. However, what happens when a client demands impossible target budgets, or the contractor introduces cheap and inferior products and materials that destroy the design intent and vision of the architect or interior design team? Cost cutting is very prevalent in today’s construction and fit-out industry, and is slowly destroying any value in the market. Contractors struggling to achieve a target budget are unable to resource the project properly, leading to inevitable delays in delivery. Materials used
to achieve unrealistic budgets are inferior and result in a poorly executed fit-out. The client’s asset opens late and requires additional maintenance and rework. Arguments regarding extension of time and final payment ensue and all parties lose considerable time, energy and resources in an attempt to fight their corner. Do we really want to continue working like this? Thankfully, cost cutting and value engineering are not the same thing. In our experience, successful application of value engineering results in the client
realising the target budget while achieving a high quality of finish and maintaining the original design intent. Easier said than done! At ALEC Fitout, we have various levels of value engineering that apply, depending on how aggressive the client target budget is and how high the baseline specifications are. Essentially, we price a project based on design and specification, and identify the major value packages and items to see how and where to save the client money. The first level of value engineering is to provide an alternative product or material to the specified one. For example,
Value Engineering
design optimisation Value engineering can also include design optimsation, which means that the contractor’s design team works closely with the design consultant to review and revise specific details and interfaces that may result in delays or reworks.
marble is replaced by marble with similar look and performance from another source. When executing the complete fit-out of a five-star hotel, our core business sector, the marble package can be the largest package by value and as such can generate client savings without affecting quality of finish or design. Moving to the second level of value engineering, and depending on client target budgets, the material is substituted by another material, for example marble replaced by reconstituted stone or ceramic. This should generate significant savings for the client, but if not carefully selected can cheapen the
execution of the works and fail to maintain the design intent. Another level of value engineering is then to omit materials altogether, for example marble to walls replaced by paint. This may be acceptable in secondary areas of a project such as corridors or bathrooms, but not, for example, in a lobby or primary front of house area. Again, careful consideration from the project team is required to maintain the design intent. Finally, value engineering can also include what we term design optimisation. Our design team work closely with the design consultant to review and revise
specific details and interfaces that may result in timely or impractical installation on-site – here the value engineering does not necessarily focus on monetary savings, but is in relation to time and quality, extremely important parameters often overlooked in the pursuit of a challenging target budget. With ALEC Fitout value engineering solutions, the emphasis is on all project stakeholders – client, consultant team and contractor – working closely together to advise, suggest and deliver quality solutions within budget that maintain, where possible, design intent. Such a collaborative approach requires
“In the UAE construction and fit-out market, the two very different concepts of cost saving and value for money have over time intertwined into a solution labelled value engineering. Clients and developers expect to reduce their budget, thus increase the value of their expenditure”
trust from all parties – and trust, as we all know, is in very short supply in the UAE construction market! It takes time to build trust between client and contractor, and this is why most of our projects are for repeat clients. We share a common goal to deliver a high-quality solution on time and within budget. How can we successfully implement value engineering on projects? There must be give and take between client, consultant and contractor. Identify areas and packages that are open for value engineering early in the process, September 2018 43
Value Engineering
define a target budget It’s crucial to define target budgets and have buy-in from all project stakeholders for approval of VE items.
“It takes time, considerable resources, experience and high levels of trust between all project stakeholders to provide a high-quality value engineering solution for the client team” to see if it is possible to achieve the target budget. The value engineering options are agreed in principle at negotiation/award stage between client, contractor and consultant team. There has to be a common goal to achieve a realistic target budget. Once that understanding is in place, the most critical element of successfully implementing value engineering is allowing sufficient time to review and propose alternative or substitute materials for client approval. Prioritising packages based on value and sequencing on-site are also important considerations. For example, on a five-star project we are currently executing in Dubai, our scope includes MEP, fit-out and FF&E. Our team prioritised MEP and long lead items as these had 44 September 2018
the potential to have an impact on our progress on-site. A value engineering tracker highlights the major deviation, if any, from the specified product or material, and outlines the cost saving associated with the value engineering option. In effect, over a short period of time, a value engineering shopping list is presented to the client for approval. Each value engineering option includes a material submission and a technical data sheet, to ensure full transparency and avoid unwanted surprises for the project team upon commencement on-site. If a VE item is rejected, the original baseline specification and associated costs are considered in the offer. Over the years, our team has successfully delivered many high-quality fit-out projects
in the UAE, and each one has included some form of value engineering. The key lessons we have learnt in that time to ensure successful implementation of value engineering include: Define target budget and have buy-in from all project stakeholders for approval of VE items Target high-value packages and items initially (80/20 rule) Allow sufficient time for the VE process Provide sufficient technical detail and samples for each VE item, to facilitate client approval Schedule all VE items in tracker and obtain sign-off from client team before commencing procurement In summary, it is very easy for contractors and client teams to abuse the value engineering process
by cost cutting and demanding unobtainable target budgets, or submitting inferior products and materials, thus affecting quality or design integrity. It takes time, considerable resources, experience and high levels of trust between all project stakeholders to provide a highquality value engineering solution for the client team. However, time is not always on the side of the project delivery team and trust is typically in very short supply, with project stakeholders not aligned to a common goal and working only for their own betterment. An approach whereby both client and contractor work together to deliver to a defined target budget within a realistic timeframe facilitates the delivery of a highquality value engineering solution and provides a win-win solution.
26 November 2018 Double Tree Hilton JBR
Dubai, United Arab Emirates
The Big Project ME awards has proved itself to be among the most distinguished in the industry with leading players in construction from the region participating. Al Naboodah Construction Group are delighted to be a part of this gathering of eminent industry professionals.
SeNaN aBDullaH al NaBooDaH
Managing Director of Al Naboodah Construction Group
BigProjectmeawards.com
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CitysCape Global 2018
The gateway to the world’s real estate opportunities – Cityscape Global – returns to Dubai from 2-4 October, with more than 30,000 visitors expected
No signs of slowing down Last year, Cityscape Global saw sales of off-plan properties total more than $236.8 million, and the 2018 edition is expected to be just as popular.
Following a wave of success brought by reinstating on-site sales in 2017, where sales of offplan properties totalled more than $236.8 million, Cityscape Global is showing no signs of slowing down. The 2018 edition expects to attract more than 30,000 visitors who will take advantage of daily programmes with features offering valuable market insight delivered by industry experts. 46 September 2018
Leading UAE real estate organisations such as Binghatti Developers, Damac Properties, Bloom Holdings, Jumeirah Golf Estates, Meydan and Tilal Properties will be out in full force over the three days, showcasing their latest project launches and deals for existing units. The Cityscape Talks will host a plethora of sessions on the show floor and include
keynote presentations on topics such as real estate finance, innovation in design, facilities management, citizenship by investment, regional economies and property markets. Taking place the day before the exhibition opens, the Cityscape Global Conference runs on 1 October at the InterContinental Hotel Dubai Festival City, under the theme: “Stepping into
the urban future: happiness, innovation and technology”. The Conference comprises three sessions: Market Overview, Architecture and Design, and the Built Environment Programme. The largest real estate investment and development event will return to Dubai World Trade Centre from 2-4 October 2018. For more information, visit: www.cityscapeglobal.com
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Budget $200,000,000 Project number WPR3587-U territory United Arab Emirates Client Brooge Petroleum & Gas Investment Company (Abu Dhabi) City Abu Dhabi Phone (+971-2) 633 3116 Fax (+971-2) 633 3955 email info@bpgic.com Website www.bpgico.com description Construction of a fuel oil storage terminal by adding 600,000m3 of capacity
48 September 2018
for crude oil across eight tanks Period 2019 status New Tender tender Categories Gas Processing & Distribution, Oilfields & Refineries tender Products Storage
strateGiC Gas PiPeline ProjeCt Budget $200,000,000 Project number RFP-2038588-K territory Kuwait Client Kuwait Oil Company (KOC) City Ahmadi 61008 Phone (+965) 2398 9111 Fax (+965) 2398 3661 email kocinfo@kockw.com Website www.kockw.com description Engineering, procurement and construction (EPC) contract to build 150km strategic gas pipeline tender Cost $35,714 Closing date November 6, 2018 status New Tender tender Categories Gas Processing & Distribution, Oilfields & Refineries tender Products Gas Distribution, Gas Exploration & Production
Project number WPR3575-B territory Bahrain Client Bahrain Airport Company (BAC) Phone (+973) 1735 3333 Fax (+973) 1733 1410 email info@bac.bh Website www.bac.bh description Construction of a Cargo Express Village comprising warehouses and aircraft parking along with associated infrastructure Period 2021 status New Tender tender Categories Airport, Construction & Contracting, Roads, Bridges & Infrastructure tender Products Roads Construction, Warehouse Construction
jumeirah al sahel resort & sPa ProjeCt – manama CarGo exPress VillaGe deVeloPment – Bahrain international airPort Budget $100,000,000
Budget $100,000,000 Project number WPR3447-B territory Bahrain Client Bahrain Mumtalakat Holding Company address Arcapita Building, 4th Floor, Building No. 551 Road 4612, Sea Front 346, Bahrain Bay City Manama Phone (+973) 1756 1111 Fax (+973) 1756 1109 email contactus@bmhc.bh Website www.bmhc.bh description Construction of a five-star resort across a land area of 700,000sqm, with complementary leisure, entertainment and tourist attractions Period 2019 status Current Project tender Categories Construction & Contracting, Hotels tender Products Hotel Construction
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Middle East tenders UAE CommerCial & residential BuildinG ProjeCt – mankhool Budget $30,000,000 Project number WPR3586-U territory: Dubai, United Arab Emirates Client Al Ghurair Group (Dubai) address Al Ghurair Bldg, Salahuddin Road, Deira Postal/Zip Code 1 Phone (+971-4) 262 3377 Fax (+971-4) 262 3388 email info@alghurairgroup.ae Website www.al-ghurair.com description Construction of a commercial and residential building comprising a ground floor, 3 podiums and 28 floors Period 2020 status New Tender main Consultant Arif & Bintoak Consulting Architects & Engineers (Dubai) tender Categories Prestige Buildings tender Products Commercial Buildings, High-rise Towers, Residential Buildings
Bldg No. 3, Near Interchange No. 5, Shaikh Zayed Road Postal/Zip Code 9440 Phone (+971-4) 367 3333 Fax (+971-4) 367 3000 email customercare@emaar.ae Website www.emaar.com description Construction of a 2km metro link status New Tender tender Categories Public Transport tender Products Metro
duBai international airPort metro ProjeCt – duBai Creek harBour
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Budget $20,000,000 Project number WPR3559-U territory Sharjah, United Arab Emirates Client Sharjah Municipality Postal/Zip Code 22
50 September 2018
Phone (+971-6) 562 3333 / 516 2289 Fax (+971-6) 562 6455 email infor@shjmun.gov.ae Website www.shjmun.gov.ae description Development of a 600,000sqm botanical garden status New Tender design Consultant Grimshaw Architects (UK) tender Categories Agriculture & Irrigation, Construction & Contracting tender Products Gardens/Parks Development & Maintenance
Oman ooCeP headquarter BuildinG ProjeCt Budget $6,000,000 Project number WPR3596-O territory Muscat, Oman Client Oman Oil Company
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Green Peak adVenture resort ProjeCt – jeBel akhdar Budget $90,000,000
Tenders
Project number WPR3600-O territory Muscat, Oman Client Ministry of Tourism (Oman) address Al Ghubra North Postal/Zip Code 200 Phone (+968) 2458 8700 Fax (+968) 2458 8819 email info@omantourism.gov.om Website www.omantourism.gov.om description Construction of a resort covering an area of 73,367sqm Period 2020 status Current Project main Consultant Khatib & Alami Consolidated Engineering Company (Oman) main Contractor Oman Shapoorji Company LLC (OSCO) tender Categories Leisure & Entertainment, Hotels tender Products Hotel Construction, Retail Developments
shams al sarooj restaurant ComPlex ProjeCt – shatti al qurum
Saudi Arabia radisson Blu hotel ProjeCt Budget $25,000,000 Project number WPR3523-SA territory Jeddah, Saudi Arabia Client Abdul Latif Jameel Group (Saudi Arabia) address Amir Majed Street Postal/Zip Code 3327 Phone (+966-12) 628 4444 / 693 0000 Fax (+966-12) 672 2753 email contact@alj.com Website www.alj.com description Construction of a hotel comprising 172 guestrooms offering a mixture of standard rooms, suites and serviced apartments Period 2020 status Current Project main Consultant Abdullah Battyour Consulting Company (Saudi Arabia) main Contractor JAS International Contracting Company (Saudi Arabia) tender Categories Hotels, Construction & Contracting
tender Products Hotel Construction
Egypt Wind indePendent PoWer ProjeCt (iPP) – ras GhareB Budget $25,000,000 Project number MPR1565-SA territory Cairo, Egypt Client Egyptian Electricity Transmission Company (EETC) address Abassia, Nasr City 11517 Postal/Zip Code 12612 Phone (+20-2) 2261 8579 / 2684 3824 Website www.eetc.net.eg description Build-own-operate (BOO) contract for the construction of a wind independent power project (IPP) with capacity of 500MW Period 2019 status Current Project main Contractor Toyota Tsusho Corporation (Egypt) tender Categories Power & Alternative Energy tender Products Wind Energy
Iraq Flare Gas reCoVery ProjeCt – nassiriya & al GharraF oilFields Budget $70,000,000 Project number WPR3594-IQ territory Basra, Iraq Client South Gas Company (Iraq) address Basra District, Khor Al Zabir Postal/Zip Code 1201 Phone (+964-4) 464 2346 Fax (+964-4) 406 4234 email info@sgciraq.com Website www.sgciraq.com description Implementation of flare gas recovery at Nassiriya and Al Gharraf oilfields status New Tender technology Provider Baker Hughes (USA) tender Categories Gas Processing & Distribution, Oilfields & Refineries tender Products Gas Exploration & Production, Gas Export/Import Terminal, Gas Processing & Separation
Budget $12,000,000 Project number WPR3562-O territory Muscat, Oman Client Ministry of Tourism (Oman) address Al Ghubra North Postal/Zip Code 200 Phone (+968) 2458 8700 Fax (+968) 2458 8819 email info@omantourism.gov.om Website www.omantourism.gov.om description Construction of a luxurious restaurant complex Period 2019 status New Tender design Consultant Resolution Engineering Consultancy (Oman) tender Categories Construction & Contracting, Hotels tender Products Hotel Construction
September 2018 51
Last Word
Getting what you paid for Ian Hauptfleisch, GM – CCS (Gulf), provides some tips about achieving quick results on construction projects by using the right software The cost of construction software is going to depend on what you are able and willing to invest. Very much like any other significant purchase, the options available are vast and varied in terms of quality and effectiveness as well as value for money. All too often, particularly if the decision-making process does not involve the key stakeholders who will feel its benefit (or the opposite if poorly chosen), the selection can be based foolishly on price alone without fully understanding its true cost and real ROI. The very best products that deliver exceptional ROI are going to cost you more money, but as with many things in life, you get what you pay for. So rather than focus on which one to buy, in this article we are looking at how to get the most out of the best one your business can afford. What does success look like?
You will need to map out
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what you want your product to deliver for you, so that you can assess whether it really does. The simplest way to apply this to your chosen software is to identify the gaps between what the salesman has promised you and your current process and systems, and to what degree they should be closed. This might be measured in time (such as processes involving spreadsheets and manual collation) or in cost (such as in use of resources and the associated savings in monetary terms). Consider the example of invoicing and the process from being issued and approved to payments being received, as this combines elements of both time and money. Construction software can manage the entire contract process, from estimating and initial bidding right through cost control, project management, variations, subcontracting, plant and equipment hire (the list of features handled by
construction software is exhaustive) and handover. It is real, and it has been tried, tested and embedded into the operating procedures of some of the most prominent and successful construction companies around the globe. Organise Your Coding Structure
As a construction professional, you will be very aware of the importance of planning ahead. Your construction software is going to need professional installation and configuration, as it could be relatively complex. In preparation, you will most likely need to carry out a review of your current operating systems and servers as well as the suitability of existing hardware and software applications, so why not use the event of new software implementation to adopt a standard code structure for all departments, jobs and functions. This will allow you to gain the maximum benefit from the integrated
functions your new software will provide in both business insights and reporting. Carry out a Data Cleanse
It is a fresh start in many ways, so why migrate old or obsolete data? Look at where you might have duplicate entries or legacy data that is no longer required (perhaps old staff information that is no longer of any use, or old certifications or licensing that require renewal). Consider archiving items such as these to begin the new streamlined efficient processes without the potential for process errors caused by incorrect or obsolete information. Create a Schedule with Milestones
Why treat this project (software implementation) any differently than the way you treat all your projects? Plan its progress and deliverables and measure against that schedule and its milestones. Appoint either a person or a team to manage
the project and to liaise with the appointed project manager from the provider. Make them accountable and responsible to deliver on time and on budget (start as you mean to go on). Any business owner who has implemented changes and enhancements knows that the considerations are extensive. There will be local and business specific elements to investigate that are particular to your own set-up, but having a clear plan with measurable milestones will steer you in the right direction and keep you on track. Above all else, don’t be afraid to ask any and all questions that come to mind when reviewing the choices on offer. The best construction software providers expect this and have fielded them all. They may well have embedded changes and enhancements to their product offering to cater for your concerns, on top of those already raised by the world’s leading construction businesses.
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A supplement of:
SMART CITIES REPORT
Shaping the future PArsons’ experts discuss why data protection is key to developing smart cities The ambitions of a kingdom how siemens is helping saudi arabia achieve its smart city ambitions
Big data, smarter cities
Big Project ME looks at how the intelligent use and analysis of big data is helping shape our urban environments
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PUBLISHING Director RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL Director VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 EDITORIAL EDITOR GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 ONLINE EDITOR BEN FLANAGAN ben.flanagan@cpimediagroup.com SUB EDITOR AELRED DOYLE aelred.doyle@cpimediagroup.com ADVERTISING COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496 DESIGN ART DIRECTOR SIMON COBON DESIGNER PERCIVAL MANALAYSAY CIRCULATION & PRODUCTION Production Manager Vipin V. Vijay vipin.vijay@cpimediagroup.com +971 4 375 5713 WEB DEVELOPMENT Mohammad Awais Sadiq Siddiqui FOUNDER DOMINIC DE SOUSA (1959-2015) PRINTED BY Printwell Printing Press LLC Published by
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Data on the mind
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SHAPING THE Future
E
ver since ‘Smart Cities’ became the region’s latest catchphrase, much of the discussion has focused on the physical technology that can be implemented across buildings, grids and transport networks. While hardware will certainly play a major role in the development of smart cities, this year’s edition of the Smart Cities Report primarily focuses on something that is less tangible, but far more crucial – the utilisation of Big Data. Data collection and analysis is shaping up to be one of the most important aspects of city management and planning in the near future. We’re already seeing governments and municipalities utilise data to plan and shape the way cities are expanding, but as the data grows, so will our understanding of it. This will allow us to create cities that will be highly optimised for the needs of residents and visitors, while also being increasingly efficient and sustainable.
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how to make a city smarter?
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Shaping the Future
Parsons’ experts discuss why the protection of data and digital infrastructure is going to be a key factor in the development of smart cities Connecting People Through Technology
Cities have always been defined by people: their dreams, their desires, their livelihoods. As we progress further into the 21st century, cities have also become technology ecosystems, with rich constellations of readily accessed information blurring the boundaries between digital and real life. As smart cities progress from science fiction to reality, it’s important to remember that by leveraging advances in data analysis, sensor technologies and urban conditions to improve efficiency, safety, sustainability and quality of life, smart cities better serve their people. Human-centred cities should be compact, diverse, walkable and attractive, and design elements should foster walkability and casual interaction without sacrificing connectivity to their
larger urban surroundings. However, these elements must also be sufficiently autonomous to provide resiliency and consistent functionality. Most importantly, our cities must be highly adaptable to respond to changes in the structure of economic and social activities. Data Is Key
Data is the new currency of urban environments and cities. Companies in various industries have recognised that big data drives revenue and is becoming ever more valuable, as it helps them make fact-based decisions to stimulate growth. What separates leading organisations is their ability to collect, manage and analyse this data. A report titled ‘Big & Fast Data: The Rise of Insight-Driven Business’ from research and consulting firm Capgemini, along with EMC, summarises the Smart Cities Report 2018 03
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Andrew Bevan
results of a survey of more than a thousand C-suite and senior decision-makers around the globe: • 65% of respondents indicated that their organisations were at risk of becoming uncompetitive due to the highly competitive data landscape. • 52% believed that such efforts were hampered due to limitations in their IT development processes. • 64% indicated that big data is changing traditional business boundaries and enabling new providers to move into their industries. • 54% reported that their big data investments over the next three years will outstrip past investments. • 43% have already reorganised or are currently reorganising to exploit new big data opportunities. • 61% acknowledged that big data is a driver of revenue and is becoming as valuable to their businesses as existing products and services. • 24% of companies reported disruption from
Nour Kassassir
new competitors moving into their industry. Collecting data and developing methods to transform that data into useful information will position companies in any industry to maintain market share and disrupt their immediate and adjacent markets, if such companies are willing to invest and act before they are disrupted themselves. AEC companies are some of the most vulnerable to these risks. The industry’s productivity growth rates have flatlined, and construction companies are trying to determine how artificial intelligence and deep learning can increase profitability by optimising construction sequencing and inspection processes while maintaining quality and safety. However, developing reliable and mature artificial intelligence (AI) learning models comes with its own set of challenges. Regardless of such challenges, AI, machine learning and deep learning are here to stay and are gaining momentum. Engineering and construction companies willing to invest their
“Data is the new currency of urban environments and cities. Companies in various industries have recognised that big data drives revenue and is becoming ever more valuable, as it helps them make factbased decisions to stimulate growth”
resources in analysing their bank of existing data, collecting new data from running projects, researching AI, conducting proofs of concept and developing plans to adopt these technologies will position themselves to maintain market competitiveness, grow market share and disrupt their immediate and adjacent markets. At Parsons, we’ve learned the value of enabling smart solutions that can integrate data, services and functionality onto a single unified platform through the deployment of iNET, an advanced transportation management system we have developed. This platform is valuable both for our customers and the people they serve because it generates meaningful, actionable information. Data is continually gathered to detect events on the roads, and with the use of predictive analytics and microsimulation tools, we can predict how the traffic network will perform depending on what actions are taken to address the event conditions (such as rerouting
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traffic or rephasing traffic lights). With advanced decision support tools, the customer gains insight to inform the best possible decision to enable the rapid restoration of the network. This powerful tool enables transport authorities to maximise the efficiency of their road networks at any time and under any conditions. Secure Infrastructure is Critical to Data Integrity and Service Continuity
Interactive services and seamless integration are catalysing smart city innovation. Interactive services have garnered much attention with the deployment of various Internet of Things– enabled sensors. The growing complexity of smart infrastructure has increased the demand for security and thus made critical infrastructure protection and the seamless integration of security systems a top priority. The security landscape has drastically changed over the past few years, with the industry shifting toward smart systems and services for airports/ports, metros and many other mission-
George Arvanitis
critical smart city assets. With the move toward seamless integration capabilities and data analytics rather than standalone gadgets, vulnerability to cyber threats and security breaches is increasing. Cyber threats put countless physical systems at risk, including a vast array of devices that control industrial systems powering vital components of critical infrastructure, and security must be designed into the operational technology environment from the ground up to be fully integrated. Converged physical and cyber security systems boost an organisation’s ability to collect information from multiple sensors. Bringing different data streams together provides security operators with a more comprehensive view of risks and plays a key role in reducing response times and preventing security breaches. In addition, by enabling multiple systems to run off one server, integration simplifies systems operation and enables data exploitation to put more intelligence at the fingertips
Rida Hamza
“We must dictate the vision rather than allowing technology to dictate to us. Companies, cities, government agencies and service providers must work collaboratively to develop a robust approach to create solutions based on proven principles”
of the system operator. We Must Protect Our Cities, Infrastructure and Assets
The vulnerabilities of some of the older industrial control systems and SCADA control technology employed to operate them make them particularly susceptible to cyber threats. Many of these systems were not developed with robust cyber protection in mind and are directly or indirectly connected to some form of data network through which malware can be deployed. Industrial or transportation systems previously considered air-gapped from external networks are being exposed to vulnerabilities in peripherals, such as wireless networks, electronic payment systems and an increasingly digitally enabled operations and maintenance and general services supply chain. This vastly increased attack surface is now of critical concern to mass transit and utilities providers in particular, as they seek to use smart technology to improve operations
Stephen O’Connor
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“Interactive services and seamless integration are catalysing smart city innovation. Interactive services have garnered much attention with the deployment of various Internet of Things–enabled sensors” and consumer experience. The modelling and simulation and advanced multivariate analysis employed in the management of an active military battle space or defence system posture have both enhanced and learned from the increasing complexity of countering threats in cyber space. Defence systems engineering and planning tools built on complex threat analysis and re-engineering are being used to develop new response and intercept capabilities, and to support network architecture and physical lay-down. These tools have been expanded to benefit command-level agencies
by considering the appropriate supporting organisational structure, resourcing, procurement planning and supply chain management requirements needed to meet current and future emerging threats. The resilience and sustainability of these defence system models have increased through the integration of the cyber threat, just as the cyber and physical perimeter defence of critical infrastructure has been informed by models that may have been originally deployed in the Cold War era. As our day-to-day lives become more reliant on technology, responsible companies and
agencies must deliver, operate and maintain a secure digital environment by mitigating evolving threats to ensure our cities, infrastructure and assets remain safe and secure. Operational technology and cyber security must work as an integrated whole to maintain the integrity of our critical infrastructure. Data is key, and from data we can often identify and deliver new use cases and applications. It’s Not Just about Technology
Advancing technology has changed the way we think about cities and offers
potential solutions to a multitude of challenges. That said, if we don’t keep pace with technology and instead only attempt to react to it, uncoordinated and haphazard deployments could produce even more issues. We must dictate the vision rather than allow technology to dictate to us. Companies, cities, government agencies and service providers must work collaboratively to develop a robust approach to create solutions based on proven principles but tailored to specific needs, designed with an overarching people-first philosophy.
Keeping pace with technology City planners and governments need to keep pace with technology rather than only react to it, as that could lead to uncoordinated and haphazard deployments creating more issues.
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“Smart mobility, smart buildings, smart grids, smart security, smart lighting, smart parking, energy efficiency of power and water and smart healthcare. Siemens has solutions in all these fields, and that gives us a unique edge” Ahmad Farrakh Manzoor, head of Building Technologies (BT) at Siemens Saudi Arabia, discusses the Kingdom’s ambitions to embrace smart cities and how the German giant is helping them achieve its aims 08 Smart Cities Report 2018
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A full and comprehensive portfolio As a global player, Siemens is uniquely positioned to contribute towards achieving the goals of Vision 2030, says Ahmad Farrakh Manzoor.
Can you outline your impressions of Saudi Arabia’s plans for smart cities?
Under Vision 2030, Saudi Arabia is transforming both socially and economically. This great nation has a clear vision for the future, as it pursues the development of smarter cities that are more sustainable, livable and competitive. With more than 82% of the Kingdom’s population already living in cities, and given that this trend will continue, cities will be at the heart of achieving the government’s vision of a smarter Saudi Arabia. Within the context of smart cities, we see a few trends that confirm that the environment is ripe for further development. With more than 50% of the population under the age of 30, Saudi Arabia already has a young, dynamic and techsavvy population, which truly provides the Kingdom with an edge in terms of human capital development and creative potential for the latest
and best urban solutions. Furthermore, the government’s track record in implementing e-government services for citizens and residents is outstanding. We are already seeing very positive results, especially if one considers how the smart infrastructure and digital solutions are significantly enhancing the experiences of pilgrims during their Hajj and Umrah visits. How is Siemens positioning itself to take advantage of the opportunities presented by this investment in smart cities?
Being a leading global player in the smart infrastructure market, we are uniquely positioned with a full and comprehensive portfolio to contribute towards achieving the goals of Vision 2030. Think about it: what are the main components of a smart city? Smart mobility, smart buildings, smart grids, smart security, smart lighting, smart parking, energy efficiency of power and water
“Saudi Arabia is transforming both socially and economically. This great nation has a clear vision for the future, as it pursues the development of smarter cities that are more sustainable, livable and competitive”
and smart healthcare. Siemens has solutions in all these fields, and that gives us a unique edge. In addition, we have our open IoT operating system, MindSphere, which integrates technologies across all domains and optimises the performance of infrastructure. In other words, MindSphere makes urban infrastructure smarter. Furthermore, MindSphere is vendor independent and can therefore connect to a standard open protocol in brown field and green field environments. What key offerings and initiatives will Siemens be bringing to the KSA market?
We are already very active in bringing next-generation healthcare, smart mobility, smart buildings, smart grids and energy efficiency solutions. I already mentioned MindSphere – we took a further step and established the MindSphere Application Centre (MAC) in Riyadh. The MAC has a team of experts that
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“Saudi Arabia is a highly attractive market, but it is also a very competitive market, which I think is good. With so many global changes and their impact, I guess that predictability will continue to be a challenge� are co-creating and co-designing digital applications on the MindSphere platform, together with our customers, as they pursue their digitisation journey. What are the challenges facing the uptake of smart cities in the Kingdom?
With a plethora of technologies that are offering bits and pieces here and there, I already see how confusion could reign among stakeholders. In addition, the tech revolution is a reality, and the pace of change is fundamentally
challenging solution providers. We hear more and more about co-creation, which really means that the users and providers of solutions work together in a new kind of partnership, characterised by new business models, delivery strategies and revenue streams. Therein lies some challenges as well. Overall, value chains are becoming shorter, which makes it more difficult to remain competitive. How is Siemens working with the KSA government and people
to resolve these challenges?
We are continuously engaged with various ministries and cities and are already proving our capabilities and portfolio in delivering smart solutions. To overcome the challenges, we are in dialogue with key stakeholders to introduce our future-oriented open technology that brings the smart aspects and at the same time is even more future proof. How does Vision 2030 tie into KSA’s ambitions to be a hub for smart cities?
There are aspects of Vision 2030 that are directly linked to smart cities. Firstly, Vision 2030 aims to have three Saudi Arabian cities ranked among the top 100 worldwide. Another key objective under Vision 2030 is to develop capacity so that the Kingdom can welcome 30 million pilgrims annually, up from the current eight million. These objectives talk directly to the need for smarter infrastructure in mobility, energy, water, healthcare, buildings and the like. As I mentioned earlier,
Technology revolution The tech revolution is a reality and the pace of change is fundamentally challenging solution providers, says Manzoor.
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our unique proposition is our capability to integrate and optimise infrastructure with smart solutions that enhance experiences for citizens, visitors, investors and so on. Discuss the impact of NEOM on regional smart city ambitions.
NEOM is among the largest projects in recent years. It will be a smart, futuristic city that will operate on 100% renewable energy sources and deploy artificial intelligence. This project is a shining beacon not only for the region but for the world, and it shows that Saudi Arabia is serious about building smart urban environments for its people and the world. To me, Saudi Arabia is leading from the front and I applaud the vision and ambition of the Kingdom.
“The pricing for utilities could have a snowball effect in the smart city market, which can spur investment from around the globe into this sector�
What are the challenges around attracting foreign investment and companies involved with smart city technology, given the competition around the region?
How are you working with the KSA government to create legislation and regulations around the development of smart cities and the associated technology?
Saudi Arabia is a highly attractive market, but it is also a very competitive market, which I think is good. With so many global changes and their impact, I guess that predictability will continue to be a challenge, despite a relatively stable market. The continuing change in the energy landscape, especially with regard to subsidies and renewables, will be of interest to investors. Generally, the pricing for utilities could have a snowball effect in the smart city market, which can spur investment from around the globe into this sector.
We are not only involved with the government, but also with other stakeholders that administer communities and smaller cities, to provide our input along the path of reform with respect to policy, legislation and standards. The Saudi Building Code and Saudi Standards, Metrology and Quality Organisation (SASO), among others, have already gone through substantial reforms over the last few years, and we are continuing to provide our input at all levels to make Saudi Arabia a leading global player in the smart city space.
Providing input Siemens not only works with the KSA government, but also with other stakeholders that administer communities and smaller cities, to provide input with regard to policy, legislation and standards.
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STUDIO
www.studiolumen.com
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Redefining Smart Cities
Steven Velegrinis, head of Masterplanning and director of Operations, DP&E, UAE for AECOM, outlines how intelligent design can be a driver for environmental change We are living in a world that is transforming at an unprecedented pace, bringing never-before-seen challenges that require problemsolvers and innovators. It is increasingly becoming clear that the key to addressing our future challenges lies in the ability to move fluidly across discipline boundaries in interdependent ways, and finding a way to work that transcends conceptual divisions.
Among the many trends that have infiltrated urbanism over the past decade, the so-called smart city has been one of the most talked-about. Traditionally, the definition has been limited to a technologically-driven view of cities, with very little to do with the concept of intelligent design or symbiotic development. According to the Intelligent Community Forum, a New York-based think-tank, smart cities “… apply information and communications technology to accurately monitor, measure and control city processes, from transportation to water supplies, the location of city vehicles to the performance of electric grids. Smart cities are about saving money, becoming more efficient and delivering
better service to the taxpayer.” However, this emphasis on technology does not address the fundamental nature of cities as a marriage between their environment and their development. As the urbanist Stephen Read has outlined: “The city is no longer something we can understand as architecture, as a mass of formed material that we can distinguish from a non-material void which can be characterised as countryside or periphery – or as in any event ‘not-city’.” Cities have traditionally been conceived as being in opposition to ecology. Environments such as forests and wetlands are viewed as ‘nature’, while cities are considered ‘not nature’. This dialectical opposition of cities and nature has led to the separation of urbanism and ecological function under the rubric of urban planning. This dichotomy has put cities at odds with planetary ecology, resulting in a number of scenarios that highlight the dumb nature of smart cities. Technology = smart?
An example that illustrates this is the design of New Orleans
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Defining a smart city According to the Intelligent Community Forum, smart cities can be defined as those that apply information and communications technology to accurately monitor, measure and control city processes.
in Louisiana. New Orleans was established in a fundamentally unsuitable landscape, a wetland that regularly floods and continues to do so. When Hurricane Katrina struck New Orleans in 2005, this fact was painfully evident and left the city with crippling repercussions. And yet we continue to build cities on fundamentally unsuitable land. And as land scarcity rapidly increases, this situation will only be exacerbated and the same mistakes repeated. In Asia, cities like Songdo in Seoul, South Korea stand as cautionary tales against the over-reliance on technology as a panacea. Songdo is regarded as the first purpose-built smart city and was built adjoining Incheon Airport in Seoul on a plain of reclaimed land. However, despite being seen as an expansion to the incredibly over-crowded city of Seoul, Songdo is a city that is neither complete nor occupied. With 10 years of construction and nearly $50bn spent, Songdo is a city without a substantive population. Songdo is marketed as a smart city, a city built with an integrated high-tech environment, opening to businesses in 2009 with the hope of attracting international businesses and families alike by providing a futurist, highquality experience. Currently, only 20% of the commercial space is occupied, despite significant financial incentives for businesses and a collection of residential high-rises, most of which are vacant. No collection of sensors, technologies and information technology will stop the destruction of this city. This is when the smartness of the city must be called into question. Truly smart cities resolve challenges and create
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functioning adaptive ecologies before applying technology to promote a quality of life. In a day and age when the undeniable truth of global climate change is that urbanisation has had a fundamental impact on planetary ecology, our cities have to work to reverse the damage. Cities, as the main protagonists of consumption and infrastructure, must accept their responsibility to act as agents of positive ecological change. This is implicit in the need for urban resilience in the infrastructure and ecological systems of our biome. Only when we start designing cities as functioning ecologies can we claim they are smart. We must design projects to actively engage
Engaging with the landscape Projects must be designed to actively engage with the landscape dynamics, says Steven Velegrinis.
with the landscape dynamics, to grow and subsequently shape coherent ecological systems that enhance urban resilience while providing significant development and amenity. Engineering firms today need to embody the very idea of the multi-disciplinary resolution of global problems and actively seek resilient urban solutions. New cities need to function as an example of how development can avoid being a net destroyer of ecological function. These ideas are by no means a complete solution for the considerable challenges that humanity faces, but they do map a trajectory towards a smarter, more resilient ecological future.
“The city is no longer something we can understand as architecture, as a mass of formed material that we can distinguish from a nonmaterial void which can be characterised as countryside or periphery� A smarter, more resilient ecological future Engineering firms today need to embody the idea of the multi-disciplinary resolution of global problems and actively seek resilient urban solutions.
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Big Data
Big Data, Smart Cities Dr Nigel Mehdi summarises the key findings of the RICS ‘Big Data, Smart Cities, Intelligent Buildings – Surveying in a Digital World’ report
B
ig data is a term used to refer to large, complex data sets which cannot be analysed using traditional data analysis techniques. The use of big data is becoming a key basis of competition and growth for professional firms, and is already affecting every area of business activity, including real estate, construction and the built environment. Spatially referenced big data is impacting every aspect of the surveying profession, and chartered surveyors need to understand what big data is and engage with its implications. These range from smart cities and intelligent buildings through to property information relating to construction costs, property markets, land use and valuation data.
Given the size of the data being captured and stored, it’s easy to see why the term big data has arisen, but there is more to big data than the problem of size. The technical definition of big data commonly includes reference to the three v’s of volume (terabytes, petabytes or even exabytes of information), velocity (continuously generated data analysed in real time or near-real time) and variety (drawn from a number of different data sources). These characteristics have come to typify the standard depiction of big data. Technicalities aside, there is also a socio-technical dimension overlooked by engineers, computer specialists and data analysts who often treat data as being technically neutral. However, data do not exist independently of the ideas, practices and contexts used to manage or generate them, and big data also raises ethical questions around privacy and privacy trade-offs, data-sharing, anonymity, security and consent. The term big data can be used to refer to the data themselves (the origin of the
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Big Data
term), or to a collection of digital technologies that support the capture, storage and analysis of big data. These technologies have enjoyed a fast path to technological maturity, an example of combinatorial innovation, resulting in a technology wave with far-reaching implications for business and society as a whole. Previous examples include the petrol engine in the early 1900s, electronics in the 1920s, integrated circuits in the 1970s and the internet itself since the 1990s. If big data is being adopted quickly, it is partly due to its underpinning role in the development of a new generation of disruptive technologies. The result can be seen in new tech companies that come from nowhere to revolutionise an industry segment. These digital technologies tap into the emerging shared economy and success is often based on the development and ownership of a platform (Airbnb, Rightmove, Uber, Walulel). Writing about the future of real estate, Andrew Baum calls this area PropTech 3.0, and explains that these new technologies will have a radical impact on property, a slow-moving asset class in a conservative industry. The convergence of big data, blockchain and the Internet of Things (IoT) is of particular relevance to the future of real estate. The IoT is the networked world of connected devices, objects and people. Blockchain is a decentralised network of digital records (sometimes called ledgers) that link to a particular asset. Together with big data, they form part of a trinity that will transform the urban realm and the outlook for the property profession over the next decade. Other consequences of big data relate to employment. It is predicted that some skills will be replaced through computerisation and the advent of big data.
The future of real estate The convergence of big data, blockchain and the Internet of Things is of particular relevance to the future of real estate, says Dr Nigel Mehdi.
Researchers at the University of Oxford examined nearly 700 occupations and identified which were most susceptible to computerisation. Some occupations were classified as being at high risk of unemployment, based on their potential to be automated over the next decade or two. The research found that those jobs most susceptible to computerisation were generally (not exclusively) those with lower wages and lower educational requirements. Many occupations relating to the built environment are under threat from big data applications and computerisation. Jobs with a high degree of specialisation in an area that lends itself to computerisation are at greatest risk. Those with higher levels of qualification seem more immune to computerisation, but it has also been suggested that the fields least under threat are those that require more creative intelligence. One of the central aspects of big data applications is the fact that computer systems can
“Data do not exist independently of the ideas, practices and contexts used to manage or generate them, and big data also raises ethical questions around privacy and privacy trade-offs, data-sharing, anonymity, security and consent�
access and comb through large volumes of data to answer specific queries. Data that have formed a key part of a chartered surveyor’s professional expertise for many years are increasingly moving into the public domain. The publication of property transaction prices makes this information machinesearchable and allows machinelearning algorithms to process data and automate processes that were once the preserve of qualified professionals. Even if an individual professional process cannot be fully automated, it is possible that parts of the task will be, thereby reducing the number of qualified professionals required. Despite the threats posed to certain built environment occupations, RICS members are already in the vanguard of those specifying and adopting building information modelling (BIM), which makes it a good place to start, considering how big data is changing the way we work. BIM is a data-driven holistic modelling system based on 3D CAD. These data are essentially the specifications and drawings that make up the building model, and they are confidential, proprietary data owned by the creator or building owner. One of the narratives of those promoting big data is the promise of shared and publicly available data, but despite the name Open BIM, there is no proposal to open the data for access beyond authorised members of a project team. In fact, there is no obvious reason why private data of this kind should be put into the public domain, and here we see the dichotomy between the growing pool of open data and the equally fast-growing islands of private data generated by the use of BIM and other building-level data sources. Beyond BIM, there is also a considerable amount of other private data used by chartered
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Big Data
surveyors and other property professionals to manage buildings over their lifecycle. Modern building management systems generate large quantities of digital data from sensors, and these are stored and analysed using big data technologies. Big data is central to the creation of advanced building management systems, which prioritise the efficient use of resources by a building, controlling costs while still providing a highquality internal environment. Data taken from a variety of sources are fed to the building management system, which then determines the best course of action, for example managing an HVAC system in response to changes in external environmental conditions. The most advanced systems go beyond simple reactive measures and include data streams such as short-term weather forecasts and data on a building’s thermal properties to improve the energy efficiency of building operation. This has become an increasingly important consideration within built environment professions over the last two decades. The use of big data is opening new avenues in the way cities may be shaped in the future, as well as generating a better understanding of the components that make up cities, such as buildings and infrastructure. Cities and the built environment represent an overlapping group of complex systems. These range in scale from individual lamp posts or waste bins to buildings, streets, green spaces, neighbourhoods and communities. They cover urban, national and international networks, including energy, transport, leisure, waste and water distribution systems. These activities systems represent a wealth of data, which offers the opportunity to improve urban management systems and resource efficiency. The
emerging smart cities have the potential to provide a better living environment for urban residents, while simultaneously reducing the environmental impact of the built environment. This arguably makes smart cities the most tangible embodiment of the benefits of big data and the transformative effect that it will have on human society. Overall, big data looks set to revolutionise professions throughout the RICS umbrella. It poses a series of challenges, including effective adoption, the potential for job losses in RICS professions and keeping abreast of developments, given the rapid pace of change. It offers new areas of opportunity as new areas in which to conduct business emerge. It will also revolutionise practice, as building data are increasingly applied to improve efficiencies and make the built environment as a whole more sustainable. As a string of new technologies and data streams are combined, the net result will be a sea change, and it is essential for RICS
“One of the narratives of those promoting big data is the promise of shared and publicly available data, but despite the name Open BIM, there is no proposal to open the data for access beyond authorised members of a project team”
members to anticipate the future direction of their professions in order to adapt – and to not just continue, but thrive in the new environment that is emerging. References Baum, A., 2017. Prop Tech 3.0: the future of real estate, University of Oxford Research. Christensen, C.M., 2017. Disruptive Innovation in The Encyclopedia of Human-Computer Interaction, 2nd Ed. Interaction Design Foundation. Frey, C.B, and Osborne, M.A., 2013. The future of employment: How susceptible are jobs to computerisation, University of Oxford, Martin School. Greengard, S., 2015. The Internet of Things MIT Press, Cambridge, MA. Harkness, T., 2016. Big Data: Does Size Matter? Bloomsbury Sigma, London. Kitchin, R., 2014. The Data Revolution: Big Data, Open Data, Data Infrastructures & Their Consequences, SAGE Publications Ltd, London. Parker, G.G., Van Alstyne, M.W., and Choudary, S.P., 2017. Platform Revolution: How Networked Markets are Transforming the Economy – And How to Make Them Work for You, W.W. Norton & Co, New York. Thompson, B., and Waller, A., 2017. The impact of emerging technologies on the surveying profession, RICS insight paper. Royal Institution of Chartered Surveyors, London. Varian, H., 2010. Computer Mediated Transactions, American Economic Review: Papers & Proceedings 100: 1–10.
Opening new avenues The use of big data is opening new avenues in the way cities may be shaped in the future, as well as generating a better understanding of the components that make up cities, such as buildings and infrastructure.
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Smart Utilities
Improving quality of life A smart city taps into the advantages of communication infrastructure and technology to improve quality of life for its citizens.
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Smart Utilities
How to make a city smarter
Michael Boyle and Katherine Bruce of AESG explain how intelligent utility planning is a crucial aspect of developing a smart city More people today live in cities than in rural areas. The accelerating growth of our urban environment is leading to an increased strain on existing infrastructure. With the help of technology, public and private sectors are turning to innovative ways to make cities smarter, safer and more sustainable.
The broad definition of a smart city is a city that taps into the advantages of communication infrastructure and technology to improve quality of life for its citizens. Three key parameters underpin the network of a smart city; energy, water and transportation. Optimising this nexus will empower citizens to make smarter decisions and secure the city’s future. Energy is arguably one of the most important aspects in smart city planning. Energy grids have typically flowed in one direction – power generation, transmission and distribution. Now energy grids are facing an increasing mix of energy generation and storage technologies, from solar PV to battery technologies. Adopting these technologies will help reduce demand and improve efficiency and reliability. Adaptability is key as grids move towards a decentralised approach.
However, cities face the expense of upgrading existing infrastructure and the problems of technology interoperability. Governments will need to consider innovative policy and regulatory approaches, enhanced public-private sector partnerships and opportunities for innovative business models to commercialise smart city data and overcome barriers. Buildings consume the majority of energy supplied to cities. This is particularly the case in Dubai, where the hot summers require significant cooling loads. A network of sensors would also enable monitoring of energy in real time, allowing consumers to save money. For example, energy rates may be determined by demand – appliances like washing machines could be set to turn on automatically when the energy demand is low and the price is cheap. Furthermore, intelligent systems may learn how occupants behave and move in a building, enabling automation of HVAC systems that optimise thermal comfort while conserving energy. Alongside energy, water is also an essential resource in the UAE – on average it rains only 10cm each year. However, the country is one of the highest water consumers per capita in the world. Energy-
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Smart Utilities
Improving reliability Data from apps such as Uber, Google Maps and RTA can provide government and infrastructure planners with vital data to improve reliability of transportation networks, says Michael Boyle.
intensive desalination provides the majority of potable water. Smart technology may be used to build a resilient water network in places like Dubai where the city is under pressure from growing demand and water scarcity. Sensors present across the water supply network would indicate pressure, temperature, flow rate, water quality and consumer use. When training algorithms are applied to allow sensors to learn and communicate with each other, utilities companies can use the information to make strategic decisions on infrastructure investment, streamline maintenance procedures and identify leaks and pressure loss. Similarly, at consumer level, smart water meters would quickly identify leaks and unnecessary overconsumption, allowing occupants greater transparency and control. City transportation systems are a key component for quality
Enabling better decisions Data can be analysed by government and city planners to create recommendations that enable better decisions, says Katherine Bruce.
of life in a city. In places like Dubai, public and private road transportation are the key modes of commuting and logistics. To alleviate the dependence on cars, we need to look at smarter transportation systems. Data from apps such as Uber, Google Maps and RTA can provide the government and infrastructure planners with vital data on transportation routes, areas of congestion and times issues occur. Furthermore, the data can be used to improve the reliability of the public transportation network by providing visibility on arrivals, departures and route information. To encourage car-pooling and public transportation use, multi-modal fare integration would help people to use multiple transport options without the hassle of purchasing different tickets. Moreover, the tickets could be purchased through a centralised app, removing the need for physically printed
tickets. Integrated transit hubs, strategically located throughout the city, would link the available transportation modes with commuters, for an easier and more efficient flow of commuters in and around the city. Furthermore, the implementation of bicycle- and pedestrian-friendly options such as bike sharing systems can remove the dependence on vehicular traffic. A public bicycle sharing system, such as the one implemented in London, is a successful service in which bicycles are made available for shared use to individuals on a very short-term basis. Smartphone mapping apps show nearby stations and availability of bikes, increasing the convenience for users. Finally, the people living in a city are one of the most complex sensors a city can have. Nowadays the majority of city residents own a smartphone,
wearable self-tracking device or similar. A smartphone is a highly personalised piece of technology – two identical smartphones from two different people are set up and used completely differently, in terms of the installed apps, usage patterns and social media content. These devices gather enormous amounts of data about the individual using them, and the data gathered and shared by these devices gives an insight into the actual preferences, behaviours and knowledge of the people living in the city. This data can then be analysed by government and city planners to create recommendations that enable better decisions by understanding what makes a city tick, what works, what doesn’t, what people use and what they don’t. A true smart city uses all the available data and analytical results to inform better decisions and outcomes for residents.
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“Governments will need to consider innovative policy and regulatory approaches, enhanced public-private sector partnerships and opportunities to commercialise smart city data and overcome barriers”
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Digital revolution The volume of data currently being generated by our devices is propelling a new age of digital revolution.
Karthik Venkatasubramanian
Smart Cities: The data opportunity Karthik Venkatasubramanian, senior director – Data Strategy and Operations at Oracle Construction and Engineering According to a report by Orbis Research, the global smart city market was valued at $529.55bn in 2017 and is forecast to reach 1.944tn by the end of 2023, with a compound annual growth rate (CAGR) of 24.21% between 2018 and 2023.
This growth is largely fuelled by an increased demand for innovative solutions in areas such as transportation, energy use, water and environmental sustainability, and has been driven by an expansion of urban populations. Looking at some examples of smart cities, you could argue they
fall into two categories. There are those like NEOM and Al Qidiya in Saudi Arabia being built from the ground up, which provides a unique opportunity to embed digital from the beginning. Then there are existing cities adopting modern technology to solve specific or holistic challenges to urban living, such as traffic congestion, energy use and waste. Amsterdam, named European Capital of Innovation by the European Commission, is a case study in itself. The city’s use of IoT, approach to open data, creation of a smart city platform and the
collaboration it fosters between public and private enterprises are models worth noting. Whether ‘digital by design’ or ‘digital by choice’, the unprecedented volume of data being generated is propelling a new age of digital revolution. The IoT-fuelled explosion of new technologies such as sensors, drones and meters, combined with ‘smartification’ of everyday products like lightbulbs, fridges and televisions, is changing everyday life. Most cities are undertaking some form of initiative to smartify public services such
as transportation, for the health, safety and productivity of residents. Echoing this growth in technology use, Oracle Construction and Engineering has established an Innovation Lab in the US to help organisations explore the latest solutions to accelerate digital transformation. The lab is designed as a simulated project work-site with integrated technologies, enabling visitors to interact with various leading-edge solutions, including connected devices, autonomous vehicles, drones, augmented reality, data visualisation and artificial
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things – the underlying assumption is that we become happier, healthier, safer. That’s certainly the plan anyway. In reality, while it solves some problems, it creates new ones, including questions around data security. The data approach
“Project owners and contractors are using data to make informed decisions throughout the different phases of a project”
intelligence tools. This smart work-site aims to bring to life the performance improvements and data insights these technologies can deliver at scale. Smartification of everyday life
Data can now provide insights into how people live in their homes, through energy use, food consumption (smart fridges, etc), waste management, health, fitness, entertainment – how they move, through travel by bike, car, train, plane, boat or foot, and how they work. Connected buildings, cars, homes and people are sending
signals constantly – what’s happening at any time, where they are, what’s going wrong, what might go wrong, when they need proactive intervention. Generating insights into what has happened and why is one thing, but when all this data is used predictively through AI, machine learning and deep learning, the paradigm is transformational – and one that we don’t necessarily fully understand. Why is all this important? Because when data starts to change our patterns of behaviour – what we do, where we go and how we do
In our experience, more and more project owners and contractors are using data to make informed decisions throughout the different phases of a project. But when the project is complete, two assets are now handed over – the physical and the digital. Not only do these digital twins need to be maintained, but the data that these smart, connected buildings generate need to be collected, secured, analysed and used. In general, it’s fair to say that data is owned by the people who create it. Residents should be encouraged to share data when they get something in return – lower power bills, reduced insurance premiums, congestionfree commutes, safer cities, faster emergency services and the like. Many cities around the globe have successfully implemented public and private partnerships and collaborations to provide real benefits to residents (Amsterdam is a good case in point). Key to all of this is ensuring that the right technologies are in place to produce, capture and analyse this data quickly, safely and effectively, and the cloud plays a vital role in realising those outcomes. It’s difficult to categorically state that smart cities are leading to happier, healthier and safer citizens. Ironically, we’ll need much more data before we can assess that. What we do know is that generating more data and mining it for insights will enable us to make better decisions, both reactive and predictive. And this can only be a good thing for enriching people’s lives. Smart Cities Report 2018 27
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Ducab: connecting smart cities Ducab, a UAE manufacturing company, explains how its products have contributed towards the country’s smart city transformation, with its cables used to deliver power, connect smart systems and protect buildings Dubai has a clear vision: to be a world-leading smart city. Powered by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, initiatives to introduce innovation and digitisation across the emirate have attracted more than $20 billion of foreign direct investment in high-end technology transfers in just the last three years. This not only sets the tone for Dubai’s ambition, but demonstrates that the world is keen to participate in the emirate’s transformation towards using technology as a driver of economic growth.
While foreign direct investment is a powerful component of any city’s development strategy, creating a strong base for growth is an essential step. Social, economic and environmental sustainability creates a solid foundation on which a smart city will thrive. A smart city thrives by weaving together societal fabric, promoting engagement, applying collaborative leadership methods and working across disciplines and city systems, using data and technology to respond to the most pressing issues it may face.
The government is undoubtedly driving Dubai’s transformation, but support from the private sector will always be required in order to create a fully integrated, technology-rich society. As a leading UAE manufacturing company for nearly 40 years, Ducab has a lot to contribute to the country’s smart city transformation. Its cables are used in the delivery of power, to connect smart systems, to help protect buildings and in many more applications, including the development of entirely new products specifically designed to the needs of the UAE’s growing society. Not only is Ducab creating products that contribute to the growth of Dubai’s smart city vision, it is empowering the emirate’s economic diversification efforts too, by remaining a steadfast contributor to a growing industrial sector. When it comes to connecting smart cities, quality must remain a focus. Ducab takes pride in providing a quality-assured product range that adheres to strict global standards, and the company believes that, apart from ensuring its products meet these standards,
Quality in focus Ducab provides a quality-assured product range that adheres to strict global standards.
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Advertorial
it also has a responsibility to educate others on the importance of using standards-compliant electrical wiring and cables. All of Ducab’s factories are ISO 9001-certified. Since 1979, Ducab has been recognised for its environmental, health and safety standards, the quality of its products and its commitment to excellence, with numerous certifications. Ducab’s Quality Management system has been certified to ISO 9000 since 1993; Ducab’s Environmental Management system is certified by BASEC to ISO 14001; and Ducab achieves extraordinary results in the industry without compromising the safety of its employees, with its Health and Safety system certified to OHSAS 18001. The company is also committed to diversifying its product range to meet the energy needs of a smart city. This includes a full range of low-, medium- and high-voltage products – the last of which was developed through the Ducab HV venture, the first dedicated high-voltage (60-150kV) and extra-high-voltage (220-500kV) power cable manufacturing facility in the Middle East. This range is particularly praised by public authorities which operate within the electricity sector. Creating smarter solutions and technical innovations has long been part of Ducab’s history. Having opened in 2008, for example, Ducab Copper Rod Factory was not only the first casting copper plant in the UAE, but also made Ducab the first in the region to have both aluminium and copper rods in its repertoire. Ducab was also the first cable manufacturer in the world to introduce and qualify 60-year sustainable halogen-free nuclear cables that meet the most stringent
cable testing standards – such as IEEE, prevalent in North America. Called Ducab NuBICC, these cables were customised and adapted to the needs of the UAE’s first four nuclear power plants, of which they have become an integral component. Their high level of qualification assures reliable performance over the lifetime of the nuclear plant and during fire emergencies, when the cables will not emit smoke or toxic fumes and will restrict the fire from spreading. A strong local supply chain is also key to smart city planning. Local high-quality products allow UAE entities to pursue their smart city projects faster, more securely and in the most cost-effective manner. To cater for the growing market for aluminium, for example, Ducab Aluminium Company (DAC), a joint venture between Ducab and SENAAT, was officially inaugurated in January 2018 in the Khalifa Industrial Zone of Abu Dhabi (KIZAD) following an investment of $60 million for buildings, machinery and infrastructure. The company has the capacity to manufacture 50,000 metric tonnes of high-quality electrical grade aluminium rod and overhead conductor per annum, supplying to both local and international customers. As a trusted partner in city planning, Ducab has supplied electrical cables to a number of landmark projects in the UAE, including the Burj Khalifa, Dubai Metro, Emirates Palace, Burj Al Arab, Atlantis the Palm and Yas Marina Circuit. The company has also built an international presence by supplying power cables to international projects such as the Ras Gas Project, Central Bank of Oman and Dilmunia Health Centre in Bahrain, among others.
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Sustainable Smart Cities
Working with the private sector EWS-WWF is looking to work with the private sector to develop technologies that advance the use of renewable and sustainable resources in the UAE.
Fast-Tracking Sustainability
Abdulla Al Nuaimi, director of Business Development, Emirates Wildlife Society – WWF, explains how EWS-WWF’s Climate Change and Renewable Energy department is supporting the UAE’s energy transition by developing partnerships with the private sector
The pursuit of sustainability has become a central topic of conversation throughout the private sector in the UAE. At the core of this discussion is the vast potential this country has in the field of renewable energy.
In fact, with record low prices for solar photovoltaic in Dubai and Abu Dhabi (at 2.99 and 2.42 $ cents per kWh respectively), the UAE is now positioned as a global hub for renewable energy development. This
progress has resulted in some businesses proactively installing solar panels on their rooftops, contributing to the UAE’s target of 44% renewable energy capacity by 2050. However, ambitious goals are rarely accomplished without overcoming challenges, and as climate change shows no signs of slowing down, there is an urgent need to act. Enabling the UAE’s energy transition
The UAE Ministry of Energy and
Industry (MOEI) and Emirates Wildlife Society in association with WWF (EWS-WWF) see the protection of the natural environment as a priority. In facilitating the sustainability of our water resources and our energy sector, MOEI and EWS-WWF recently released a report entitled ‘Enabling the UAE’s Energy Transition: Top Ten Priority Areas for Renewable Energy Policymakers’. This report provides decision-makers
across the UAE with sciencebased, stakeholder-driven recommendations to accelerate the UAE’s progress towards its long-term renewable energy targets. This move to renewable energy is a crucial measure in addressing climate change and ensuring people can live in harmony with nature. The fact that renewable energy changes are occurring in a major oilproducing country like the UAE is something that I hope will inspire
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Sustainable Smart Cities
Support emerging technologies One of the key policy recommendations from EWS-WWF is to support emerging technologies, like the ones seen at The Sustainability City.
Top ten key policy recommendation areas
other oil export-dependent countries in the region. Private sector innovation
The findings of this report show that the private sector in the UAE is integral to the required energy solutions. In fact, private sector case studies are already demonstrating commitment to innovation in this area – The Sustainable City (TSC), a lowcarbon residential and mixeduse development in Dubai by
1. Competition: Promote open and fair competition between technologies, based on transparent, marketbased mechanisms across the energy value chain. 2. CO2 targets: Complement existing renewable energy targets with a pathway for CO2 emissions reductions. 3. Renewable energy targets: Establish a fully flexible renewable energy policy framework which sets review milestones and interim targets. 4. Firmness and flexibility: Enable technology-neutral auctions that adapt to changing requirements as the system and energy economics evolve over time. 5. Demand-side management: Accelerate energy efficiency improvements across all sectors with measures that have the greatest energy-saving potential.
6. The water-power nexus: Decouple power generation and water desalination through the introduction of additional stand-alone water production plants powered by renewable energy. 7. Emerging technologies: Support development of and competition among emerging technologies such as seasonal storage and electric vehicles. 8. Networks: Prevent congestion and ensure that costs to resolve constraints are kept to a minimum, to keep the network as efficient as possible. 9. Interconnection: Build a regulatory framework for efficient dispatch between domestic utilities, and consider regional trading with KSA and Oman. 10. Innovation: Encourage research and development by government, private sector and academic institutions for locally relevant solutions.
Diamond Developers, is one such case. It aims to become the first operational net zero energy development in the emirate. TSC and EWS-WWF have formed a strategic partnership with the aim of tackling climate change, promoting renewable energy and reducing greenhouse gas (GHG) emissions. We are working together closely in conducting a GHG assessment and report, showcasing the benefits of powering a community through solar PV rooftop installations, and organising community events. Thanks to new efficiency measures, TSC residents incur zero electricity costs some months per year. The ongoing innovation at TSC demonstrates the practicalities of low carbon growth and puts forward a practical and successful business case for pursuing an energy transition in the UAE. Mutually beneficial partnerships
Transitioning to renewable energy has the potential to create great economic opportunities for countries committed to reducing their emissions. The report by MOEI and EWS-WWF shows that economic growth and job creation – in addition to energy security and emissions reduction – are important private sector considerations in this pursuit. For this reason, we are inviting private sector entities from across all sectors to support local initiatives by partnering with EWS-WWF’s Climate and Energy Programme. As a nonprofit organisation, EWS-WWF is committed to helping our society redefine its relationship with our planet so that people can live in harmony with nature. It is through mutually beneficial partnerships that tackling climate change becomes a reality.
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Last Word
The Future of Homes
Kaizar Patla, head – Consumer Assets at ADCB, outlines how residents can use smart technology to update their homes and improve their own efficiencies
The UAE is on track to be one of the world’s leading smart cities in the very near future, so what does that mean for our homes? Smart digital technology is something that is making its way into all our homes and can help make life much easier.
In the UAE, developers are now frequently collaborating with technology leaders to provide solutions to home buyers, equipping homes with the latest network infrastructure, cloud-based safety and smart solutions, while other authorities, such as utilities and telecoms, are also heavily investing in improving the lives of UAE residents by providing customised digital smart home solutions. However, you don’t need to move to a new house to benefit from a smart home. Whether looking to update on a small or large scale, you can take simple steps to update your own home. Why should you go smart?
A smart home is an intuitive one. For example, lights, air conditioning, audiovisual, security systems and major appliances can all be connected and controlled, whether you’re at home or abroad, through an internet connection. Here are some ways you can evolve your house into a smart home: The set-up
1. The first thing to consider when making changes to the interior is equipping your home with enough power outlets at pre-decided points, for easy connectivity of all devices. 2. Network your home with strong Ethernet cables for easy installation of smart hub devices in accessible spots. These are the main players in any smart home, as they can run with multiple devices connected to them. 3. Ensure that you have a strong wireless connection with an extendable router in your rooms for better
connection. The router should be placed in the centre of the room so that all devices are able to access the internet. It is important that you have fast internet speed, as multiple devices will be connected, along with anyone also using the internet at home. Smart devices
Many retailers across the UAE already offer a range of smart home solutions at varying prices for your budget. Here are some top smart devices that are easily available now: 1. Virtual home assistants allow you to control all your smart devices at home by using your voice. You can connect your smart lights, air conditioning, music and other devices, making it easier for you to control and access them. 2. Smart locks are designed to help you open house doors with a tap of a finger by communicating with the Bluetooth on your phone.
3. Smart doorbells let you answer your door from your phone. They are also equipped with a camera, meaning you can see and often speak to the person at the door. 4. Smart home security cameras mean you can keep a close watch on your house while away at work or even on holiday. Or, if you have a pet, they are also the ideal solution for monitoring them while you’re out. These cameras can also send motion-activated alerts to your phone with a built-in siren, so that if needed, you can trigger the alarm and take necessary action. These come in indoor and outdoor form. 5. Smart lights come with a Wi-Fi enabling bridge, dimmers and a remote, allowing you to control your lights through your personal device or voice assistant. 6. Smart air conditioning helps save energy by bringing your home to
the right temperature before you arrive. It learns your habits, adjusts itself and makes it convenient for you. 7. Say goodbye to your vacuum cleaner; mop floors with a smart cleaning device. This device will do all the dirty cleaning work by using navigation software and sensors to map out the most efficient route and automatically avoid obstructions. Smart solutions in homes are growing rapidly and show no sign of stopping. Home automation and monitoring solutions give you full control over your home by saving energy and, in the simplest form, connecting to Wi-Fi. Whether you’re planning to upgrade your home or make these changes in your new property, choose the right kind of smart solutions and make your home the smart home of the future.
32 Smart Cities Report 2018
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BIM SUM
OCTOber 28, 2018 – HabTOOr Grand HOTeL, dubai, uae
Join us on October 28, 2018 as we move the BIM revolution forwards with our very first BIM-focused conference. An exclusive, invite only event that educates construction executives about: The reality of biM implementation • The obstacles facing BIM implementation and how they have been overcome data Sharing and Security • Is the GCC ready to adopt Cloud-based BIM? • Protecting data and respecting confidentiality The Future of biM • Keynote presentation • Game changing trends in BIM • Designing and modelling on the fly Collaboration and biM • The importance of information sharing • Real-time updates shared amongst stakeholders risk Management and biM • Predicting challenges and resolving issues during the design stage • Ensuring engagement across the supply chain biM and MeP engineering • Achieving MEP sustainability through effective planning and design FOr FurTHer inFOrMaTiOn: Raz Islam, Publishing Director T +971 4 375 5471 e raz.islam@cpimediagroup.com
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Connecting People Through Technology
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