What options do firms have if they are affected by COVID-19 measures
ON TOPIC
Tony Abi Gebrayel on tech, architecture and expansion
IN PRACTICE
Women in Construction: Cristina Esposito
ON SITE APRIL 2020
069
FOR THE CONSTRUCTION SPECIALIST
MEC speaks to several firms about the new realities of a world changed by the virus
Adjusting to COVID-19 Realities
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Contents | 01
20
April 2020 Issue 069
Cover Story
Adjusting to COVID-19 Realities
Jason Saundalkar speaks to several construction companies about the new realities of a world drastically changed by the rapid global spread of COVID-19
26
Opinion
Practical Advice HKA’s Jeffrey Badman provides practical guidance to construction firms that have experienced delays and disruption caused by government actions reacting to the virus
Interview
16 meconstructionnews.com
Master of Change
Jason Saundalkar speaks to MZ Architects’ Tony Abi Gebrayel about the evolution of architecture and client requirements, dealing with the challenges of the COVID-19 pandemic and opportunities in Africa April 2020
02 | Contents
32
Analysis
UAE Construction Industry Review Ventures Onsite reviews how the UAE construction industry performed across several sectors in 2019
12 Profile
Cristina Esposito
Jason Saundalkar talks to Cristina Esposito, director – Construction Projects at Drees & Sommer Middle East, about her influences, career and gender diversity in the construction industry Opinion
Fire and Life Safety Asteco Property Management’s Nick Constantine speaks about the evolution and current state of fire and life safety in the construction industry in Dubai
8
18
Update
News
Dubai College installs region’s largest monoblock swimming pool; Expo 2020 Dubai committee confirms talks exploring postponing event until 2021; Danube Properties launches new master planned residential project in Al Warsan, Dubai April 2020
meconstructionnews.com
Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ
Threat & Risk Assessment Gap Analysis Security System Design IT/AV Design Master Planning & Development Operational Requirements
Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ
Testing & Commissioning Control Room Design System Integration Policies & Procedures Site Surveys & Audits Crisis Management
04 | Welcome
Group MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5713
Editorial EDITOR JASON SAUNDALKAR jason.s@cpitrademedia.com +971 4 375 5475 SUB EDITOR AELRED DOYLE aelred.doyle@cpitrademedia.com
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Stay Home, Stay Safe! Dear readers, I sincerely hope that you and your families are healthy, safe and, crucially, remaining indoors. Staying/ working at home is the safest and most responsible course of action anyone can take during these unprecedented times. When I put the March edition of Middle East Consultant to bed at the end of February, I noted in my editor’s letter that the number of COVID-19 cases globally stood at 86,000. The global counter now reads over 785,000 cases – that’s a staggering increase that shows just how serious the COVID-19 pandemic is. Of course, we’ll have to leave the safety of our homes for some essential tasks, but apart from that it’s critical to respect the isolation guidelines outlined by the authorities, to stem the spread of this contagious and deadly virus. Before I move ahead, I’d like to take a moment here to applaud the magnificent efforts of the UAE leadership, the government, healthcare and law enforcement professionals, and everyone else working to keep things ticking along during this pandemic. The UAE, as a whole, has tackled this challenge head-on, in a proactive and sensible manner. I’ve never been happier to call this country my home. In line with regulations, I and my colleagues have been working from home for April 2020
the last couple of weeks. It has taken time to adjust to this new reality and way of working, but I now appreciate the extra time I have each day. (I don’t miss driving and traffic at all…) I’ve used the extra time to look at things in my own life that I’d like to change and, from a professional standpoint, how I can do things differently with MEC and all its associated events. We already redesigned the magazine back in December 2019 ahead of the Awards, but we’ve now got a couple of interesting things planned for our digital issues. It won’t be long before you see them ;). Of course, due to the pandemic, we also postponed our annual Value Engineering (VE) Summit and the second edition of Women in Construction (WIC) Summit, and are now tentatively working to June 9 and 15 respectively. Here too, I’m keen to change things up with the format, while surpassing the level of quality you expect in terms of topics and speakers. I’ll get into specifics when things are a little more final, but rest assured that we’re on the case and are as committed as ever. Until then, stay safe everyone!
Jason Saundalkar Editor, Middle East Consultant
HEAD OF KEY PROJECTS ANDY PITOIS andy.pitois@cpitrademedia.com +44 7816 843 610 COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpitrademedia.com +971 4 375 5714
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The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2020. All rights reserved.
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06 | On Topic
MOST POPULAR
FEATURED
CONSTRUCTION
CORONAVIRUS: UAE PROPERTY MARKET TO RECEIVE SHOT IN THE ARM DUE TO $27BN STIMULUS PACKAGE, SAVILLS MIDDLE EAST SAYS
SCCI and Etihad Rail call on relevant business sectors to participate in rail project
CONSULTANT
Coronavirus: Dubai Investments announces initiatives to combat COVID-19
Interview: Ducab CEO on new copper, aluminium metal subsidiary DMB (Exclusive)
CONSTRUCTION
Oman launches pilot project for smart cities at Knowledge Oasis Muscat
CONSULTANT
Egypt proposes alternate e-waste disposal solutions
MACHINERY
Cummins becomes sole engine supplier for Hyundai CE’s heavy range
April 2020
READERS’ COMMENTS
It is no surprise that we are finally beginning to see the market start to react to the spread of the virus (Coronavirus: UAE property market to receive shot in the arm due to $27bn stimulus package, Savills Middle East says). I have been relieved to see projects I am involved in take measures to protect our workforce and I am glad to see that our peers are also now taking the necessary steps. It is important that all the way down the chain of construction that we now support one another to ensure that we can retain some normality in this extraordinary time. However, I do worry that this is the beginning of a longer malaise as we deal with this threat plus the ongoing problems in the global economy. It is now imperative that we continue to reach for the highest standards possible and work collectively to ensure we come out in a stronger position once this period is over.
Feature: Site Visit – Building the Pangolin
Name withheld by request
meconstructionnews.com
8 | On Topic
Education
Expo
Dubai College installs region’s largest monoblock swimming pool
Expo 2020 committee explores postponing event to 2021
The region’s largest commercial monoblock concrete swimming pool has been installed at Dubai College, according to a statement from Godwin Austen Johnson (GAJ). Cast in one piece, the monoblock design is constructed using galvanised steel panels assembled to create a continuous formwork between the walls and the base of the pool, the statement said. GAJ noted that the one-piece steel reinforcement enables the concrete to be poured in a single continuous process, making it watertight and reliable. It is also crackresistant and unaffected by the weather, the firm notes. “The high durability of the monoblock pool, coupled with the low maintenance required, made this installation an obvious choice for the new swimming pool at Dubai College. The concrete pour for this type of installation is fast and was completed in just one day, ensuring a perfectly homogenous finish to the structure,” said Jason Burnside, partner at Godwin Austen Johnson. According to GAJ, this is the largest commercial pool construction in the UAE for swimming pool installation firm Desert Grove, said to be the exclusive regional agent for swimming pool design and build company Marinal. The new pool is said to be a key component of the new sports and performing arts complex development at the college.
01 01 GAJ says the high durability of the monoblock pool, coupled with the low maintenance required, made it an obvious choice.
A second virtual meeting of the Expo 2020 Dubai Steering Committee has “collectively agreed to explore with the BIE, the World Expo governing body, the possibility of a one-year delay to the opening of Expo 2020”, an official statement has declared. The announcement that the event, which was planned to open in October 2020, could now face up to 12 months delay follows a virtual meeting held in March between representatives of the countries taking part and the organisers of Expo 2020 Dubai. A statement explained that the talks over postponing Expo 2020 Dubai had been
02
02 The Expo 2020 Dubai Steering Committee is holding virtual talks with the BIE about delaying the event to 2021.
April 2020
meconstructionnews.com
On Topic | 9
the result of ongoing consultations on how the COVID-19 outbreak will impact “global preparations”. MEC sources from within the construction industry have also confirmed that they have been instructed that the start of the global showcase could be moved. According to the statement, the Steering Committee reviewed with grave concern the major impact that the spread of COVID-19 is having on global public, social and economic health. The members reaffirmed their solidarity with the international community as it navigates the ramifications that have resulted from this unprecedented global crisis. The Expo 2020 organisers reaffirmed the United Arab Emirates’ commitment to working hand in hand with its international partners to deliver a World Expo which holds true to its founding purpose: providing an inclusive global platform to address shared challenges and seek solutions in the spirit of international cooperation and global solidarity. The global platform that Expo 2020 will provide will be needed more than ever, the statement said.
03
03 The airport city will have a 200,000sqm logistics portal for air freight services and logistics, which includes the air freight building at Muscat Airport.
Mega Project
Oman unveils new airport city mega project The Oman Aviation Group has taken the wraps off a master plan for its Muscat Airport City mega development. It will feature a business zone as well as hospitality and logistics areas. According to a report by the Times of Oman, the airport city will have a 200,000sqm logistics portal designated for air freight services and logistics, which includes the air freight building at Muscat Airport. The business portal, a mixed-use project spread over an area of 1.1m sqm, will have spaces meconstructionnews.com
designated for airline office units and related economic sectors. The airport city’s aviation portal, which includes the passenger terminal area and the location of the previous air freight buildings, will occupy some 166,000sqm, the report said. The hospitality portal, which spreads over an area of 192,000sqm, will include hospitality, duty-free shops, offices for travel companies, and hotels for travellers or short-term visitors. “The project is aimed at achieving the highest levels of utilisation of the new airport’s high capacity and to help boost air traffic. It also takes advantage of the land areas surrounding the airport to create a stimulating environment for the establishment of aviation-related projects,” said Oman Aviation Group CEO Mustafa Al Hinai. The project is being implemented as part of the National Aviation Strategy 2030. It will also see the development of an air freight building at Muscat Airport. Al Hinai added, “The city is meant for Oman’s future generations because the development will take over 20 years, as these many years will be needed for critical planning, dedication, specific teams, knowledge, credibility and accreditation for it to become one of the recognised international cities in the region.” April 2020
10 | On Topic
Residential
Danube Properties launches new master planned residential project Danube Properties has announced Olivz, a $108m master planned cluster of residential buildings. The project is to be developed in Al Warsan, Dubai and will comprise 741 residential units, as well as retail and recreational facilities. The developer is billing the homes as affordable.
04
Olivz will be developed on an 18,016sqm plot of land at Al Warsan First. “This marks the first real estate project launch of 2020 in the UAE and reflects Danube Properties’ confidence in the market that is witnessing a slow upturn as the countdown to the World Expo 2020, that is expected to drive the demand for new homes, gains momentum,” said Rizwan Sajan, founder and chairman of Danube Properties. “The launch of Olivz reflects our growing confidence in Dubai’s real estate market, which never ceases to amaze investors,” added Sajan.
04 With the launch of Olivz, the firm’s portfolio is said to now stand at 6,194 units with a development value exceeding $1.2bn.
05
Transportation
RTA extends suspension of transportation services to April 5 Dubai’s Roads and Transport Authority (RTA) has extended the suspension of public transport services – metro, tram and marine – across the city until April 5. The move is part of the National Disinfection Programme being jointly undertaken by the Ministry of Health and Prevention and the Ministry of Interior. According to the transportation authority, public transit services including the metro, tram and marine will cease to operate from 8pm to 6am daily up until April 5. The services will operate with regular timings outside of the hours during which disinfection processes will take place. “During these hours over this period, all public transport means in Dubai will cease services, and will operate on regular schedules
April 2020
meconstructionnews.com
On Topic | 11
Accelerator Programme
Ten new startups selected for Arcadis City of 2030 accelerator programme
outside those hours, i.e. from 7am to 7pm,” the RTA said. Full operational timetables will be restored at the end of the National Disinfection Programme, which began on March 26. The RTA also said it was stopping all marine transport services including abras, ferry and water taxi until April 30, as part of precautionary measures taken to curb the spread of COVID-19. The statement notes that all public transport journeys will commence at 7am. The last journey on Dubai Metro’s Red Line will depart at 6.02pm from Rashidiya Station to UAE Exchange Station and at 6.02pm from UAE Exchange Station to Rashidiya Station. On the Green Line, the last train will depart from Creek Station to Etisalat Station at 6.13pm, and the last train will depart from Etisalat Station to Creek Station at 6.17pm, the RTA explained. The last intercity bus service will depart at 4pm to Abu Dhabi and Fujairah, and 5pm to Ajman and Sharjah, the statement said.
Arcadis has selected ten startups for the second wave of its City of 2030 accelerator programme, which aims to identify and develop innovative startups to transform the natural and built environment. The firm works with American seed accelerator company Techstars on the programme. The startups featured are focused on developing ideas around urban planning, resiliency, sustainability, new mobility and logistics services, a statement from the firm said. The core technology and products of the various startups are said to complement Arcadis’ existing business and strategic vision. The 10 startups in this year’s programme are Niricson (Canada), ISeeChange (US), crea.
vision (UK & Canada), Yellowbox (Australia), Data for Good (Netherlands), Agilicity (Slovenia), Downtown.AI (Canada), Geofluxus (Netherlands), Propfolio (UK) and Cobalt Water Global (US). The companies will work with the programme team during a three-month programme in office space provided by Arcadis in Amsterdam, and will take part in a Demo Day to showcase their ideas on May 28. Arcadis says the startups will get support from industry mentors, and explore scalable opportunities for collaboration within Arcadis and its clients. “We are excited to work with these startups to help cities plan for the future. They bring cutting-edge ideas to address the challenges of urban communities that are in need of unconventional solutions,” said Stephan Ritter, Arcadis group executive for Innovation & Transformation. The ‘City of 2030’ theme relates to the strategic vision developed by Arcadis and is based on the fact that in the next decade, the vast majority of people will live in cities.
06 The ten startups will work with the programme team for three months and will get support from industry mentors.
06
05 The RTA says metro, tram and marine services will cease from 8pm to 6am up until April 5.
meconstructionnews.com
April 2020
12 | On Topic
UAE Construction Industry Review Ventures Onsite reviews how the UAE construction industry performed across several sectors in 2019
The UAE’s building construction market registered significant growth in 2019 due to the ongoing positive initiatives taken by the government and Expo 2020. The economy grew robustly, driven by rising business optimism, Abu Dhabi’s $14bn Ghadan 21 programme (2019-2021), the launch of freehold residential projects in Sharjah along with the introduction of long-term residency visas, and government and private sector spending on Expo 2020 projects. For 2019, the International Monetary Fund (IMF) projected a 1.6% increase in real GDP for the UAE. April 2020
meconstructionnews.com
On Topic | 13
UAE Budget 2019
The 2019 budget was approved at a total of $16bn, allocated to various sectors with a focus on those directly linked to citizens’ well-being, health and education. This was the largest federal budget since the establishment of the UAE, with zero deficits. The objectives of the federal budget were to meet the emirate’s Vision 2021 and Centennial 2071 plans, and put several national priorities on the forefront. The UAE building construction industry will thrive post-expo due to new initiatives launched in 2019, such as the Ministry of Education Strategic Plan 2017-21, the National Strategy for Higher Education 2030 and Education 2020 Strategy, the Sheikh Zayed Housing Programme (SZHP) and the Dubai Tourism Strategy. UAE building construction contractor awards came to $22.236bn in 2019. Among the emirates, Dubai had the largest share in the UAE, due to preparations for Expo 2020. According to PropertyFinder, property sales transactions in Dubai hit an 11-year high in 2019, with growth of 20% compared to 2018, as new government policies boosted the sector. Dubai formed a Higher Real Estate Planning Committee headed by the ruler and senior property developers, which aims to achieve a balance between supply and demand in the sector. The body will aim to avoid a duplication of projects and ensure their added value to the economy. In January 2019, the UAE Supreme Council Member and Ruler of Ras Al Khaimah, Ras Al Khaimah Municipality launched Barjeel, Ras Al Khaimah’s green building regulations. Buildings in line with Barjeel are expected to consume 30% less water and energy, with minimal impact on construction costs. The Department of Municipalities and Transport (DMT) announced a $2bn For Abu Dhabi initiative, which falls under the Ghadan 21 programme. Public works will include citywide public art projects, four signature parks, waterfront projects, the completion of a citywide cycle network, regeneration of several streets and 16 community parks, as the authorities look to make the capital one of the most liveable cities in the world. meconstructionnews.com
April 2020
14 | On Topic
UAE building sector project value by status, 2019
UAE GDP growth, 2016-2020
2.5%
UAE building contractor awards, 2016-2020 ($ million)
40,000
Planning
35,000
Design Tender Construction
2.0% 30,000
Hold
25,000
1.5%
20,000
Share of contractor awards split by emirate, 2019
1.0%
15,000
Dubai Abu Dhabi Sharjah
10,000 0.5%
Ras Al Khaimah
5,000
Fujairah
Residential, Retail, Hotels
In February 2019, the UAE announced a new $8.7bn housing plan for Emiratis that was to see 34,000 units built in the following six years. The SZHP is managing the construction of three residential districts in the UAE, including Ajman’s $272m Al Montazi complex containing 761 homes. According to CBRE, by the end of 2019 existing supply for student housing in Dubai had surged to 5,200 beds across approximately 20 projects, mostly located in DIAC, Dubai Land and Dubai Media City. According to TechSciResearch, the UAE retail market is projected to grow at a compound annual growth rate (CAGR) of over 4.5% during 2019-2024. Retail projects in 2019 included Nakheel Mall in Palm Jumeirah, Night Souk in Deira Islands and Cityland Mall in Arjan. Retail remains one of the most attractive sectors for investment in the emirate. Around 25m visitors are expected to attend Expo 2020, and hotel room supply in Dubai reached 132,000 in 2019, with Dubai April 2020
aiming to complete 160,000 hotel rooms by October 2020. According to JLL, around 800 keys were added in Q3 2019, bringing the total number of hotel and serviced apartment keys to around 124,000 in Dubai. The UAE hospitality sector is geared up for Expo 2020 with a significant capacity boost by adding 56,701 rooms, 33.6% of the country’s existing supply over 2020. The UAE will continue to lead the GCC’s luxury hospitality segment until 2022, with 73% of existing luxury hotel stock and 61% of the region’s pipeline located in the country, experts predict.
2020
2019
2018
2017
2016
2020
Umm Al Quwain
2019
Ajman
Education & Healthcare
In 2019, around $3bn (16.8%) was allocated in the budget for education. The government has established an Education Support Fund to encourage partnerships with the private sector. The fund will ensure sustainability of educational development programmes, which will be managed by federal authorities and ministries. Last year some $1bn (7.3%) was allocated in the budget for healthcare. The UAE government is extensively expanding and upgrading its healthcare system to develop strong, worldclass healthcare infrastructure. It is also encouraging private sector participation to upgrade the existing infrastructure and match the quality of services offered in developed countries. The UAE currently leads the Middle East and Africa smart hospitals market, according to industry experts. Notable commercial projects in 2019 included ICD Brookfield Place in DIFC and Amesco Tower in JLT. In the long run, various government initiatives in Abu Dhabi that aim to promote the commercial sector are expected to stimulate demand. meconstructionnews.com
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16 | On Topic
01 Jeffrey Badman is a partner at HKA.
Jeffrey Badman “To claim force majeure, the contractor will have to demonstrate that a force majeure event has occurred which is beyond its control” are included in Sub-clause 8.4 [Extension of Time for Completion], Clause 17 [Risks and Responsibility] and Clause 19 [Force Majeure]. Extension of Time
01
We are in unprecedented times, amid a pandemic that has seen the rapid spread of COVID-19 across the globe. This article aims to provide some practical guidance to contractors and subcontractors that have experienced delay and disruption caused by government actions reacting to the virus. Typically, the standard forms of construction contract used in the region are based on a version of FIDIC 99 (Red and Yellow books); these have been used as the basis for this article. These standard conditions contain provisions that set out the contractual remedies available should these circumstances arise. These provisions April 2020
Sub-clause 8.4 provides that the contractor shall be entitled, subject to Clause 20.1, to an extension of time if the completion date is or will be delayed by an “unforeseeable shortage in the availability of personnel or goods caused by epidemic or government actions”. The contractor under this provision should be entitled to an extension of time due to delays caused by COVID-19, as it is considered an epidemic. Probably of greater impact, though, are the consequences of government actions put in place to curtail the spread of the virus, as they are more far-reaching and have a far wider effect than the direct impact of the virus on the contractor and its subcontractors and suppliers. Employer’s Risks
Sub-clause 17.1 refers to sickness, disease or death. It states: “The Employer shall indemnify and hold harmless the Contractor, the Contractor’s Personnel, and their respective agents, against and from all claims, damage, losses and expenses (including legal fees and expenses) in respect of (1) bodily injury, sickness, disease or death, which is attributable to any negligence, wilful act or breach of Contract by the Employer, the Employer’s Personnel, or any of their respective agents, and (2) the matters for which liability may be excluded from insurance cover …”.
If the employer, its personnel or agents negligently, wilfully or in breach cause damage, loss or expense to the contractor by transmitting the virus to the contractor’s supply chain or its personnel, the employer shall indemnify and hold the contractor harmless. HKA considers that this includes relief from liquidated damages resulting from delays and the additional costs or expenses it has incurred by virtue of these acts. Force Majeure
To claim force majeure, the contractor will have to demonstrate that: a force majeure event has occurred which is beyond its control; it has prevented, hindered or delayed its performance of the contract; and it has taken all reasonable steps to avoid or mitigate the event or its effects. Clause 19 in the FIDIC 99 suite of General Conditions of Contract (Red, Yellow and Silver books) sets out the criteria for defining a force majeure event and the contractual remedies available if a force majeure event arises, preventing a contractor from performing its obligations under the contract. Sub-clause 19.1 of FIDIC 99 (Yellow book) provides that force majeure means an exceptional event or circumstance which: is beyond a party’s control; such party could not reasonably have provided against before entering into the contract; having arisen, such party could not reasonably have avoided or overcome; and is not substantially attributable to the other party. Sub-clause 19.1 provides a list of exceptional meconstructionnews.com
On Topic | 17
events or circumstances that might constitute force majeure. This list does not expressly include contagions, epidemics or pandemics as exceptional events or circumstances. However, it is noted that this list is not stated to be exclusive and it is considered that other events may constitute force majeure, provided that they satisfy the criteria (a) to (d) in Sub-clause 19.1. Applying these criteria to the COVID-19 pandemic, all four appear to be satisfied, constituting a force majeure event. It is arguable that work could have continued despite the pandemic, and that actions taken by governments, which resulted in lockouts, is preventing contractors, subcontractors and suppliers from fulfilling their obligations. Cost Claims
Sub-clause 19.4 provides that “if the Contractor suffers delay and/or incurs cost by reason of the Force Majeure event that it shall be entitled, subject to Sub-clause 20.1, to an extension of time and payment of its additional costs”. Thus, if the force majeure event causes a delay, the contractor is entitled to an extension of time. Concerning the recovery of costs, it is more complicated due to the construction of Sub-clause 19.4(b), as this expressly states which categories of exceptional events or circumstances mean the contractor is entitled to recover its costs. These categories do not include contagions, epidemics or pandemics. However, the government actions have effectively created country lockouts where the permanent works are being executed. In HKA’s opinion, this may allow a contractor to recover its costs under Sub-clause 19.4(b), although such claims will not be without their challenges. To support and substantiate any claim a contractor may wish to make in the future, it is suggested the contractor maintains and updates daily a register of the impact that COVID-19 has had upon its works. This register should include: delays to plant and equipment being manufactured in countries affected by COVID-19; staff prevented from returning to the country of the project; staff quarantined upon return or having had contact with a person infected with COVID-19; shipping imports under quarantine before being allowed to dock; work meconstructionnews.com
To support and substantiate any claim a contractor may wish to make in the future, it is suggested the contractor maintains and updates daily a register of the impact that COVID-19 has had upon its works”
fronts that cannot proceed, plant and labour working at reduced productivity or stood idle that cannot be reallocated to other activities; subcontractors that are delayed and disrupted in performing their activities; and action taken to minimise any delay in performance. Based on FIDIC 99 General Conditions of Contract (Red and Yellow books), it appears the aforementioned actions taken by governments to prevent the spread of COVID-19 constitute force majeure, preventing contractors from achieving their contractual obligations, entitling them to extension of time, if they have suffered delay, and providing an argument for payment of costs they have incurred. A contractor’s entitlement to extension of time and/or payment of additional costs following government actions implemented as a consequence of COVID-19 will depend on the wording of the contract; the impact of the actions on the supply chain, resources and performance; and its ability to demonstrate the effects of these through its contemporaneous records.
April 2020
18 | On Topic
01 Nick Constantine MRICS is head of Building Consultancy at Asteco Property Management.
01
Dubai has had its share of widely publicised high-rise fires in recent years, fires that have often spread quickly via facade systems. As in many other countries, combustible cladding and insulation materials have been extensively used in high-rise buildings in the UAE, with the greatest concentration in Dubai. April 2020
Nick Constantine “The 2018 code presents the standards in a much clearer format, something especially important in a region with such a diverse demographic” In a relatively short time, the UAE transformed itself from a country known for pearl trading into an urbanised, global economic hub. The speed of development was due to the vision of the UAE’s rulers, whose strategy of investing heavily in economic development, infrastructure and the legal and regulatory system has successfully established a strong, diversified economy. To achieve this necessitated the procurement of skills from outside the country. Emirati nationals make up a small proportion of the overall population, and the rapid influx of a large, diverse labour force was matched by the speed at which accommodation and infrastructure were constructed, creating a destination that would attract workers and tourists alike. It is fair to say, however, that the regulation of fire and life safety in construction lagged somewhat behind the rate of development in the early years of Dubai’s transformation. During the peak of this development in the first decade of the millennium, the UAE had no specific fire and life safety code of practice and therefore relied heavily on the relevant authority’s general building codes, and on design consultants adopting the standards of the US National Fire Protection Association and international building codes. Despite lacking bespoke guidance, highrise buildings were still provided with two staircases offering means of escape, automatic
fire suppression and addressable fire alarm and detection systems. During this period, design consultants cherry-picked standards and referred to a variety of codes with no UAE focus, which resulted in ambiguity and inconsistency in the approach to fire and life safety in high-rise buildings. This prompted the development of the first UAE fire code. Published in 2011, the UAE Fire and Life Safety Code of Practice was a 707-page document that combined much of the industry best practice available at the time into a single coherent document. But while it was widely welcomed and gave much-needed context and consistency, it didn’t go far enough in defining bespoke criteria for specific building types or uses. Only a year after its publication, a fire broke out at Tamweel Tower, a 34-storey residential building in a popular high-rise residential and commercial area called Jumeirah Lakes Towers. It was the first time a fire in Dubai had spread via cladding and was unlike anything firefighters had tackled before. As a result, the UAE Civil Defence was quick to specify minimum requirements for cladding systems and fire-stopping in a 33-page annexure to the code in 2013. Annexure A.1.21. Rev.2 – Passive Fire Stopping, Exterior Wall Cladding/Curtainwall and Roofing Systems banned the application of non-fire-rated cladding assemblies on all new mid- and high-rise buildings approved meconstructionnews.com
On Topic | 19
on or after 1 September, 2012. This applied retrospectively where cladding, fire-stopping or curtain wall installation had not commenced by 1 April, 2013. It also introduced the role of the house of expertise, a group of fire and life safety consultancies vetted and approved by Civil Defence to review and sign off works on its behalf. This group of firms is still in place today and actually includes approved fire safety training companies as well. Given that further annexures were subsequently released, and that the 2011 code had made minimal references to the uniquely diverse building designs and developments in the UAE, it became necessary to compile all existing and new guidance into a unified document. This therefore led to the development of the new 2018 UAE Fire and Life Safety Code of Practice. In preparing the 2018 code, Civil Defence involved stakeholders in the development of standards, releasing the document to a select group of architects, fire engineering consultants, developers and insurers. Subsequent workshops were then held with each group, and feedback collated to inform the published code. Stakeholder involvement was seen as critical in creating a code that did not compromise on life safety, but that was not overcomplicated or prohibitive to the growth of real estate. The 2018 code uses many more diagrams, photographs and tabulation to present the standards in a much clearer format, something especially important in a region with such a diverse demographic. The UAE’s diversity also influenced the decision to adopt the policy of confirming a fire and evacuating, rather than the stay-put policy widely implemented elsewhere. Some of the most notable changes introduced are: • Automatic sprinklers must now be installed on external balconies in buildings • A new chapter details the responsibilities of a wide range of stakeholders such as developers, manufacturers, suppliers and material-testing laboratories, as well as the roles of building managers, maintenance providers and residents during operation • It is now required that fire-resistant meconstructionnews.com
The UAE’s diversity also influenced the decision to adopt the policy of confirming a fire and evacuating, rather than the stay-put policy widely implemented elsewhere”
spandrels be installed in all buildings, with the exceptions of those less than 15m in height and open parking structures; this measure was actually introduced to protect against fire spread across building exteriors • Requirements for fire water tank capacities have been relaxed for some types of building due to improvements in Civil Defence response times • A new chapter regulating fire and life safety in marinas has been included. With its position on the Arabian Gulf coast the UAE has many marinas, and a number of boat fires have been reported in recent years • Private villas must now also be fitted with compliant fire alarm and detection systems, whereas previously this was not required These changes have been well received, as together they provide clear, robust guidance for all stakeholders. Further improvements, including a government material-testing laboratory, are expected in the future. April 2020
20 | In Practice
ADJUSTING
COVI Jason Saundalkar speaks to construction firms about the new realities of a world drastically changed by the global spread of COVID-19
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ID-19 REALITIES meconstructionnews.com
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The term ‘coronavirus’ was first coined in 1968 as a result of the virus’ appearance under electron micrographs, which resembled solar corona. This family of viruses has been a part of humankind’s history for decades, typically causing respiratory infections ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). The most recently discovered coronavirus causes COVID-19, which has unfortunately spread rapidly around the globe – at the time of going to press, over 785,000 cases have been confirmed as per the Abu Dhabi Department of Health website. To stem the spread of this disease, countries have taken a number of extraordinary steps, though the responses have varied drastically. In the UAE, the country’s leaders have unveiled a raft of initiatives and measures to stem the spread of the disease and lessen its impact on citizens, residents and businesses. The virus and the measures taken to curb its spread and keep people safe have had an impact on everyone’s lives, the economy and the way businesses function. Of course, the measures are 100% necessary. Here, Middle East Consultant speaks to several companies to find out how they are dealing with the current COVID-19 reality.
01 Nicholas Harris is managing director of Omnium International. 02 Stephan Degenhart is an associate partner at Drees & Sommer and managing director for the Middle East. 03 Neil Burnard is CEO of Expense Reduction Analysts.
“This is an unprecedented time for us all. Safeguarding the well-being and health of our family is paramount to us and this extends to our clients, other consultants and contractors on each of our projects. It is at the forefront of our thinking in every aspect of every day in this challenging and rapidly evolving environment,” says Nicholas Harris, managing director of Omnium International. “From very early on, we adopted open and clear channels of internal and external communication. Communicating awareness campaigns is vital to ensure that our staff have access to the most relevant and up-to-date information, advice and guidance from either the Dubai Health Authority or the Ministry of
Health and Prevention regarding the outbreak of COVID-19.” “We continue to monitor the situation very closely and have implemented remote working policies for the majority of our workforce. For those who cannot work from home, we’ve made arrangements to allow adherence to minimum social distancing protocols both physically and by the use of technology to facilitate ongoing necessary meetings by video conference from individual workstations. All our mitigation efforts are supplemented by support and guidance from our HR department to safeguard our staff at this most challenging of times.” Stephan Degenhart, associate partner at Drees & Sommer and managing director for the Middle East, remarks, “As a global business with nearly 4,000 employees in over 40 offices, the safety and well-being of our teams is a top priority. We’ve been closely monitoring the situation and have set up a C-level Corona Prevention Team that communicates daily with our headquarters in Germany. We follow and comply with all recommendations from the World Health Organisation and the Robert Koch Institute, as well as the Dubai Health Authority.” The firm has introduced a series of measures to help prevent the spread of COVID-19 while ensuring the continuity of business and projects. “Given the nature of our business, however, some of our projects still require in-person site inspections, and these take place with additional precautionary measures in close coordination with the project stakeholders to ensure the health and safety of staff. The majority of our office-based staff now works from home. For office locations that are still operational, we conduct regular sanitisation and we prohibit access for third-party visitors.” Husam Gawish, partner at HKA, comments, “HKA was quick to establish Regional Crisis Management Teams (CMTs) under its Crisis Management Framework and the Global Crisis Management Plan (CMP). Each Regional CMT was able to manage the impact of COVID-19 on the basis of regional government advice
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We’re well prepared and fully operational, working by remote means wherever possible, supported by robust IT packages and carefully considered HR practices. We are proud of how our family has reacted to this unprecedented situation by being tolerant, kind and supportive of one another” and thus implement measures specific to each region. The Regional CMTs hold regular briefings with staff, providing updates, advice and guidance. In parallel, the Global CMTs coordinate and share information on a regular basis to adopt a common approach and to ensure, where possible, consistent advice is being issued to our global family.” Craig Adams, managing director at Palladium Alpha, states, “Both offices and sites have had protocols put in place to check staff on a regular basis. Sites and camps especially are checking all employees and subcontractors on a daily basis for any signs of the virus. Offices are disinfected every 30 minutes, including all entrance doors, etc. We have sanitiser stations deployed throughout the offices and at some key locations on-site. There have also been daily briefings on updates to the employees, to keep communication clear.” COVID-19’s Impact
Given the rapid global spread of the disease, the
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nature of construction projects and the heady length of supply chains, the virus has already affected multiple companies and projects. It’s safe to say that ensuring people remain safe while moving projects ahead is a herculean task. That said, the firms participating in this feature say they are up to it. “We have seen a shortage in FF&E and OS&E materials and supplies due to the production stop in China, and have experienced constraints with logistics. Through our agile approach and strong market knowledge, we have been able to overcome this challenge by sourcing alternative, high-quality suppliers for short-term requirements for our projects,” explains Degenhart. “Travel restrictions and bans have impacted our ability to meet clients in person, especially for our international projects in Morocco, Vietnam and other locations. Thankfully, we were able to shift to digital communications and VR quickly to enable us to continue with project management, including the virtual review of complex technical project documentation.” “The biggest impact has been the suspension of projects as a result of increased COVID-19 measures, including the closure of hotels and
malls. We are working closely with our clients to support them with structured shutdowns of buildings and construction sites where required.” Harris notes his firm has been in constant contact with clients, other consultants and contractors since the outbreak, working collaboratively with stakeholders to minimise disruption to operations and delivery of services. He explains, “The impact on our projects in respect of material delays, skills shortages and self-quarantine are being minimised by implementation of individual stakeholder strategies at all stages of our projects, and include material substitution, re-sequencing of the works and remote working. Our endeavour is to provide our services as usual. We’re well prepared and fully operational, working by remote means wherever possible, supported by robust IT packages and carefully considered HR practices. We are proud of how our family has reacted to this unprecedented situation by being tolerant, kind and supportive of one another.” Gawish points out that HKA has established a Business Continuity Framework to ensure that efforts are made to continue to operate as normal and continue to deliver quality service and work product to clients. April 2020
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“As a result of travel bans and measures taken by our clients to restrict working with external consultants, we had to introduce new methods of working with clients in order to maintain the services we are providing, but with significant emphasis on video conferencing and digital collaboration. Being a global company, we are uniquely positioned to leverage our global reach and technology enables us to remain fully operational across the group. Our business infrastructure allows us to securely deliver uninterrupted services from anywhere in the world. This is of course not without its challenges, but we are well ahead of the competition in this regard.” He notes that despite all the measures his firm has taken, several projects have been suspended. “We also saw some clients defer our appointment on some projects to a later date.” In contrast, Adams comments that his firm, which specialises in facilities and project management, hasn’t seen its projects suffer major delays in materials or staff shortages. “People where possible are working from home and measures have been put in place to support them, like video conferencing and remote access to systems. The ability to procure from alternative sources has also greatly aided the projects in being able to overcome supply chain issues.” A Question of Finances
The use of conferencing technology and robust supply chains with alternative procurement April 2020
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We have seen a shortage in FF&E and OS&E materials and supplies due to the production stop in China and have experienced constraints with logistics. Through our agile approach and strong market knowledge, we have been able to overcome this challenge by sourcing alternative, high-quality suppliers for short-term requirements for our projects”
sources has paid dividends for the firms participating in this feature. However, project owners and developers have another issue to consider – project financing. This element of project development has been under pressure for a few years, and COVID-19 may have complicated matters further. (Ed: MEC approached a couple of UAE-based developers for comment, but was politely declined.) Asked how the pandemic is affecting clients and their ability to borrow from lenders to finance or deliver existing and new projects, Degenhart points out, “Project funding has been impacted significantly across numerous sectors due to the low oil price, the pressure on financial markets and vanishing revenues for core businesses, including hospitality and retail. We assist with reviews to assess potential disruptions in project funding and support businesses with mitigation strategies. In this critical situation, it’s important for clients to model their exposure and stress-test their P&Ls with different macro and market scenarios.” On the other hand, HKA’s Gawish states, “For the time being, governments in the region have taken robust and proactive financial measures to help businesses continue their operations and to ensure projects are receiving adequate financing to proceed. In this regard, directives have been issued to finance ministries and central banks to ensure emergency provisions are in place.” “Therefore, and in my opinion, I don’t believe the outbreak has yet had an impact on the ability of clients to establish financing meconstructionnews.com
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arrangements with banks and lenders. However, it is a matter of time before the effects of COVID-19 spread to the construction industry’s current and future projects.” Neil Burnard, CEO of Expense Reduction opines, “I think it is too early to tell. Our business is all about cost improvement and helping businesses find extra cash flow. They often use this extra profit to service additional debt for equipment, technology, etc. These savings have become more important given the current crisis, and will help businesses in the months and possibly years to come.” Adams reckons existing projects might not face challenges, but notes that more recent projects may struggle. “Our existing projects are already funded, and we don’t foresee any future issues with these projects unless the order is given to suspend all works. However, new projects that we were only recently engaged with have been suspended for the next 30 days and will be periodically reviewed.” Calling on Contracts
Under normal circumstances, construction contracts are referenced when a project and its stakeholders have been negatively affected. While most construction contracts include a Force Majeure (FM) clause which can be relied upon when circumstances occur that are beyond the control of either of the contacting parties, they may not always cover extraordinary cases such as pandemics, MEC has learned. Gawish explains, “Typically, the standard forms of construction contract used in the Middle East are based on a version of FIDIC 99 (Red and Yellow books), which do not expressly include contagions, epidemics or pandemics as exceptional events or circumstances. This makes it difficult for a contracting party to rely on the FM clause to claim time and cost as a result of the event.” “In my experience, construction contracts used in this region are varied in their treatment of exceptional events such as the outbreak of COVID-19. In general, FM provisions provide entitlement to additional time. However, the recovery of cost is usually more complicated and difficult to establish. We predict that there will indeed be a considerable increase in construction claims in the near future as a result of the impact meconstructionnews.com
04 Husam Gawish is a partner at HKA. 05 Craig Adams is managing director at Palladium Alpha.
of COVID-19 on the execution of projects.” Degenhart advises, “Construction contracts will need to be reviewed on a caseby-case basis to fully understand the rights, obligations and liabilities of all contractual parties. Typically, construction contracts include a FM clause, but we highly recommend seeking legal assistance to review and interpret the terms and conditions of each individual contract under the current circumstances.” He says Drees & Sommer advocates for open and transparent communication between all parties, to overcome challenges and find the best solution during unprecedented times. “We do, however, foresee a spike in claims and an increasingly difficult environment to operate in, as several projects are inadequately funded and some companies may not be able to weather this storm due to a lack of capital,” cautions Degenhart. Adams agrees with Gawish on the FM clause. “Contracts are not robust enough in all cases. Contractors will be seeking to claim on any issues that have arisen out of this crisis – for example, where materials have not been able to be supplied on time and the FM clause will likely be used. However, how this will practically be applied is not going to be an easy one for anyone to deal with. We believe in fairness for all parties, and advise both parties try to come to a mutual understanding and agreement in a crisis such as this, as it was unforeseeable for all parties.” While Harris is optimistic about contract robustness, he warns that parties affected by COVID-19 are still required to carry out their obligations and may be liable for failure to do so. “It is noteworthy that in response to the COVID-19 pandemic, FIDIC has produced urgent guidance to member associations and
consulting and engineering firms. Such measures will provide an opportunity for industry leaders and stakeholders [globally] to discuss how they are addressing the impacts of the pandemic.” “The common theme discussed with our clients is whether a FM clause can be triggered in these circumstances. The global impact of the pandemic will bring into significance the underlying domestic law of the parties’ contract, which cannot be ignored. We consider that irrespective of the parties’ choice of contract and underlying governing law, an affected party will be required to prove that the impact of the event has prohibited, or severely hindered, their ability to perform the contract. Each project will have its own facts and circumstances, but parties may be looking at potential extensions of time to complete their projects and other remedies.” Touching on insurance, he states, “The respective parties under a contract that suffer loss as a consequence of the pandemic should review their insurance to establish whether they are covered for specific events such as ‘Denial of Access’ or ‘Notifiable Diseases’, or for Business Interruption cover. This generally covers loss of gross profit or income in the event a business is interrupted or adversely affected due to events beyond their control.” He also points out that the virus is already being used to mask other shortcomings. “We’re already seeing claims notices relying on the COVID-19 pandemic as justification for certain delays on projects, which look likely to be used to mask inexcusable delays stemming from earlier non-related events or poor performance, for which no consideration should be given.” Burnard says the construction industry should rally during these trying times and work together to get through this global crisis. He concludes, “At this time it’s about the industry coming together and seeing what work-arounds can be found. These are extraordinary times and as such require a ‘do what it takes’ attitude. The pain, unfortunately, will need to be shared. Maintaining relationships will be a key to longterm survival.”
April 2020
26 | In Practice
Master of Change Jason Saundalkar speaks to MZ Architects’ Tony Abi Gebrayel about the evolution of architecture and client requirements, dealing with the challenges of the COVID-19 pandemic and opportunities in Africa
01 Tony Abi Gebrayel is managing partner at MZ Architects.
April 2020
MZ Architects was founded in Qatar in 2002 and established a regional office in Abu Dhabi in 2007, after winning an international design competition for the now iconic Aldar HQ building. 2007 was also the year that the firm says it reassigned its office in Lebanon to be an architecture and urban planning firm. Since those early days, the firm has made its mark in a number of cities and now has projects in Lebanon, Qatar, the UAE, Saudi Arabia and Nigeria. To date, the firm has worked on private homes, residences, commercial buildings, mixed-use projects and public buildings, among others. The company says it is committed to sustainable systems and a modern aesthetic that embraces the historical and cultural context of each project. Speaking to Tony Abi Gebrayel, managing partner at MZ Architects (MZA), about the current market and the steps the firm is taking to ensure the health and safety of its employees during the coronavirus pandemic, he states, “MZA has been taking all measures to ensure employee health and safety, within the head office and on-site. In the office, we have started by sanitising our working space with the help of Boecker.” “In addition, we’ve implemented the following measures that were escalated following the recommendation of UAE health authorities: meconstructionnews.com
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we started by reducing the number of working hours and requested all staff that are pregnant or have heart and diabetics health issues to work from home; we reduced the circulation of printed documents with stakeholders; ensured that hand sanitisers are available within the working space; and cancelled all in-person meetings and shifted to virtual meeting using software such as Zoom, Teams and Skype.” Gebrayel notes that as of March 29, staff presence in the office had dropped to 30%, in line with the instruction of UAE health authorities. Talking about site teams, he notes that the precautions are different. “As that team is exposed to a larger number of people, we’ve rolled out daily checks on people’s temperature, stopped promotional site visit requests from suppliers and vendors, and we’ve minimised the total amount of people located within the same area (rearranging the seating chart in site offices). We’ve also encouraged everyone to immediately call and notify the safety officer on-site if they start to feel sick, and self-isolate until the medical team arrives.” Discussing the pandemic’s impact on projects his firm is currently engaged on (at the time of going to press), Gebrayel states,
02 MZA served as the lead design consultant on the Sail Tower, located north of the Al Raha beach area in Abu Dhabi. 03 The firm served as the design architect of the Media Zone in Abu Dhabi.
We learned what clients wanted was something really nice, but not that expensive. So we changed, we were careful with selecting materials, by doing a measured approach with architecture while giving clients something that they had never seen before”
“MZA’s commitment towards its clients has not been affected, following the implementation of our business continuity plan and the dedication of our team who are working to achieve our deliverables under each project within the agreed upon deadline. From a design perspective, the challenge is real, as with the reduction of staff within our office there’s a big burden on our design managers to lead and coordinate all the aspects of the project and maintain the delivery of milestones.” He elaborates: “From a site construction perspective, as of today the delays on the projects are still manageable, as the effect on the supply chain is still – in a way – controllable. However, we can’t forecast how this will develop in the coming few weeks, following the lockdowns all over the world. But on a side note, I expect a slow-down period in Q2 and Q3 of 2020 and hope that things will pick up in the last quarter of 2020, for a brighter 2021.” Overcoming Market Challenges
The pandemic has already had a significant impact on local and global markets. In the UAE, authorities have taken a number of steps to safeguard citizens and residents, as well as offer
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support to businesses. Asked how MZ is tackling the current market realities, Gebrayel notes that this isn’t the first challenge the firm has faced. “When we came to Abu Dhabi, it was our target to be known as architects and have respected names in our client portfolio. After we won the competition for the Aldar HQ back in 2006, we moved here and opened the office in 2007 and then, as you know, in 2008 the global financial crisis hit. When that happened, we had to start from scratch because we had to change strategy from being a signature architect to a company focused on surviving. That’s what we did from 2008 to 2015.” In 2015 the company changed its strategy once again, he notes. “We said that we have to be different, we have to be known and show our talent and capabilities, which is why we started doing things outside the box. We went through a lot of processes and did a lot of research and learned what clients wanted was something really nice, but not that expensive.” “So we changed. We were careful with selecting materials, by doing a measured approach with architecture while giving clients something that they had never seen before. One of the projects we’re working on is Al Qana, but we’ve also done the Media Zone in Yas Island with Aldar. Al Qana is now finishing, and I think both those projects are of a certain calibre and show how different we can be when it comes to creativity and architecture.” meconstructionnews.com
Evolution of Architecture and Appetites
Shifting focus to clients and their evolving requirements, Gebrayel believes appetites have evolved in the last decade and are now more realistic, signifying that the market has matured. “The most important thing for clients now is budget. Whenever we talk to clients, whoever it is, they talk more about feasibility than the project being beautiful or luxurious. The key point is feasibility, and that shows how the market is. There are always ups and downs in the market, I think we hit the low point and now we are moving back up again.” Asked whether clients are now more handson, engaging with the supply chain ahead of construction, Gebrayel explains, “That differs from client to client. Some want to have a handson approach if they have the capability to do this. We’ve worked with a couple of clients in this way on projects. In these cases, we put the clients in touch with the supply chain and they had a solid idea about the project before work began. Our role is to control the project and make sure the design and costs are right; that’s why we contact suppliers and understand the cost of everything before we present it to the client.” He adds, “Some clients say they don’t want to interfere, they just say to design based on the budget and make sure we have enough flexibility, and this is what we do.” In line with trends, evolving client appetites and budgets, architecture has also changed in the
last several years. Gebrayel notes that perhaps the biggest shift occurred in the late-2000s. “I’ve seen big changes in the design philosophy and taste of clients in the last 20 years. At one point we were at a really high point, what I call the modern baroque. We were doing things that were illogical at one point, in some cases one square metre would cost over $13,000. It changed because of the GFC and pushed everyone to come back to doing things sensibly. Since then, the level has slowly been going up, and that’s normal and how it should be.” “In Europe before World War II, we saw fantastic work, incredible architecture with a lot of decorations on the facade. After the war, however, it shifted to minimalism with modern design, where they reduced to what was necessary. I think we are at this point now, we’re doing what’s necessary with a bit of touch, but it’s not like 2006 and 2007.” Asked whether the days of elaborate mega projects are a thing of the past, as budgets come under pressure owing to a variety of market dynamics, Gebrayel reckons there is still scope, but also points out that current market realities dictate a different approach. “There is scope for mega projects, but these are affected by the global markets. What’s happening around the UAE is affecting the market here, so at this point it’s normal and right to go with smaller projects. It’s important to be realistic and understand that you need April 2020
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04 The Grove is a mixeduse inclusive community comprising 3,706 residential units. The firm served as the residential consultant on this project.
a healthy market and people to come and live in these developments. I’m confident the UAE leadership is finding ways to do this.” Eyes on Africa
While MZA has established itself in several GCC markets, the firm is also eyeing opportunities in others, particularly in Africa. Gebrayel points out that his firm has already begun working on projects in Ivory Coast and Nigeria. On those markets, he notes, “Those are totally different from what we have in the Middle East. There are some cities in the Ivory Coast, Abidjan especially, where I’m doing a lot of projects. They want to grow and invest in their infrastructure and they want to put the Ivory Coast on the tourism market quickly, which they are doing well right now. It’s a big market and we’re helping them based on the experience we gained in this region. We’re helping them with planning and staying to budget on projects.” In contrast, he says Nigeria is moving forward at a slower pace and clarifies that his firm is currently serving those markets through its office in Abu Dhabi. He points out that this wouldn’t have been possible without the use of April 2020
cloud technology and modern software – his staff is constantly trained. “We see technology as a solid asset to invest in. We’re relying on BIM software and it enables us to see all the problems before we present the work to the client or go to site. I don’t think it’s mature yet, however, we are facing some challenges with the files and how heavy they are, so I think the technology still needs to evolve and I think that will happen in the future.” Asked whether virtual reality (VR) will become more widespread, he says, “VR is still considered a gadget, it’s expensive and some clients don’t want to pay for it and it takes a lot of time to implement properly. Back in the ‘90s, when we first started to do renderings, it was something new for clients; but now, if you don’t do renderings, you cannot present to clients. If the technology evolves and it is easier and cheaper to implement, I’m sure we will all move to VR and have clients wearing goggles rather than taking them to site.” The Right Tools for the Job
As technology continues to pervade the construction industry, the requirements for new staff to have a certain level of technology proficiency are bound to increase. Discussing whether technology skills are an issue today and whether colleges and universities are giving students the right skills, Gebrayel says there is room for improvement.
“To be an architect is not only about talking – you need to draw and show visuals and you need to have the talent to present. So everyone needs the skills to be able to use the tools that enable you to present your work to your colleagues and the client. Colleges and universities have to focus on developing their students’ creativity and technology proficiency.” “Some institutions don’t give their students enough exposure to the relevant tools which will enable them to be flexible in the work environment. They will select one particular tool and teach students that, but when these students begin searching for jobs or start at a company, they will only be able to perform immediately if the tools they studied are being used. Many students come to do internships with us, and I’ve seen their capabilities – they are talented, but we want them to be able to use any software or tool.” Weighing in on how the industry has evolved over the years in terms of its gender split, Gebrayel explains that he’s worked with talented male and female architects and that the ratio within MZA is healthy. That said, he believes the industry has to evolve so that there’s a more equal ratio across all disciplines, especially engineering. He concludes, “I believe that the construction industry is open to everyone and if there are adequate policies within the office and especially on-site, everybody can work together and have a great career.” meconstructionnews.com
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32 | On Site
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Cristina Esposito “Personally, I never really worried about being the only woman at the table, but I have instead felt the power of being that only woman. We represent a change, a shift” Following our special edition dedicated to women in the construction industry, Middle East Consultant continues to share the inspiration and experiences of women working in the male-dominated industry across the GCC. Here, we catch up with Cristina Esposito, director of Construction Projects at Drees & Sommer Middle East. What drove you to get into construction and
delivery. So I started to look for suitable roles at major contracting companies and I loved it from the start. My dad and my brother, who also worked in construction, caringly discouraged me from entering the industry, which in hindsight was probably another key driver for me to do it anyway and prove myself! I have always loved challenges and I am a firm believer that nothing that is satisfactory is easily achieved.
your very first role in the industry?
I studied Engineering at university, which seemed like a timeless subject not affected by trends. There were other subjects that I loved, but I chose to nurture my humanistic side and utilise my cultural knowledge instead of following the more scientific path. I hold a bachelor’s degree in Civil Engineering and a master’s in Structural Engineering. However, when I completed my studies, I knew I would learn more on-site rather than behind a desk – my practicality and dynamic approach seemed to be more suited to project meconstructionnews.com
Share a brief about your career, mentioning key achievements.
After completing my studies, which included one year in Spain studying for my master’s in Valencia, I moved to London and had to build a new life. I didn’t know anyone and barely spoke English, I didn’t have a job nor a place to live, but I was determined to succeed and knew where I wanted to go – this gave me the strength to overcome the challenging first few months. When I could finally speak English well enough to present and sell myself for who I was, April 2020
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I got my first interview and my first job on the Olympic Park for the UK games in 2012. Since then, I’ve kept my head down, worked hard and progressed from graduate to senior engineer then construction manager, as well as preconstruction (tendering and discussing financial arrangements for projects) for some of the largest international contractors in Europe, the Middle East and Asia. This led me to the world of consultancy when I joined Drees & Sommer as senior project manager and team lead. In the meantime I became professionally qualified and a chartered member of the institution of civil engineers, as well as an accredited project manager by the Project Management Institute. I just recently joined the Global MBA programme offered by the Imperial College Business School in London. Besides fairness and being the right thing to do, diversity in the construction industry is important because of the value women can bring to employers, clients and customers. How have you made your mark in the industry
We don’t need an imposed 50:50 intake nor pink quotas. Construction is not easy at all, it is challenging, but it can be rewarding and possibly have a remarkable impact on the world we live in – this is why we need people who are committed, strong and dedicated to the bettering of our industry”
working on projects?
I think value can be created by many other factors, being female or not - I’m referring to nationality, life experience, age and personal preferences. I have lived, worked and studied in Africa, Europe, Central America and the Middle East, and I speak four languages. These experiences have made me adaptable, and have created a love for travelling and communicating with people from all over the world. They have also made me a balanced thinker, capable of seeing problems and opportunities from multiple perspectives, and I’ve learnt that diversity is true richness. Diversity seems to be a scary word to many, but to me a diverse team is somehow like bringing all the best parts of the world together. What are some of the barriers to women entering the construction industry? What was your personal experience?
Biases are still a problem, but things have changed a lot since I joined the industry, despite that being only a decade ago. When I started to work on-site earlier in my career, I faced several unpleasant situations, from being isolated and harassed to being April 2020
mobbed, scorned and ignored by men and by women. Yes, women. However, as I learnt from an exceptionally strong woman, my mother, what doesn’t kill you only makes you stronger. And it did. But I also had some great managers, mentors, colleagues and great opportunities that gave me an excellent experience. I think life in general tests all of us in one way or another, we all deal with different barriers, inside and outside work, men and women. There are still many issues to be resolved and depending on the region, I think the focus could (and should) shift to other types of barriers that have nothing to do with gender. The GCC construction sector is still maledominated, but diversity is beginning to
increase. If you agree, comment on what is driving this and how you see the GCC markets changing in the coming years. If you do not, please share your thoughts and views of the current market.
Diversity is increasing, which is great, but there is nothing wrong with the construction sector being male-dominated if opportunities are offered to anyone who is capable, skilled and experienced enough to carry out the job, man or woman. What matters is that job offers are based on the experience and skill of the candidate, rather than other personal factors. We don’t need an imposed 50:50 intake nor pink quotas. Construction is not easy at all, it is challenging, but it can be rewarding and possibly have a remarkable impact on the world we live in – this is why we need people who are meconstructionnews.com
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Besides authorities and construction firms, who else can play a part in increasing diversity and balancing pay scales?
I think it mostly comes down to regulatory bodies. After all, what the law says, the companies will have to comply with. Even media has a role to play – to do as now, raise awareness and inspire change and to give industry professionals a voice on the matters and bring about open discussion. We as female industry leaders should take part in the discussion and foster change within our own organisations as much as possible. As a woman in the industry, what has your experience been working in the GCC construction sector? If you have worked in markets outside the GCC, how does your experience here compare with what you’ve experienced and observed in other markets?
I have worked on different continents and what I have seen is that construction is easy if you know what must be done. What makes it very difficult is people’s behaviour, anywhere in the world. In your opinion, what is the biggest challenge women in the construction sector face in GCC countries? How can these challenges be addressed?
committed, strong and dedicated to the bettering of our industry. Personally, I never really worried about being the only woman at the table, but I have instead felt the power of being that only woman. We represent a change, a shift. We are all in the spotlight and cover roles that require us to be an example for other women, and above all we are all contributing to make the change of today the norm for tomorrow. Everyone has a part to play in diversity and equal pay. What would you like to see government authorities and construction firms do to increase diversity and make pay a level playing field?
If paternity and maternity were offered equally (for example, three months for both mother meconstructionnews.com
and father taken within the first 12 months), companies would no longer have a reason to pay women less based on this factor, nor would men surpass an equally adequate female colleague on the career ladder due to unequal time off for family. This will create a society that supports families and understands the importance of that specific phase of life. Why shouldn’t fathers have the same entitlement as mothers, after all? Less income within a family (perhaps if a woman gives her job up after the second child) means less personal consumption, therefore a less thriving economy. Another great initiative that some contractors are adopting is to make sure to have at least one female applicant before closing the job posting. This encourages employers to interview a diverse crowd and hire the best applicant for the role.
In developed countries, most of the standing challenges are the limits we create in our own minds. Things have really changed and there are so many more issues to be tackled within the industry, including privacy during interviews, mental health and other forms of discrimination which need our attention more than ever. That said, there are basic standards in leading countries which can easily be adopted in the GCC to make it comfortable on-site for women. In doing your job, what sort of discrimination (if any) have you faced, and how did you or your employer address it?
I faced more discrimination at the start of my career than I do now – seniority somehow comes with a level of protection. Discrimination and limits are owned by the person that judges, and as such they are problems for that person to deal with. I only see weakness, fear and ignorance in discriminative approaches. For this reason, I have always dealt with these situations on my own first before thinking of April 2020
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escalating the matter to management. However, anyone in any company should feel there is the opportunity to be heard and supported, as well as protected by rules of conduct by employers who enforce them. Do you feel there’s a limit to how far you can progress within Drees & Sommer?
No. If I started to feel there was a limit to my progression due to who I am intrinsically, it would be time to move on and change company, without any doubt. How does Drees & Sommer approach diversity in the workplace? What more can it do to increase diversity?
Drees & Sommer’s culture is open and innovative. We believe that the workplace is the people you work with, and therefore education is key. Locally we participate in events that promote female leadership, as well as host platforms that encourage change and foster open conversation. As a company we strive to have an equal workplace and aim to always have basic standards in place. We enforce a zero-tolerance policy for workplace harassment, which we follow up with trainings and continued education for all, in order to have a safe and supportive environment that will attract the best talent when recruiting, and we aim to always have female candidates represented in the recruitment process in order to strengthen our team through diversity. How do you personally push for diversity and equal pay in the construction sector? Are you involved in any groups/councils etc that focus on increasing diversity and equal pay?
Personally, I just try to do the best job I can as a professional within my industry. Actions speak for themselves and achievements should merit a fair reward. Whenever I can, I partake in panels and group discussions as well as offer my support to female colleagues as a mentor or friend, and carry their concerns to management for review. What advice or encouragement would you give to a woman entering the GCC construction industry today?
I would advise women entering the GCC construction industry to go ahead and do what April 2020
We as female industry leaders should take part in the discussion and foster change within our own organisations as much as possible”
they love, whichever the industry, sector or company, no matter the gender majority. Be passionate, professional and committed. This will open the right doors, and the ones that are still closed are probably of companies that are not ready for you. So don’t waste time on them. Anachronism doesn’t go hand-in-hand with progress, innovation or social sustainability. If you made the choice to join this vibrant industry, you are already brave enough to also speak up and share thoughts and opinions, so do it. But share them when you really have something to say. Be inquisitive, and above all be prepared to critically discuss your position. And be aware that there are women working hard to make space for you too. If we look back at where we started from, things can only get better and better. meconstructionnews.com
Tafawuq provides technology driven integrated facilities management solutions to a wide range of clients in various sectors focusing on residential, commercial and mixed use communities
38 | Educate ME
01
The Colourful World of ‘Designing for Wellness’ Armstrong Ceilings helps create vibrant spaces that support wellbeing The role of health & wellbeing in business has experienced a significant evolution, both regionally and globally. The wellness industry represents 5.3% of global economic output, growing at a rate almost twice as fast as total global economic growth. It’s a classic story of supply and demand. Consumer habits have shifted; people, more than ever before, are prioritising their health and lifestyle, which is provoking increased spending in the wellness industry. As human beings, we spend approximately 90% of our time indoors. Since about one-third of that time is typically spent in the workplace, it’s no surprise that wellness in the workplace is a trend on the rise. Companies are seeking to create increasingly human-centric spaces, inspired by the growing popularity of ‘designing for wellness’. April 2020
In fact, just last year, the UAE launched the Business for Wellbeing Council to encourage organisations to implement workplace initiatives focused on health and wellbeing. For commercial projects, the market is increasingly designing and delivering spaces that incorporate more sustainable, efficient and healthy design elements. It is our duty, as architects, designers, planners and others industry leaders, to evolve with the market and design solutions that support human health and wellbeing. 01 Colour affects the design and personality of a space, playing an essential role in determining occupant mood.
With a growing global consciousness for creating spaces optimised for wellness, worldwide systems to improve overall health and wellbeing through clever building design, such as WELL and LEED, are being more widely adopted in the region. In Dubai, for example, there is a continued push toward more sustainable design. For Expo 2020, buildings are required to meet LEED gold certification standards. Diverse brands are bringing in a new era where brand values are determined more and more by sustainability, experience and wellness. As more wellness-focused brands are emerging, it is essential that existing brands innovate and adapt in order to stay relevant in this evolving market. With 155 years of experience delivering global projects, Armstrong Ceiling Solutions meconstructionnews.com
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02 Aside from colour, ceiling systems help create a holistic environment that promotes health and wellbeing in other ways.
has transformed with the times. 70% of our portfolio Is C2C certified to guarantee material transparency and meet the growing demand for healthy, sustainable materials. Armstrong Ceiling Solutions seeks to meet the changing demands of the market by placing people at the centre of every space. Our philosophy is that improved wellbeing results directly from designing with people in mind. One key aspect of designing for wellness that is particularly interesting is colour. The Impact of Color
Colour affects the design and personality of a space, playing an essential role in determining occupant mood. If we delve into Colour Psychology - which is the study of how colours affect human behaviour, mood and other psychological processes - it is proven that colour can actually influence our buying choices, our feelings and even our memories. Consequently, we see that ideas related to Colour Psychology are heavily implemented in marketing and design. Companies choose certain colours based on the result they want from consumers. As global experts in the design and delivery of diverse ceiling solutions across projects and sectors, we have recently released new colour guides on engineered, fit-for-purpose black and coloured ceiling solutions. The guides include recommendations on how to use colour to
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promote health and wellbeing and get the most out of a space. We recommend using lighter colours to achieve a bright and social atmosphere for spaces such as retail shops and hotel receptions. Whereas black/darker colours can be used achieve an intimate and elegant ambience for spaces such as lounges and theatres. With a 03 With commercial projects, the market is designing and delivering spaces that incorporate sustainable, efficient and healthy design elements.
multitude of materials and colours to offer, at Armstrong Ceilings, we are passionate about making the space experiential and providing clients with visually striking, memorable spaces. Based on Colour Psychology, here are a few more recommendations on how to use colour in commercial projects in a way that supports designing for wellness. For mind-stimulating environments such as workspaces, blue can be used to boost productivity. For warm and inviting spaces such as restaurants, orange can be used to enhance happiness. For attentiongrabbing spaces such as retail spaces, yellow can be used to increase positivity. Some spaces, require a play on the natural contrast of dark and light to create a visually impactful experience. For spaces such as bars, cinemas and concert halls, black ceilings can be used. Armstrong Ceilings provides an array of colours in diverse materials such as mesh, metal and mineral, to face every design or architectural challenge while still always designing with humans in mind. With six plants and seven design centres across the EMEA region, we work to reduce carbon footprint and create truly customised experiences, using colour to connect with people. Aside from colour, these ceiling systems help to create a holistic environment that promotes health and wellbeing in other ways. With the ability to deliver the right lighting levels and improve air quality, they also provide effective sound absorption to meet the acoustic demands of various spaces, creating an indoor climate optimal for productivity and comfort. Colour choice isn’t just about preference or aesthetics anymore, it can actually have a much deeper impact. When designing spaces from a wellness perspective, the consideration of colour can have transformative results. As we move forward, wellness will increasingly be at the forefront of design for all kinds of spaces. Wellness is quickly becoming the next big thing in building design, and the catalyst for this change has been the increasing integration of sustainable building standards into infrastructure such as WELL and LEED. These certifications, coupled with changing needs of consumers, are set to encourage the creation of more holistic, well-thought out spaces that support the health of our planet and its people. April 2020
40 | On Site
01 Anthony Walker FRICS is chief executive at GoReport.
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Not a day seems to pass without reading that automation and artificial intelligence (AI) will replace humans in the workplace. For instance, a BBC News webpage asks, “Will a robot take your job?”, and if you type in ‘chartered surveyor’ it will tell you that it is fairly likely, at 63%. Meanwhile, the RICS report ‘The Impact of Emerging Technologies on the Surveying Profession’, published by Remit Consulting in July 2017, says 88% of a chartered surveyor’s duties will be automated in the next ten years. So is it time to be alarmed? Perhaps not. The fear of machines taking jobs is nothing new, and similar predictions have been made in previous centuries. In February 1928, under the headline ‘March of the machines makes idle hands’, the New York Times described April 2020
Anthony Walker “One important area that sometimes gets lost in the debate is ensuring that we build on our human skills, the things that set us apart from the machines” construction as “a machine industry instead of a collection of hand trades”, adding that “in concrete construction, building materials are mixed like dough in a machine and literally poured into place without the touch of a human hand”. Today we take the cement mixer for granted, but its introduction at the time had a considerable impact. On the other hand, a Deloitte study of data for England and Wales going back to 1871 finds that, rather than destroying jobs, technology has been a “great job-creating machine” and that “machines will take on more repetitive and laborious tasks, but seem no closer to eliminating the need for human labour than at any time in the past 150 years”. The Office for National Statistics also estimates the UK employment rate to have been 76.1% in September, the joint-highest on record since comparable records began in 1971. So is it time to relax? Perhaps not. The Fourth Industrial Revolution we are now experiencing differs significantly from the three that preceded it. New technology is affecting a wider range of professions, economies and human work than ever before – it can understand, speak, hear, write, answer and predict, and is gaining new skills at an unprecedented pace. Change will affect the role of the surveyor more than at any point in history. As a chartered surveyor who heads GoReport, a proptech company helping surveyors collect,
report and analyse data, I see some amazing work taking place, but also areas where traditional surveying remains dominant. RICS’ ‘Future of the Profession’ consultation response report, published in January 2019, also confidently views the challenges we face as surveyors presenting immense opportunity, while acknowledging that we need the right skill sets and business models to maximise these. One important area that sometimes gets lost in the debate is ensuring that we build on our human skills, the things that set us apart from the machines. There is no point trying to take them on head-to-head at what they do – we will lose. We need instead to ensure that we focus where they cannot compete. Human skills are key for a surveyor: creativity, curiosity, collaboration, compassion, critical thinking, design, imagination, inspiration, empathy and leadership. These skills will be more important than ever. I don’t see the future, as some do, as being surveyor versus machine; I think it will be more like surveyor plus machine, with technology allowing professionals to build on their knowledge, experience and reflection to augment their outputs. Although the surveyor as we know it may soon be a thing of the past, the technology at our disposal ideally places us to ensure the surveyor of the future can remain agile and respond to, and exceed, client demands. meconstructionnews.com
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