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Contents | 01
20
January 2021 Issue 076
Cover Story
Bullish or Bearish?
Four regional professionals reflect on the past year, and share their views and predictions on key markets, trends and challenges for their firms and the industry in 2021 Opinion
The Power of Mediation When a dispute arises, mediation allows the right people at the table to finalise their projects in good faith says Quantum Global Solutions’ Lucia Vernon.
12 Analysis
16 meconstructionnews.com
Hospitality in Flux
CBRE highlights pandemic related hospitality trends and key focus areas for owners and operators January 2021
02 | Contents
34
Interview
Putting Digital First
Jason Saundalkar talks to Suhail Arfath about the current state of the construction sector, and how Hloov intends to work with E&C firms to reduce waste, realise stronger margins and deliver value to clients
30 Profile
Raghda Elkhatib
Jason Saundalkar talks to Raghda Elkhatib, graduate project manager at WSP in the Middle East, about her influences, career and gender diversity in the construction industry Interview
Driving Diversity Bentley Systems’ Katriona LordLevins talks to MEC’s Angitha Pradeep about diversity and inclusion and key issues that the construction industry should address
8
26
Update
News
Evoteq deploys smart surveillance system at Bee’ah landfill; New Zealand pavilion at Expo 2020 Dubai 95% complete; Facilio and Moro Hub ink deal for energy services; Blueprint for $2bn Bahrain metro rail unveiled; Seef Properties says Al Liwan on track to open in Q1, 2021 January 2021
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Happy New Year 2021! On behalf of everyone at CPI Trade Media, I’d like to wish you all a Happy New Year. Given the ultra-challenging and unpredictable year that 2020 was, I really do hope that 2021 brings us all success, continued health, and stability. The good news is some of you will have your first taste of success and recognition later this month at the Middle East Consultant (MEC) Awards, scheduled for January 20. For this, our sixth ceremony celebrating the best and brightest individuals, projects and consultancies in the Middle East, we will once again be returning to the Gulf Lawn at the Ritz Carlton JBR. In fact, by the time you read this letter, the panel of judges and I will be discussing all the nominations that have made it through to the second round of voting. Speaking of nominations, I am delighted to say that despite how unpredictable and testing 2020 was, we received a greater number of nominations compared to our 2019 awards. A total of 173 nominations were received from across the Middle East. Poring over each of them for the internal, first round of eliminations, I’m pleased to say that the vast majority were quality submissions that made strong cases for their respective companies, people and projects. January 2021
I’m keen to discuss all the nominations with the panel of judges so that we have a robust shortlist and, of course, our winners. If your firm has been shortlisted for any of the categories, a representative from our commercial team will get in touch later this month to discuss next steps. In the run-up to the MEC Awards, I will be working very closely with our events team and the team at the Ritz Carlton JBR, to make sure that the event complies with all local safety regulations, and is as safe as possible. This means that our event will deviate slightly from its usual format, and while I understand that everyone wants to go back to ‘normal’, we must respect what is going on and act accordingly until the pandemic is firmly in our rear view. Rest assured, whatever we do is for your safety and that of our staff, as well as those working at the Ritz Carlton JBR. While the event is still a few weeks away, I’m going to jump the gun and ask for your support and understanding on the day right now. I look forward to seeing everyone that is shortlisted at the Awards and to working closely with everyone in what will hopefully be a better year for us all. All the best and stay safe!
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TOP FIVE TIPS TO KEEP YOUR CONSTRUCTION SITE CLEAN
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It is so important that we clean up after ourselves. I’ve spent many years trawling around construction sites across the globe and it has never ceased to amaze me that
INFRASTRUCTURE
there are still contractors
Emicool revises fuel surcharge across district cooling plants
that take far too many risks – especially with keeping their sites clear and tidy. I am a big believer that the cleanliness is the
ANALYSIS: Oman’s construction sector could fall by 5.8% in 2021
first principle of safety on site – so this guide to me is well overdue (Top five tips
to keep your construction
FLEET
site clean, posted 14/12 on
Evoteq announces deployment of smart surveillance system at Bee’ah landfill
MECN). Obviously, there is a reason why all of us have spent countless hours in meetings being told what to do and what not to do when we are on site; but tidying and cleaning during the day seems to be left up to enlightened
MACHINERY
self-interest, rather than
Caterpillar announces first appearance at Consumer Electronics Show
be drilled into workers. Construction and building sites are never going to be completely clutter-free but it is vital that pathways are kept clear and we minimise the amount of scrap around us. This will help minimise injuries but also save so
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Eltizam signs $100 million agreement with Egypt-based real estate developer
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ANALYSIS: How Abu Dhabi is unlocking the power of PPPs
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Testing & Commissioning Control Room Design System Integration Policies & Procedures Site Surveys & Audits Crisis Management
8 | On Topic
Facilities Management
Evoteq deploys smart surveillance system at Bee’ah landfill
Expo 2020
01
New Zealand pavilion at Expo 2020 Dubai 95% complete
Evoteq has deployed its AI-powered smart surveillance system comprising over 90 smart cameras at Bee’ah’s Al Sajaa landfill. The Evoteq Smart Surveillance system is said to set a new standard in facility security management with advanced capabilities and includes a network of AI-enabled and thermal detection smart cameras, nextgeneration machine learning algorithms and an autonomous drone system. Jihad Tayara, CEO of Evoteq said the firm has deployed a network of smart cameras including license plate reading cameras at entrance and exit points that only allow access to approved vehicles; thermal cameras installed at high-importance zones that detect anomalies in temperatures, and AI-powered thermal and motion detection cameras that offer 360 degree-surveillance of vast areas that are all remotely connected to a control centre. The company said that landfill sites have several unique security requirements, from controlling site access and securing sophisticated machinery to monitoring environmental variables and ignition points among others. The Evoteq Smart Surveillance is said to act as a replacement for the traditional security approach of utilising closed-circuit television (CCTV) cameras and physical staff patrolling the grounds, through a digitalised, reactive and cost-effective solution.
02 The main contractor and its team for the New Zealand pavilion at EXPO 2020 has put 260,995 work hours on the site.
January 2021
01 The system comprises over 90 smart cameras, while AI-powered thermal and motion detection cameras offer 360 degreesurveillance.
95% of the construction work has been completed on its pavilion for Expo 2020 Dubai, New Zealand has announced. A spokesperson said that the final touches, including the façade feature, are being added and that the security, MEP, doors, windows, floors, walls and interior painting work has been completed. The country pavilion is due for completion in mid-2021, said the statement. The New Zealand team at Expo 2020 marked the milestone with a ceremony to
02
meconstructionnews.com
On Topic | 9
recognise the contribution of Rimond Middle East, the main contractor and its construction team, which has put in 260,995 work hours on the site. “We’re so excited that our vision for Expo 2020 Dubai will soon be a reality. We are grateful to our construction partner Rimond Middle East and its team for getting us to this point. With the pavilion now 95% complete, we are one step closer to creating an incredible experience where we will share our story of New Zealand’s Care for People and Place,” explained Clayton Kimpton, New Zealand’s commissioner-general to Expo 2020 Dubai. Giuseppe Chiarandà CEO and founder of Rimond Middle East said it had been a very memorable experience for the Rimond team to work on the construction of the New Zealand Pavilion. The contractor completed the shell and core of the pavilion at the end of 2019. The New Zealand Pavilion was designed by Jasmax architects and is located in the Sustainability District of Expo 2020.
03 03 The energy monitoring and management service includes energy management, asset performance, fault detection and diagnostics.
Energy Management
Facilio and Moro Hub ink deal for energy services Moro Hub (Data Hub Integrated Solutions) has inked a deal with Facilio to launch energy management and monitoring services for commercial and residential buildings in the UAE. The new service aims to reinforce and bring focus to next level energy-saving strategies of Dubai and the UAE. According to Moro Hub, energy monitoring and management services ensure asset reliability and reduce energy-related capital and operational expenses. The cloud-based service is said to provide a tailored approach to the efficient management of power in buildings meconstructionnews.com
by providing asset owners with the capability to control a digitised energy and assets network. The energy monitoring and management service includes energy management, asset performance, fault detection and diagnostics, proactive maintenance management and measurement and verification. “Through this platform, we seek to highlight the role of technologies in maximising power utilisation in various infrastructures, including buildings, and minimising electricity consumption through higher operational efficiency of key structures and facilities. This commitment is according to our endeavors to promote energy efficiency in buildings and in line with DEWA’s intensified initiatives to decrease power consumption levels of Dubai’s buildings,” said Moro Hub vice chairman Marwan Bin Haidar. Facilio founder and CEO Prabhu Ramachandran said his firm is pleased to collaborate with Moro Hub to deliver a single connected operational environment. He explained, “This cloud-based service will unify disparate systems and enable a data-driven model of property operations to improve building performance in real-time and meet sustainability goals. We are optimistic the synergy between Moro Hub’s digital ecosystem and Facilio’s O&M platform will help the industry unlock new potential for renewed operational excellence with greater agility.” January 2021
10 | On Topic
04 The first phase of the $2bn metro rail will feature two lines with a total length of 29km and will be served by 20 stations.
Construction
04
Transportation
Blueprint for $2bn Bahrain metro rail unveiled The blueprint for the proposed 109km long Bahrain metro rail has been presented by the country’s transportation ministry to councilors. The project is expected to cost as much as $2bn and will be implemented in four phases. The first phase is to feature two lines with a total length of 29km, served by 20 stations, of which two will offer crossovers from one line to another. Both lines will boast driverless trains and are expected to be operational in 2027, said a statement. Nine stations will serve the first line and will connect the airport to Seef Mall through Airport Avenue and King Faisal Highway, the Avenues Mall, Bab Al Bahrain, and Bahrain City Center Mall. The second line will run from Juffair in Manama, to the educational area in Isa Town, crossing the Al Fateh Highway, diplomatic area, Bab Al Bahrain reaching to Al Farooq Junction. The two metro lines will be interconnected at the Bab al Bahrain and the Al Farooq Junction stations. January 2021
Seef Properties says Al Liwan on track to open in Q1, 2021 Bahrain-based Seef Properties has announced that Al Liwan is on track to open in the first quarter of 2021. The developer said work on the 122,000sqm mixed-use development in the Al Hamala area of the Kingdom’s Northern Governorate is progressing at full swing. According to a statement, once open, the project will feature a wide variety of restaurants, cafes and retail stores and will be topped with 117 three-storey residential units. The development will also feature a cinema, a family entertainment centre, as well as open areas and boulevards. The project is said to be designed as an outdoor mixed-use development with full access to vehicles, making it more of an urban
development with public landscaped spaces, all within a comfortable ‘village’ family/friendly environment catering to all ages, the statement from the developer noted. “Al Liwan is unquestionably a valuable addition to the tourist attractions in Bahrain, as it is the first multipurpose project of its kind in the country; portraying a distinctive architectural breakthrough and comprising of a unique combination of entertainment and shopping elements, in addition to various restaurants and cafes,” said Seef Properties CEO Ahmed Yusuf. Inspired by Bahrain’s deep-rooted Arabian culture, the name Al Liwan reflects cohesion, unity and getting together, as it signifies the yard in the centre of old houses in this region, the statement explained. It is where the entire family used to gather to eat, chat and receive guests, and this reflects the essence of Al Liwan project; giving people a space to gather in a family atmosphere, the developer added. A first-of-its-kind project in Bahrain, Al Liwan will boast a combination of top-notch commercial, entertainment, and housing facilities, Yusuf explained.
05 Al Liwan is spread over 122,000sqm and features restaurants, cafes and retail stores. It will be topped with 117 threestorey residential units.
05
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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
12 | On Topic
Hospitality in Flux CBRE highlights pandemic related hospitality trends and key focus areas for owners and operators 2020 marked the start of a new decade, KPIs in hotels were up year-on-year around most cities in the Middle East, with a positive year ahead, filled with international events. Since the World Health Organisation (WHO) announced COVID-19 as a global pandemic on 11 March 2020, this confident start was abruptly halted. The pandemic affected every sector, with the hotel industry amongst one of the hardest hit. As a result of COVID-19, operators were forced to make tough decisions including whether to keep the lights on. Depending on the type of hotel and its service level, the decision to close or remain open varied across markets. The hotel market has also seen advancements in technology starting to trickle through, improving operations. The impact of the pandemic however, has acted as a catalyst, enabling even newer technologies to be implemented much sooner, enhancing the guest stay. Hotel owners and operators can even re-position their asset using sustainable approaches with guest at the forefront, whilst keeping the asset open and maintaining value. This piece touches on four key focus points: Optimisation; Sense of Place; Community Integration; Talent Attraction and Retention. These will rarely change in hotel real estate, whether planning future development or adapting current building stock. Optimisation
Hotel operations have fixed and variable January 2021
components to their expense line items, with the latter tied to demand levels. From food costs and cost of goods sold, to franchise and sales and marketing fees, hotel expenses vary greatly among different hotel types and locations. Many of the traditionally fixed expense components will become more flexible in the future as hotel operators adjust to the ‘new normal’ and learn (as a result of COVID-19) to operate more efficiently, with certain fixed expenses morphing into variable expenses to aid the bottom line. Modern ‘disruptor’ brands have focused on variable expenses, optimising areas with a complete end-to-end package, such as Sonder, beginning to enter the Middle Eastern market, running a CAPEX light business model and guaranteeing income for investors. Furthermore, a technology platform based out of India - OYO Hotels & Homes - is globally the fastest growing hospitality company, passing one million keys globally during 2019, operating either a leasing or franchise model. Larger international operators have approached the region with caution, historically operating through Hotel Management Agreements, allowing the operator to be asset light. More recently, with the disruptor pressure and the catalyst of the pandemic, we have witnessed more Franchise Agreements coming into the market. This allows the mainstream operators to be flexible and remain competitive against emerging challenges. With lower operational costs incurred by owners, there is potential for larger operators to meconstructionnews.com
On Topic | 13
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January 2021
14 | On Topic
be brought into master-planned schemes. The opportunity for operators to be more flexible with franchised or smaller owner/operated hotels, could see an emergence of owners able to streamline their costs more effectively. A Sense of Place
This relates to the relationship people have through attachments and place meanings. Hotels and hospitality assets do this through product positioning to a target audience. Assets under development have always been an issue for owners, being constructed for an extended period with no or low financial returns. To confront this issue, new brands are appearing, carving out a unique niche of operating residential, serviced apartments and hotel buildings, when construction of a building is complete, up to when all the units have been leased. For the more traditional operators, smart hotel rooms have been in operation for several years, reducing costs of operations. Examples are seen in many different guises, from high-tech in-room tablets controlling lights and curtains, to more passive examples such as contact switches that turn off the air conditioning when an external door is opened. In the future we expect to see a more guest orientated approach through technology, utilising the improvements that have been made in artificial intelligence (AI), with the introduction of contactless apps on mobile devices allowing a guest to check in, access the room, control the ambience and introduce inroom dining at the touch of a button. AI will improve guest experience in the future, but also streamlining back of house operations, ultimately, improving owners’ ROI. Community Integration
There is no doubt after the pandemic we will travel again, with the Middle East attracting domestic and international tourists. However, the rise of Gen Z poses a new challenge to hospitality as the first traveller cohort, that has been allowed to move across most borders, with little more than a visa and a passport. Let’s not forget, this generation is also the spearhead of the ever-growing gig economy.
January 2021
Whilst luxury hotels have long represented an escape from daily routine in the Middle East; hospitality is no longer just about the bricks and mortar but the consistent experience they must provide at any price point”
Add to the list, the more cost -conscious Millennial generation, it is clear to see whilst luxury hotels have long represented an escape from daily routine in the Middle East; hospitality is no longer just about the bricks and mortar but the consistent experience they must provide at any price point. Culture and events are two areas for focused growth in the region. Culture is important as it provides a unique identity to a region or place. CBRE research suggests that whilst there is limited direct monetary premium introducing culture into a city, it does increase the average length of stay (ALoS) within an area. If we take Abu Dhabi, the capital of the UAE as an example, since the development of Sheikh Zayed Grand Mosque; The Louvre; and the opening of various protected nature reserves (such as Al Wathba), ALoS has increased over the last three years. With further cultural demand generators expected to be completed within the next five years, in the Abu Dhabi Culture District, we expect this growth to continue. One-off events have also become a premium demand driver in the region, improving revenue per available room
(RevPAR) for hotels in an origin city, such as the Formula 1 Grand Prix in Abu Dhabi, inaugurated in 2009, showing a 65% increase from the mean average annual RevPAR. Talent Attraction and Retention
Fueled by the growth of Online Travel Agencies (OTAs), international brands initially followed the online sales approach. However, due to OTA cost increase, international brands have reacted through a personal engagement approach providing a more bespoke service to guests. This has been tested by disruptor brands and the emergence of holiday homes. Business to consumer (B2C) technology platforms such as AirBnB put guests into direct contact with a ‘host’, who will often be the person creating the guest experience from arrival to departure. Hotel chains adopting this ‘Host’ approach have had to up-skill their work force, focusing on the guest’s personal experience. This approach can be monitored through technology, as reviewing a person, service or place has become part of daily life, improving an asset’s credibility. A key lesson to be taken from these hotel reviews, whether positive or negative, is that they will nearly always mention a staff member either directly or indirectly. This all helps strategically with how a hotel approaches their staff hiring and retention. Creating values and a mission statement which are reinforced through relevant training methods, with the overall aim of improving guest experience. The hospitality real estate sector is changing faster than ever with outside pressure from technology focused platforms. For this reason, it has never been more important to retain the right talent and ensure that the guest experience is a positive one. The pandemic has tested hotels in a way that has previously not been experienced. However, hotels are typically developed or purchased as a long-term investment, over 10 to 15 years, therefore mitigating the short-term impact. It is certainly an interesting decade ahead, market testing the ‘new’ normal, for our generation’s interpretation of hospitality. After all, bricks and mortar will always be available, it’s the business inside that adds the value.
meconstructionnews.com
YEARS IN CONSULTING, PLANNING, CONSTRUCTION AND OPERATION
Drees & Sommer is an international enterprise, working with private and public clients from construction bodies to investors on all types of real estate and infra-structure projects. With its pioneering and future-shaping consulting, the company offers solutions for successful buildings, high-return portfolios, powerful infra-structure and livable cities. 3,820 employees in interdisciplinary teams based at 46 locations worldwide support clients across a wide spectrum of sectors. All the services provided by the company take into consideration both economic and ecological concerns, calling this holistic approach ‘the blue way’. Find out more: Drees & Sommer Middle East
16 | On Topic
01 Lucia Vernon is country director Qatar and Forensic Planning director at Quantum Global Solutions.
01
January 2021
Lucia Vernon “Both contractor and employer have the same goal and that is the project they are building together. Resolving disputes for the sake of the project will give glory to both builder and owner” Construction projects in the Middle East invariably have tight deadlines but often run late, so contractors make claims for extension of time to avoid penalties for late completion. Well-known industry guidelines for delay experts producing delay analyses for such claims are the Association for the Advancement of Cost Engineering (AACE) International’s Recommended Practice No. 29R-03 and the Society of Construction Law (SCL) Delay and Disruption Protocol. These guidelines suggest the correct delay analysis methodology for analysing projects, such as Impacted As-Planned, Time Impact, As-Planned versus As-built, observational Windows or Summary As-planned versus As-built analyses. Each expert has their own opinion on how these analyses should be applied or prepared using planning software or simply by an overview in Excel. Contractors support their extension claims to the employer with one type of delay analysis whilst the employer’s experts respond using a different methodology for their evaluation. The contractor’s expert may have prepared a Time Impact Analysis, while the employer’s expert may have used Windows analysis. Which analysis is better? The story of the project is the same, the past cannot change. This situation is part of my everyday working life.
Delay claim preparation can be a long process, with the quality of analysis dependent upon the documentation available and the time allowed. For example, the analysis for an average project such as a tower block can take one month but the follow-up meetings and discussions can take months or even years. During this time, the contractor is frustrated and unsure of the outcome. They are threatened with penalties and are concerned about being able to pay staff but would still like to work for the employer. On the other hand, the employer needs the job finished, is unsure of the cost and if the contractor can finish it. In the region, resources are limited and the employer needs somebody to carry out the work - they do not want the embarrassment of an unfinished project and no contractor to build the next project. Different opinions and delay analyses for the same project result in different entitlement conclusions. This seemingly unsolvable dispute between parties could be resolved quicker than it looks at first. The situation is sensitive with both sides preferring their problems be private. Allegations of concurrency impact on prolongation cost entitlement are often the main point of contention. But, how can parties reach agreement without time consuming and expensive arbitration or court proceedings? meconstructionnews.com
On Topic | 17
In Arabic culture, disputes are often settled over a coffee between two company representatives. But what if, say, the contractor is European? This could lead to a lack of understanding of how disputes are resolved locally. Here, Mediation has big potential in dealing with country-specific rules, regulations and cultural norms. Mediation is voluntary with both parties trying to resolve their dispute using an independent, unbiased mediator to help reach a negotiated settlement. Mediation is impossible without the willing participation of the parties, and ceases if one party walks out, which they are free to do. It is non-binding up until agreement and is ‘without prejudice,’ meaning that any admission, concession or offer made during the negotiations cannot be used in any subsequent arbitration or litigation. The process is private and parties discuss the issues separately with the mediator, meeting at the end to sign the settlement agreement. The mediator is not negotiating between the parties, the goal is to bring the parties together to understand their differences and objectives, and, more importantly, common goals, giving them the opportunity to reach a solution.
In the Middle East, resources are limited and the employer needs somebody to carry out the work they do not want the embarrassment of an unfinished project and no contractor to build the next project”
time entitlement and concurrency dispute. Delay analysis is often described as an enigma. No wonder it is difficult for people to understand the differences between methodologies and how the results should be read. Mediation allows parties to discover the differences between their delay experts and help them to see the other’s observations. Being a delay expert and mediator, I see the advantage of being able to ask questions to both parties regarding their analyses. Remember, both contractor and employer have the same goal and that is the project they are building together. Resolving disputes for the sake of the project will give glory to both builder and owner. Mediation suits those: committed to their projects; wanting to maintain industry relationships, and are willing to negotiate to clear up issues. It also provides privacy when under time pressure to settle. In short, mediation ultimately allows the right people at the table to finalise their project and in good faith!
Mediation Process
Mediation has five stages: preparation, opening, exploration, negotiation and closing. Personally, I consider the preparation stage the most important for a mediator to understand the project, and in my case, the delay analysis methodologies. During the opening the mediator explains the process and the parties present their opening statements, in this case their chosen delay analysis. The exploration stage is confidential between the mediator and the parties, with active listening allowing the mediator to build a rapport with the parties. The next stage is negotiation when the mediator can help frame and prioritise options for the parties. Once the parties reach an agreement, the mediator must check the reality of this and the closing stage can begin. As a delay expert I am asked to present my opinion of why projects are delayed. As a mediator, I do not give my opinion but encourage parties to solve their extension of meconstructionnews.com
January 2021
18 | On Topic
01 Jerome Frost is Global Cities leader at Arup.
01
Jerome Frost “Despite the initial fear that the pandemic meant that urbanisation would come to a halt, I believe cities are about to adapt and in beneficial ways” This year’s lockdown experiences have challenged many assumptions about city lives. Now, as vaccines become a reality, we have an opportunity to build a new vision of the urban future, learning from this globalyet-local experience. For the majority who live in towns and cities, our lives have been transformed as we are being urged to: • Work from home, as much as possible, using online and digital tools • Rediscover our local town centre by bike or on foot • Reduce international travel • Refocus on local supply chains and promote national production • Retain local jobs for local people Yet, almost without exception, all these trends were in train before the health emergency. The response to the virus has merely magnified and accelerated them. Despite the initial fear that the pandemic meant that urbanisation would come to a halt, I believe cities are about to adapt and in beneficial ways. Beyond Localism: Four New Trends
Encouraged by their citizens, growing cities are increasingly claiming tax raising powers, taking control of transport, housing, utilities and even healthcare in some cases. It is cities, more than national governments, that have led effective policies of change. Whether it’s implementing road pricing schemes, decarbonising energy January 2021
and heat networks, banning diesel or encouraging a shift to cycling, city leadership demonstrably works well. The current pandemic has merely compounded these trends, engendering great pride and belonging to cities dealing with strife. I suspect ultimately, it is city leaders more than national governments that will be the ones to persuade their people back to work in the post-lockdown period. Thanks to digital technology and increasingly capable networking, most developed world cities have already seen the potential of the knowledge-based economy, as a creator of new jobs and rapid builder of wealth. For new entrants, these new activities are less historically dependent, meaning location or lack of size will be no barrier to the possibilities of growth of hi-tech clean manufacturing, digital and data driven services, university, research and science based urban development. Good ‘place making’ will remain critical to attracting this talent to a city. Our centres need to work even harder post-lockdown to persuade people to leave their homes and head back to the office. New district, town or city-wide relationships could emerge where business works together with the public sector to create an ‘inside-out’ reimagining of our buildings and streets, opening office and retail frontages to spill out onto enlivened public realm, pedestrian only zones and calm ecological corridors. meconstructionnews.com
On Topic | 19
The Digital, Responsive City
Technology’s influence is already clear. In this digital era, city governments are already using data to better understand and target those in need, and there is great potential to adopt even more responsive data-driven policies. With greater insights into their populations and their behaviour, new methods of financing infrastructure, public services and affordable housing become possible with ‘live’ pricing of property values, road use and electronic transactions and the undergrounding and ‘live’ management of goods and services to reduce congestion. The Rise of Second Tier Cities
Technology offers the potential for smaller cities to develop new economic engines, through specialist activities such as remote production, digital modelling, data-analytics, design, prototyping and product refinement. Often less physically congested, more affordable to live and work in, these secondtier cities should prove as attractive to talent as some of the larger ‘magnet cities’ are today. Regional networks of second tier cities are
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already evident in Northern Europe and are now emerging strongly in China. New Suburban Centres
Personally, I think the CBD has a strong future, but localism is clearly growing. During lockdowns my fellow Londoners have rediscovered the value and character of the city’s village-based nature, an embrace and support of local neighbourhoods that we’ve seen in many other cities worldwide. The advent of digital transactions, increased home working and electric bikes and scooters coupled with local electric delivery networks could drive a gradual shift back to this kind of multi-centre model. There’s an opportunity for greater low-cost connectivity within and between decentralised urban centres as places of work, leisure, accommodation, collaboration and trade. What’s more, with technology facilitating more adaptable buildings and spaces, a historic suburban centre can adopt many of the functions of a CBD without the need for expensive redevelopment or new infrastructure. This trend is being accelerated in the east more than the west. It is best
encapsulated by the design of China’s newest City Xion’an – with its plan for multiple centres, layered underground transport networks, with people friendly streets and public realm, conveniently served by electric (and soon autonomous) vehicles. A Sustainable Future Starts in the City
After the pandemic the other main trend on the horizon is climate change, the push for net zero and the need for sustainable development in all decision making. Cities will be a central context for this development. Sustainable development principles are now established into banking and investment regulation. Digital communications infrastructure, retrofitting buildings, clean energy transformation and sustainable transport are all immediately investable and excellent generators of employment. This combination of net zero ambition and the need for greater social value and jobs will be a winning combination for stimulus the world over and cities will lead the way. Far from leading to an abandonment of city life, this year has provided many new ideas about how to shape its future for the better.
January 2021
20 | In Practice
January 2021
In Practice | 21
Bullish or Bearish?
Four regional professionals reflect on the past year, and share their views and predictions on key markets, trends and challenges for their firms and the industry in 2021 More than a year has passed since COVID-19 started turning the world upside-down, and some experts say the full impact of the virus will only be understood years later. That said, there is already plenty of information in the public domain that highlights the pandemic’s disruptive impact on lives, businesses and economies. The construction industry, like many others, was impacted severely – projects were put on hold or cancelled, companies and professionals had to find new ways of working with each other within offices and on project sites, project budgets and cashflow took a beating, while job loss and company closures have made the news regularly. There was precious little companies could do but try to maintain their standing in the market and prepare for the future. “2020 was a testing year for all industries and we had to be quick to restructure our service offering to support our clients with new requirements. We have extended our offering to include evaluation of existing offices, analysis, and design optimisation for the repurposing of commercial and hospitality spaces, but also made sure our projects on-site could continue without delays through integrated project delivery,” comments Stephan Degenhart, associate partner and managing director Middle East at Drees & Sommer. Kieran Duckworth, Main Board director at Omnium International states, “Our aim has been consolidation and we have successfully
achieved this. What this means for us is to come out of this period with our reputation intact.” On a positive note, Duckworth adds, “Despite these economic uncertainties, our people count across our group has remained relatively static and has in fact increased by around 60% in KSA. This will safeguard the strength of our ability to move forward at pace on new projects when the industry bounces back, and there are strong indications that it will.” While 2020 has been a year of strife and uncertainty, the end of the year saw some good news emerge. News broke of the approval of vaccines from two different groups, with distribution beginning shortly after. Although the news was welcome, the future remains uncertain, though some believe that market trends that emerged in 2020 will continue into 2021. Market Views and Trends
Commenting on client requirements and real estate market trends, Gabriella De La Torre, director – Consulting at CBRE explains, “Our clients are very keen to understand the short, medium and long-term impacts of COVID-19 on the wider real estate market and their projects specifically. As a consequence, our analysis dives deep into the implications on consumer behaviour, preferences and trends which are expected to impact demand for all asset classes moving forward.” “From a market perspective, it is clear that 2020 accelerated a number of key trends January 2021
22 | In Practice
which we were already starting to witness globally, such as the growth of e-commerce and adopting more flexible living and working arrangements. The outbreak of COVID-19 triggered a shift in mentality for both employees and employers and, supported by technological development, we will not fully go back to the previous, inflexible ‘work from office setting’, rather than adopting and evolving to a hybrid approach. We expect these trends to continue in 2021, highlighting the importance of delivering and providing the right type of real estate which responds to these shifts in consumer behaviour.” Commenting on the various sectors, she notes, “As health solutions become more prevalent over the next six months, some semblance of normalcy will return to the market with some sectors recovering faster than others. In the office market we expect flexible working trends to outlive the COVID-19 era. The hospitality sector will 01 remain under pressure for a longer period with some segments like business tourism restructuring and recovering at a slower pace. In the retail sector an acceleration of embracing technology, data analytics, and a focus on tenant landlord relationships will be front and centre.” In terms of trends that AEC firms have seen emerge, Jason Kroll, chief operating officer at AECOM Middle East comments, “From an AECOM operations perspective, the notion that anything is possible came to be. At the start of 2020 no-one anticipated our entire design operation would be working from home, however we managed to do this literally overnight whilst still delivering for our key clients.” “Digital Transformation has clearly become an even bigger imperative during recent months and will change the shape of our industry moving forward. Leveraging and embedding data in day-to-day operations has become paramount.” Targeted client spend and increased competition have also been observed, he notes. “It is clear regional governments are hard at work targeting fiscal initiatives to stimulate growth. We hope to see these convert to critical infrastructure programmes this year. And, as growth trends have slowed, the January 2021
01 Stephan Degenhart is associate partner and managing director Middle East at Drees & Sommer. 02 Jason Kroll is chief operating officer at AECOM Middle East.
The trend of digitalisation of construction projects and building operation will continue in 2021, and beyond - it is the only way forward for a smarter and more sustainable future”
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industry has become highly competitive - this is putting pressure on firms to survive and some consolidation is anticipated.” Degenhart asserts, “The benefits of digitisation in the built environment is a topic we have promoted heavily for the past few years. When the entire world came to a standstill and all companies in some shape or form had to operate digitally in 2020, those who were already equipped with digital systems and processes fared best. The trend of digitalisation of construction projects and building operation will continue in 2021, and beyond - it is the only way forward for a smarter and sustainable future. Additional trends that emerged in 2020 and that will continue in 2021 is the stronger focus on business case validation and viability of projects. The requirement for certainty on project delivery has increased ensuring our clients that their project will be well delivered.” Speaking about digitisation, he points out, “Digitisation has the power to have a substantial impact on the real estate industry. In a recent Drees & Sommer survey, 91% of respondents said digitisation would have either a strong or very strong impact on the real estate sector. Firstly, digitisation will play an increasingly integral role when it comes to the design and construction of buildings - something that is often talked about in relation to sustainability, climate change and energy saving. Secondly, digitisation will go far beyond architecture; it will support the operation of a building.” “Driven by more demanding user requirements, increasing desires for efficiency and the need for reduced operating costs, digitisation is already bringing about new business models when it comes to property. No longer is an asset simply built, leased, rented or sold; a building is capable of so much more. Essentially, technology can give buildings a brain, bringing them to life and opening up new possibilities of how we use them.” Degenhart also believes that modular building will be seen in a different light going forward. “Modular design has suffered from being stereotyped as quick and lower quality, but this doesn’t have to be the case. Modular building is innovative, cost-effective, and incredibly time efficient. The controlled plant conditions used for construction off-site meconstructionnews.com
In Practice | 23
mean results can be achieved in half the time of conventional methods. If cradle-to-cradle principles are also implemented in these prefabricated sections, the benefits multiply.” Duckworth cautions, “The onset of COVID-19 has certainly put the spotlight on the importance of cashflow, and this is evidenced by the pressures well documented in the press amongst some major contractors. This will continue to be at the forefront of everybody’s minds throughout the majority of 2021.”
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2021 Key Markets and Predictions
Discussing markets that will be crucial in 2021, all the participants in this feature highlighted the UAE and Saudi Arabia. Explaining her response, De La Torre notes, “In the case of the UAE, the market fundamentals are looking positive, supported by the government’s quick and assured response to the pandemic, as well as the range of new initiatives and reforms, which we expect to support future investment and further bolster market confidence. In Saudi Arabia, ambitious plans for new investment and development in line with Vision 2030 are also expected to support economic growth, creating various opportunities in key sectors, such as hospitality, entertainment and logistics.” Degenhart remarks, “The UAE and KSA are, and will continue to be key markets for us in the coming years. With multiple projects in the pipeline and long-term growth plans in both countries, we see great potential in commercial, residential and the hospitality sectors to grow further. The verticals we’re looking at are integrated project delivery and interdisciplinary design & research.” Going into detail, Duckworth comments, “2021 is expected to be an important year for us in KSA and with a presence in the Kingdom since 2007, we are well placed to add value to our new and existing clients. Omnium have provided cost management on many of the landmark/mega developments in this region and therefore retention of our staff is key to our business success. We have excellent staff retention rates, with 24 team members having worked with the business for over 10 years. This substantial experience and the ‘lessons learned’ by our team is an invaluable meconstructionnews.com
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03 Kieran Duckworth is Main Board director at Omnium International. 04 Gabriella De La Torre is director – Consulting at CBRE.
resource. This year we are looking towards the movement of more of our staff into KSA, so as to retain this experience and expertise and add value on new appointments in the Kingdom.” He adds, “Closer to home in the UAE, the rate of growth we have witnessed this year in our dispute resolution division, Omnium Resolve, paints its own picture of the current market circumstances and this is an area we expect further growth to our business during 2021. We also expect that shifting patterns in the retail sector will weigh heavy in 2021, with families continuing to spend more time at home, this has naturally reduced footfall in retail malls. We are already working with developers who are exploring ways to adapt and enhance their existing portfolio in an attempt to attract visitors back to physical retail.” In addition to the UAE and Saudi Arabia, Kroll highlights Bahrain, Oman and Qatar as markets of interest to AECOM. “Generally, we expect moderate growth across the board with KSA an exception on the back of their Vision 2030 programs. Our core verticals of Civil & Infrastructure and Buildings + Places are well placed to deliver on this growth – with a particular emphasis on Design + Planning and our PMC/PMO Business.” Bumps in the Road
The hospitality sector will remain under pressure for a longer period with some segments like business tourism restructuring and recovering at a slower pace. In the retail sector an acceleration of embracing technology, data analytics, and a focus on tenant landlord relationships will be front and centre”
While the respondents anticipate an uptick in business this year, they are also acutely aware there will be challenges to overcome. Degenhart explains, “The long-term effects of COVID-19 are still unknown and we see continued restrictions and infections on the rise. It is impossible to say what 2021 may look like with complete certainty, however, the biggest challenge will be the repurposing of existing spaces, be it commercial retail, residential, healthcare or hospitality. The challenge will be to not only suit the current needs and requirements, but to be adaptable and flexible enough to meet future needs and modifications. Making sure we construct future-proof and sustainable buildings in new construction projects will be essential.” “As a company, we continue to conduct research across our sectors and a recent survey showed 90% of people believe that COVID-19 will have medium to long-term effects on the January 2021
24 | In Practice
workplace environment. We forecast that we will indeed still need office spaces in the future - what they will look like and how they function are still up for debate.” Duckworth notes that Omnium sees 2021 as a year of managing expectations to safeguard client interests. He remarks, “There are great hopes for 2021 and in the rush back to normal, our focus will be on more haste less speed, with strategic, up-front planning, clear communication and early stakeholder engagement being the key tools we will use.” He elaborates, “One of the key challenges we foresee will be responding to staffing demands of new projects in a timely manner. As mentioned earlier, our year of consolidation and staff retention is in preparation for this challenge. We have regularly seen consultants overcommit to clients in the rush to get there first in what is seen as a continued race to the bottom, ultimately leading to reputational challenges. Fortunately, we are an agile and forward thinking company, and are ready for this particular challenge.” “An additional challenge in a world market recovering from the COVID-19 pandemic and integral to early feasibility studies will be market engagement. This is a key focus for us to supplement our contemporary benchmarking and rates database to make sure our clients have the most relevant cost data available to them, at the right time.” Kroll notes securing sustainable growth is one of the challenges he anticipates. This will require staying close to key clients and delivering on current commitments, he says. He also highlights maintaining market share, talent attraction and retention as challenges. “We continue to focus on our cost structure and efficient delivery models to ensure we are aligned to the market. And, as the global economy emerges from COVID-19 this year, staff may start to look further afield. By continuing to secure key positions on flagship programs i.e. NEOM, AECOM will attract and retain talent with opportunities that offer unrivalled career and growth opportunities,” he remarks. De La Torre cautions, “Despite the positive headwinds we have witnessed locally in recent months, we expect there to continue being a sense of uncertainty in market evolution. January 2021
The biggest challenge will be the repurposing of existing spaces, be it commercial retail, residential, healthcare or hospitality. The challenge will be to not only suit the current needs and requirements, but to be adaptable and flexible enough to meet future needs” From a client perspective, we aim to guide our clients in these times by leveraging on our deep experience in the market as well as the robust real estate platforms we have developed over more than 15 years in MENA. More than ever, it has become our priority to provide the best advice for our clients to ensure they are able to maximise the value of their real estate developments and assets moving forward.” Technology’s Time to Shine?
Over the last several years, innovation and technology has slowly made its way into different areas of the built environment, however, the industry still lags behind others. However, COVID-19 may have supplied the big push the industry needed to embrace technology wholeheartedly. Commenting on what technology could have the most potential impact on the industry and projects in 2021, Duckworth points out, “Instant access to data is an area that we are researching further. With increasing reliance on smartphones and instant connectivity, we are exploring how we can dovetail this into our service delivery to provide live, on the spot cost data across our regions of operation. We have invested heavily in our IT infrastructure over a number of years and this is the natural next stage.”
He adds, “The cost consultants’ use of BIM in the delivery of services continues to be an area we remain focused on. The importance of this is becoming more prevalent and we are seeing more developers placing a greater importance on the cost consultants’ involvement in the development of the BIM model at the earliest stages of a project. This encourages us, as it identifies a shift away from the adage that the cost consultant is used as an end stage cost estimating service - there is so much more added value that we can bring.” Degenhart remarks, “With health and safety being top priority going forward, followed by sustainability, innovative technologies that support these goals will have the most significant impact on our industry. Further research into artificial intelligence, building modelling, and digital twins will allow for a leap forward in the way we design and construct buildings of the future: advanced analytics; automation; machine learning; and the Internet of Things (IoT). “Other operating systems that promote contactless interactions within the commercial and residential real estate sector will need to be implemented, as a future-proofing measure to enable buildings to perform with minimal human interaction should it be necessary. Such systems include AI sensors that will: ensure health and safety by guiding users through the facility for minimal congestion; improve hygiene by alerting operations when areas have been used and need sanitising; promote sustainability by controlling energy usage in unutilised areas; allow for cost-saving by automating operations and limiting waste.” “With such advancements in operating systems moving much faster than we can build, the industry must construct buildings that are adaptable and flexible enough to house new innovative systems that improve our health, life and societies going forward.” Kroll says that embedding technology in the industry is paramount to driving productivity gains required to remain competitive in 2021. He concludes, “Cloud based delivery, drone applications and 3D printing etc are already established norms - the next evolution will be how, through AI, we best harvest and utilise the wealth of data generated in our industry.” meconstructionnews.com
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26 | In Practice
Driving Diversity Bentley Systems’ Katriona Lord-Levins talks to Angitha Pradeep about diversity and inclusion and key issues that the construction industry should address Katriona Lord-Levins joined Bentley Systems as chief success officer and SVP in July 2020, after stints as an independent consultant and a 15-year long tenure at Autodesk. Following her interview around digital transformation with Big Project Middle East last month, Middle East Consultant sat down to discuss diversity and inclusion (D&I), internships, outreach to academia and more. How can executives encourage D&I in the construction industry?
01 Katriona Lord-Levins is chief success officer and SVP at Bentley Systems.
January 2021
Diversity is vitally important in all corporations, particularly in gender-dominated ones like construction. Having a diverse talent pool enables you access to an array of thoughts, opinions, and approaches that can unlock innovation and optimisations. To encourage and influence diversity, executives should start by taking a close look at their hiring pool, and then examine the way we measure people, hold them accountable, and reward their successes. The most important thing we can do as leaders and hiring managers is to ensure we have diversity of thought in the hiring pool. A diverse hiring pool helps leaders reach
beyond their comfort zone and ensures they do not exclusively hire likeminded people. When conducting the interview, executives should present problem statements to see how people approach situations. And, don’t be afraid to embrace people who don’t solve problems the way you might. Becoming comfortable with being uncomfortable will help leaders ensure they are getting a variety of perspectives on their team. Additionally, diversity is good for the overall bottom line. You will not only widen your talent pool by addressing a critical shortage of skills, but, according to a McKinsey & Company study, companies with high gender diversity in executive teams are 21% more likely to experience above-average profitability than their low-diversity peers. What are the barriers to women entering the construction industry?
Women represent approximately 10% of the construction workforce. When you consider that woman make up 47% of all employed individuals, the construction industry is certainly missing out on a rich talent pool, particularly given the meconstructionnews.com
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January 2021
28 | In Practice
shortage of skilled workers. One of the common barriers women run into is the availability of fewer role models. However, this is changing as some of the larger corporations are now promoting women into positions of leadership. Breaking down barriers to entry will greatly help women become accepted more readily and make them almost commonplace on the job site. Of course, there are physical barriers on the construction site itself. Typically, construction sites are not designed for women, and the lack of appropriate and properly fitting equipment is the cause of many on-site injuries. More attention will have to be paid to the endto-end environment for sure. How can we reduce the risk of gender-based exclusion that can occur in a project and ensure E&C firms push for gender parity?
As with my previous response, I believe that leaders must focus in three areas. Determine the problem to be solved, hold everyone responsible for their role, and reward results
02 Lord-Levins states that E&C companies should develop training programs and local mentorship groups specific to the needs of women. 03 In the United States women represent approximately 10% of the construction workforce according to the U.S. Bureau of Labor Statistics.
work with educational programmes to highlight the value of construction jobs for young girls, so that they can see the industry as a viable career path. Introducing these opportunities for women can also help alleviate the current shortage of workers in the construction industry. Does the industry give enough flexibility to its ambassadors to be
and collaboration. Leaders must also focus on the outcomes, be metrics-driven, watch for silo breakdowns, and share successes. It is also important that you learn from any mistakes that are made along the way. This way you can build a bulletproof team. To increase recruitment and improve retention, E&C companies should acknowledge existing gender bias and strive to remove it from their work culture. These companies should also develop training programs and local mentorship groups specific to the needs of women. They should involve more women in the hiring process and encourage women to become role models for other women. Organisations should
mentors to students/interns?
This is an important area of focus. We must strive to change the mindset of younger audiences in general, open up possibilities, and end the perception of roles as gender-specific. Carving out time to be career ambassadors and demonstrate real-life examples is essential. Internships are an incredible way to provide hands-on training. While boosting the labour force is not the primary goal of internships, it does also allow you to scale your on-site talent when managed properly and get more done. Investing in students and interns, while very rewarding and necessary, is not to be taken lightly. It requires keen skills and patience on the part of the ambassador, and not everyone fits the necessary skill set. These ambassadors require support from their leadership not only with time but also with collaboration and partnership to truly invest in your organisation’s talent pool. Elaborate on what Bentley is doing with academia to raise awareness about careers in the construction industry?
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Bentley Systems has a long history of working with educational and STEM institutes, as the company and its leadership care deeply about extending the opportunity for more students to enter engineering and construction roles. We continue to expand this program to not only provide students with complimentary access to our software, but to also provide them with tailored learning paths that help them learn the basics from the experts, leveling the playing field for all who want to invest the time to learn. This program is not limited to university level students, as our intent is to extend it to younger students. We want to encourage and grow the love of engineering and construction in younger students by showing them what is possible and helping them gain the knowledge about the industry, while they are considering meconstructionnews.com
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their career options. This is how we ultimately influence our talent pool and make it more diverse, as well as help to resolve the shortage of skilled construction workers around the world. How can parents make sure the next generation understands the need for equality at home and work?
Parents should lead by example and watch for the unconscious bias we all have. The way we use language is particularly important in the formative years. While we cannot stop our initial unconscious bias, we can pause long enough to consider how to frame something in a less biased way. Exposing the younger generation to many possibilities with concrete examples of work and achievements by people who look like them and sound like them makes it much more real. Additionally, ensuring your own behavior mirrors your words, whether it is holding someone accountable for a task or delivering on your own commitments, builds the right sense of sense of pride in their work and the importance of commitments. To understand that many things are possible, however, the younger generation needs to see it with their own eyes. Parents should seek concrete examples of strong role models and ensure that schools and communities are providing the same. How important do you think it is for women to step into public meconstructionnews.com
We must strive to change the mindset of younger audiences in general, open up possibilities, and end the perception of roles as gender-specific� roles in terms of empowering other women and young girls?
Notwithstanding the important impact of parents as role models, children are often influenced by people outside their circle. To help them become more likely to seek a variety of possibilities and normalise new opportunities, we must expose them to people in construction boots, people who look like them and talk like them – people they can relate to. Telling them stories of what is possible with real-life tales of how someone creates a successful career is the best way to extract the possible from the impossible. Belief is a wonderful thing, and we should start that belief early in a child’s life. Shattering previous gender stereotypes helps pave the way for a new generation of female leadership in the construction industry. Of course, we should make sure the rewards of
leadership are obvious either in the joy of the finished product or the satisfaction of money well earned. There are more female leaders stepping into highly visible roles, and having them connect to the next generation either through academia, teaching and mentoring or leveraging social media to share their story increases the possibilities for their mentees. What teachings or lessons would you like to pass onto the next generation?
I have three rules that I continuously try to live by and share with my teams. I believe they are important to impart not only as team members but as members of society. 1. Be comfortable going outside your comfort zone, embrace new thoughts and ideas, get into spirited debates, and above all else, first seek to understand then be understood on your own opinion. This will ensure you are fostering your own personal diversity of thought. 2. Focus, focus, focus. This is the most important thing you can do. It builds your self-esteem, your reputation and your career trajectory by executing one thing at a time. 3. Lead by example and cross the finish line as a team. Collaboration and sharing your experience to help others along the path means all of us get more done, scale our own successes, and grow. January 2021
30 | In Practice
PUTTING DIGITAL
FIRST
Jason Saundalkar talks to Suhail Arfath about the current state of the construction sector, and how Hloov intends to work with E&C firms to reduce waste, realise stronger margins and deliver value to clients January 2021
In Practice | 31
With an increasing amount of attention being rightly given to climate change, sustainability and circular economies, discussions and regulation relating to the handling of construction and demolition (C&D) waste has been increasing in recent years. This is long overdue given that construction and demolition waste typically comprises a significant amount of a city’s overall waste each year. International studies focused on climate change and environment state that the construction sector is responsible for 40% of energy usage globally and 50% of landfill waste. Both are staggering figures that must be actively reduced for the good of the environment and future generations. The latter is the main focus of data, technology and services startup, Hloov. Explaining the company’s name and focus, Suhail Arfath, director, Digital Transformation and Innovation at Hloov says, “The name Hloov comes from an Asian language/dialect called Hmong. The word means change, which truly aligns with our mission to empower the engineering and construction (E&C) sector to reduce waste with a digital first approach, and deliver carbon-neutral infrastructure on time and budget.” “The E&C sector is on the cusp of an extraordinary technological revolution that will carry an industry mostly known for highrisk and low-margin to incredible new highs, and deliver incremental global value. After all, the industry is up against some of the most critical global challenges including meeting infrastructure needs for the inflating global population, the pressure to deliver net-zero infrastructure, and, last but not least, known to be one of the top waste generating and low productive industries.” Arfath explains that capital projects typically take 20% longer to finish than scheduled and are up to a staggering 80% over budget. “Over the past few years, a good percentage of large and medium E&C firms have been investing in technology and digital transformation with varying degrees of success. The COVID-19 pandemic has undoubtedly accelerated the pace of digital transformation and migration to the cloud,
significantly, shortening the reaction time to changes in the business environment.” Fully cognisant of the pressures bought on by COVID-19, he adds, “However, investment plays a vital role in enabling a technological transition. In the current unprecedented times and resultant budget constraints, investing in exploring, choosing, and implementing the right solution may not be as easy as it sounds. So, there is an immediate critical need for technology-agnostic solution providers such as Hloov, with background and experience in the E&C domain processes, and strong expertise in technology implementation, to play a crucial role in helping businesses who are changing, and moving through their digital transformations at a fast pace.”
Nearly 96% of all data captured in the E&C industry goes unused today; this loss of an invaluable resource and insight should no longer be acceptable. Project owners will start taking control of project data and take the lead to democratise data across project ecosystems to enable and empower teams to deliver value, not just contractual deliverables”
Industry Turmoil
Arfath is a regional veteran with experience bridging technology and construction, having held positions at organisations such as Autodesk, Aikomus and Laing O’Rourke. Discussing some of the impacts COVID-19 has had on the regional construction sector and what he believes some of the long-term effects will be, he states that pre-COVID-19, the construction industry was already grappling with significant challenges from low margins, increased competition, and a reducing number of projects. There is no doubt that the pandemic will leave an enduring impact on the sector, he says. Conversely, he is optimistic about certain regional markets. “With about $1tn of projects planned or under construction through longterm, transformational masterplans, and megaprojects driven by the UAE and Saudi Vision 2030 programmes, there will not be a shortage of potential opportunities. However, due to the complex nature of construction projects involving a village of various teams and workers from diverse trades to deliver the projects, there will be a paradigm shift in many areas to do things differently than done in the past. This includes reimagining with a digital-first approach; investing in the workforce; democratising data across project supply chains; design for manufacturing and assembly (DfMA) to take control of schedule and cost; and net-zero infrastructure focus.” Asked to elaborate on data democratisation across a project’s supply chain, he comments, “Nearly 96% of all data captured in the E&C industry goes unused today; this loss of an invaluable resource and insight should no longer be acceptable. Project owners will start taking control of project data and take the lead to democratise data across project ecosystems to enable and empower teams to deliver value, not just contractual deliverables. Data won’t be left stuck and unused within an organisation, role, or proprietary format; a seamless data flow and sharing will be the new norm.” On the rise of DfMA he states, “2021 will be a year of vaccination and cautious travel, and minimum access to foreign workforces. Therefore, it becomes more prudent to January 2021
accelerate the adoption of more labor-efficient construction technologies and methods such as DfMA to reduce the reliance on foreign resources. According to industry reports, despite the increased initial cost associated with modular construction, net financial savings of 7% are possible due to the shortened construction period. This potential saving can be vital for the project owners in the current challenging environment, thus, we will see more clients asking for the DfMA options from the supply chain in the coming years.” Short, Medium & Long Term Goals
Shifting focus to what he hopes to achieve with Hloov within its first year of operations, Arfath is quick to point out that in 2021, empowering a small group of forward-thinking owners, operators and developers with a digital first approach to deliver carbon-neutral infrastructure on time and within budget is 01 the agenda. “We intend to help our clients on achieve this by connecting people, process, and technology,” he points out. “With regards to people, we aim to upskill and reskill a client’s workforce with current and emerging technologies in their day job scenarios, to empower them to reimagining their business processes for a resilient today and better tomorrow. On the process side,
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we aim to assist in reimaging their business and delivery processes and governance with a digital first approach and democratise data across their project ecosystem to enable teams to deliver tangible value.” On technology, he says the plan is to implement modern and data-centric technologies to support and fast track a client’s digital transformation strategy and
vision to a reimagined built environment to reduce waste and improve profitability. Summarising, he says, “The ultimate goal is to reimagine the built environment wherein the projects are conceived, designed, built, and managed by leveraging a digital twin - a virtual representation of real-world entities and processes, synchronised at a specified frequency and fidelity.” As far the medium-to-long term objectives, Arfath explains, “Hloov’s vision is to realise a waste-free E&C sector that designs, builds, and manages carbon-neutral infrastructure for a resilient today and a better tomorrow. We plan to build a diverse and innovationdriven organisation wherein employees are passionate and encouraged to question the status quo and ask ‘why…’ often, empower our clients to design, build, and manage carbon-neutral infrastructure on time and budget by reducing waste, and deliver value to our partners and investors by meeting and exceeding our financial goals.” With regards to markets that Hloov is keen on establishing a foothold in over the current and next few years, Arfath says the Middle East and India will be the areas of focus. “Our strategy and investments are focused on supporting and catering to the region’s digital transformation needs of the E&C meconstructionnews.com
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sector. We are setting up dedicated innovation hubs in the Middle East and India to reimagine the built environment in the new technologydriven normal with particular attention to local needs. Our India delivery centre will act as a primary resource provider for volumetric service offerings and developments to keep costs down.” Potential Challenges
Asked about the challenges he anticipates and his plans to tackle them, Arfath comments, “With the vaccination rollout in progress, we believe the worst has been avoided, and the global economy could revive quickly. However, the situation remains precarious for many vulnerable people, firms, and countries, which might continue to stress E&C sector cashflow and investment priority decisions.” He continues, “To support our clients in these challenging, transitioning times, we have devised a ‘savings share’ business model where we, alongside our clients, invest our resources
01 Suhail Arfath is director, Digital Transformation and Innovation at Hloov. 02 Construction and demolition waste make up a significant amount of a city’s overall landfill waste each year.
The E&C sector is on the cusp of an extraordinary technological revolution that will carry an industry mostly known for highrisk and low-margin to incredible new highs”
to identify and quantify the waste in their processes, projects, and or organisation. We will go after those to make savings and our fee comes out as a nominal percentage of their actual savings. We are aware it is a fresh, risky, and disruptive approach; however, this is our way of demonstrating our commitment to our client’s success by having our skin in the game. Our customer’s success is our true success.” Making his closing statement, he concludes, “The pandemic might have triggered and accelerated the E&C sector towards the need for behavioural changes and digital transformation. However, we believe the industry has a once in a lifetime opportunity to go from high-risk and lowmargin to a highly productive and profitable sector, while contributing to making this planet a better place by reducing its current 40% carbon emission contribution. It takes a village to deliver an infrastructure project, and it most certainly will take the whole E&C sector to save the planet.”
HKA IS ONE OF THE WORLD’S LEADING CONSTRUCTION CLAIMS AND DISPUTE RESOLUTION FIRMS We anticipate, investigate and resolve project challenges for the construction, manufacturing, process and technology industries. HKA understands the pressures associated with delivering successful projects, whatever their size and complexity, wherever in the world. As trusted independent consultants, experts and advisers, HKA finds solutions amid uncertainty, dispute and overrun, and provides the insight that makes the best possible outcomes a reality for public and private sector clients worldwide. For more information about HKA, please contact enquiries@hka.com.
OUR GLOBAL PORTFOLIO INCLUDES SOME FOR THE WORLD’S LARGEST AND MOST PRESTIGIOUS PROJECTS ACROSS A WIDE RANGE OF MARKET SECTORS THAT INCLUDE BUILDINGS, INDUSTRIAL, INFRASTRUCTURE, OIL AND GAS, POWER AND UTILITIES, AND TECHNOLOGY.
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January 2021
34 | On Site
January 2021
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On Site | 35
Raghda Elkhatib “Gender diversity and equality is everyone’s responsibility. It’s in the hand of every team member; not just business leaders at senior levels. We all have a role to play” 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 Raghda Elkhatib, graduate project manager at WSP in the Middle East. What drove you to get into construction and your first role in the industry?
Since a young age, I’ve always been intrigued by buildings and how they can influence the way we live, our moods and behaviour. We spend the majority of our lives in buildings and I believe through architecture and engineering, you can influence the way people live for the better. I started studying Architecture Engineering at the American University in Cairo (AUC) and completed my honours year at Heriot Watt University. I started my career in Cairo as a site engineer for a contracting company working on a refurbishment project fronting the River Nile. Share a brief about your career, mentioning key achievements.
Starting my career on site was a great meconstructionnews.com
experience, especially being part of the process to bring the design drawings to life. While this experience was a fundamental first step for my career, I always had a burning desire to explore my creative side and be part of the design process as well. In 2018, I joined WSP as part of the Integrated Project Delivery team, where we are responsible for the organisation and delivery of complex and multi-discipline iconic projects. The team strives to create an inclusive and energised design environment, with a focus on improving coordination and ensuring the highest level of quality for our clients, whilst respecting stakeholder requirements, project timescales and budget. Working with WSP has provided me with the opportunity to work on several iconic projects across the Gulf region. How have you made your mark in the industry and what is your your proudest moment?
WSP’s commitment towards being a Great Place to Work is translated in continuously challenging the status quo in areas of gender and diversity, which creates an inclusive working culture that empowers its people to January 2021
36 | On Site
thrive and reach their full potential. This forms part of the WSP core guiding principles and in my opinion helps promote WSP to the forefront of gender balance, diversity and inclusion. My proudest moment has been supporting one of our key clients, Emaar, on their hospitality project Vida Dubai Mall, located in Downtown Dubai. Seeing the two towers of my first project with WSP rising out of the ground has been an amazing experience and something I am very proud of. I am still in awe every time I visit the site office or when I drive by. What are some of the barriers to women entering the construction industry? What was your personal experience?
The main barrier remains the lack of awareness and knowledge about what the different roles the industry has to offer. One of the reasons is the continued gender stereotypes of masculine roles; that engineering careers comprise of a lifetime of being ‘dressed in overalls’ and ‘working on site’. The construction industry has been slow to show that it has desirable career options for aspirational young people of all backgrounds. At first, I was worried about the lack of role models and career progression but I decided to approach the industry with an open mind and confidence. I know it was the right decision because it has been a rewarding experience.
culture of diversity and inclusion. There is definitely progress being made and businesses are slowly recognising the benefits of a balanced workforce and recruiting based on merit, technical skills, competencies and experience. 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?
The World Economic Forum ranked the United Arab Emirates as one of the leading countries for gender equality in the Middle East. I feel very fortunate to work in the UAE, where the country is consistently and actively championing gender diversity as a national priority through many initiatives each year. With regards to the industry, businesses are becoming more aware and striving for equal opportunity. While this is good progress, I believe positive change can arise if public and private sectors globally can collaborate to develop holistic frameworks to improve gender balance for future workforces. This will allow firms to understand where they currently stand, develop indicators and standards and work towards better targets. WSP is leading the way in this area by setting an industry standard for E&C businesses in the Middle East with the publication of our Gender Balance Report.
Keep an open mind, be curious and confident. Do not be afraid to step up, come forward, be bold in accepting challenging roles and be willing to admit you don’t always have the answers. Change in the industry is happening, do your best to be part of the momentum”
construction sector? If you have worked in markets outside the GCC, how does
The GCC construction sector is still
Besides authorities and
your experience here compare with what
male dominated, however diversity is
construction firms, who else can
you’ve experienced in other markets?
beginning to increase. If you agree with
play a part in increasing diversity
this statement, comment on what is
and balancing pay scales?
driving this and how you see the GCC
Gender diversity and equality is everyone’s responsibility. It’s in the hand of every team member; not just business leaders at senior levels. We all have a role to play. Furthermore, shining a light on the incredible contributions that women are making in the industry and sharing the stories of female pioneers will help reassure and inspire women that anything is possible with hard work and dedication. Only then can the industry start reaping the rewards of narrowing the workforce gender gap and appreciate the benefits.
Due to the scale and complexity of the projects we are exposed to in the GCC, we are challenged to step outside of our comfort zone and learn new skills very fast. This challenge has allowed me to explore areas of project delivery that I may not have been exposed to early on in my career in other parts of the world. Working as part of the IPD team, often to significant programme timelines and project requirements, has been a challenging, fulfilling and very rewarding experience.
markets changing in the coming years? If you do not agree with this, please share your thoughts/views of the market.
As part of the WSP team working in the Middle East, I’m currently working on three projects in three GCC countries, and the teams I work with are diverse. Our teams have successfully designed and delivered many large-scale multi-disciplinary projects by incorporating the diverse backgrounds, perspectives and experiences of our people. Whilst the industry as a whole is slow to address issues, we continually work to deconstruct perceptions through a supportive January 2021
In your opinion, what is the biggest challenge women in the construction sector face in GCC countries? How
As a woman in the industry, what has
can these challenges be addressed?
your experience been working in the GCC
One of the main challenges in the industry for meconstructionnews.com
On Site | 37
and develop a career path towards professional membership or promotions within the business. I strongly believe there are no limits to what you can achieve with hard work and dedication at WSP. How does WSP approach diversity in the workplace? What more can the company do to increase diversity?
As part of WSP’s Diversity & Inclusion objectives, the business has many initiatives and participates in campaigns that celebrate diversity and advocate for inclusion such as International Women’s Day, International Women in Engineering Day, and #EngineeredOurWay, among many others. Our Middle East WSP Gender Balance Steering Committee is constantly working towards activities to shift mindsets and unlock the opportunities of a diverse workforce where our people can fulfil their potential and contribute to WSP’s success, irrespective of their gender. WSP also encourages young talent through competitions that spark their curiosity in collaboration with schools and universities to attract, develop, and retain young professionals from different backgrounds and ethnicities. How do you personally push for diversity and equal pay in the construction sector?
many people, particularly women, is trying to achieve an improved work-life balance. One area of focus would be for the industry to explore and promote awareness of benefits and workplace support for employees with childcare responsibilities. The construction industry is at an early stage in addressing how to empower people to combine work and family commitments, often treating them separately. WSP is leading in this area with the launch of a flexible and industry leading maternity policy in 2020, whilst also offering working parents flexible hours, part time opportunities, as well as a culture and work environment that acknowledges and supports the challenges facing professional working parents. In doing your job, what sort of discrimination (if any) have you faced and how did you/WSP address it?
I have been fortunate that I’ve not experienced meconstructionnews.com
any discrimination in my career. As part of the IPD team, I deal with many project stakeholders internally and externally. While some took longer to accept my involvement due to my junior role, I focused on driving excellence in myself and others. Over time, they became comfortable with my participation and more appreciative of my capabilities. I get a great sense of achievement when team members enjoy working with me and want to work with me again in the future.
I have connected with students from American University in Cairo and Heriot Watt University, where I answered questions about the industry. I emphasise to the younger generation that supporting initiatives that celebrate diversity is an imperative ingredient to success, both at a professional and personal level. To really make an impact, we should promote diversity of all kinds, which starts with teams comprising of different genders, cultures, ethnicities, religions and backgrounds.
Do you feel there’s a limit with regards to
What advice would you give
how far you can progress within WSP?
to a woman entering the GCC
WSP provides all employees with equal opportunities to thrive and reach their potential, by celebrating their talents and rewarding their hard work and dedication. Our business encourages young professionals through assigning supportive line managers and career mentors to help set goals, targets
construction industry today?
Keep an open mind, be curious and confident. Do not be afraid to step up, come forward, be bold in accepting challenging roles and be willing to admit you don’t always have the answers. Change in the industry is happening, do your best to be part of the momentum. January 2021
38 | On Site
January 2021
meconstructionnews.com
On Site | 39
Construction Industry Golf Day 2020 Gavin Davids recaps the events of the 2020 edition of the annual Construction Industry Golf Day, which was held at the Trump International Golf Course The Trump International Golf Course in Dubai played host to the 2020 Construction Industry Golf Day, hosted by Big Project Middle East. More than 70 construction professionals took part in the annual event for a day out on the greens, with great weather to boot. The day-long golf tournament took place over 18-holes and featured on-course competitions and networking in a relaxed and fun-filled environment. Targeted at senior executives and decision-makers from some of the region’s most prominent consultants and contractors, attendees at the Construction Industry Golf Day 2020 came from companies such as ALEC, Besix, AECOM, Arcadis, Omnium, McLaren, Kier and ARUP. After a long day of fierce but friendly competition, the winning team, with a total
net score of 50.8 was Mark Harris, Chris Graham, Brian Dowling and Steve Duthie. They won Golf Travel Bags and Golf belts provided by AGMC and a round of golf each at the Trump Golf Club. Second after a count back over the last nine with a total net score of 56 was Daniel Crossan, Steve Caygill, Keith Kiely and Riley Smith - they won a brunch for four at The Croft. The winner of the Longest Drive Competition on hole nine was Francios Van Niekerk, he was presented a set of Pro V1 golf balls by Driver Trett. The Nearest to the Pin competition winner on hole 15 was Daniel Brooks, he won a 4-ball at the Trump Golf Club courtesy of Gebal and Rhino. There was also a raffle to win a staycation at the Atlantis sponsored by Tenderd, and the winner picked was Sean Fenner.
Raz Islam, managing director of CPI Trade Media told Big Project ME that he was delighted with the turnout on the day, especially after a tough year for the industry. He thanked the sponsors and participants for their support in making the event a success. “A special thank you is due to our sponsors and partners without whom it would not be possible to hold the Construction Industry Golf Day: STO, Gebal and Rhino; 12d Model and GCSolutions; RIB CCS; Himoinsa; Johnson Arabia; RMD Kwikform; Driver Trett; Safelift; Tenderd; Mirage; Berkeley Services; Precipio; and The Croft.” “And of course, thank you to BMW for providing an opportunity to our competitors to win a luxury car. Hopefully, someone will be able to win it next time! Congratulation to the prize winners, and we look forward to seeing you all at the next event!,” Islam remarked.
SPONSORS & PARTNERS
meconstructionnews.com
January 2021
40 | On Site
01 Prakash Senghani is the co-founder of Saifety.ai.
01
January 2021
Prakash Senghani “Once enough data is captured, trends and patterns can be derived, some of these can point to elevated risks or potential hazards” Saifety.ai is an artificial intelligence powered safety management platform for high risk industries, like construction. We want to put Artificial Intelligence (AI) to practical use, save lives and improve business outcomes. Our main ambition, apart from ensuring everyone who comes to work in the industry goes home in the same condition they arrived, is to show that safety is something that everyone can take part in, and that it isn’t just for the safety professionals. We want to make it easy, and dare I say fun, to participate in creating a safer culture in the industry, we believe this can be done through an intuitive conversational interface. We use two different flavours of AI: on the front end we utilise a machine learning enabled chatbot to capture information more intuitively, in a frictionless manner and one which helps improve the structure and quality of the data. On the backend, we are using deep learning to automatically spot trends and patterns in the data, turn them in to information and use the same intuitive chatbot interface to disseminate the information back to users to assist in decision making. In doing this we get more data, as it’s so easy to use, faster analytics as its automated and near-real time decision making, all of which helps to reduce risks, save lives and improve overall project performance. Once enough data is captured, trends and patterns can be derived, some of these can point to elevated risks or potential hazards. For example if the platform spots users making multiple observations about crane platforms,
it can alter management about a potential deficiency in training or understanding and a toolbox talk can be issued to all relevant user via the platform to try and remedy this. The issues we currently face is that safety management systems we use tend to either be analogue, paper based or use interfaces which mean people find it a chore to complete. This means we do not collect enough quality data to be able to analyse or do many meaningful things such as predict risks or suggest mitigations. Having robust, reliable and quality data on hazards and risks from past projects can help inform upcoming projects of the potential issues they might face, incorporating these into the BIM workflow right from the design stage is a great way to utilise data and break down the silos to deliver safer projects. Eventually, we see functionality where you can ask Saifety Bot what the top hazards are for a certain typology of project in a region which is due to start on a date, and it will be able to give you detailed hazards and the risks associated with them. At the risk of sounding clichéd, the limits of this technology are boundless, as machine learning algorithms improve - as we use them more, their usefulness will grow. Once a project is over I can see Saifety.ai transferring over to the operations and maintenance teams to ensure that any residual risks left over from the construction phase are understood, and that the safety is efficiently and effectively managed during the life of the building. Do this across buildings in a city and you end up with a citywide safety platform. meconstructionnews.com
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