ON TOPIC
JLL reviews KSA’s key real estate sectors in Q3, 2021
ON SITE
AW² on the design and delivery of the Ashar Tented Resort
ON SITE
Women in Construction profile: Ankita Rao
JANUARY 2022
087
FOR THE CONSTRUCTION SPECIALIST
Light at the End of the Tunnel? What’s in store in 2022? What trends will influence requirements, design and construction? Four firms share their thoughts Licensed by Dubai Development Authority
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Contents | 01
22
January 2022 Issue 087
Cover Story
Light at the End of the Tunnel?
What’s in store in 2022? What trends will influence requirements, design and construction? Four firms share their thoughts with MEC
14
Opinion
Fire Safety in Focus
Passive fire safety features are integral to our lives, even though it sits there in the background rarely have an impact writes SOCOTEC GCC’s Craig Murphy
Analysis
18 meconstructionnews.com
KSA Real Estate Market Overview
JLL examines the supply and performance of the residential, commercial, hospitality and retail markets in Jeddah and Riyadh during Q3, 2021 January 2022
02 | Contents
Site Visit
A Jewel in the Desert
Stéphanie Ledoux and Reda Amalou speak to MEC about designing and integrating the Ashar Tented Resort, so it complements its spectacular surroundings in the Ashar Valley in AlUla, Saudi Arabia
36 Profile
Ankita Rao
MEC talks to Ankita Rao, comanaging partner at Freeline Engineering Consultants about her influences, career and gender diversity in the construction industry
32 Event
Women in Construction 2021 Summit Wrap The raft of gender, diversity and inclusion agendas was the focus of powerful, touchstone debate at the Women in Construction Summit
8 Update
News
The Bridge|Lifestyle Hub opens to public; Saudi Arabia outlines masterplan and main features of new $20bn destination; SHC awards $1.76bn main contract for The Avenues – Riyadh Mall; Hilton reaffirms plan to launch new hotels and create 10,000 new jobs in Saudi Arabia January 2022
28 meconstructionnews.com
2015, 2016, 2018, 2019 & 2020
04 | Welcome
Group MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5713 DIRECTOR OF FINANCE & BUSINESS OPERATIONS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474 PUBLISHING DIRECTOR ANDY PITOIS andy.pitois@cpitrademedia.com +971 4 375 5473
Editorial EDITOR JASON SAUNDALKAR jason.s@cpitrademedia.com +971 4 375 5475
The time to shine is here! On behalf of everyone at Middle East Consultant (MEC) and CPI Trade Media, I’d like to bid everyone reading this letter a very happy new year, and a warm welcome to 2022. I hope the holidays gave you the opportunity to recharge and prepare for the next 12 months. The MEC team will be kicking the new year off with a bang because, on January 19, the seventh annual MEC Awards will take place under the Dubai sky at the Ritz Carlton JBR. Over the next few weeks, should you or your company have been shortlisted, someone from the MEC team will be in touch about your attendance to the gala event. As I mentioned in my previous editor’s letter, a new record was set in terms of the total nominations submitted (in excess of 200) but, having now had the chance to go through them all properly, I’m actually even happier about a couple of other things. Whereas in the past signed testimonials were submitted by only a few companies and individuals, this time around, there were noticeably more, and each spoke positively of sterling work/work ethics. I have to give props to one firm in particular, as they submitted a quality nomination with no less than 18 endorsements from some of the region’s key construction industry stakeholders. As the steward for the January 2022
Advertising
MEC Awards, it’s incredibly gratifying to see this level of enthusiasm and passion going into a nomination, so whether this firm wins or not, I do plan to recognise this incredible effort on the night of the awards. I’m also pleased to report that, for the first time ever, the ‘Sustainable Project of the Year’ category received over 10 nominations. This is significantly higher than we’ve received in the past, which I think is a great indication of sustainable design and construction taking greater hold in the region. The volume and variety of nominations necessitated a change to this category, which will be explained on the night of the awards. The overall quality of nominations in every category was also higher and, thankfully, I could count on just two hands the number of nominations that had minimal effort put in and relied on marketing brochures etc. As you can imagine, none of those nominations made it past the first round of eliminations, which were handled by the MEC team and I. Looking beyond the MEC Awards, the magazine will continue to highlight the region’s trends, opportunities and challenges every month, bolstered by top drawer live and virtual events throughout the year. Until next time, stay safe.
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Jason Saundalkar Editor, Middle East Consultant
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SAUDI PIF TO INVEST $266BN INTO NEW PROJECTS BY 2025
DP World and DRC ink agreement to develop deep sea port in Banana
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January 2022
ANALYSIS: Asset management can support privatisation across The Kingdom
Glad to see that Newcastle United’s new owners are not putting all of their eggs into one basket given the team’s current form in the English Premier League! But in all seriousness and staying on topic, this is an almost mind boggling number and story. It is also an ambitious target even for the Saudi Public Investment Fund to get that $266 billion invested within the next four years - but it demonstrates the ambition of The Kingdom to make sure it stays on target for the structural and infrastructure work that it needs to stick to its Vision 2030 plan. I heartedly agree with the Serco assertion made elsewhere on the site that asset management must be taken seriously and will go hand in hand with attracting investment as the government begins to disentangle itself from many of its services and holdings through privatisation. The recent regulatory framework saw a record boost in FDI this year and shorn up a weak-looking legal backline, but it will be mid-2022 until we really see whether The Kingdom is winning the promotion fight for investment. Name withheld by request
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8 | On Topic
Lifestyle
Masterplan
The Bridge|Lifestyle Hub opens to public
Saudi Arabia outlines masterplan and main features of new $20bn destination
The 8,000sqm Bridge|Lifestyle Hub has officially opened its doors in the UAE’s capital. The facility is the latest to open in Abu Dhabi’s Al Qana tourist and lifestyle destination, and is billed as an integrated lifestyle hub which strives to transform how community members understand health and wellness. In line with Abu Dhabi Government objectives, UAE Centennial 2071, and the National Strategy for Wellbeing 2031, the hub has embraced an integrated concept of wellness, arts and culture through active and social lifestyles, mindfulness and positive thinking, a statement said. “The Bridge|Lifestyle Hub will become a major asset for the emirate, as we strive to become the key contributor to enhancing health and wellness on a global scale. With the support from Abu Dhabi’s leadership, the government, and the expertise from the business community, we were able to create this first-of-its-kind concept in Abu Dhabi, which we intend to take worldwide,” said Khalid Nahhas, co-founder of the Bridge|Lifestyle Hub. Al Qana is a 146,000sqm waterfront lifestyle focused destination that is said to bring a new definition of social dining and entertainment to the emirate. The development is expected to feature seven anchor destinations and over 100 F&B concepts, spanning 2.4 km of scenic waterfront walkways, the statement concluded.
02 New Jeddah Downtown is being developed at an investment of $20bn and is expected to occupy 5.7m sqm of land. It will overlook the Red Sea.
January 2022
01
01 The 8,000sqm integrated lifestyle hub aims to transform how community members in the capital understand health and wellness.
The masterplan and main features of the Jeddah Central Project have been unveiled by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister, Chairman of the Board of Directors of the Public Investment Fund and Chairman of the Board of Directors of Jeddah Central Development Company. The launch of the masterplan and main features comes as part of HRH the Crown
02
meconstructionnews.com
On Topic | 9
Prince’s efforts to develop all regions and cities of the Kingdom. The project envisions the creation of a world-class destination overlooking the Red Sea in the heart of Jeddah and will further strengthen the city’s economy, a statement said. Previously known as New Jeddah Downtown, the $20bn project will come up on 5.7m sqm of land overlooking the Red Sea. The project is to be financed by the Public Investment Fund and from local and international investors. It is expected to achieve an estimated added value of $12.5bn for the Kingdom’s economy by 2030. Jeddah Central Project will include four landmarks and contribute to opening the way for the local private sector to participate in the development, which will help shape the operation of promising economic sectors. The project’s developer, Jeddah Central Development Company, was established in 2019 by the Public Investment Fund. Its board of directors is headed by Prince Mohammed bin Salman.
03
03 The Avenues - Riyadh Mall is spread over an area of 390,000sqm and is to be the ideal destination for shopping and entertainment.
Contract
SHC awards $1.76bn main contract for The Avenues – Riyadh Mall Shomoul Holding Company (SHC) has awarded a main contract worth $1.76bn to Nesma & Partners for the development of The Avenues – Riyadh Mall. The project is spread over an area of 390,000sqm and is expected to be the ideal destination for shopping and entertainment. According to a statement from SHC’s parent company, Mabanee, the project is taking shape on King Salman Road and the King Fahad Causeway, and will contribute to strengthening the service and retail sectors meconstructionnews.com
in the Kingdom, as well as creating thousands of jobs. The deal is being facilitated through Shomoul Commercial Company, a Saudi company that is 60% owned by Mabanee. Mohammad Alshaya, chairman of the Board of Shumoul Holding Company and Mabanee, and Abdulaziz Al-Turki, chairman of the Board of Nesma & Co, signed the agreement at SHC’s headquarters in Khobar, in the presence of a number of board members and the CEOs of both companies. The project will have a gross leasable area of 400,000sqm and a built-up area of more than 1.4m sqm and is expected to be one of the largest commercial malls in the Middle East. Part of the project will consist of five multi-purpose towers that include hotels, residential apartments, offices and parking for 18,000 vehicles. This will make it the best destination for shopping, entertainment and even residence in Saudi Arabia, said the statement from Mabanee. The development will include four hotels operated by Hilton including a 350-room Waldorf Astoria, a 400-room Conrad, a 450room Hilton Garden Inn, as well as a 150-room Canopy by Hilton, the first of Hilton’s lifestyle Canopy by Hilton brand in the Middle East. On completion, it will be one of the largest and most prominent tourism and entertainment destinations in the world, the statement concluded. January 2022
10 | On Topic
Hospitality
Hilton reaffirms plan to launch new hotels and create 10,000 new jobs in Saudi Arabia Hilton has reaffirmed its commitment to an ambitious 600% expansion in Saudi Arabia, going from 15 to 75 hotels and creating more than 10,000 new jobs. The announcement comes following a meeting between Ahmed Al Khateeb, Saudi Arabia’s Minister of Tourism, and Chris Nassetta, president & CEO of Hilton. The new job roles, which contribute towards Saudi Arabia’s target of one million new jobs in tourism as part of the Vision 2030 economic transformation plan, will be created as a result of Hilton’s fast growing portfolio of hotels in the Kingdom, a statement from Hilton said. “Today’s commitment by Hilton to new hotels and creating more than 10,000 new jobs demonstrates their confidence in the progress being made in Saudi Arabia as we continue to develop and grow our tourism industry. We have an ambitious target of welcoming 100m
04
January 2022
international and domestic visits by 2030. Working with world-leading hospitality and tourism businesses like Hilton to expand the range and scale of options available to tourists is a key part of our plans. As today’s announcement shows, we are making great progress,” said Al Khateeb. The minister noted that Saudi Arabia plans to develop 854,000 more hotel rooms, which would be 70% private-sector funded. After opening to international tourism in 2019, Saudi Arabia has issued more than 400,000 eVisas – briefly becoming the fastest-growing tourism destination in the world before the pandemic, he explained. The hospitality organisation currently operates 15 hotels in KSA, and already has 46 under development plans to expand its operations to more than 75 properties, including the introduction of new brands such as LXR Hotels & Resorts, Curio Collection by Hilton, Canopy by Hilton and Embassy by Hilton, the statement added. Nassetta said the expansion will support new tourism hotspots in the Kingdom such as Diriyah Gate, helping to deliver the goal of 100m visitors by 2030, and boosting tourism’s contribution to GDP to 10%. 04 The hospitality group will also be supporting the Ministry of Tourism’s ‘Your Future is Tourism’ initiative which aims to train and develop new talent in KSA.
05
Hospitality
Kempinkski to build world’s first floating hotel in Dubai Kempinski plans to develop what is billed as the world’s first floating hotel at Jumeirah, Dubai, in partnership within Seagate Shipyard. The Kempinski Floating Palace is expected to be positioned as a one of its kind, a novelty which guarantees unforgettable moments and an outstanding experience to all guests when it opens its doors in 2023, the hospitality group said. Guests will be brought to the 156-room and suite hotel or their villas by speed boats or they can arrive directly in their own boats. A connected floating helipad next to a yacht parking deck for up to 16 yachts, allows discerning guests to arrive in style, a statement from Kempinski noted. meconstructionnews.com
On Topic | 11
Leisure
New eightscreen cineplex opens in Riyadh says Chapman Taylor
“We are delighted to be able to offer our guests in Dubai such a first experience from 2023 onwards, combining the destination’s reputation as a high-tech city with the timeless European elegance of Kempinski Hotels. The highly innovative project by Seagate Shipyard convinces not only by its high-end technology, but also through impeccable style and design,” explained Bernold Schroeder, CEO of Kempinski Group and chairman of the Management Board of Kempinski. This Kempinski Floating Palace will be another breakthrough for the already spectacular tourism industry of the country, the statement continued. The main building will be structured in four parts and is to be connected in the middle by a glass pyramid and aims to offer every luxury of a five-star hotel. The structure will be designed around the possibility for larger yachts to sail in and out at the centre of the hotel.
05 The Kempinski Floating Palace is to open as a floating building around which 12 floating luxury villas are grouped.
meconstructionnews.com
Muvi Salaam Mall in Riyadh is the latest cinema complex to open, as part of Muvi’s roll-out across the Kingdom, Chapman Taylor has announced. The eight-screen cinema complex is spread over 3,274sqm and is located in the suburban Alawali area and can accommodate 1,045 moviegoers. The designs for the cinema venues have a theme of urban downtown, with the intention of creating a dynamic, modern and innovative cinema experience. The cinema’s internal spaces are characterised by an industrial, luxurious, material palette, including timber, exposed steelwork, exposed brickwork and an exposed concrete floor. Digital LED screens and lighting installations complement the city warehouse feel, providing a strong visual identity for the developments, the statement said.
06 The new cineplex will feature eight-screens and is spread over 3,274sqm and can accommodate 1,045 moviegoers.
“Working for, and with, leading industry names, Chapman Taylor has decades of experience in creating state-of-the-art cinema environments, which enhance moviegoers’ experience and maximise value and impact for the cinema developers,” said Rebecca Farmer, design manager (Dubai) at Chapman Taylor. In 2019 Chapman Taylor was signed up by Muvi Cinemas to design and deliver a series of state-of-the art cinemas. The first opened in August 2019 at The Mall of Arabia, which, at that time, was the largest cinema in the Kingdom. Several more locations are now open, including at Mall of Dhahran (currently the largest cinema in the country by seat count), while several more are under construction, some to complete this year and more to open subsequently, the statement explained. Farmer concluded, “We strive to design the best cinematic experience available, combining state-of-the-art technology with simplified functionality to create maximum value for both clients and cinemagoers. This is why many of the best-known names in cinema choose to work with us again and again.”
06
January 2022
14 | On Topic
Saudi Arabia Real Estate Market Overview, Q3, 2021 JLL examines the supply and performance of the residential, commercial, hospitality and retail markets in Jeddah and Riyadh during Q3, 2021 The delivery of residential units in both Riyadh and Jeddah continued apace in Q3, 2021 as the government made further progress in its aim to increase the percentage of Saudi families owning homes to 70% by 2030. Housing projects announced by The National Housing Company (NHC) have seen strong take-up, including Rawa project in the north of Riyadh and Maylaa in Jeddah. A significant proportion of these schemes comprise small to medium-sized units for lower and middle-income families that qualify for the Sakani Program. Riyadh’s residential prices registered an average annual increase of 5% for apartments and villas combined in Q3, 2021. On the same basis, rents increased by 2%. Meanwhile, the performance of Jeddah’s residential market remained subdued in the third quarter of 2021. In annual terms, sale prices and rents fell by 5% and 9%, respectively. After steady growth in the take-up of residential mortgages due to strong underlying demand from Saudi nationals, the total number of transactions trended down sharply in Q3. The drop is attributed to the change in procedures relating to obtaining a mortgage. Office Supply & Performance
There were signs that activity in the Kingdom January 2022
of Saudi Arabia (KSA) picked up as summer holidays came to an end and travel restrictions eased. Over the third quarter, Riyadh’s office market saw the delivery of 330,000sqm of office gross leasable area (GLA). These completions increased Riyadh’s total stock to 4.8m sqm. In Jeddah, only 40,600sqm of office stock was added in Q3, 2021, bringing the total supply to 1.1m sqm. An additional 170,000sqm and 2,000sqm of GLA is scheduled to be delivered in the final quarter of this year in Riyadh and Jeddah, respectively. The majority of this upcoming stock is Grade A floorspace. Demand was strongest from the government and banking sectors, which broadly targeted large floorspaces in northern Riyadh. The sustained growth in office demand was reflected in the rental trends. Indeed, Grade A rental values across the capital’s key office districts were up by an average of 3% yearon-year to US $351 per sqm per annum in Q3, 2021. Meanwhile in Jeddah, Grade A offices registered an annual increase of 4% to reach $266 per sqm per annum. Office rents in the Grade B segment are expected to remain under downward pressure as there is a flight to quality towards Grade A quality floorspace in both the cities. In the case of Riyadh, this is predicated on the oversupply situation in the Grade A segment meconstructionnews.com
On Topic | 15
meconstructionnews.com
January 2022
16 | On Topic
Riyadh Residential Supply
Jeddah Residential Supply
1.3m
15k
2%
840k
11k
-9%
Total residential stock
Expected Q4 2021 deliveries
Average rental rates change
Total residential stock
Expected Q4 2021 deliveries
Average rental rates change
Riyadh Office Supply
Jeddah Office Supply
4.8m
170k
2%
1.1m
2k
2%
Total stock (sq m GLA)
Q4 2021 deliveries (sq m GLA)
Average Grade A rental rates
Total stock (sq m GLA)
Q4 2021 deliveries (sq m GLA)
Average Grade A rental rates
Riyadh Hospitality Supply
Jeddah Hospitality Supply
19k
1.8k
52%
14k
900
46%
Total hotel keys
Expected Q4 2021 deliveries
Occupancy YT Aug 2021
Total hotel keys
Expected Q4 2021 deliveries
Occupancy YT Aug 2021
C
M
Y
CM
MY
CY
as landlords have had to remain flexible by offering competitive commercial terms for larger occupiers on a deal-by-deal basis – such as longer rent-free periods, contribution towards fit-out costs and increasing parking ratios, where possible. However, enquiries in Q3 were mainly for smaller spaces, partly due to firms preferring hybrid working. Hospitality Supply & Performance
In Q3 2021, the number of hotel keys remained stable at 19,000 in Riyadh and 14,200 in Jeddah, as no new projects were completed in either city. Assuming no further delays, around 1,800 and 900 hotel keys are planned to be delivered in Riyadh and Jeddah, respectively, by the end of this year. With the pandemic still posing some challenges for the travel & tourism sectors, some hotel owners and investors have been delaying the delivery of their new projects until activity levels pick up. That said, hotel performance has started to recover in pockets. In the YT August 2021, Jeddah’s hotel occupancy rate rose to 46% and average daily rates (ADR) grew by 19% annually. By comparison, Riyadh’s hotel January 2022
performance was less positive. In Q3, 2021, occupancy rates rose by 7%-points – albeit average daily rates (ADR) saw an annual decline of nearly 7%. With the Kingdom’s vaccination programme being rolled out and strict protocols in place across public spaces, the country kicked off its entertainment season. Such events target both national and international visitors and are anticipated to provide a boost to the hospitality industry, especially given that KSA’s borders reopened to international visitors on the 1st of August. To capture a wider array of tourists, the Saudi government is promoting its historical sites, developing attractions and simplifying visa procedures in-line with Vision 2030. Retail Supply & Performance
Retail destinations recorded an increase in footfall as the Saudi government began to ease restrictions on restaurants, cafes and cinemas. With the opening of Jeddah Park and other smaller retail centres, Jeddah saw the delivery of 132,000sqm of retail GLA in Q3, 2021. Over the same period, Riyadh saw the
completion of 19,000sqm. An additional 174,000sqm and 34,000sqm of retail GLA is expected to be added before the end of 2021 in Riyadh and Jeddah, respectively. Performance-wise, the market remains in the favour of tenants as retail rents dropped in both Riyadh and Jeddah. Super regional malls registered an annual decline of 4% in both cities, while rental values in regional malls dropped by 3% in Riyadh and 6% in Jeddah. As construction activity continues to build a head of steam in the retail sector, the delivery of upcoming projects is expected to exert further downward pressure on rents. Retaining tenants within existing developments will be a challenge – therefore landlords are taking different approaches to avoid losing tenants to newer schemes. With the growth of e-commerce, shopping centers are having to shift their focus to enhance customer experiences. Among other strategies, developers are positioning their assets to enhance their entertainment and F&B offerings. If executed properly, such changes can add value by attracting greater levels of footfall. meconstructionnews.com
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18 | On Topic
01 Craig Murphy is lead fire safety consultant at Socotec GCC.
Craig Murphy
“The use of competent support for the developer through consultants for fire safety is a must”
01
January 2022
Imagine this scenario: you’re at work or at home, and the fire alarm sounds, we all look at whoever we are with and say, “Do we go, or shall we wait to see if the alarm stops?” We sit there for a little while longer before we decide to leave. If like many in the UAE you have a long walk down those flights of stairs from your high-rise apartment or office, this is a major hassle if you have work to do or you’re halfway through your favorite Netflix show. So, as we trudge down the stairs, we begin to realise this is an actual fire, there’s the faint smell of smoke, and now people are starting to look a little worried. We carry on down, the smell of smoke is getting stronger and now there’s a slight visibility to the smoke hanging in the air, you see a lot of smoke in some corridors through the window in the fire door as you pass some floors. You’re all walking down the stairs, lots of people, possibly hundreds rhythmically working your way down the stairs, panic rising within as the smoke you just saw was thick, black and dangerously leaking through gaps around the fire door into the stairs you and the people around you are using for escape. On the way up are firefighters, burdened with their heavy equipment, sweating and panting with a nervous but confident apprehension in their eyes clearly heading to where you saw that smoke filled corridor above. As you exit the building you see all the flashing lights, civil defense trucks, police, ambulances and there’s a lot of noise and a lot of people, you look up and see fire and smoke punching out of some windows reaching up
the exterior of the building, you’re thankful you’re outside and away from the danger. This is obviously the worst scenario possible and, thankfully, not a common issue for most of us but do any of us actually ask how buildings are designed, built and maintained to help us get out in the event of a fire? Fire safety precautions are built into buildings such as smoke detectors and alarms, sprinklers and fire pumps to limit fire spread, emergency lighting if the power fails during evacuation. But what is there that we don’t usually think about and is one of the best fire safety concepts around? Compartmentlisation and fire stopping is integral to a structure and is essentially there to contain a fire to a compartment such as a living room, bedroom or office. It involves a fire rated door or window to hold that fire and smoke within for a defined period of time, it is the walls around the room or the ceiling above or floor below you, and it’s the materials around pipework or cables passing through walls. But how do we know if this is installed or maintained correctly? We assume it is and we assume these hidden aspects of a building are just there and will work but, from my experience in carrying out hundreds of fire risk assessments in buildings in the UAE it is not always as we would think. I regularly find gaps between compartments with fire stopping not installed, damaged from works carried out or damaged fire doors that won’t hold the fire back when needed. So how does this happen? Fire protection measures are designed in, fire compartments have been a concept for meconstructionnews.com
On Topic | 19
building design for a very long time but it’s the actual construction of these and how they are maintained which are my greatest concern. Here in the UAE, we have an inexpensive labour force who do not always follow the plan and corners are cut, when you look behind the scenes up above the ceiling tiles or look closely at the maintenance carried out, it sometimes falls far below the requirements set out in the UAE Fire & Life Safety Code. For example, in one unit which had a large floor plan with a number of offices, I looked above the ceiling where the unit should have been compartmented, but in place of the expected walls, there were gaps and even a piece of cardboard with holes cut to allow pipes through. In addition, the smoke detectors that were located in the void still had their protective caps on from installation, rendering them useless. How do we make a change and improve the standard? It has to start at the top, the developers of the buildings have to be accountable and
meconstructionnews.com
I regularly find gaps between compartments with fire stopping not installed, damaged from works carried out or damaged fire doors that won’t hold the fire back when needed. So how does this happen?”
understand the real costs of driving down prices for the contractors they use. The use of competent support for the developer through consultants for fire safety, particularly around fire stopping and installation of essential fire related building systems is a must and regular inspections during construction can save the costs of retro fitting or finding out the problems years later when they cost considerably more money to put right or possibly have far dire consequences. The commissioning of buildings also needs to be more rigorous and examine all areas, even the hardest to access parts of the building. Designers and architects need to understand the need for fire stopping, particularly in service shafts of a building to limit the spread of fire and smoke. It takes a holistic approach from all those involved from the very beginning of the project to the very end and beyond to ensure that weaknesses are identified early and all stakeholders have an understanding of the standards expected.
January 2022
20 | On Topic
01 Lorenzo Candelpergher is CEO of LC&Partners.
Lorenzo Candelpergher
“PMC can play a decisive role in protecting the client’s interests in a high-end luxury residential project”
01
If there is an asset class in the real estate market that has not suffered any crisis as a result of the COVID-19 pandemic, it’s that of luxury residential properties. Across the GCC and especially in the UAE, as confirmed by multiple studies and statistics, the years 2020 and even more, 2021, have witnessed a significant surge in real estate transactions for prime luxury residential properties. In a recent article published by Knight Frank, transactions for prime properties in Dubai recorded in May 2021 hit the third highest monthly total ever recorded, getting very close to the golden days of 2009. The rebounding of Dubai’s prime market echoes a wider global trend, signalling the start of a potential ‘Roaring Twenties’ for global real estate. Project Management Consultants, an Overkill?
Associated with such transactions comes an equally significant positive trend for related construction activities, mostly renovation/ refurbishment or complete strip-out and new fit-out projects and, to a minor extent, green field construction. All extremely capital-intense projects, where the mark of $3000 per sqm is not uncommon to see. And yet, what is uncommon to see, are professional project management consultants (PMCs) hired for such high-end luxury residential projects. There is, in fact, a general misconception, in this niche market, that PMCs should only be retained for large and complex projects and that the cost of their fees, in a private residential construction project, would January 2022
be an unjustified extra cost, eroding precious funds from the overall allocated budget. Luxury Means Complexity
The ugly truth, however, is that high-end luxury residential projects are among the most time and cost inefficient ones in the construction industry. It isn’t uncommon to hear about projects lasting as much as twice the original planned time and costing 50% more than the original contract price. Luxury residential projects are intrinsically complex for a variety of reasons: they often entail highly sophisticated technical solutions, with prime materials, finishes and technologies, difficult to procure, often coming from overseas; they are often designed by international interior designers, working from overseas and then supervised by local consultants who need to work in tight cooperation; they are executed by a number of different specialist contractors/ suppliers which require high coordination and interfacing; and, most importantly, they are commissioned by clients that often do not have any construction background, frequently have no idea of the typical bargaining/negotiating common practices in the Gulf Region but have, on the opposite, a significant emotional involvement in the project, which often then leads them to impulsive decisions and changes of heart. These are only some of the most dangerous factors of complexity that have the potential to totally derail a high-end luxury residential construction project, causing great deals of frustration for endless misunderstandings and variations resulting in abortive works and remeconstructionnews.com
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works and associated claims, with substantial time and cost overruns, which is where many consultants and contractors thrive, to the detriment of their clients. Complexity Calls for Project Management
It is in this context of complexity where a professional PMC can play a decisive role in protecting the client’s interests in a high-end luxury residential project. From the definition of a proper project brief to the selection and appointment, with an comprehensive scope of services, of the team of design and works supervision consultants, the coordination of the design activities, the management of the tendering process, the negotiation of contracts, the overall coordination of the construction work, the timely and effective administration of the contractual matters, variations and claims, the stringent verification of the testing and commissioning and handover process, the thorough follow up of the snagging activities during defect liability period, a professional PMC can have a decisive impact on the trajectory of the project. Not only by implementing efficient project control (time/cost management), risk management, document/communication management, contract management, variations/claims management procedures as an independent party with no vested or conflicting interests with any of the other stakeholders involved in the project, but also resolving conflicts, negotiating, mediating and often effectively bridging those cultural gaps between stakeholders that are unavoidably one of the most significant challenges in high-end luxury residential projects.
Some of the most common measurable savings may include, for example: X Opportunities for value engineering where the intended scope is achieved for a lower cost with reference to the original pricing presented by the contractor or the cost is maintained the same but higher specifications or additional scope is obtained for the same cost, with reference to the original pricing presented by the contractor X Reduced extra costs where the main design/ works supervision and construction/ installation/supply contracts are negotiated and reduced prior to awarding, with reference to the original pricing presented by the counterparts X Claims for time extensions presented by the contractor are avoided or reduced with reference to the original pricing presented by the contractor X Claims for additional works or extracompensation for whatever reason presented by the contractor are avoided or reduced with reference to the original pricing presented by the contractor
X Quotations for variations required by the project or specifically requested/ instructed by the client for whatever reason are negotiated and reduced with reference to the original pricing presented by the contractor X Additional services, supplies, specialist sub-contracts, etc. specifically requested/ instructed by the client for whatever reason are negotiated or reduced with reference to the original pricing presented by the relevant counterpart X Deductions/compensations negotiated with the contractor during or at the end of the contract for adjustments against incomplete or non-executed works, defective or rejected works are applied These savings can be so significant and beneficial for the client that the best PMCs do not hesitate to discount their ordinary fees in exchange of bonuses on the savings. And the best part of it, is that clients end up happily paying for such bonuses, as their investment in a professional PMC yields a 200% (or greater) return!
Project Management, a 200% ROI investment
On average, a properly delivered PMC could save a client easily 2x to 5x its cost. It may sound a bold statement but it is a consistently measurable and therefore verifiable recurrent fact that, wherever thoroughly involved, PMCs can achieve substantial savings for their clients, which are far in excess of the project management fees. meconstructionnews.com
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22 | In Practice
January 2022
In Practice | 23
Light at the End of the Tunnel? What’s in store in 2022? What trends will influence requirements, design and construction? MEC investigates It has been a rollercoaster ride for regional construction industry stakeholders in recent years; following the disruptive 2008-2009 Global Financial Crisis, overall market liquidity and client budgets took another significant hit as a result of the crash in oil prices in 2014. In early 2020, the market and its stakeholders then also had to come to grips with the outbreak and associated impacts of COVID-19. According to Deloitte’s GCC Powers of Construction 2020 report, following the outbreak of COVID-19, in April 2020, just $4.1bn worth of contracts were awarded. The report stated this figure is 40% lower than what was awarded the year before. Additionally, the report noted that the wider MENA region recorded a slightly steeper decline of 42% year-on-year, as clients held off awarding new deals owing to the uncertainty. January 2022
24 | In Practice
The report also pointed out that there was a significant increase in projects either underway or planned that were put on hold or cancelled due to deteriorating conditions. More than 550 projects, worth over $60bn, are known to have been suspended or delayed since March 1 in the GCC alone, the report highlights. These figures are said to include close to 15% of all active water projects, totaling $9bn, and more than 11% of all transport projects, worth more than $23bn. On a more positive note, the report highlighted that some sectors are more immune to short-term delays and postponements - it pointed out that only 2.5% of oil schemes were impacted. Since the start of 2021, some GCC markets showed signs of recovery, as a result of a multitude of long-term drivers including an ongoing desire to rapidly diversify economies away from fossil fuel, the preparations for large scale events such as EXPO 2020 Dubai and the 01 FIFA World Cup 2022 in Qatar, as well as a multitude of initiatives designed to attract and retain people from around the world. These drivers, as well as an uptick in overall sentiment in GCC countries as a result of the respective governments’ proactive and decisive action towards the pandemic has also seen confidence come back into the market. Commenting on how business was in 2021 and his expectations for 2022, David Clifton, vice president – business development, Hill International (Middle East) states, “From a macro perspective, it’s been pleasing to see a strong recovery regionally, especially with Saudi Arabia. 2022 is looking to be positive and is continuing the return to the levels of normality we expect to see in the pre-pandemic times. Barring a COVID-19 resurgence, this year has the potential to be significant in further growth opportunities.” Christian Vasquez, business development executive/project architect, NEB notes, “Shortly after the COVID-19 pandemic brought global travel to a standstill, we had to learn to work with the uncertainty in the market. However, today the volume of awarded contracts is way better than in 2020 and we are expecting to close more projects in the coming months.” “2021 was a challenging but successful year for Cundall in MENA. The prolonged COVID-19 January 2022
01 David Clifton, vice president – business development, Hill International (Middle East). 02 Richard Stratton, partner and managing director, MENA, Cundall.
Given the sheer scale of some of the programmes and projects of work being undertaken, we will see the regional industry having to look at different delivery models and modes of construction”
restrictions have been responsible for most of our challenges but the resilience and loyalty of our clients and staff have contributed to a year of stability and given us a strong platform for growth. 2022 will be a year of further growth for our MENA business, developing our existing offices as well as our new office in KSA,” explains Richard Stratton, partner and managing director, MENA, Cundall. Kerem Cengiz, managing director – MENA, LWK + PARTNERS states, “We are confident of achieving growth this year despite greater than expected challenges in the market during 2021, as the regional market and sectors continued to adjust. We conservatively expect a 40% to 50% year-on year increase in revenue over the 2021 figures.” “After a year of consistent activity during 2021, we are confident of achieving active growth in 2022. We pushed the envelope over the last three years in terms of investment in technology-driven R&D to driving the company’s business to achieve revenue expectations for the year. We anticipate a positive forecast for 2022, seeing the year ahead as our business stablisation year, with a focus on substantial growth of the Studio in KSA, revenue and visibility in the marketplace including a diversification into robotics AI and AR/ VR technology,” he adds. Key GCC Markets in 2022
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02
Asked to discuss key markets in the region going forward, Cengiz points to Saudi Arabia explaining, “We opened our KSA Studio in Riyadh during July 2020 and were one of the first Dubai practices to transition to meet the increasing demand for LWK + PARTNERS’ quality services in the Kingdom. During the last three years we have designed and delivered master plans, architecture, interior design, public realm, and landscaping for significant governmental and semi-governmental entities, and developed a mature, rounded and diverse portfolio of work and a trusted reputation which we value and guard carefully.” He continues, “Opening the Riyadh Studio affirms LWK + PARTNERS’ commitment to support the Kingdom’s Vision 2030 and beyond, it remains as with many a main stay of our GCC strategy along with our engagement meconstructionnews.com
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here in the UAE, particularly in Abu Dhabi with key clients that are taking us with them on a goal journey as they expand. Stratton also believes the Kingdom will continue to be important for his firm. He remarks, “KSA is an obvious target for Cundall, building on an already strong order book. We tend to target more niche sectors where we can add the most value and bring our significant expertise around complex technical interfaces, sustainability and zero carbon design. We are involved in numerous masterplans, complex entertainment projects, rail and PPP schemes, as well as a wide variety of other sectors.” Clifton notes, “As with the majority of consultants, Saudi Arabia continues to be a very key focus for growth, although Qatar and Abu Dhabi present some significant opportunities moving forward. We are looking to continue to secure workstreams across our services lines and vertical markets that will build our business and enhance client programmes and projects.” Vasquez believes the UAE will continue to be a key market for NEB in 2022. He points out, “Announced by the UAE leadership as they marked 50 years of its founding, the ‘Principles of the 50’, we feel that there are lots of areas where we can play a role in helping the UAE achieve the goals and objective that they have set for the next 50 years, thus we look forward to it.” With regards to the trends that could influence design and delivery in the new year, Vasquez explains, “When it comes to trends that have dominated the design and construction industries, digitalisation of processes has been steadily accelerating across the UAE and GCC region. The COVID-19 pandemic has been a key factor in getting developers to accelerate their digitalisation plans. A new emphasis on sustainability and resilience are also having an impact.” Stratton says, “I believe that the key trends, in no particular order, will be construction efficiency, zero carbon design and flexibility/adaptability. The pandemic has demonstrated clearly that our buildings need to be able to cope with change simply and sustainably and our more important meconstructionnews.com
03
04
03 Christian Vasquez, business development executive/ project architect, National Engineering Bureau (NEB). 04 Kerem Cengiz, managing director – MENA, LWK + PARTNERS.
Digitalisation of processes has been steadily accelerating across the UAE and GCC region. The COVID-19 pandemic has been a key factor in getting developers to accelerate their digitalisation plans”
climate crisis, that gets ignored, demands a commitment by us all to zero carbon design at the very least. We will continue to share our knowledge with clients and the industry to facilitate this.” While positive about trends driving the market forward, Cengiz explains that the traditional project execution paradigm currently in use has limitations and is not equipped to handle the complexities of implementing the significant capital projects seen in the region today. He elaborates, “Key to managing this shift will be digital transformation, the adoption of technical data hubs and the common data environments laced at the core of digital execution. Without these two essential unifying elements, the various information systems we use would be nothing but a collection of information silos. The common data environment is vital to providing project participants with one set of data to describe the various aspects of the project and essential in maintaining data integrity. In turn this will aid issues efficient technologies, remote worksites, mobile access issues and skilled labour shortages.” “By 2025, it predicted that there will be at least 26 major intelligent cities around the world. The quality of life in these cities has already and will continue to dramatically improve. Cities are becoming more efficient with better services.” He notes that artificial intelligence, machine learning, generative design and automation have begun to change the industry. As systems and tools to reimagine the built environment, they present diverse opportunities to rethink traditional workflows and accessible automation products for the way we wish to live our lives, he comments. “We seldom find high levels of automation in the industry or in our homes. Ultimately, the least discussed but most powerful benefit of robotics and automation is the unlocking of design possibilities and the automation of our day to day living environments and how this practically interfaces at city intelligence scale,” he states. Clifton agrees with Cengiz’s sentiments about existing limitations, remarking, “Given January 2022
26 | In Practice
the sheer scale of some of the programmes and projects of work being undertaken, we will see the regional industry having to look at different delivery models and modes of construction. The traditional methods used were largely outdated anyway but are not applicable to the scale of forecast construction.” “We will also continue to see an evolution in the adoption of technology. The industry is historically inefficient, so whilst the market talks about a revolution each year, it is more likely that we will continue stepping up further into technological advancement – which combines with new methods of construction.” He also warns, “There is likely to be consolidation in the contracting market and potential exits from the region, as well as selective reentry of certain organisations for certain projects.” A Bumpy Road?
While the four participants in this feature are confident about growth in 2022, they are also well aware of existing and new pressures that could negatively impact progress. Stratton points to a widespread existing issue saying, “Unfortunately, the MENA market is still price aggressive, which is rarely conducive to high quality innovative design. Part of the solution is working closely with key clients who value quality and leverage thought leadership to influence as many others as possible. We will continue to develop our digital skills to offer more efficient and effective project delivery.” Clifton points to a pandemic-related ongoing issue, “2020/2021 has seen significant rises in construction material prices due to the global cut back in supply and manufacturing during the pandemic. Forecasting global industry growth and mating supply and demand curves to deliver a cost certainty will continue to be a factor, along with the market perception of how much work will be awarded (primarily in Saudi Arabia) in 2022 that can further change the inflation dynamic.” “It is hard to mitigate the entirety of these fluctuations, although we have been working with clients to look at futures prices and lock in supply chain capacity at this time. The January 2022
I believe that the key trends, in no particular order, will be construction efficiency, zero carbon design and flexibility/adaptability. The pandemic has demonstrated clearly that our buildings need to be able to cope with change simply and sustainably and our more important climate crisis, that gets ignored, demands a commitment by us all to Zero Carbon Design at the very least”
challenging factor is how much capacity has been removed due to shrinking back log/order books and potential overcutting of supply as the result of the pandemic. But, by and large with global material prices showing a negative trend for 2022, this is manageable.” Cengiz agrees with Clifton on supply challenges impacting the industry. He explains, “In 2022, we move into the second year of recovery and the industry has a big role in supporting the region’s growth plans. The most urgent challenges impeding progress will be shortages, specifically involving technology, supply chain/procurement and labour. Not having the materials or the personnel to complete a project on time will severely impede revenues and the bottom line.” “Public infrastructure is expected to continue to grow well, however the industry needs to increase its investments in digital, as it prepares to shift toward connected
construction capabilities. These technologies can help support initiatives such as intelligent cities, urban mobility, and climate change programs and help enhance internal operational efficiencies, reduce costs, and improve margins.” While technology stands to improve the industry’s productivity by as much as 60%, potentially delivering trillions of dollars annually in global incremental value, Cengiz notes the downside is additional risk in the form of cybercrime. He also adds, “As Saudi Arabia continues to be the top-performing market across the Middle East, this success story is also one of the most significant potential challenges to the region. The rise in costs of construction, supply chain disruption and skilled labour shortages is already the biggest barriers to regional growth. Last year (2021), contractors couldn’t source enough supplies to finish jobs on time and on budget, let alone being enough of them to service the procurement demands to be faced in the next 2-5 years.” “Material shortages brought about by COVID-19 that interrupted the supply chain continued through in 2021. The delta and now omicron variant of the virus, along with natural disasters, set back supply chains for several materials, it is anticipated that these supply chain disruptions will continue in 2022. Understanding where the least impact will be felt and what our focus will lay will be central to all our strategies.” Vasquez also points out that the pandemic will continue to have an impact, “COVID-19 is not going to end in 2022. As the economic recovery gains momentum, many will continue to embrace the habits they developed over the past couple of years and thrive.” Clifton concludes on a positive note for the region stating, “Regionally, we are moving quickly back to a normal level. This seems unlikely to alter in 2022 as the successful vaccine roll out (and now booster jabs) have largely enabled GCC economies to lift a lot of restrictions that were in play. From reports in the media, the variants seem to be getting milder and milder, so we would hope to see less and less restrictions to businesses operations over the next 12 months.” meconstructionnews.com
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Women in Construction 2021 Summit Wrap The raft of gender, diversity and inclusion agendas was the focus of powerful, touchstone debate at the Women in Construction Summit writes CPI Trade Media’s Paul Godfrey and Mark Dowdall First things first, the Women in Construction Summit was first created in order to lobby for tangible change when it comes to women’s enrolment in the sector and to provide a platform for the diversity champions ready and willing to advocate for lasting reform. Women have always been lamentably underrepresented in construction - the industry that is the second-largest contributor to the economies of the GCC - and now, half a decade after the first edition of the Summit, the ‘hard yards’ are still a work in progress. It’s true, of course, that initiatives such as the 30% Club and the Reach mentoring programme are making their presence felt, and internationally, there have been brighter moments, such as in 2019, when nearly 33% of companies in the construction sector promoted a woman to a senior position. (We can see this trend in the fact that across the Construction C-Suite, 53% of women have typically held their position for less than two years). Yet recent surveys conducted by the International Labour Organization (ILO) show
there is still massive progress to be made. In the construction sector worldwide, women only account for 10.3% of the total workforce. But in the front-line of a job site, that figure goes down to only 1%! So, given that women comprise 47% of the global workforce, when we look at the numbers of women (across all roles) that construction employs, it’s actually only benefiting from the skills of 1.25% of the women in the workforce. So, it’s no surprise then that nearly half of all women in construction have never had a manager who’s a woman. From gender to G,D & I
The reality is, all the difficult questions remain: when we are going to see a major shift taking place in the construction sector? How can we identify the right path to wholesale and rapid change? What are the key debates that will show businesses how to drive that change? These were the factors discussed at the Women in Construction Summit, held at the Capital Club, DIFC, on December 6. It also moved the classic gender debate forward, to embrace contemporary
issues of diversity and inclusion, tackling critical factors that are often overlooked in the region’s employment agendas. For example, why, in the GCC, is it openly allowed to pay staff according to their gender and ethnicity, rather than for the generics of the job being done? When individuals are marginalised and outnumbered, how does it impact their mental health and wellness? These were the issues discussed by a variety of highly-qualified presenters and panelists, with a view to creating real, usable ‘takeaways’ with practical, here-and-now business relevance. The first of these was keynote speaker, Gulneet Chadha, global HR leader and founder of GC Consulting, who explained why it is necessary now, to start putting mental health at the forefront of any organisation. “It’s time that we understand that mental health has to be considered a top priority in any organization,” she said. “It must be discussed in board meetings. We need to understand that mental health is no longer a HR strategy. It must be a corporate responsibility. Our leaders must be trained to identify early signs and then
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guide their people to available resources so that they can go and ask for help. We need to break that stigma. We need to let our leaders feel that they should be the first point of contact to support the mental health of people and also that the leadership is never owned, it is rented. And that rent is due every single day. You really pay that rent by nurturing your people and developing that feeling that they belong, so before you get on their performance appraisal evaluation, understand what they are going through.” The second keynote of the day was delivered by Nurul Sabri, senior consultant at HKA and it centred on ‘Overcoming ethnic payment structures in the GCC.’ Speaking at the event, Sabri said the issue is under researched in the Middle East and more needed to be done to catch up with other regions. “There have been many discussions around gender diversity and equality but not much has been touched on payment structures based on ethnicity,” she said. “The issue does exist in the region but it doesn’t get much attention, so my key takeaway is to create awareness around the issue in the hope that in the future there will be some studies. I have seen studies in the UK and US, but this is definitely lacking in this region.” Following this, Mennah Darwish, senior interior designer at Select Group and Margarita Huaca V.Sajons, engineer and sustainable development expert at Enernouva, each spoke about their own experiences in the construction industry; the latter giving a personal account of how she has been driving sustainability despite being under-represented, and the former addressing the need to put more women in leadership positions in order to unlock positions for women, how women must embrace the opportunities being made, and then once this is done, how best to start setting up quotas for women in construction. Implementation strategies
The day’s second session opened with a keynote panel, titled ‘Implementing Equality and Diversity and strategies proven to work,’ and moderated by Laudy Lahdo, senior advisor at Companies Creating Change, Corporate Leader and SME Specialist. She was joined by Marie Joelle Ghaoui, director of Architecture January 2022
& Engineering Services at KEO International Consultants, Michelle Najm, associate architect at JT & Partners, Samantha Rowles, operations director for Transportation at Serco Middle East and Elena Salun, Head of CAD & BIM at Cracknell, Dubai. The discussion, which lasted just under an hour, raised several points such as access to role models, conscious and unconscious bias, the importance of having diverse opinions and having a toolkit to help with that cultural transformation within a company. “We all know that cultural transformation begins at the top,” remarked Lahdo. “It’s that commitment from the CEO or the most senior leader in the organisation to say I want to walk the talk and I’m going to drive change. It doesn’t mean that this is given as a side task to the HR department. We also know that data is key. Today many organisations are collecting data, they are tracking data, they are measuring, they are analysing and they are benchmarking against best practices globally and regionally within their sector.”
Our leaders must be trained to identify early signs and then guide their people to available resources so that they can go and ask for help. We need to break that stigma. We need to let our leaders feel that they should be the first point of contact to support the mental health of people and also that the leadership is never owned, it is rented”
The second panel discussion titled ‘Creating a mixed talent pool in the C-suite’ was moderated by Nesreen Osman, partner at Pinsent Masons LLP; she was joined by Carolina Fong Guzzy, digital engineering manager at Accienta, Louise Collins, head of engineering at JLL MENA, Ralf Steinhaeur, director of RSP Architects Planners & Engineers, and Sujata Gupta, head - MEP at NAGA Architects. Osman stated, “The start of the discussion was just a recognition that there are very few females on C-Suites not only across the globe but also the Middle East. So, the panel discussed why that might be the case and the various different things that can be done to help that situation and what people might want to see in the future.” She added: “One of the big things discussed was the importance of mentoring. I think mentoring helps both the mentor and the mentee but there is also the fact that mentoring helps the mentee so much, not necessarily from the perspective of how to do their job but how to deal with certain crucial situations. There was also recognition that a mentor doesn’t need to be in the same team as you or even in the same industry. It’s watching what somebody else has gone through and taking into account their experiences and learning from those.” There was a final virtual presentation from Kate Wood, partner and chief people officer at HKA, which looked at global diversity issues and the current status in the GCC, with a fivepoint recommendation structure for evolving the present status with an organic, effective and non-disruptive template. As the event drew to a close. Laudy Lahdo commented, “It’s a journey for everyone. Some of us are at the very beginning of the journey. Others are way more advanced, but we learn from every conversation we have. We need to keep having those conversations, we need to track the data, we need to start now and make those small changes that are required for change.” With a spectrum of actions that participants can follow right away, all eyes will now be on tracking the tangible progress that has been achieved by the next edition of the event. meconstructionnews.com
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32 | On Site
A Jewel in the Desert
January 2022
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Stéphanie Ledoux and Reda Amalou speak to MEC about designing and integrating the Ashar Tented Resort, so it complements its spectacular surroundings in the Ashar Valley in AlUla, Saudi Arabia
AlUla is billed as a cultural oasis and openair living museum. The location is home to the Ashar valley, which has been chosen by the Royal Commission of AlUla (RCU), as one of the sites to develop the Kingdom into a world class tourist destination. Architecture and interior design studio AW² was selected by the RCU in partnership with the French Agency for AlUla Development (AFALULA), to design a luxury tented resort on an untouched site within the valley. The resort will be located 15km from the Kingdom’s first UNESCO World Heritage Site, Hegra. Accor, under the Banyan Tree brand, will operate the Ashar Tented Resort with 47 new high-end suites in addition to 35 renovated suites positioned on a neighbouring site, bringing the total number of units up to 82. Here, MEC speaks to Stéphanie Ledoux and Reda Amalou, partner architects at AW² Architecture Workshop about the design and delivery of the hospitality project. How did AW2 come to work on the Ashar project? Why was your firm selected over other studios?
We were selected to participate in a competition for the Royal Commission for AlUla. During the competition, both our design approach and our competences in hospitality projects were appreciated and led to us being invited to tender for Ashar Tented Resort, a project that the RCU was developing with AFALULA, the French Agency for AlUla’s Development. Our contextual approach was favoured by the client, as a way to create a hospitality destination based on authenticity and heritage, and the RCU and AFALULA knew our successful track record to deliver this type of project. What did the client want to achieve with Ashar? What was the brief?
The resort was conceived following the client’s request for an extraordinary place to stay in the heart of the AlUla region. The main goal for this design was to create a communication bridge with the rest of the world, attracting visitors and allowing the world to experience the beauty of an exceptional natural environment. The brief meconstructionnews.com
January 2022
34 | On Site
was very much linked to this, as the first major hospitality destination in the AlUla valley in a very environmentally sensitive site: Ashar. The main idea was that the project should be inserted into the site using a tented resort structure, connecting the project to the local Bedouin heritage. What did AW2 look to for inspiration on this project and how were these elements incorporated into its design?
The key was incorporating the history and culture of the Kingdom into accommodation that would attract visitors from around the world. As a result, the stunning suites take inspiration from traditional Bedouin tents, acting as an expression of the region’s past and enabling all to discover the rich cultural, natural and historic assets. At AW2 we also look to find inspiration from understanding the essence of local places, through the discovery of local know-how and traditions, and through talking to the local people.
01
01 Ashar is one of the project sites selected by the Royal Commission of AlUla (RCU) to develop KSA into a world class tourist destination.
a landscape dominated with sand dunes creates an intimate experience, reinforcing the camping mindset of the location. What learnings from its other projects around the world did AW2 incorporate
projects are always formulated as they develop as opposed to starting by describing the outcome, each of our projects is a testament to this design approach. In terms of what we have taken away from this project, we have a great deal of respect, humility even, for the beauty of this site. The use of local resources and reinterpreting a traditional desert structure have been learning experiences that have allowed us to get closer to the heritage and traditions of the region.
What are some of the project’s unique
into the Ashar project? What learnings
features in terms of architecture/design?
has AW2 taken away from this project?
What were some of the challenges the
The 47 tented suites have been designed in relation to the coves created by rock formations, situated to give extended views across the desertscape while providing maximum privacy for guests. The resort blends seamlessly into the natural scenery of the Ashar Valley, while pedestrian trails through
Like with all our projects around the world, we focused on the qualities of the site to propose architecture integrated in a meaningful way. Our understanding of scale is another learning that we incorporated into the Ashar Tented Resort project – the ability to take into account the enormity of the site and create architecture that merges with the surroundings. This is something we have learnt over the years and through all the different contexts we have worked in: how to design a project that aims not to modify the site. We have also learnt through our work across the globe that a close relationship with the client is essential for understanding the ambitions for the future of the project, and that these are aligned with the process right the way through from conception, to design and ultimately construction. Our
firm had to contend with while working
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January 2022
on this project and how were they overcome?
As AlUla is currently in the development phase, the construction resources on the ground are still growing and so we have adapted to the local availability. The desert climate has also been a major consideration. We have studied the material choices to make sure the architecture is adapted to the heat. Most importantly, the design challenge has been to make sure that the project integrates into the site and doesn’t take away from it. What impact did COVID-19 have on the design/delivery of this project? How did the firm overcome these challenges?
Due to the outbreak of the COVID-19 pandemic, it has unfortunately not been possible to travel to visit the construction site as much as our team would have been able to do under normal circumstances. This means we have had to find new and innovative ways to remain involved, even if we can’t be on the ground. In response, we have created a meconstructionnews.com
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partnership with a local firm, so an architect is able to follow the construction on site for us and bridge the distance that the pandemic has created. How is this project being delivered; are the contractors using modular construction/3D printing technology/ offsite manufacturing etc?
Ashar Tented Resort is being delivered through a low environmental impact approach, composed of a simple platform and solid structure protected from the sun by a canvas covering. This three-tiered design is made up of a natural colour palette, allowing the tented suites to disappear into the site, the main construction material will be compressed earth bricks – a local and natural resource. In this way, the architecture respects the desertscape, making sure the stunning scenery remains the centre stage. What role did technology play in the design/delivery of this project? Was any new ground broken?
02 Stéphanie Ledoux and Reda Amalou, partner architects, AW² Architecture Workshop. 03 The Tented Resort’s elements include 47 tents featuring 28 one bedroom units, 15 two bedroom units and four three bedroom units, as well as amenities. It will feature a total built-up area of 10,800sqm.
Due to the nature of the project, technology was less of a key factor as the design is linked to a traditional form of architecture. Technology mainly played a role in connecting us to the construction site at a distance when we were unable to physically travel. What are some of the project’s unique sustainable and smart features and what impact will they have once the hospitality project is up and running?
The main goal for this design was to create a communication bridge with the rest of the world, attracting visitors and allowing the world to experience the beauty of an exceptional natural environment”
At AW2, over the last 25 years we have developed a bioclimatic approach to design which is now a given on every one of our projects. This approach plays an integral role in all our concepts, from the scale of the masterplan down to the smallest interior details. For example, we used local materials and incorporated sun protection, natural ventilation, and limited energy use into the design at Ashar. Sustainability is critical to how travelers interact and enjoy a place, within the hospitality sector we are particularly keen to offer guests the option of sustainable tourism.
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Ankita Rao “It is extremely enriching working in this industry. However, it takes a lot of passion and love for the profession to be able to find a footing for oneself” 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 Ankita Rao, co-managing partner at Freeline Engineering Consultants. What drove you to get into construction and your first role in the industry?
I grew up in an extended family of doctors & engineers. As a child, I was quite creatively inclined and having watched my mom (an interior designer) and uncle (a structural engineer) dabble in floor plans and fuss over design, I decided very early on that I will be an architect. To me, it seemed like a perfect blend of aesthetics and science. In addition, we had a family-owned consultancy, Freeline Engineering Consultants, which was set up in the late 90s, while I was still at school and I was quite certain I wanted to be a part of it. My first role in the industry was that of a junior architect in New York with a firm called FXCollaborative, right after I graduated with meconstructionnews.com
my Bachelors and Masters from Savannah College of Art & Design, USA. Following my stint in the US, I moved back to join their Dubai office before joining the family business. Share a brief about your career, mentioning key achievements.
I joined the business in 2008 as a junior architect. A couple of years down the line, my brother and I took over the family business in the capacity of joint directors upon the untimely demise of our uncle and founder of the company. At the time of our takeover, the company had drastically downsized and was debtridden with over a million dirhams of debt. I feel our biggest achievement and learning curve came from that phase of putting the business back on its feet. We had to kick our hands and legs in all directions to figure out ways to restructure debt and then grow back. It took us a few years but we managed to clear all company dues and grow the team back to strength. Along the way we managed to pick up key recognitions for our contributions to the January 2022
38 | On Site
design and engineering fabric of the city including one from the Dubai Government.
coming years? If you do not agree with the earlier statement, please share your thoughts/views of the market.
Besides fairness and being the right thing to do, diversity in the construction industry is important because of the value women can bring to employers, clients and customers. How have you made your mark in the industry working on projects specifically (your proudest moment)?
We are an intrinsically client-focused practice. I say we because a leader is only as good as his/her team. As a company, it gives us immense pride looking over our 1000+ projects in Dubai over the last 23 plus years. Every job - small or big - is delivered and handled with a lot of care and empathy but it is very humbling when big industry players or HNIs choose us as their consultants for their personal villas or industrial setups because they are never at a loss for choices.
When I joined the local construction industry 15 years ago, there were very few female industry professionals that I was dealing with. However, one must laud the local government initiatives which continue to give a boost not just to employment but also to women entrepreneurs. As a firm, we have always viewed candidates on the basis of merit and potential alone and I feel the mindset of the industry leaders has also changed towards the same direction. Today, I deal with a lot of women entrepreneurs from construction and a larger segment of women employed across sub-consultant or contractor offices.
In the last 23 odd years, we have had the pleasure of having some very talented women as architects and engineers as a part of our team. We have a very stringent onboarding process with a unilateral focus on talent and potential”
Everyone has a part to play in diversity and equal pay. What would you like to see government authorities and construction
What are some of the barriers to women
firms do to increase diversity and
entering the construction industry?
make pay a level playing field?
What was your personal experience?
There are a large number of women architects and engineers who are employed across all government authorities locally in the permits and engineering departments, which is quite impressive. I cannot comment more on this particular issue as I have neither faced any gender disparity in the pay when I was employed, and it’s not a practice in our firm either.
I feel the barriers are more pre-conceived or accumulation of misinformation more than anything else. When I speak to young women – those wanting to enter the industry or in early stages of their career – their concerns range from the construction industry having low pay scales to working extenuating hours at work or in the sun on sites to not getting a chance to design freely. In my experience, I was quite well paid when I was employed and even within our company, we offer very competitive salaries purely based on merit – without a bias towards any gender or race. Of course, as with any industry, work gets tiresome towards deadlines or there are challenges working on sites during the harsher months but none of which is impossible to manage. The GCC construction sector is still
Besides authorities and construction firms, who else can play a part in increasing diversity
GCC, how does your experience here
and balancing pay scales?
compare with what you’ve experienced
I feel media can play a big part in getting the word across. The firms or industries which still have an unstated gender-based bias may be better informed when they read about or know of their competitors moving towards recruitment of note-worthy talented women.
and observed in other markets?
male dominated, however diversity is beginning to increase. If you agree
As a woman in the industry, what
with the above statement, comment
has your experience been working in
on what is driving this and how you
the GCC construction sector? If you
see the GCC markets changing in the
have worked in markets outside the
January 2022
Having worked in New York and here, I feel women architects and engineers are highly valued and respected in the GCC – maybe slightly more than in the west. In the initial days when we used to take physical drawing submissions to the authorities and go for inperson discussion, I loved going for those simply for the amount of respect I got from the engineers there and it continues till day. I feel the mindset of the end users or clients meconstructionnews.com
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& social media would help greatly to dispel pre-conceived notions. In doing your job, what sort of discrimination (if any) have you faced and how did you/employer address it?
Nothing that is of any significance. Do you feel there’s a limit with regards to how far you can progress within FEC?
At FEC, we have always provided equal and unbiased opportunities of growth to all employees. We always look for and prefer to onboard talent that are willing to grow with the company. How does FEC approach diversity in the workplace? What more can your firm do to increase diversity?
In the last 23 odd years, we have had the pleasure of having some very talented women as architects and engineers as a part of our team. We have a very stringent onboarding process with a unilateral focus on talent and potential. How do you personally push for diversity and equal pay in the construction sector? Are you involved in any groups/councils etc. that focus on increasing diversity and equal pay?
I am fortunate to have bequeathed a business with a focus on talent and personally we are carrying forward the same value system. What advice would you give to a woman entering the industry today?
also makes a huge difference. I remember dealing with a few clients initially who had an understated preference for a male architect or engineer as the main point of contact for their project. So much has changed now. In your opinion, what is the biggest challenge women in the construction sector face in GCC countries? How can these challenges be addressed?
The construction world over is a maledominated industry mainly due to the huge chunk of physically intensive work involved. meconstructionnews.com
It is also an industry which employs a wide gamut of talent and workers from all backgrounds from blue collar workers to industry leaders. Fortunately, the GCC values women’s safety very highly following which the reservations related are almost instantly mitigated. I would assume concerns related to safety and reservations about finding ground to be factors stopping women from entering the industry. I believe more initiatives related to awareness towards parents of young girls to universities through media
Construction as an industry comes with its challenges and as with any industry there are hard times. But what I love most about being a part of this industry is the fact that no two days are similar and no two projects are similar. It is extremely enriching working in this industry. However, it takes a lot of passion and love for the profession to be able to find a footing for oneself. I would encourage young women to firstly be rightly informed about their chosen path within the Construction and then assess their passion towards the subject before foraying through. January 2022
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01 Christopher Nicolas, director, TBH.
Christopher Nicolas “When it comes to setting up for a successful project; the ticket to winning is all in the planning” assist in getting delayed projects back on track. The importance is always in planning and timely action – and it is this due diligence that can help set your project up for great success. Whilst every project is different, the detail is always in the planning. Employing the following measures can help set your project up for critical success: Setting Realistic Timelines
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Starting a project under undue time pressure, will inevitably see the project suffer the longterm consequences as a result of poor planning. A realistic timeline for a construction project should be driven by the scope and needs of the project. This includes careful consideration of the scope, completeness of the design, overall project sequencing and achievable construction productivity. Regular Monitoring and Reviews
When it comes to starting construction projects, any company has reason to be wary of the potential for delays, overruns, conflicts, defects and failures. Successful projects can be completed through a variety of techniques, but the overriding themes include effective preplanning, ongoing regular oversight, cooperation and anticipating problems before they arise. This means issues can be addressed and managed before they impact the project. This may include detailed reviews of the proposed construction methodology, constructability, and timelines to establish realistic project durations at project initiation, as well recovery and mitigation strategies to January 2022
Ensuring a close eye is kept on the progress of the timeline is vital. From commencement, the project must be monitored through regular reporting. Planning, performing, measuring performance, evaluating measures and acting upon variances helps in identifying risks early, so mitigation strategies can be considered and implemented in a timely manner. This promotes continuous improvement and provides effective communication of information so it can assist management in predicting and influencing outcomes and executing informed decision making. Compliance of Contractual Obligations
It is important from the beginning to ensure that each party is committed to complying with its
contractual obligations in a timely manner, as set out in the contract. All project stakeholders can unduly critically delay progress due to several factors including the late provision of information, delayed appointments, and prolonged review and approval periods. The inclusion of key contractual obligations in the project timeline, and the ongoing monitoring of these obligations, is vital in ensuring that any deviations are addressed in a timely manner to avoid exacerbating project delays. Timely Resolution of Disputes
Ultimately, this is about identifying the potential for delays so that remedial action can be initiated. Regular reporting will identify the critical work and identify those activities that are in need of attention in order to prevent them from becoming critical delays to the delivery timeline. Invariably when delays, cost over-runs or scope changes occur, disputes, claims and counter claims can develop between parties involved. Left unchecked, a disagreement between two or more parties can escalate into lengthy legal cases that are both expensive and distracting from core business. Ultimately, projects are always changing, and the constant level of uncertainty can often bring conflict to teams. Many things are out of anyone’s control, but what is in our control is our ability to plan to deliver. Setting realistic expectations upfront, measuring performance, evaluating measures and acting upon variances is vital in avoiding unnecessary stress and costly claims further down the line. When it comes to setting up for a successful project; the ticket to winning is all in the planning. meconstructionnews.com
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