ME Consultant May 2022

ON TOPIC

CORE on how Abu Dhabi’s key sectors will fare in 2022

IN PRACTICE

Paul Godfrey discusses the 2022 Virtual VE Summit

ON SITE

Women in Construction profile: Fiona Liddell

MAY 2022

091

FOR THE CONSTRUCTION SPECIALIST

Zeroing in on Net Zero

How are key GCC countries progressing in their journey to net zero? What are the challenges and the best approaches? Four regional experts weigh in Licensed by Dubai Development Authority

Office Location: Millennium Plaza Tower 14th Floor, Sheik Sayed Road P.O.Box 26290, Dubai, UAE www.intertek.com

Contents | 01

22

May 2022 Issue 091

Cover Story

Zeroing in on Net Zero

Jason Saundalkar talks to four regional experts about the region’s journey towards net zero, the challenges that have to be overcome and the approaches that could have a pronounced impact Opinion

Sustainable Commitment

With the government’s commitment and developers’ dedication to feasible solutions, the built environment can achieve a sustainable future says Yousaf Fakhruddin

18

14 Analysis

Abu Dhabi Market Snapshot 2022

Following a modest recovery in 2021, the Abu Dhabi market is expected to see a steady 2022 says CORE meconstructionnews.com

May 2022

02 | Contents

Site Visit

Built for Purpose

Gwyn Taylor, general manager of LINQ, takes Gavin Davids on a tour of the manufacturer’s facility in Dubai Industrial City, as it gears up to launch production of the region’s first high-quality modular homes

36 Profile

Fiona Liddell

MEC talks to Fiona Liddell, head of Risk Management at Serco Middle East about her influences, career and gender diversity in the construction industry

32 Event

2022 Value Engineering Summit Wrap The VE Summit showed how advances in AI are creating a mix of capabilities for VE, ensuring scope for a new generation of priorities

8 Update

News

Etihad Rail announces new terminal at Dubai Industrial City; Majid Al Futtaim Communities launches final neighbourhood within Al Zahia; Acwa Power announces $900mn EPC contract win for Neom Green Hydrogen Project; Radisson Hotel Group eyes net zero goal by 2050

8

May 2022

28 meconstructionnews.com

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Threat & Risk Assessment Gap Analysis Security System Design IT/AV Design Master Planning & Development Operational Requirements

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Testing & Commissioning Control Room Design System Integration Policies & Procedures Site Surveys & Audits Crisis Management

04 | Welcome

Group MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5713 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

A New Beginning After 55 issues, several dozen flatplans, hundreds of interviews and an almost unfathomable amount of words, the time has come for me to bid Middle East Consultant (MEC) adieu. This issue will be my last as the editor of the magazine, and what an incredible journey it has been. I’d like to thank you all for not only reading the magazine under my stewardship but for also being gracious with your time when it came down to the business of features, interviews, opinion pieces, site visits and MEC’s various events. It’s truly been a privilege to get to know so many of you, and to highlight the important work that you do, within the pages of this fine magazine over the last five years.

I’d also like to take this opportunity to thank my colleagues (past and present) at CPI Trade Media, who tirelessly supported my efforts to make this magazine the wellrespected powerhouse it is today, and for doing the groundwork on the magazine’s associated events. It’s truly been a herculean team effort.

The June issue of MEC will see Paul Godfrey take the reigns as editor and if you’re thinking to yourself ‘that name looks familiar’, well, you’re absolutely right. Paul already has a great track record with the magazine; May 2022

he’s contributed several interviews to MEC over the last 12 months, and you’ve probably seen he and I in conversation following one of MEC’s recent live events, where he’s either served as MC or a moderator. You’ll have seen him in action most recently as the conference producer and moderator on one of the sessions at the 2022 Virtual Value Engineering Summit.

As a 15+ year veteran of the regional media industry, Paul already has some great ideas about what he’d like to do with the title going forward, and I’m sure you’ll see those taking shape in due course. I, for one, am excited to see where he takes the magazine and I look forward to supporting him in every way in his endeavor, as I’m sure you will.

What’s next for this grizzled editor, I hear you saying. I’m not going too far, actually. I’m staying with my extended family at CPI Trade Media but migrating into the digital space, taking over as head of content of our construction web portal www.MEConstructionNews.com (MECN).

It’ll be my job to take this already well respected regional construction focused web portal to the next level, so really, it’s not goodbye, but rather see you real soon.

Advertising COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpitrademedia.com +971 4 375 5714

Design ART DIRECTOR SIMON COBON GRAPHIC DESIGNER PERCIVAL MANALAYSAY PHOTOGRAPHER MAKSYM PORIECHKIN

Circulation & Production DATA & PRODUCTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476

Marketing & Events EVENTS & CONFERENCE PRODUCER PAUL GODFREY paul.godfrey@cpitrademedia.com +971 4 375 5470 EVENTS EXECUTIVE MINARA SALAKHI minara.s@cpitrademedia.com +971 4 433 2856 SOCIAL MEDIA & MARKETING EXECUTIVE Gladys DSouza gladys.dsouza@cpitrademedia.com +971 4 375 5478

Web Development ABDUL BAEIS FOUNDER DOMINIC DE SOUSA (1959-2015) Published by

The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication.

The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC.

Jason Saundalkar Editor, Middle East Consultant

CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2022. All rights reserved.

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06 | On Topic

MOST POPULAR

FEATURED

CONSULTANT

WORLD CEMENT ASSOCIATION CALLS FOR MENA CEMENT FIRMS TO DECARBONISE

NPCC led consortium awarded major carbon capture and storage project contract

CONSULTANT

Mahmoud Abougabal joins HKA’s Expert Services Team as Director

EXPERTS: Overcoming resistance to new technology CONSTRUCTION

Akar Technical Services completes $14.9m contract work at Dubai Properties’ Villanova in Dubailand

FLEET

RTA unveils five-year sustainability plan

CONSTRUCTION

Kuwait’s HEISCO and Mitsubishi Power emerge as lowest bidders for 2,400MW Sabiya Power Plant project

May 2022

READERS’ COMMENTS

INSIGHT: Facilio reveals its data-driven vision

It is a welcome intervention that The World Cement Association (WCA) has called upon cement firms in the MENA region to take decarbonisation action, ahead of COP27 in Sharmel-Sheikh, Egypt and 2023’s COP28 in Abu Dhabi, UAE. However, it is worth noting that this is as much of a balancing act as decoupling from fossil fuels and will have a global impact. Even I was surprised to read that cement manufacturing in the MENA region makes up 15% of the world’s total production. It is great to see that the UAE and Saudi Arabia at least seem to be taking this seriously have both made pledges to reach net zero half way through this century but will they find themselves priced out of the local market if the construction industry is able to find cheaper imports from neighbouring countries? Financially and ethically it makes sense to reach a region-wide agreement on how cement is produced, backed-up by tariffs on high carbon imports – and possibly even penalties for firms that choose their bottom line over a greener future.

Name withheld by request

meconstructionnews.com

8 | On Topic

Infrastructure

Residential

Etihad Rail announces new terminal at Dubai Industrial City

Majid Al Futtaim Communities launches final neighbourhood within Al Zahia

Etihad Rail has announced an advanced freight terminal that will occupy 5.5mn sqft.

It is to have a capacity of five million tonnes and will connect major manufacturing centres and warehouses in Dubai Industrial City with the rail network.

The terminal is a collaboration between Etihad Rail and Dubai Industrial City and will contribute to cementing the UAE’s position as an international trade hub, and boost Dubai’s global competitiveness in manufacturing, logistics, transport, trade, and investment.

The terminal will complement Dubai and the UAE’s advanced infrastructure and transport network, cementing the nation’s position as a gateway to the Middle East, North Africa and South Asia, a statement said.

It will also deliver a major boost to the UAE’s Industrial Strategy, also known as Operation 300bn. Increasing the industrial sector’s contribution to the economy by building advanced logistics infrastructure will strengthen the country’s position as the leading Arab nation on the World Economic Forum’s Global Competitiveness Report.

The terminal will build on Dubai Industrial City’s proximity to Jebel Ali Port and Al Maktoum International Airport, which allows companies to reach two-thirds of the world’s population in eight hours. It will provide a range of benefits to the 780 business partners in the surrounding areas, centred around improving efficiencies and reducing costs.

02 Camelia’s land plots are zoned for different housing types, from townhouses to three, four and five-bedroom independent villas.

May 2022

01

01 The new rail terminal at Dubai Industrial City will span 5.5mn sqft and is expected to provide a range of benefits to the 780 companies in the freezone and surrounding areas.

Majid Al Futtaim Communities has launched the final neighbourhood within its Al Zahia development in Sharjah. The firm said ‘Camelia’ is ideal for young couples looking to build their first home together, to larger families seeking a villa that caters to a diverse set of lifestyle needs.

With 80 individual freehold land plots available, the release represents a superb opportunity for investors and owner-occupiers

02

meconstructionnews.com

On Topic | 9

to create their ideal home in Sharjah’s premier gated community, said the statement from Majid Al Futtaim Communities.

“Camelia represents a rare opportunity to build a lasting legacy within a mature gated community renowned for delivering an exceptional quality of life to everyone who lives, works and plays there. Representing the last opportunity to own a piece of Al Zahia, Camelia also caters to the scarcity of well-located land plots offering developed infrastructure and access to quality amenities,” said Majid Al Futtaim Communities CEO Hawazen Esber.

The community is said to offer ample opportunities for residents to lead an outdoor active lifestyle, and features a lush, landscaped park at its heart, where residents can gather and connect with nature.

The new neighbourhood also benefits from being a short walk away from Al Zahia’s amenities, including the clubhouse with its two resort-style swimming pools, gymnasium and signature restaurant, he added.

03

03 Once complete, the facility will produce 1.2mn tonnes of green hydrogen each year, using over 4GW of renewable energy from multiple sources.

Green Hydrogen

Acwa Power announces $900mn EPC contract win for Neom Green Hydrogen Project Saudi-based Acwa Power has signed a $900mn engineering, procurement and construction (EPC) agreement for the Neom Green Hydrogen Project, which is taking shape within the Neom megaproject meconstructionnews.com

in the Kingdom of Saudi Arabia. The project is being jointly developed by Acwa Power, Air Products and Neom.

According to a statement from Acwa Power, the project will be the largest green hydrogen production facility in the world and will produce 1.2mn tonnes of green hydrogen every ear. It will use over four gigawatts (GW) of combined renewable energy from multiple sources to generate the power needed for producing green hydrogen.

The signing of the Limited Notice To Proceed (LNTP) agreements was in relation to the EPC contract for the largest green ammonia facility in the world, with an expected capacity of 1.2mn tonnes per annum coming up in Neom, stated Acwa Power in its filing to the Saudi bourse Tadawul.

The LNTP agreements included: InKingdom LNTP in relation to the EPC contract between Neom Green Hydrogen Company and Air Products Middle East Industrial Gases; Out-of-Kingdom LNTP in relation to the EPC contract between Neom Green Hydrogen Company and Air Products Equipment limited; Parent Company Guarantee And Co-Ordination Deed for the LNTP in relation to the EPC contract between Neom Company, Acwa Power Company, Air Products Saudi Arabia Investment Company, Air Products Equipment, Air Products Middle East Industrial Gases and Air Products and Chemicals, the statement concluded.

May 2022

10 | On Topic

Sustainability

Radisson Hotel Group eyes achieving net zero goal by 2050 The Radisson Hotel Group is committing to decarbonising its business by setting aggressive emission reduction targets to be net zero by 2050, in line with the SBTi Net-Zero Standard. The ‘Radisson Hotel Group’s 2021 Responsible Business Report’ referenced the goal and outlined its latest sustainability targets in line with a strategic five-year plan.

The plan is said to include accelerating the implementation of the cross-industry Pathway to Net Positive Hospitality and Hotel Sustainability Basics initiative, and to reaffirming the group’s commitment to people, community, and planet as an employer.

“I’m delighted to announce that Radisson Hotel Group is setting emission reduction targets in line with climate science, and we are committed to decarbonising our business.

While net zero by 2050 seems far away, we

04

need to take action immediately. Our world needs responsible businesses now more than ever, and we need to accelerate global climate action by 2030 to ensure a livable future for both our people and our planet.

Much needed progress can be made by taking everyone in the hospitality value chain on the sustainability journey by setting increasingly ambitious sustainability goals,” said Inge Huijbrechts, global SVP Sustainability, Security and Corporate Communications, Radisson Hotel Group.

The group noted that with its ‘THINK PLANET’ initiative, it is building on its heritage of sustainability by committing to set sciencebased emission reduction targets, and by strengthening its performance with a net zero carbon future in sight by 2050. This includes a science-based target to reach net zero value chain GHG emissions by 2050, in line with the SBTi Net-Zero Standard. The group says it will also be part of the Business Ambition for 1.5°C campaign and will join the UNFCCC Race to Zero campaign as part of a globally coordinated effort to reach the goal of net zero.

04 In 2021, the hotel group notes it reduced its carbon footprint by 23% per square meter and reduced 13% of its water footprint per square meter (vs. 2019).

05

Commercial

Amana announces completion of solar PV auto park Works have been completed on the 14,000sqm Al Futtaim Auto Park in Al Ain, according to design-build specialist Amana. The Auto Park is said to feature a complete showroom and workshop facility for servicing motor vehicles. It also boasts a solar photovoltaic (PV) system that can generate 800MW/h.

The project is the first automotive facility to operate all brands under one roof, as well as being the only multistory automotive facility in Al Ain, which can hold almost 70 new and used cars on both floors. Its end-to-end offering includes commercial vehicles, in addition to passenger cars, new and used, for sale, leasing, and renting, a statement from Amana noted.

May 2022

meconstructionnews.com

On Topic | 11

Infrastructure

Empower district cooling network grew by 33.2% between 20182021

Its 487.9kWp solar PV plan is expected to generate 800MWh of energy, whilst offsetting 334 metric tons of carbon dioxide during its first year of operation.

“The Al Futtaim Auto Park in Al Ain has become a signifier of a greener, smarter future for the nation. Building it with a solar PV system, we combined significant energy production with seamless architectural integration. Thus the project opens up new prospects for the deployment of renewable energy. Solar photovoltaic systems are a critical solution to help decarbonise the construction sector, responsible for more than one third of global annual greenhouse gas emissions,” said Amana CEO Jihad Bsaibes.

Its strong and diversified portfolio of capabilities, beyond standard industrial contracting, enabled a seamless and successful installation, even as construction of the building was ongoing, explained Bsaibes.

The total length of Emirates Central Cooling Systems Corporation’s (Empower) district cooling pipeline network across Dubai exceeded 369km by the end of 2021.

Empower said the network grew by 33.2% during the 2018-2021 period.

The company attributed the network expansion in 2021 to the new projects added to Empower’s portfolio, most notably the Marsa Al Arab, and the expansions of Dubai Healthcare City, Dubai Land Residential Complex (DLRC), Business Bay and the expansion of DIFC to provide company’s

06 Empower’s network grew 33.2% in response to increasing demand for environmentally-friendly district cooling services.

district cooling services to Wasl 1 and others, the firm said in a statement.

“The expansion of our district cooling network is driven by the increasing demand for environmentally-friendly district cooling services on the one hand and on the other hand, it reflects Empower’s tireless efforts to develop an infrastructure that help achieving the goals of Dubai sustainable development plans,” said Empower CEO Ahmad Bin Shafar.

Bin Shafar pointed out that the expansion was also due to the continuous and increasing urban development process in Dubai.

He concluded, “The network expansion operations are implemented using cuttingedge technologies that ensure uninterrupted delivery of services to our customers.”

06

05 The facility’s 487.9kWp solar PV plan is expected to generate 800MWh of energy, whilst offsetting 334 metric tons of carbon dioxide during its first year of operation.

meconstructionnews.com

May 2022

THE OBEROI / DUBAI / UAE

Sustainable design, resilient transportation and empowered youth – the keys to a brighter future 07 Jun 2022

About the

Future of Architecture Summit The second Future of Architecture Summit (FOA) will build on the breakout success of the inaugural edition with a captivating and insightful agenda that will be discussed and debated by some of the region’s best and brightest minds.

The Summit will provide a platform for construction industry stakeholders to discuss a multitude of topics including future city requirements, net zero building design, resilient design strategies, future transport infrastructure, nurturing future talent and much more. Along with a rich agenda, the summit will also provide unparalleled networking opportunities in full compliance with all local COVID-19 related regulations.

Future

Talent Awards The Future of Architecture Summit 2022 will include a special Awards occasion, showcasing the future talent in the industry. Six prestigious awards will be given to the very best of tomorrow’s Architects - talented graduates from one of the UAE’s most demanding and prestigious faculties at the American University in Dubai.

The Summit will give you first-hand knowledge of what it takes to lead the transition into the Future - celebrating those who will actually be building and creating tomorrow’s world.

Participation

Get in touch

Participate by exhibiting, creating a workshop, join a panel discussion or run a demonstration – whichever way – it’s a lucrative platform to get connected.

Content

Contact us now to learn more about this opportunity to interact and connect with regional industry decision makers and influencers.

Sponsorship

Opportunity

Contact us Paul Godfrey | +971 55 472 9717 paul.godfrey@cpitrademedia.com

Andy Pitois | +971 4 375 5473 andy.pitois@cpitrademedia.com

Date

Venue

07 Jun

The Oberoi

Website

foasummit.com

Complimentary

Register now

Register for free and stay connected

2022

Agenda

Talent

We believe content is king and our panel discussions and presentations seek to provoke insightful debate and shed light on current trends, issues and solutions.

Construction industry stakeholders must deepen their engagement with educational institutions to attract and better prepare young people to deal with the challenges of tomorrow.

Design

Mobility

Buildings of the Future

Agile Infrastructure

The construction, operation, and eventual demolition of structures have contributed significantly to climate change the world over, so it’s now crucial that the industry drastically cut its impact on the environment. Sustainable construction methodologies and Net Zero Energy Buildings are just the beginning…

Today’s planners must grapple with an array of requirements and challenges, with the ultimate goal of providing a city and its populace with infrastructure that is accessible, connected, relevant and resilient.

Paving the Way for Future Architects

2022

Event Partners BRONZE SPONSOR

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© 2022 CPI Trade Media. All rights reserved.

14 | On Topic

Abu Dhabi Market Snapshot 2022 Following a modest recovery in 2021, the Abu Dhabi market is expected to see a steady 2022 says CORE Market confidence in Abu Dhabi is considerably high in the wake of a favorable economic environment, revival in tourism numbers, successful vaccine program and the recent scaling back of COVID-19 restrictions. However, most price recovery was witnessed over the last 12-18 months, with the market currently in a stable phase.

Current high oil prices, if sustained, are expected to positively impact Abu Dhabi’s economy. However, inflation, a stronger dollar, and multiple rises in interest rates are expected to be down-side risks. Continued inward investment with key investment deals including Apollo Global Management’s $1.4bn investment in Aldar Properties PJSC demonstrates increased global investment interest in the maturing Abu Dhabi Market.

Furthermore, the announcement of full foreign ownership for specific businesses affirms the government’s keenness to attract more direct foreign investments by promoting an open and flexible business environment.

Abu Dhabi Residential Market

6,000 residential units were delivered in 2021 and approximately 7,000 units are expected to be delivered in 2022. Most of the supply in 2021 was delivered in Al Reem Island, Yas Island and Al Raha Beach areas.The villa market in Abu Dhabi remains relatively undersupplied with limited new deliveries May 2022

expected in 2022. However, over 2023 and 2024, prime villa projects in Saadiyat and Jubail Island are expected to be delivered.

Apartment projects expected in 2022 are One Reem Island, Reem 5 & 9, Mariyah Vista 2, Aldar Reflection 2 and Pixel Towers.

While COVID-19 led lifestyle changes and the need for larger spaces have helped villa district performance, price rises have been modest and similar for city-wide apartment and villa districts in Abu Dhabi. Most of the recovery happened during Q3-Q4 2020, with city-wide sales prices remaining relatively flat with just a 2% rise year-on-year.

Due to a large number of handovers in Al Reem Island, there is a relative oversupply of apartments. However, it remains a preferred apartment district witnessing strong off-plan sales and, with the expected delivery of Al Reem Mall in 2022, a growing leisure hub.

Noya and Al Ghadeer Phase 2 are gaining popularity amongst investors and end-users.

Saadiyat Island, however, remains the most popular prime villa district witnessing the highest year-on-year price rises due to its beachfront lifestyle, premium stock, and nearness to a range of amenities. Water’s Edge and Maker’s district are prime options for luxury apartments while Masdar City and Al Reef are popular for affordable apartments.

In 2021, off-plan sales activity was stronger compared to 2020 with Aldar reporting record meconstructionnews.com

On Topic | 15

meconstructionnews.com

May 2022

16 | On Topic

Average Abu Dhabi Villa Sales Price, AED/sq ft 2020 2021

Average Abu Dhabi Apartment Sales Price, AED/sq ft 2020 2021

1,600

1,600

1,200

1,200

800

800

400

400

Hydra Village

Al Reef Villas

Ghadeer Villas

Al Raha Gardens

sales. Al Raha, Saadiyat Island, Yas Island, Al Reem Island are the most popular districts in terms of sales activity. In the off-plan market, most buyers are UAE and GCC nationals who are looking for long-term capital appreciation, while expat investors remain relatively limited.

The rental market also gained momentum in 2021, with citywide villa rentals witnessing a marginal 1% year-on-year rise. Although an improvement in performance compared to sharper drops in previous years, apartment rents saw a 2% decline due to a relative oversupply. While the shift for villas continues, competitively priced apartments remained popular in central locations. It should also be noted that new superior built properties on Al Reem Island and in Al Raha Beach, although offered at above average market rates, are achieving strong absorption. While the recovery is gradual, improvements in rental rates recorded in 2021 are expected to continue in 2022.

Abu Dhabi Office Market

Prime Grade A rents in Abu Dhabi Global

Saadiyat Island

Al Reef Downtown

Marina Square

Market (AGDM) remain stable due to attractive freezone incentives and occupiers are willing to pay a premium to enjoy the benefits of British common law and occupy prime office space. As the flight to quality over 2020 and 2021 improved occupancy levels in Grade A offices, headline rents also witnessed a slight increase. However, these high occupancy rates and steady headline rents are now pricing out the majority of cost-conscious occupiers.

Grade A in secondary areas and Grade B stock saw a nominal increase in rents as office occupiers who relocated to Grade A offices during 2020 left fitted offices in place, which had been absorbed during 2021 at competitive rental levels. Grade C building rents stabilised, however, we foresee further downward pressure on rents in this office class as occupiers relocate and expand into Grade B fitted spaces. Flexibility continues to be key with serviced offices remaining popular for start-ups and new market entrants.

The 100% foreign ownership law has driven FDI into Abu Dhabi with considerable activity wit-nessed from technology sector with

Al Zeina

Al Bandar

Saadiyat Residences

larger domestic local demand-driven by semigovernment entities. Most enquires received are from banking and finance, technology, industrial, logistics and healthcare occupiers.

Strong demand for quality fitted space in well-managed buildings, which remain short in supply, are witnessing strong absorption.

Headline rents are still a key driver, with a preference for fitted and furnished space as tenants are unwilling to commit to full CAPEX for shell and core or CAT A space. Al Reem Island remains popular due to its location and convenient accessibility to Abu Dhabi City.

We are also seeing more enquires for smaller spatial requirements in the Al Raha and Yas areas, as they are closer to residential suburbs for staff and ease of access to and from Dubai.

Occupancy levels increased with regards to Grade A offices from 75% to 79% and rents rose by 5% due to limited supply and a move from flight to quality during 2020-2021. Grade B properties are growing in popularity due to their value proposition and availability of fitted options, however, Grade C occupancies continue to decline.

Abu Dhabi Residential Supply, Thousands of Units Existing Supply New Supply 300

200

100

2009 May 2022

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meconstructionnews.com

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18 | On Topic

01 Yousuf Fakhruddin, CEO, Fakhruddin Properties.

Yousaf Fakhruddin

“It cannot be denied that there is a long and challenging road ahead for developers to make sustainability a reality”

01

With the UAE government’s commitment towards sustainability and national goals for environmental conservation, the green agenda in real estate is now mainstream.

Developers have started to see the importance of incorporating sustainable practices into their projects and understand that benefits of green buildings are not just progressive and far-reaching, but actively help in combating climate change and building prosperous communities to propel economic recovery and development.

However, while there is a lot of emphasis on green practices and sustainability initiatives are moving forward in various capacities, it is still a work in progress and there’s a long way to go. It is one thing to have an agenda and another thing entirely to successfully deliver on that agenda.

This requires much deliberation around one of the most critical aspects of sustainability in real estate, economic feasibility.

The Feasibility Question

This is the key question developers need to answer to make sustainability a reality in the UAE. New technologies not only provide sustainable and innovative solutions to climate change but also offer developers the opportunity to create more carbon-conscious buildings. Carbon conscious buildings will not only see an increase in value, as occupiers are increasingly willing to pay more for green buildings, but these buildings also have the potential to reduce operating costs by up to 30%, according to studies.

May 2022

However, despite the benefits of carbonconscious buildings, many developers are still hesitant to invest in sustainable architecture due to the high cost of implementation. From an occupant point of view, many people may initially be reluctant to spend more on something that can save the planet in the future when they can save money now if they move into conventional, largely unsustainably constructed spaces.

The onus is on developers here because they can source, integrate, and afford sustainable solutions at a much larger scale (and for cheaper) than any individual occupant. Now, with the UAE’s commitment to the green agenda, developers have a golden opportunity to do what’s good for the planet without burning big holes in their pockets.

Optimising the Cost of Construction

A growing number of feasible solutions can be incorporated into the built environment to optimise energy consumption, reduce wastage, and improve living conditions that are sustainable and cost-effective in the long run for both developers and occupants.

Air to Water Technology - Generating Clean Drinking Water from Humidity. Atmospheric Water Generator Technology (AWG) machines are an excellent for ensuring more people have access to potable water. Developers can utilise atmospheric water production to collect this water vapour and provide clean drinking water to their occupants. We plan to employ this meconstructionnews.com

On Topic | 19

unique water-saving technology in all of our future developments.

Water Conservation and Monitoring Technology - There are several intelligent and innovative water recycling solutions for houses and commercial spaces that assist in reducing waste at the source. Water recycling in homes is a highly effective and pocket-friendly method to save water. These systems gather, purify, and recycle the water used in showers, dishwashers, washing machines and air conditioning units.

Energy Efficient Paints - There are wall paints available today that help you save energy. The advantages of the coating include reflection, directed evaporation, antielectrostatics, and the incredible material endurance of these paints, which makes them robust, flexible and long-lasting. Developers can use water-based and solvent-free paints to preserve their surfaces from moisture, dust, UV radiation, air pollution, and mildew; as we do.

Sustainable Building Blocks - Insulated Concrete Form (ICF) construction can be a game-changer for builders, since it may significantly reduce energy needs and minimise heat exchange between the building’s interior and exterior. These blocks are non-combustible and do not rot or decompose; thus, they guarantee longer-lasting structures. As a result, ICF blocks can create a concrete wall with around twice the overall strength of those constructed using conventional methods.

Home Automation - Automation is essential for lowering energy expenses and CO2 emissions, since the water temperature in the shower, like ambient environment temperature, can be tracked and automated. Automation through intelligent residential solutions can considerably decrease the running time.

Smart Building Management System Using a holistic approach to monitoring and managing all automation throughout a portfolio in real-time - this helps in achieving optimum asset performance, sustainability, cost-effectiveness and end-user experiences. Building management/ automation systems can become the backbone of a real-estate portfolio’s lifecycle as they are a critical enabler of optimal performance.

these solutions is doable, and more importantly, affordable as well. Every structure can recycle its own water; therefore, it’s critical that they start doing so right away. The idea that water is a cheap and readily available resource must be rethought immediately.

Water recycling at the local level isn’t difficult, and its advantages are numerous.

Circular water management solutions help occupants save money on their water bills, while also optimising water usage and reuse.

These affordable and efficient decentralised water recycling systems should be included in every new construction project. Also, during the hot and humid months throughout the region, there is a lot of water vapour in the atmosphere that can be utilised. AWG systems provide clean water that is free of contaminants, making it an ideal solution for providing potable water while also saving money.

ICF construction, on the other hand, can significantly lower the building cost, reduces energy consumption, and minimises upkeep requirements. Usage of energy efficient paint

and glass also helps reduce costs by bringing down repair and repainting requirements.

Something as basic as installing smart lighting systems lets lights stay off when they are not in use, and over time, occupancy and motion sensors may learn when certain rooms are empty to turn off or dim lights.

BMS systems, on the other hand, offer automation capabilities that optimise assets to keep them running for longer, resulting in everyday cost savings that add up to considerable amounts annually throughout the life of the building. These are just a few simple solutions that developers can adopt to save money on their energy bills while also reducing CO2 emissions.

Looking ahead, it cannot be denied that there is a long and challenging road ahead for developers to make sustainability a reality globally. However, with our government’s commitment and developers’ dedication toward finding more economically feasible solutions, we are confident that we can together achieve our national climate and energy goals and create a more sustainable future for all.

The Practical Feasibility

Incorporating and integrating a number of meconstructionnews.com

May 2022

20 | On Topic

01 Alexander Barzycki, asset manager, CBRE MENAT.

Alexander Barzycki

“It is essential that there is responsive collaboration between owners, occupiers, property management, engineering and sustainability teams”

01

May 2022

The year 2019 was a landmark year for the sustainability agenda. With the acknowledgment of climate change as an existential threat to our way of life, and the acceptance that the lack of meaningful action taken to date, meant we were on the verge of tipping into an irrecoverable climate crisis.

It is now 2021 and this realisation has just become more important than we could have ever imagined. This isn’t hyperbole. Today, our news feeds are filled with the evidence that the physical effects of climate change – stronger and more frequent hurricanes, storm surges, wildfires, heavy rainfall, and wave after wave of storms – are now happening with increasing frequency.

The challenge, as set out in the 2016 Paris Agreement, was to ensure that action was taken to hard limit global average temperature increases to 2-degrees Celsius above preindustrial levels by 2050, however do everything possible to not go beyond 1.5-degrees.

Commitments were made at corporate and national levels, including in the UAE where it launched its Energy Strategy 2025. The strategy aims to increase the contribution of ‘clean energy’ from 25% to 50% of total energy consumption by 2050 and reduce the carbon footprint of power generation by 70%.

The pandemic has also played a part in focusing on this global issue. Whilst in the

vast majority of cases the pandemic has led to numerous negative externalities, arguably, one positive externality comes from economic recovery plans enacted.

Green Plans

The Organisation for Economic Co-operation and Development (OECD) estimates that member countries have allocated approximately $336bn to the green recovery, as part of these plans. However, it is important to put this in context, this only accounts for 17% of the total. Clearly, more must be done and the built environment will continue to be a significant area of focus given it accounts for an estimated 40% of carbon emission around the globe.

It all seemed to be going so well. Levels of cautious optimism ahead of COP26 (held by the United Kingdom at the end of 2020) were rising and there was real hope that we may now see global action to mitigate the risk posed by climate change, until COVID-19 stopped the world virtually overnight.

The period of lockdown imposed by nations to reduce the impact of the virus led to huge reductions in carbon emissions due to plummeting car, air and rail travel for business and leisure. The question is, as the world opens again, how do we maintain the reductions catalysed by the lockdowns and push on to achieve net-zero carbon? meconstructionnews.com

On Topic | 21

We believe that the office sector will be a key area of focus in the future, their use will continue to be a central part of our working lives, albeit in a different form. While we believe that the office will always be a key feature of cities around the world, how they are used will undoubtedly change.

In order to maximise the opportunity this presents, it is essential that there is responsive collaboration between owners, occupiers, property management, engineering and sustainability teams. The demand changes of reoccupation will vary based on the occupier’s needs and on the future direction of the virus itself.

Legacy of the Pandemic

From an operational perspective, this might mean reconfiguring access control systems to reduce the operational area of a building and, in turn, the area requiring full lighting and ventilation and prioritising the monitoring of internal air quality to enable better control of energy use and better health outcomes for building users. meconstructionnews.com

We as construction and real estate professionals need to be able to improvise in the current situation, adapt by following credible science and engineering and sharing our knowledge, and overcome challenges by implementing strategies early”

Such strategies would need developing for each building to account for the subtle differences between them and take steps to ensure that all the systems are ‘COVID compliant’, and they are being maintained and adjusted to meet changes in demand.

The changing working practices leads to a positive opportunity such as ageing plants requiring considerable downtime to replace and causing disruption to occupiers, or costs to replace out of hours, could be replaced with a more energy efficient system during periods of decreased occupancy, reducing capital cost and decreasing future energy consumption.

Whatever happens from here, our clients need knowledgeable and trusted advisors to react quickly to future shocks based on the lessons learnt over the last couple of years, provide facts, reassurance, and support.

We as construction and real estate professionals need to be able to improvise in the current situation, adapt by following credible science and engineering and sharing our knowledge, and overcome challenges by implementing strategies early.

May 2022

22 | In Practice

Zeroing in on Net Zero Jason Saundalkar talks to four regional experts about the region’s journey towards net zero, the challenges that have to be overcome and the approaches that could have a pronounced impact Climate change, due to global warming, is an existential threat to our way of life. The 2016 Paris Agreement sought to take on climate change by ensuring action was taken to limit global warming to below two-degrees Celsius, but preferably to 1.5-degrees Celsius, compared to pre-industrial levels. To achieve this goal, countries must reach the peak of greenhouse gas emissions as soon as possible, so they can achieve a climate neutral world by mid-century.

As the built environment is responsible for an estimated 40% of global carbon emissions, it’s vital for the sector to do its part to limit global warming.

Commenting on where the key GCC markets of the UAE and Saudi Arabia are in terms of their respective journeys to net zero buildings, Engi Jaber, MD at Climatize Engineering Consultants explains, “While the net zero topic was brought forward recently within GCC markets, we’ve witnessed exponential growth in awareness, dedication and projects since then, especially those driven by the governments. However, results are still far off - some cities are way behind, others are lacking the infrastructure or necessary actions in the matter, and we find developers and owners not willing to join the drive unless a mandate is in place, as part of the built environment codes. Considering the commitments made towards achieving net zero energy by 2050 in the UAE and 2060 in KSA, the public and private sectors will need to push forward on the topic urgently, the latter more so.”

May 2022

Farah Naz, lead of specialist services, sustainable ESG solutions, AECOM Middle East and Africa adds, “The region is waking up towards a net zero transition but getting to net zero is politically challenging just as it is socially, economically and structurally challenging. It will require policy changes to reduce embodied and operational carbon emissions in addition to generating renewable energy to power the assets.”

Lindsey Malcolm, associate Sustainability director, AESG notes, “The significance of recognition at the highest levels of government around achieving net zero for the built environment cannot be understated. The aspirations of regional government, coupled with increasing numbers of multi-nationals with strategic net zero plans in place, will help drive the focus and action in the market. It’s clear from the findings of the latest IPCC report that significant action needs to be taken and that it needs to happen faster than it currently is, in order for us to secure a healthier, cleaner planet. This urgent action applies to all of us within the industry, particularly given the immense potential impact that we can have on the strong pipeline of development that is going to happen in the next five to ten years.”

Samar Hussein, associate, senior architect, co-leader for design resilience in the APME, Gensler remarks, “GCC cities are some of the most vulnerable to the impact of climate change, to sea level rise and extreme heat waves. I think there is

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In Practice | 23

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24 | In Practice

traction in the industry, but the pace of change needs to be more aggressive to move the needle.”

“Developers need to understand the impact of decisions made on their building longevity and compatibility with a net zero world in the near future. Construction professionals need to work more collaboratively across disciplines, so project targets are well planned and executed.”

01

Surmountable Obstacles

Discussing some of the challenges in terms of the march towards net zero structures in the GCC’s two key markets, Naz states, “The biggest challenge is to establish and understand the carbon emissions from key sectors including transportation, utilities, energy, agricultural land, forestry and fishing, construction and materials. It’s extremely important to establish a comprehensive roadmap towards a net zero transition. General market maturity to meet these transitions is one of the biggest challenges.”

“With the knowledge in hand, the second challenge is establishing a comprehensive policy and action plan towards a Net Zero Transition Action Plan, through policy, implementation, monitoring and evaluation programs, pilot studies and investments. Third, you have to establish industry wide knowledge, awareness and incentive programs to drive this transition.”

Malcolm notes the biggest challenge is market understanding around net zero and

what it actually means. He comments, “There is a wealth of information in the market but there is not always a clear consensus. We regularly have conversations with clients about what net zero means to them and how it can be implemented on their project or across their portfolio and operations. Further to this, the ability to accurately assess embodied carbon in construction and the ability to drive decisionmaking based on lifecycle carbon impacts are the other big challenges. For the former, the lack of local data makes assessment of material impacts from cradle-to-site a challenge.”

He adds, “On top of this, the market has not fully matured in relation to materials management, especially around recycling and circular economy. This lack of accurate, locally relevant data for embodied carbon, coupled with the complexity in the conventional methods of assessing operational carbon (and energy), mean

02

May 2022

01 Lindsey Malcolm, associate Sustainability director, AESG. 02 Samar Hussein, associate, senior architect, co-leader for design resilience in the APME, Gensler Middle East.

that often, in the early stages of projects when key decisions are being made, they are done so without a full understanding of the lifecycle carbon impacts.”

“To address these challenges, we are collaborating with the industry to foster standardisation of net zero definitions and targets. We’re also working closely with businesses across the supply chain to identify gaps in performance measurement and to explore new approaches. Industry collaboration is key to standardising net zero carbon definitions and targets, as well as providing clarity to the wider supply chain needed to stimulate the provision of innovative technologies to support decarbonisation efforts.”

Hussein states, “The speed at which buildings are designed and constructed takes a toll on long term planning required for net zero buildings. I also think one of the main challenges for net zero buildings is the reliance on fossil fuels as the main source of energy for operating buildings. Couple that with the harsh and arid climate conditions, which increases cooling requirements and buildings, by default, consume more energy in the region. HVAC systems are estimated to account for more than 75% of building energy use here.”

She adds, “The aspirations for high-rise structures results in higher utilisation of concrete, steel and aluminum, which are responsible for 23% of global emissions. Cement alone accounts for 8% of CO2 emissions globally.” meconstructionnews.com

In Practice | 25

Tackling Carbon Output

To develop net zero buildings, embodied carbon and operational carbon must be tackled effectively. Since embodied carbon covers GHG emissions from the energy and industrial processes used to manufacture and deliver construction materials, can construction stakeholders address the embodied carbon challenge effectively?

Malcolm points out, “By understanding GHG emissions at each stage of the process, seeking answers where information is lacking, comparing alternative options, pushing back on suppliers where inefficiencies are present, requesting better options and approaches, construction stakeholders can drive change. This action can and should be taken en masse, led through industry groups and collectives. This is already happening to an extent, with increasing dialogue at events about how we can better measure the impacts and better effect change.”

Hussein responds, “One of the best ways to optimise embodied carbon is to start advocating for more building adaptation and retrofitting, instead of building new. It is estimated that by using existing building structures, there is the potential of reducing environmental impact by 46%, in comparison to new building construction. The same can be addressed in interiors by salvaging and reusing as much as we can. The second strategy is to push our supply chain for more tracking and reliable data for all materials ordered, with a focus the ones that have the biggest impact and are used in the biggest volumes.”

Jaber adds, “Yes, via taking the challenge on to research and select low carbon materials from the get-go and request all the product reports and declarations ahead of the construction phase to ensure its performance. By doing so, stakeholders will drive the supply chain onto utilising alternative manufacturing techniques in lieu of fossil fuels and encourage carbon-centric approaches. Moreover, designers can minimise waste and materials by design with efficiency in mind in addition to performing lifecycle assessment calculations from concept onwards, and utilise the assessment to make informative decisions that have a positive impact.”

Highlighting what elements contribute to a building’s operational carbon output and what meconstructionnews.com

can be done to enhance a building’s efficiency, Jaber clarifies, “Emissions arise from energy consuming activities including heating, cooling, ventilation and lighting of the building, so called ‘regulated’ emissions under Part L of the Building Regulations, and other, currently ‘unregulated’ emissions, including appliance use.”

“We can reduce the operational carbon of heating/cooling the space by efficiently accounting for low carbon thermal insulation, envelope seals and other envelope efficiency measures. Alternatively, one could look into efficient lighting as well as restricting receptacle

Optimising the façade design to achieve a balance between comfort, views, daylight, materials, and aesthetics is a key opportunity area”

03 Farah Naz, lead of specialist services, sustainable ESG solutions, AECOM Middle East and Africa.

and process loads which are major contributors during the operational phase. However, while materials are usually associated with embodied carbon, they also factor into the operational carbon and therefore seeking efficient alternatives in this respect would also facilitate operational reductions. For example, selecting rebars manufactured via electric arc furnace.”

Malcolm comments, “Façade design and performance has probably the greatest impact on buildings’ operational carbon performance, as well as having a not insignificant impact on embodied carbon performance as well.

Optimising the façade design to achieve a balance between comfort, views, daylight, materials, and aesthetics is a key opportunity area. Our Façades and Sustainability teams work together during the initial stages using smart simulation tools to optimise performance of the building envelope.”

Hussein says one of the best ways to improve a building’s operational carbon is through right

03

May 2022

26 | In Practice

04 Engi Jaber, managing director, Climatize Engineering Consultants.

04

sizing and correctly planning the building early on in design. She says, “It’s estimated that 90% of project impact is determined by early design decisions. Efficient form, planning and maximised space use can significantly reduce operational carbon because essentially you are cooling and lighting less space.”

Orienting the building facades and fenestration accurately and the utilisation of appropriate forms of shading can both increase your building access to daylight and reduce building cooling loads,” she continues.

Revamping the Supply Chain

than using a local material manufactured using carbon-intensive energy. The challenge in GCC markets is availability of data to allow these decisions to be made, as although an increasing number of foreign materials are registering Environmental Product Declarations (EPDs), the lack of corresponding information from regional suppliers means it is hard to say what impact longer supply chains actually have.”

Hussein agrees with Naz with regards to the supply chain being only part of the equation.

She says, “Partially, this will help reduce the embodied carbon footprint resulting from materials transportation and will promote an

Shortening supply chains is cited as an effective way to reduce embodied carbon, but considering the appetite for foreign materials in GCC markets and the havoc wreaked upon existing supply chains by the pandemic, is this still a viable option for reducing embodied carbon?

Naz responds, “While it is true that shortening supply chains and sourcing materials as locally as possible reduces embodied carbon, this is only one part of the equation. Specifying low carbon materials, not over-specifying material quantities and sourcing materials from low carbon suppliers are just as important as the length of the supply chain. It is quite possible that importing a material produced sustainably – or within a low carbon energy environment – could be less carbon intensive

GCC cities are some of the most vulnerable to the impact of climate change, to sea level rise and extreme heat waves.

I think there is traction in the industry, but the pace of change needs to be more aggressive”

May 2022

increased use of local materials. However, the main challenge remaining will be to get the local market and supply chain to adopt tracking and transparency on their material sources and carbon footprint, which will require time for maturity with the continuous push and encouragement from the building industry and local governments.”

She adds, “Design teams would need to weigh up the benefits of highly sustainable materials procured internationally vs. local materials that don’t offer the same carbon value assessments, without compromise to project sustainability.

We should always strive for the best of all aspects and look at materials holistically from aesthetic and performance perspectives.”

Jaber asserts, “It’s more viable than ever. The pandemic has in its own way forced the market to rely on existing and regional supply chains and sourcing, where feasible or seek out alternatives.

This in essence captures the idea of embedding reductions in carbon emissions in the chain, particularly from sourcing and transportation.

The main barrier to relying on regional supply is the availability of certain raw materials but this brings us back to the idea of challenging the design and construction industry to seeking alternatives that are more efficient, reused or recycled and contain lower embodied carbon.”

Malcolm notes that the pandemic highlighted challenges with global supply chains, while recent extreme weather events have further exacerbated issues. He notes, “These are challenges we must face as an industry, in the context of the GCC region but also considering that the impacts we see do not respect national borders. Shortening supply chains can help in reducing carbon footprint, however, it may not be the most sustainable approach when considering the wider impacts and the interconnected nature of our societies. As a business we work globally and the impacts of our work are felt globally.”

He concludes, “The sharing of ideas, initiatives, materials, products, lessons-learnt and expertise on a global scale is the best approach to achieve net zero for the built environment. This should be the focus we take as an industry.” meconstructionnews.com

Date

21 Jun

Venue

St. Regis - The Palm

Website

eassummit.com

S T. R E G I S – T H E PA L M / D U B A I / U A E

Putting innovation into practice: trending alternative energy solutions and the vanguard of sustainability 21 June 2022

About the

Energy & Sustainability Summit The transition to a cleaner, greener, and more efficient future With a vast array of building techniques, alternative energy solutions and hi-tech materials dedicated to delivering carbon neutrality, the Age of Sustainability is upon us. The Energy & Sustainability Summit is a live one-day event, that looks at the realities of the MENA region’s Energy Transition, and how the construction industry is putting sustainability into practice.

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Connections Meet representatives from the industry and engage with a captive audience of decision makers and influencers, who are involved in purchasing or specifying products and services. Our sponsorship packages offer you a wide range of opportunities adapted to your needs and the level of visibility that you want to reach.

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This event presents you with an opportunity to interact and connect with regional industry decision makers and influencers. There are several innovative ways to sponsor and participate from speaking opportunities to branding, interactive live polls to presentations.

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28 | On Site

2022 Value Engineering Summit Wrap On March 30, the Virtual Value Engineering Summit showed how advances in AI are creating a broader mix of capabilities for Value Engineering, ensuring there’s scope for a new generation of priorities writes Paul Godfrey SILVER SPONSOR

May 2022

SUPPORTING PARTNER

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meconstructionnews.com

On Site | 29

It’s widely understood that the first forays into a ‘scientific’ approach to Value Engineering were pioneered by the General Electric Corporation early in the 20th Century, as the USA was entering the First World War. The company’s efforts to reduce manufacturing costs involved cross-matching different components, experimenting with a variety of assembly and production processes - and even switching around the staff manning the teams. The results? Innovating the processes and the people responsible for them didn’t simply reap rewards in terms of cost savings, but often meant that the outcome was vastly superior to that obtained by normal means.

So while the term ‘Value Engineering’ can often connote attempts to simply do things more cost-effectively, or switch out superfluous quality and over-manufacture, we shouldn’t forget that at its core, Value Engineering means creating (adding) value and finding an optimum balance between quality and expense. Hence, in today’s highly competitive construction environment, there’s surely never been a better time to explore the benefits of value engineering and see how it can enhance a business’ competitive advantage, literally from the first conception and ‘get-go’ of a project.

These were the crucial factors addressed by the Value Engineering Summit on 30th March - a livestreamed webinar featuring presenters and panelists committed to enhancing project value and who work on every aspect of the development chain, from procurement,

meconstructionnews.com

It’s critical for a business to know where it stands commercially on a daily basis and be able to ‘crunch the numbers’ in the ways that will provide correct and relevant data for any given Value Engineering initiative”

economic forecasting and client liaison through to digital inventory management systems and on-site delivery.

Smart Solutions Against a Challenging Background

As part of the event’s introduction, the session’s moderator, Paul Godfrey, pointed out that in reality, there are few disciplines which have seen such dramatic progress in recent years and where the latest developments in smart technology, data analysis and connected working have found a natural home. These are all currently informing Value Engineering initiatives and very much helping to bring about a ‘critical mass’ approach, where improved quality and a focus on lifestyle delivery can be achieved within budget.

That’s all very necessary and timely, however, because the economic context has rarely been so overtly challenging. In his keynote presentation, David Clifton, vice president - business development, Hill International (Middle East), looked at the larger economic picture. With the world arguably heading for a median international inflation rate of around 10%, and the cost of re-bar rocketing upwards by 23% in the last two months, VE isn’t about making ‘adhoc’, project-by-project contingencies: rather, it has to reflect the overall performance of the organisation and its ability to weather a climate of rapidly rising inventory costs. Given these factors, can a business, for example, build bridges between May 2022

30 | On Site

Yet, the data and mechanisms driving these elements generally won’t be achievable with the IT capabilities that the majority of businesses have, and this may require the organisation embracing a full-on process of digital transformation. She explained how digital transformation can be put into effect in the most practical ways and once operational, how it can influence the most basic perspectives from which organisations understand and see project delivery and - ultimately - value.

Isn’t Sustainability the Opposite of Value Engineering?

the client’s expectations and its own, internal, performance requirements?

The key elements of any value engineering programme will also inevitably reflect not only the basics such as the conversion costs of imported goods, but the competitive advantage it will gain from more sophisticated (and better inflation-protected) supply chain options. With the latter in mind, the rising cost of oil can quite easily, for example, jeopardise calculations that would have seemed rock-solid until quite recently: back in 2018, it was debated whether oil would ever again break the US$50 per barrel mark again. Now in 2022, prices regularly exceed US$110 per barrel…

The Story of the Numbers

Given these factors, it’s critical for a business to know where it stands commercially on a daily basis and be able to ‘crunch the numbers’ in the ways that will provide correct and relevant data for any given value engineering initiative.

These were the factors addressed in the day’s next VIP presentation, by Carolina Fong Guzzy, co-founder/digital engineering manager, Accienta. She explained the role of effective data capture and analysis and how to transition out of antiquated processes in order to create a properly informative digital dashboard. She explained how the retrieval of data also directly impacts the quest for more elaborate aspects of added-value, such as sustainability - how best to determine life-cycle returns on any project, and if these fall within acceptable quotients.

May 2022

Value Engineering isn’t about making ‘ad hoc’, project-byproject contingencies: rather, it has to reflect the overall performance of the organisation and its ability to weather a climate of rapidly rising inventory costs”

Notwithstanding the example from the General Electric Corporation given earlier, there is an abiding view that VE can’t afford to entertain higher aspirations, whether they involve, for example, sourcing exotic materials or sharpening visual appeal by bringing on board international design specialists. The quest for sustainability is all too often a classic case in point. While in reality, sustainability need not necessarily add to a project’s bottom line - whether or not we cost in life-time projections and amortise accordingly - there is still the perpetuating ‘urban myth’ that believes qualities such as sustainability are expensive luxuries that are best engineered out (not in). So, the Value Engineering Summit brought together an expert panel, combining perspectives from four very different disciplines.

The title of the panel was ‘Why Sustainability and Value Engineering aren’t Enemies’, and the session featured:

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On Site | 31

•

Prakash Senghani, head of Digital Delivery, JLL • Peter Docwra, former executive director, G20 Summit Riyadh • John Shenton, regional contract manager – GCC. for Averda • Aliyar Mufaris, Commercial & Tendering Department head, Bainona Engineering Consultancy Comprehensively, the panel argued that in today’s world, sustainability has to be incorporated from Day One and - far from breaking the template - the cost optimisations it necessitates can quite harmoniously be part and parcel of the VE model.

Peter Docwra, for example, argued that sustainability can indeed be a core component in an integrated project management platform, and is something that clients (especially from government and public sectors) will now increasingly expect to see as a ‘given’. Therefore, even mentioning sustainability in a summarised client presentation is something that requires considerable forethought and precise planning and there is simply no option other than finding sophisticated ways of budgeting for its practical requirements, even across a protracted life cycle.

Meanwhile, Prakash Senghani urged everyone to remember that sustainability is a process, not a ‘fait accomplit’, and any VE model has to therefore be ambient and flexible, futureproofed as necessary for evolving scenarios, liabilities and costs. He recalled here Carolina Fong Guzzy’s remarks that availability of the meconstructionnews.com

data is the only way to ensure the company dashboard is correct - capable of making the assumptions and predictions that formal and effective VE will necessitate.

This point was amplified further by John Shenton, speaking about sustainability and public sector planning. What about, for example, the ‘hidden’ aspects such as waste disposal and the lifetime value of the development itself?

Or, how well will a building’s external panelling weather and endure? Will transport systems have sufficient capacity, and do public areas allow for any interpretation of a post-pandemic ‘new normal’? Is the right data available for these assessments and how effectively have they been costed-in? These are all vital steps in making coherent VE judgements.

Aliyar Mufaris then added the powerful comment that when it comes to competitive client pitches, the bar has never been higher: his company, Bainona, had built an outstanding record with government and the private sector by always expressly looking at the sustainability life cycle; being able to answer telling questions about the commercial returns on a property long after its ‘honeymoon’ season is over and is partand-parcel of effective VE. The panelists closed with a question targeting viewers: how well are you addressing the demands of sustainability in your VE mix?

If Data is so Important, How do we use it to Best Advantage?

In the day’s anchor slot, Ash Toma, Regional

Strategic Asset Management director, Middle East, Atkins, focused on the role of smart management and data from an altogether fresh angle - explaining that advances in Artificial Intelligence (AI) are empowering completely new dimensions of input into VE equations.

They are in effect lifting the bar in terms of the rigour and scope of analysis and thereby opening the door to fully costing-in and understanding more complex factors such as sustainability.

He argued too that opportunities of this kind are only available if business leaders are ‘data cognisant’, and moreover, without this attribute they can no longer hope to be competitive in client pitches. The point is, Ash Toma argued, companies need to re-create themselves around the ability to source and manifest the numbers; but more importantly still, they need to have a rigorous understanding of what they need the numbers to tell them.

Once they have these answers, a company can build a properly-integrated data platform: with this in place, it’s no longer the case that value engineering is an isolated exercise, but rather, the basic norm and parameter by which the business works on a daily basis.

Conclusions

In a day of vibrant debate and sometimes surprising observations, three particular outcomes were paramount: • Value Engineering is currently morphing into a more wide-ranging discipline with broader scope, powered by critical advances in AI • Far from excluding sustainability, it’s now more often than not taken as a ‘given’, and costing-in sustainable life cycles and their implications is a key part of how VE literally adds value • The true ‘end game’ of Value Engineering is as a hedging mechanism against pricing threats in challenging economic climates, where rising costs of key materials risk leaching away genuine interest in quality and improved functionality Many thanks to all our expert practitioners taking part in what proved to be an exceptional and ground-breaking debate.

To view the summit’s sessions, please visit: https://2022.valueengineeringsummit.com May 2022

32 | On Site

01

May 2022

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On Site | 33

Built for Purpose Gwyn Taylor, general manager of LINQ, takes Gavin Davids on a tour of the manufacturer’s facility in Dubai Industrial City, as it gears up to launch production of the region’s first high-quality modular homes The UAE’s construction market saw a significant rebound in 2021, with the residential sector leading the way, with the highest number of construction asset awards, a report from leading real estate investment and advisory firm JLL says.

This trend is likely to continue into 2022, with demand for residential units set to increase, the property expert states. Further, it pointed out that the pandemic has provided new impetus to investment trends in the country, with investors now considering sustainability as a major factor in where they put their money.

The role of the built environment in creating a more sustainable future is now in the spotlight like it never was before. Stakeholder pressure is only rising, with investors, regulators, occupiers and lenders all demanding more from the built environment sector, JLL says.

Space, flexibility and cost are also key considerations for the residential investor in 2022, which is why local and regional developers are now exploring a host of alternatives in an effort to attract and maintain investor interest.

Modular homes have begun to emerge as a leading option for residential real estate development sector after years of the concept being regarded as inferior or ‘cheap’. Thanks to continuous improvements in technology, finishings and building material quality, meconstructionnews.com

01 There is an opportunity in the market to create sustainable, high-quality, modular homes, LINQ believes.

modular constructed homes are the equal – if not better – of traditionally built structures.

While modular construction has been in vogue for a number of years in the region, its deployment has primarily been confined to the hospitality and commercial real estate sectors. However, that could soon be about to change, thanks to the influence of major markets such as the UK and Singapore, where modular residences are gaining significant traction amongst homeowners and investors.

One company, based out of Dubai Investment Park, has noticed this shift in interest, and having set up shop there in 2021, is now poised to position itself as a regional leader in the modular residential construction space.

Established in 2020, LINQ Modular was conceived as a modular housing solution provider that could deliver desirable living spaces that are reliable, robust and of highquality. The company is the brainchild of executives from ALEC Engineering and Contracting and LINQ’s parent company.

These executives believed there is an opportunity to create sustainable, high-quality May 2022

34 | On Site

modular housing that could be easily shipped to both regional and international markets.

Heading up the operation is Gwyn Taylor, LINQ’s general manager, who leads a team of experts creating carbon neutral housing solutions that are fast and straight-forward to assemble, to developers and individual investors.

“Modular was an opportunity that we were looking at, amongst other things. It came up about four years ago, when we were approached by a UK developer that was interested in looking at the opportunity to develop a modular product to import into the UK market. Those discussions started and died off quite quickly, but we decided to carry on our own investigation into the opportunity. We did that independently and procured a consultant from the UK and we designed and built a prototype as a technical exercise, to showcase what a modular home could look like, and try and dispel the (preexisting) image of prefab homes.”

Having joined ALEC nine years ago, Taylor has been involved with the company’s Related Businesses division since its beginning, working with Hercu Viljoen, the MD of the division. Around two years ago, he was offered the opportunity to take over LINQ and began setting up the company’s business plan and getting it ready for operations.

“The industry has to change, and we have to move forward. The construction industry probably has the lowest productivity in global business terms. It’s been through the

03

May 2022

02

02 There are significant barriers to entry for the modular construction sector, including high setup costs and available knowledge pools.

least change and runs at the lowest levels of efficiency. New technologies have to be adopted and it has to go through a transformation, which is going to be painful. And the adoption of modern methods of construction and offsite technology and engineering is a big part of that transformation,” he asserts.

Taylor and his team have faced a number of barriers to entry when it came to the modular homes sector. He explains that not only is cost a factor but there is also a knowledge barrier to overcome. Furthermore, any business that seeks to disrupt the established order of doing things needs to prove its capabilities to the market if it is to win work.

Highlighting issues facing construction such as supply and demand imbalances, market imbalances, inability to deliver, high labour costs, labour shortages and geographic difficulties in delivering projects, Taylor says that having a product-focused approach, rather than a project-focused one, can have considerable benefits. “We’ve designed our concept around being logistically enabled. We looked at standard logistic platforms, and at ways of shipping the product effectively. You’ve got to look at the global supply chain and understand how much of the building materials supply chain is manufactured here in the UAE.” “The reality of what we’re trying to do here is intersect

the global supply chain, to get the materials here, package them together and then ship the product – it’s not as drastic as it sounds.”

Initially, the facility will be shipping the completed units to the UK, but Taylor says that the process to get the final products approved in the UAE is underway, with the manufacturer working with a local developer and consultant to convince Dubai Municipality.

“We’ve been working for the past twelve months with a developer and an engineering practice, both UAE based. On a collaborative basis, we’ve said that we want to try and get a multi-storey modular steel frame approved in Dubai. It took us a few months, but we realised that we wouldn’t be able to do that on our own as we’re a completely new business – they’re not even going to listen to us as ALEC, so we need the support of a major developer and a respected engineering practice.”

“We’ve been collaborating on getting approval on a multi-storey steel frame modular system. It’s not high-rise, but it’s mid-rise. We’re hopefully in the last 10% of that process. That’s the first step, at the moment the Municipality will only mandate steel frames to G+1, which is low rise housing, so it’s still definitely a positive market for us, but the volume really comes when you get into the mid-rise apartment buildings.”

The decision to ship the completed units to the UK came about because of how well legislated the market there is, Taylor says. He points out that Singapore and the UK are the two best legislated and mandated markets in the world for modular construction. In addition, with the UK government investing massively into affordable housing, and stipulating that 25% of government-invested money must go into modern methods of construction, the opportunities in the UK market are evident.

LINQ’s facility is now 90% ready, with just a few minor upgrades left to be done after nine meconstructionnews.com

On Site | 35

03 LINQ’s workforce is extensively trained and upskilled across different skillsets to ensure flexibility across the workfloor, Taylor says.

04 LINQ is working with a local developer and a consultant to get approvals for the concept from Dubai Municipality.

months of work to make it fit for purpose. This included the installation of new cranes and lifts, along with guidance tracks, designating workspace areas and so on.

However, Taylor reveals that the facility will not have much in the way of automated equipment or robotics, at least initially.

“At our facility, the big investment is not in the machinery or robots. It’s in the big training that we do, people with the core skills to do the job properly, where we take people with the core skills to do a job properly and on a repeatable basis. There’s a really big misconception that when you open a factory, you have to automate it from day one.”

He adds, “We can do that, but it’s a massive risk because what you want is to automate your repetitive processes, and while we’re building a standard product range, until we get to a point of standardisation, importing in automated processes via robotics is a waste of time, as it means we’ll end up changing those processes as we develop the product. Our process for the factory is quality first – we want to develop a process that is built to support a repeatable quality product, and then focus on speed.”

Taylor and his team have now begun onboarding their workforce, bringing them on in tranches of 50. The focus is very much on developing skills and improving production, so as to achieve a consistent level of quality.

Although the pandemic has slowed down the process, there’s currently a team of about 30 people working on the first units. Taylor says, the target is to have 350 people in place within a period of three to five years, though this will depend on the workflow and the standardisation of the product range as it grows.

“What we’re looking for is a better level of skill and communication – what we’re trying to do is flatten the management curve by having a better quality of production operative. The meconstructionnews.com

We thought that this is something that’s really going to change the industry.

It’s going to be part of the industry’s transformation and we have to be at the front of that, rather than at the back”

guys on our work floor will have unambiguous information, in an unambiguous workspace.

We’re trying to provide a workspace for them where they know exactly what they’ve got to do, and where they’ll have all the materials and information. We also need them to be multiskilled, so that we have balance in our production lines, in case we need to move people around.”

To that end, he says that LINQ has put in place a training programme where workers will be onboarded with a primary skilled, and then secondary and tertiary skills will be identified and honed so that eventually all workers will be equally capable across all three skills.

“We have 10,500sqm of open workspace and every workstation would have a module being worked on. Until we take a module out, we can’t bring one in. If something goes wrong, we lose a workspace, but we can’t get above that number - you can’t force more people into the process to make it go faster.”

“You can only manage the process and ensure everything is working as it should be,” Taylor states as he concludes the tour.

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On Site | 37

Fiona Liddell

“Be the one to lead the way and believe you will be the first of many” 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 Fiona Liddell, head of Risk Management at Serco Middle East.

What drove you to get into construction and your first role in the industry?

I was job hunting after working in the Civil Service for a few years and looking for something a bit more interesting when a recruiter called me up and asked me if I was interested in a role with Atkins in Leeds (UK), very close to where I lived. A whole new world opened up for me from that day, and I have been working within this industry ever since.

Share a brief about your career, mentioning key achievements.

I’ve been lucky to have a varied career and experienced a number of job roles with my previous employer, Atkins, across the UK and UAE, and with Serco over the past two years, a company that now feels like home.

There have been a number of highlights and achievements along the way: September 2012 was the biggest game changer for me when I was offered a role in Dubai within the Strategic Bid Team, originally as a personal assistant to the director, which lead to me being involved in meconstructionnews.com

Major Bids during an exciting time, where large complex Metro Design and Engineering projects were up for grabs. To be involved in successfully securing those awards for the Riyadh and Doha Metro is something that I am extremely proud of.

August 2015 is when my daughter Erin was born and my return to work six months later brought with it a new drive and number of highlights. A new opportunity opened up as a regional QSSE manager, which I successfully positioned myself for by ensuring while I was working with one particular department, I did not ignore what else was going on. I made sure I knew what was happening across the business by networking and getting to know others across the various sectors and simply by asking colleagues during lunch breaks, and while attending other meetings. Actively finding out what your colleagues do and what they are working on at the moment opens up a world of information and knowledge.

Understanding the strategy and the business plans of the company you work for is critical to ensure you know why you are doing what you are doing everyday at task level, and how this connects to the strategy and purpose of the organisation. Finding out what challenges other departments/sectors have and what and who the organisation wants to be now and in the future….service offerings, purpose and pipeline. This all helped me to achieve my promotion. You should always ensure you know what value you can bring May 2022

38 | On Site

and how you are different to other candidates, and ensure that comes across loud and clear in interviews.

March 2020 saw me joining Serco…and wow, what a journey so far. I joined Serco as the pandemic hit and switched to working from home two weeks later. Meeting all my colleagues virtually and getting to know Serco from my own front room, learning about systems, processes, services and the entire Serco wider business during a tough time kept me occupied. Originally joining as a safety manager and promoted within a short two years to head of Risk with so many opportunities along the way and lots more to be had. I have no doubt this is where I will be aiming to make a difference for many years.

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?

I have two personal and two project related proud moments: • Successfully mobilising a large complex team to deliver the Doha Metro design and engineering project with hundreds of employees relocating into Qatar from UK, Hong Kong and the UAE • Being instrumental in securing the award of the HSE Framework for Serco with one of Saudi Arabia’s largest giga projects • Supporting and encouraging a colleague to apply and successfully achieve an International Quality Award, believing in herself • Positive influencing and successfully increasing paid maternity leave from 45 days to 14 weeks at my previous company

being the only female in the room or onsite and attract attention to yourself - this is a positive thing - we all have the power to be the change.

One thing I actively do is share CVs of females within my network that reach out to me directly, and support that CV getting to the right person whether it’s in my own organisation or through my networks.

What are some of the barriers to women

The GCC construction sector is still

entering the construction industry?

male dominated, however diversity is

What was your personal experience?

beginning to increase. If you agree with

I think the way ‘it looks’ from the outside and the fact it feels very male dominated but things move fast. Be the one to lead the way and believe you will be the first of many. My advice would be experience

the above, comment on what is driving

May 2022

this and how you see the GCC markets

The sector is making positive progress but there’s more to be done. I look around in Serco and see a number of amazing women leading the way (we have 50% female representation on our executive leadership team), and we need to continue to be game changers.

Continue to encourage females into the sector and keep sharing the amazing CVs and profiles across your networks and within your own organisations and beyond. People are driving this - you and I are the ones making a difference using our platforms, forums, leadership and networks to drive diversity across the sector. KEEP GOING no matter how big or small - we are making a difference.

changing in the coming years? If you do not agree with the earlier statement,

Everyone has a part to play in diversity

share your views of the market.

and equal pay. What would you like meconstructionnews.com

On Site | 39

The sector is making positive progress but there is always more to be done.

I look around in Serco and see a huge number of amazing females around me leading the way (we have 50% female representation on our Executive Leadership Team) and we need to continue to be game changers”

In doing your job, what sort of discrimination (if any) have you faced and how did you/employer address it?

I have honestly never faced discrimination in my career. I’d say that I’ve selected wisely the companies I work with.

I will say this though, a friend of mine was asked during an interview by the female who was interviewing her ‘you don’t plan on getting pregnant do you?’ and I advised my friend to decline the offer, as it appeared not to be a good company to work for.

In fact my friend took the role and when she did have a baby, the company was extremely supportive during her pregnancy and beyond, and she has now been promoted and is absolutely excelling in her role. Sometimes people are not aware they are being discriminative, so give everyone a chance to learn and don’t let one bad question be a total reflection of the organisation - find out more.

Do you feel there’s a limit with regards to how far you can progress within Serco?

Absolutely not. The opportunities are endless here and across the world with Serco, with the business growing so fast.

How do you personally push for diversity and equal pay in the construction sector? Are you involved in any groups/ to see government authorities and

As a woman in the industry, what has

councils etc. that focus on increasing

construction firms do to increase diversity

your experience been working in the

diversity and equal pay?

and make pay a level playing field?

GCC construction sector? If you have

Government and clients across the region could simply ask in their respective RFPs ‘Have you conducted an equal pay review across your entire organisation?’ or even ‘Has action been taken to ensure equal pay for males and females.’

It’s important for everyone to focus on their supply chain, and if you feel something is not quite right with equal pay, ensure you check and ask the question to your service providers and include this in contracts ‘Do females and males doing the same role receive the same salary?’

As leaders within this industry we should encourage our service providers to do this and follow through to make it happen.

worked in markets outside the GCC, how

I am connected with a UAE D&I Network who hold regular meetings and share best practice on what action is happening in their own organisations. The focus is not limited to one topic and does cover equal pay.

I personally take action and voice concerns where I see inequality with pay, particularly with our service providers working closely with our procurement team. I also focus on these areas in particular during compliance reviews in line with our Serco Supplier Code of Conduct, focusing on pay and recruitment practices, ethics and also compliance with labour law.

Serco also run a Contractors Forum with its service providers and focus on key challenges in the organisations.

meconstructionnews.com

does your experience here compare with what you’ve experienced and observed in other markets?

This is way more exciting! I am sure you would agree the projects here just get better and better and the vision of the countries leaders just become even more incredible - it makes you want to be part of it all.

Working across the UK mainly in the energy sector, I spent most of my time on a variety of nuclear, power and oil and gas projects, so when you put me in front of spectacular luxury hotels, grand universities or the giga cities of the future and I’m in for the long haul!

May 2022

40 | On Site

01 Mrunmai Vaidya, sustainability consultant, Cundall.

01

When we talk about climate change, we’re referring to changes in our planet’s average temperature. While temperature fluctuations have always occurred naturally and the ecosystem has adapted, what is concerning now is the consistent and relatively dramatic rise in global average temperatures caused by human activity.

If we are to pursue development without escalating climate change, there are three key areas we should consider: Investing in Digital to Reduce Waste

The construction industry has been slow to invest in digital technologies. While there is no single technology that can tackle climate change, our experience has shown that digital engineering in tandem with digital collaboration, project management and smart May 2022

Mrunmai Vaidya “An immediate, worldwide commitment to action is required to address both the near and long-term impacts of climate change” technologies within projects can result in measurable savings on energy and material use which in turn lowers greenhouse gas emissions.

Other benefits of technologically advanced approaches are speeding up project delivery, reducing the incidence of rework and defects, and creating roles suitable for a more diverse and inclusive workforce.

towards the basic change of thought process that has historically viewed sustainability as an added cost, not a positive value-add and net benefit. It’s also vital we focus our conversations about climate change and reducing the footprint of the built environment towards the trades end of the value chain as well as speaking up the chain to the client end.

Collaboration Delivers Positive Outcomes

Diversity and Inclusion

Our industry must accept diverse methods and procedures as a unified system and collaborate to get the best results. Understanding the growing demand for global infrastructure networking and interconnection is critical. One method is to strictly adhere to sustainable construction standards that promote an integrated approach. This type of collaboration will contribute to the development of more sustainable infrastructure, resulting in reduced carbon emissions and therefore contributing to the achievement of the science-based emissions reduction targets of the Paris Accord.

For designers and engineers, collaboration with builders and traders is also of the utmost importance. I know from experience that where there is awareness around sustainability many gains can be achieved at minimal cost. The secret is stepping away from siloed thinking.

As consultants, when we speak to the delivery team about undertaking an impact assessment before construction, if they ask why, we need to understand they may be concerned it will negatively impact their work. We need to talk that through – collaborate – and work

The human brain is conditioned from an early age, and what is taught and practiced throughout childhood has a strong impact on how the individual develops as they mature.

As a result, educating young people, especially girls about the science of climate change will help develop the solution-makers of the future.

It will also nurture a generational change, where the leaders and innovators of tomorrow will be more conscious of climate change and their responsibilities to care for the planet.

We must see companies adopting more inclusive practices and policies, as well as building a culture that embraces the many business benefits of diversity. This is what will attract and retain the abundance of ideas and perspectives that our industry needs.

Anyone working in the industry needs to consider their impact. What kind of future do we want to establish for our children and what kind of legacy do we want to leave behind for our company and our industry? We need to work together and across the value chain to achieve our climate change goals and thereby create a better future for our planet. meconstructionnews.com

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