ME Consultant October 2018

For the construction specialist

Acting on Intuition Jay Grant on the first 10 years of Cavendish Maxwell, Property Monitor and future goals ON TOPIC

Dammam’s residential and office markets in focus

IN PRACTICE

Parsons’ Pierre Santoni on infrastructure development

ON SITE

Women in Construction profile: Roxy Malan

ISSUE 052

October 2018 Publication licensed by Dubai Production City A product of Big Project Middle East

© 2018 LACASA Architects & Engineering Consultants All Rights Reserved

I’m Ahmad Shahrour and I am a

Senior Mechanical DeSign engineer www.lacasa.ae

I’m always seeking innovation and creativity in design In a fast-growing construction sector, engineering grows on a daily basis. The concept of a design is inspired from solutions from previously solved problems, thereby creating a design strategy based on intelligent analysis.

At LACASA we strive for perfection in everything we do, we take the best that exists and make it better; when it doesn’t exist, we design it.

Ahmad Shahrour

Senior Mechanical Design Engineer

LACASA is committed to providing quality-driven designs within a multidisciplinary environment.

Established in 2006, the firm has grown significantly over the past eleven years. Today, LACASA boasts a diverse portfolio encompassing all types of developments and across the entire MENA region.

While it is said that perfection doesn’t exist, we believe that perfecting design can be achieved by cultivating extraordinary talent.

CONTENTS

On topic IndusTRy VIEWs fROm aCROss ThE mIddLE EasT

07 anaLysIs

06

07

11

14

18

22

26

30

36

38

JLL discusses how Dammam’s residential and office markets fared in H1 2018 10 nEWs

DEWA launches Green Dubai initiative; Meraas launches Port de La Mer community; ARADA launches first smart homes in Sharjah

In practice anaLysIs, InsIghTs and InTERVIEWs

14 InTERVIEW

Jason Saundalkar talks to Cavendish Maxwell’s Jay Grant about the firm’s early days, real estate intelligence platform Property Monitor and expanding into new territories 18 InTERVIEW

We talk to Parsons’ Pierre Santoni about infrastructure development in the UAE and security challenges asset owners face 22 pROfILE

Middle East Consultant talks to ALEMCO’s Roxy Malan about her influences, career and gender diversity in the construction industry

On site CasE sTudIEs, OpInIOns and snapshOTs

36 EVEnT WRap

Women in Construction. Middle East Consultant hosted its first event in support of gender diversity in the construction industry 38 EVEnT WRap

2018 Value Engineering Summit. Regional professionals gathered to discuss and learn about efficiency in construction 40 ThE BaCk pagE

Orange Business Services’ Mohammed Adnane Retmi on building the smartest city in the world from the top down 2 OCTOBER 2018

Pace is a leading multidisciplinary consulting firm providing architecture, engineering and planning services to a wide range of clients.

Our story goes back 50 years as one of the region’s leading consultancies operating internationally.

Whether it’s the comfort for a new city, the detailed design of a rail network, managing the construction of a skyscraper or the improvement of a management process, we plan, design, manage and construct solutions.

www.pace-me.com info@pace-me.com

pace_me @pacemiddleeast

WELCOME

Group EDITOR’S NOTE

It’s Time to Step Up Gentlemen...

It has been a busy couple of months at CPI Trade HQ, as the event season is now well underway. At the start of September, Middle East Consultant (MEC) and Big Project Middle East (BPME) joined forces to host the 2018 Value Engineering (VE) Summit.

VE is an interesting topic and thanks to our presenters and panelists, both Gavin Davids, Editor of BPME, and I gained some fascinating insights into the execution and potential benefits of VE. In fact, there’s no doubt in my mind that value engineering can have a positive impact on regional projects without any downsides, if it is approached in the correct way by all the relevant parties.

In the second half of the month, on September 24, MEC also held its inaugural Women in Construction (WIC) event. The event is part of the magazine’s on-going focus on gender diversity in the construction industry, and served as the official launch of a new digital platform (www.womeninconstructionme.com).

As part of the organising team, it was gratifying to see so many female professionals in attendance, including a very special guest from overseas (read the event wrap on page 36). However, I also felt let down by my fellow men in the industry, as despite confirming their attendance as a show of support, only a handful made an appearance on the evening.

While the event was focused on bringing together, recognising and inspiring women in the industry, I believe that men also have a critical part to play in the move towards gender balance. This is especially true for those in leadership and senior executive roles. Talking to some of the female professionals in attendance, it’s obvious the industry has only taken baby steps on everything from the acceptance of women on construction sites, to basic professional courtesy!

Clearly, there’s a lot that needs to be done and I’d love to see more men in the industry step up and get involved in the push for gender diversity, even if it means attending events where you’re in the minority gender (for a change).

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

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Licensed by tECoM to registered company, CPI trade Publishing fZ LLC whose registered office is 207 – 209, Building 3, dubai Studio City, dubai, uAE www.cpitrademedia.com

Jason Saundalkar Editor, Middle East Consultant 4 OCTOBER 2018

© Copyright 2018 CPI. All rights reserved.

While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

ON TOPIC

MOST POPULAR

ReAdeRS’ COMMeNTS

feATURed

CONSTRUCTION

SURvey fINdS UAe CONSTRUCTION INdUSTRy geNeRALLy POSITIve ON ShORT-TeRM PROSPeCTS

CAMCO awarded flagship Riyadh Metro O&M contract for Lines 1 & 2

CONSULTANT

Aurecon bolsters Middle East expertise with two new appointments

feature: Asbestos – fighting a silent killer in the UAe

CONSTRUCTION

Siemens wins eight-year O&M contract in Egypt

CONSULTANT

Hyperloop TT creates first draft of core safety requirements and certifications

CONSTRUCTION

Nakheel awards Ali Mousa & Sons Contracting $150m Dragon Towers contract

6 OCTOBER 2018

feature: Women in Construction – Tatjana dzambazova, AI strategist, Autodesk

This result is so split you are left with coming to your own half-empty and half-full assessment of what is going on in the market as we reach the final quarter of 2018.

Certainly, when you are told that suppliers, contractors and consultants in the UAE construction industry share a “generally positive” outlook for the next six months, you are left wondering what that means. While I agree that it is important for construction companies to have a set of indicators to serve “macroeconomic and operation management” purposes by anticipating events, I’m not entirely sure how much store we can put into the results of a survey that is only looking six months ahead. Particularly as most people will have a highly objective view based on their own experience. However, as pointed out in the story, changes in the oil price and laws should make the medium-/long-term prospects look brighter.

Name withheld by request

ON TOPIC

ANALYSIS

Dammam in Detail

Professional services firm JLL discusses how Dammam’s residential and office markets fared in H1 2018

N

early 3,000 scattered residential units were completed in H1 2018 in Dammam, with a further 3,000 units expected to complete by year-end. Residential stock currently stands at around 348,000 units spanning Dammam, Khobar and Dhahran. Looking ahead, the 2019-2020 estimates remain soft (6,000 units per annum), based on the limited development activity observed in the market.

Notable completions in H1 2018 include Ewan AI Maali (villas

by Nesaj Real Estate Development Company), the Grand Residence (apartments by Nesaj) and Abraj Saraya Olaya Tower 2 (apartments by Dar Wa Emaar Real Estate Investment and Development Company).

Expected completions in H2 2018 include AI-Khobar Garden phase two (villas by Jenan Real Estate Company), Murooj Residential Complex B (villas by Tharaa Real Estate Investment Company), AI Saeed Gardens (apartments by Tharaa Real Estate Investment Company), Abraj Saraya Olaya Tower 3 (apartments by Dar Wa Emaar Real Estate Investment &

Development Company), AI-Fursan (villas by AI Argan Projects) and Al-Rawabi (apartments by Dar Wa Emaar Real Estate Investment and Development Company).

The Ministry of Housing distributed 12,814 residential ‘products’ to Saudi nationals in the Eastern Province during the year to May 2018.

This total consisted of 4,990 subsidised housing loans, 3,796 free land plots, 3,435 off-plan residential units and 593 completed residential units.

The government’s aim is to help achieve a home ownership rate of 52% among Saudi nationals.

Market Performance

The residential market witnessed some price reductions over the past six months, as lower quality units have taken longer to sell. This has resulted in the delay and even cancellation of some residential projects (with at least three residential projects cancelled during H1 2018). The number of apartments sold remained stable YT May 2018 (compared to last year), OCTOBER 2018 7

ON TOPIC

Dammam office supply, thousand sqm of GLA Stock Annual supply

365

950

360

900

355

850

350

800

345

750

340

700

335

650

330

600

2015

2016

2017

H1 2018

2018

2019

2020

but prices have declined marginally (down 1% in H1 2018 relative to H2 2017, and down 2% y-o-y).

Prices have decreased by similar levels in the villa sector (down 2% y-o-y and down 2% in H1 2018 relative to H2 2017), despite data from the Ministry of Justice suggesting a significant decline in the number of villas sold compared to the same period in 2017. Most activity in the DMA market remains focused on apartment units rather than villas.

The rental market also remained weak over H1 2018, with leasing agents and property owners continuing to offer rent reductions and grace periods to maintain occupancies. Average apartment rents decreased 2% in H1 2018 relative to H2 2017, and 4% compared to H1 2017. Villa rents declined less, remaining unchanged in H1 2018 relative to H2 2017 and declining by just 1% compared to H1 2017, as there has been some transfer of demand from families deciding to rent rather than purchase accommodation.

Office Market

The market witnessed the completion of 21,400sqm of office space in H1 2018, with a further 53,000sqm expected to complete by year-end. The

“The rental market has also remained weak over H1 2018, with leasing agents and property owners continuing to offer rent reductions and grace periods to maintain occupancies�

8 OCTOBER 2018

2015

2016

2017

H1 2018

2018

2019

2020

completion volume in 2018 (around 75,000sqm) represents a significant decline compared to the 116,000sqm completed in 2017, as developers have scaled back or delayed plans for new projects in light of the soft demand observed.

Notable completions in H1 2018 included Al Rashid Office Tower, Sidra Complex and Al Waleed Business Centre. This brings the total office space in DMA to 840,000sqm. Among the projects still scheduled to complete by the end of 2018 are Abdul Kareem Tower, Al Khalidi Tower and Al Raja Business Avenue.

The office market in the DMA continued to soften in H1 2018, with average rents down 2% y-o-y to $265 per sqm, down from $270 per sqm in H1 2017. Owners of older towers have responded to the increased competition from new supply entering the market, by granting generous rental discounts and incentives to dissuade key tenants from relocating to newer towers.

Tenant preference for more modern space is evidenced by the successful leasing of Adeer Tower (completed in 2017), in the six months from September 2017 to March 2018. This project offers high-quality amenities and adequate parking, along with a central location. The tenant mix, including large international firms, has also attracted other tenants to the building.

While reported vacancies improved from 36% to 30% over the past year, this is a reflection of changes to the JLL basket of projects (with the addition of three towers and the removal of one tower), rather than an improvement in demand or actual occupancies. Vacancies remain high and market conditions are expected to soften further over the next 12 months, as new supply will likely continue to outpace demand.

The DMA office market is expected to remain dominated by the oil & gas sector, given the dynamics of the local economy. The demand for office space is expected to increase in the medium to long term, in line with the target for Saudi Aramco to source 70% (up from 45%) of its inputs from local companies, as part of the In-Kingdom Total Value Add (IKTVA) programme.

Source: JLL

Dammam residential supply, thousand units Stock Annual supply

www.studiolumen.com

Siddharth Mathur PARTNER

p: +971 4 3385806 e: sm@studiolumen.ae

ON TOPIC

GAJ completes Dubai College upgrade project

DEWA launches Green Dubai initiative Dubai Electricity and Water Authority (DEWA) has announced Green Dubai, comprising three initiatives designed to make Dubai the smartest, happiest and most sustainable city in the world.

Shams Dubai is part of Green Dubai.

According to the utility company, over 1,145 buildings have already been connected and contribute nearly 50MW of energy.

The Green Charger initiative will see the installation of electric vehicle (EV) charging stations. To date, DEWA has installed over 100 green chargers across the city and aims to grow the number to 200 stations by the end of this year. DEWA is providing free charging for electric cars registered in the Green Charger initiative until the end of 2019.

“Green Dubai aims to empower customers to adopt a conscious and responsible lifestyle through the sensible use of electricity and water.

This supports the demand side management strategy to reduce electricity and water use by 30% by 2030, generating clean solar energy and encouraging the use of eco-friendly electric vehicles,” said Saeed Mohammed Al Tayer, MD and chief executive of DEWA. High Water Usage Alert is the third initiative and aims to help customers identify and curb leaks in their water connections.

10 OCTOBER 2018

Godwin Austen Johnson (GAJ) has announced the completion of an upgrade project at Dubai College. According to GAJ, the institution’s former administration building (D Block) has now been refurbished to create a more modern teaching space, with open plan spaces and think tanks to create collaborative learning environments for students and teachers.

“The think tanks and open plan spaces are a complete shift in traditional teaching methods. We wanted to remove the blackboard approach and provide more collaborative spaces that embrace a more contemporary style of teaching with more technology and more interaction,” said Jason Burnside, partner at Godwin Austen Johnson.

According to GAJ, the existing building was stripped back to its shell and insulation was added into its walls and roof to improve its overall thermal rating. The now more energy-efficient building has a 140-seat lecture hall and nine classrooms with a teacher training space, as well as informal study pods with writing walls and desks.

GAJ says the next phase of its upgrade work will focus on the institution’s sports hall and drama building. The firm says this will be its biggest upgrade to the school’s campus yet. Work is expected to begin later this year.

ON TOPIC

AESG appoints Alan Rowell UK country director

Meraas launches Port de La Mer community Meraas has announced that a new residential community will take shape at its La Mer development in Dubai. Port de La Mer will be built at the tip of the North Peninsula at La Mer and will feature freehold apartments and a 192-berth superyacht marina.

The master plan was designed to offer “a charming marina and waterfront lifestyle that appeals to families around the world”. The private residential community will boast one- to four-bedroom apartments, said a statement from Meraas. The waterfront development will also feature boutiques and restaurants, a selection of four- and five-star hotels and a private beach.

“In line with a focus on developing enriching living experiences and environments, as outlined by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in the Dubai Plan 2021, Meraas is committed to creating places where families can come together to share and enjoy more of the things that they love,” said Abdulla Al Habbai, group chairman of Meraas.

According to Al Habbai, work is already underway on the first properties at Port de La Mer in an area called La Côte, which comprises 400 apartments and a two-storey penthouse in five low-rise buildings.

“This journey ultimately begins in communities where people have an opportunity to make a home and a life for themselves, and is essential for Dubai as the city strives to set a global benchmark for happiness and positivity,” he said.

Following the inauguration of its European hub in London, AESG has now appointed Alan Rowell as its UK country director. The firm said it is now ready to capitalise on the “rapidly changing dynamics within the UK and EU construction markets”.

His initial focus will be to work with architects and end customers, including developers and building owners, to help understand and address their requirements, according to a statement from AESG. “The realities of climate change, political and economic uncertainty, sustainability and carbon management have defined the UK construction sector in recent years. These are challenges which demand a new approach, and AESG can provide a fully coordinated team of specialist consultants to deliver a unique offering. At the same time, the London office will work closely with our Dubai headquarters to deliver projects across Europe and the Middle East. Alan brings a wealth of expertise in multidiscipline projects, which will no doubt lead to our success in this objective,” said Saeed Al Abbar, director at AESG (pictured).

Rowell has over 30 years of experience in specialist engineering in the UK, Europe, Middle East, Far East, India and North Africa.

OCTOBER 2018 11

ON TOPIC

MAF to set up EV charging spots at City Centre Me’aisem In an effort to promote green transportation in Dubai, Majid Al Futtaim (MAF) has announced that it will add four electric vehicle (EV) charging stations to its City Centre Me’aisem shopping mall this year. The facility will be free to use for mall visitors and will be secured so that only visitors with EVs will be able to park in the dedicated spots.

The initiative is part of MAF’s sustainability strategy, designed to bring “innovations and convenient green solutions to its destinations to encourage the community to reduce its carbon footprint”.

“As Dubai forges ahead to create a smart, happy and eco-friendly city, we want to do our part by making it more convenient for residents who adopt a sustainable lifestyle and provide them with a memorable experience whenever they visit us. While they shop at their favourite stores, dine and take advantage of our various leisure offerings, their cars can be docked at the designated spots to be fully powered up and ready to go,” said Maryam Ahli, mall manager at City Centre Me’aisem.

MAF said instructions on how to use the charging facilities are displayed at the stations.

12 OCTOBER 2018

ARADA launches first smart homes in Sharjah

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CM

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ARADA has announced that smart technology will be introduced into every unit in its Misk Apartments in Aljada. Labelled ARADA Smart Home, the technology is said to provide several benefits including energy cost savings.

According to the developer, the ARADA Smart Home system will allow residents to use their mobile phones to access features such as remote front-door access and 24-hour video security. Residents will also be able to adjust temperature and lighting and manage utilities, in addition to enabling motion sensors within their apartments and controlling blinds and curtains.

The features can also be controlled by voice activation, ARADA says.

“One of ARADA’s core aims is to be a leader in the field of forwardthinking and sustainable development. Not only will the ARADA Smart Home system allow residents greater peace of mind due to round-theclock visibility of their homes, it will also allow them to save money by monitoring their electricity usage more closely, which in turn results in a reduced impact on the environment. This is yet another sign that ARADA is determined to break new boundaries when it comes to delivering security, efficiency and convenience for our customers,” said HRH Prince Khaled bin Alwaleed bin Talal, vice chairman of ARADA. The developer said the new technology will be added to each unit free of charge, as part of its commitment to create value for end users. It will be operated by a centrally managed and ultra-secure building monitoring system, according to the developer. Delivered in phases starting in 2019, the entire Aljada mega project is expected to be completed by 2025.

CMY

K

IN PRACTICE

14 OCTOBER 2018

IN PRACTICE

INTERVIEW

Acting on Intuition

Jay Grant speaks to Jason Saundalkar about Cavendish Maxwell’s early days, real estate data platform Property Monitor and expanding into new territories ndependent property consultancy Cavendish Maxwell (CM) celebrates its tenth anniversary this month. The firm was founded by Jay Grant in October 2008, and he continues to be a driving force as chairman. Today, the firm has nine departments and offices in Dubai, Abu Dhabi and Oman. It is well respected within the industry, thanks to the quality of its services and its real estate intelligence platform, Property Monitor.

However, getting to this point was no easy feat. “The company was set up in Dubai in October 2008, just as Fannie Mae, Freddie Mac and Lehman Brothers all collapsed in the US. The market in the UAE didn’t just slow down, it virtually stopped overnight. As we were planning to start the business, we expected a severe slow-down, but the severity caught even us by surprise. The next 18 months were incredibly difficult, but we got through that period with focus, innovative ideas and tenacity. And a few sleepless nights,” Grant recalls.

“We had to change our approach to suit the market but starting CM always felt like the right thing to do, so we always had that confidence and belief that we would get through even the toughest of times. We started to emerge from the difficulties in 2010, and by the end of 2011 our decision to establish the company started to feel justified. The market peaked in 2014 and this was a record year for us.”

Grant recalls, “However, a new set of issues were approaching and 2015 was probably the most difficult year for the business and me personally. We were at a crossroads where I wanted to take the business much further but my business partner at the time didn’t share that ambition. This ultimately led to us parting ways and me buying his share of the business, but the company would not be here today if it wasn’t for him and his contribution, especially in the early years.”

“I did everything I could to keep the company and teams together, but it was a very stressful time. I had a stroke that October, heart surgery in November and my mother passed in December, so all things considered it was an eventful year and I was pleased to see January.”

In 2015, Grant made senior appointments in support of his goals to grow the firm. “My plans remained undiminished but with the company growing year-on-year and my wish to expand, it was clear I needed more support. This led to the arrival of our highly capable finance director

Houda Farhat in 2015. In February 2016, I got in touch with Nigel Armstrong on LinkedIn, who became our CEO in June of that year. We work very well together and it’s a privilege to be surrounded by people of such stature.”

Here, Grant is quick to point out that CM has always been able to attract high-calibre people with “entrepreneurial spirits”. He notes that the firm encourages the latter, which gives it an edge.

Asked what drove him to set up Cavendish Maxwell, knowing that the global financial crisis was affecting the UAE, Grant responds: “Intuition drives all my decisions. I trust it, work with it and allow things to flow. Too many people are disconnected and unaware of their abilities.

I moved to Dubai from London in May 2008, and in my third week, my employer asked my opinion of the Dubai market. I said, ‘I think we’ll be down by Christmas and by more than anyone can imagine right now.’

That was dismissed, but we all know what happened subsequently. Setting up the company was an idea that formed and felt right, so I went with it.”

Identifying Opportunities

Studying the market and its players, Grant notes that he saw opportunities in the midst of challenging market conditions. “Back then, it was the end of a huge boom where people and companies had done very well.

Against this backdrop, it’s easy to overlook unsustainable salaries and business practices. I got the impression that companies were quite fat and preoccupied with the top line, and not too concerned about the cost base and bottom line. I thought that once the market turned, some companies were going to struggle, which would bring about opportunities for new companies that were hungry, motivated and flexible. We were opportunistic in that sense.”

On how the market has evolved in the years since, Grant says: “Outside the company, I think it’s probably the scrutiny and regulation, some of which is positive and some not so much. It’s certainly increased our costs. As a company, we don’t compromise our quality but we’re up against companies that don’t necessarily share this philosophy, which is their prerogative. Our business has always been about trying to achieve exemplary standards, responsive client service and unquestionable integrity, and I think that’s why we have the reputation we have. I’m not OCTOBER 2018 15

IN PRACTICE

01 Nigel Armstrong joined the firm as CEO in June 2016.

help the products evolve over time, which is good news for all subscribers.”

Summarising his goals for Property Monitor, Grant explains, “We want a much wider product set, more people using it and for it to be the tool that people and business can rely on, with confidence, for any sort of property-related information.

If anyone thinks they can help us achieve any of this, we would be happy to chat. It’s an exciting time.”

02 Real estate intelligence platform Property Monitor was launched by the firm in 2014.

saying we get everything right, but our intent is aspirational.

“Inside the company, the big change is the speed of our growth in such a short period of time. We now have 84 people working across nine departments in three office locations, which is an incredible achievement in 10 years. That said, we are working on some amazing things in the background at present and there’s certainly more to come.”

Creating Intelligence

Looking Ahead

01

One of the CM achievements Grant is most proud of is the launch of real estate intelligence platform Property Monitor in 2014.

The platform is designed for banks, developers, agents, consultancies and governments.

“Property Monitor is supported by Cavendish Maxwell’s reputation and valuation business and is constantly evolving. It’s not about clicks and web traffic, it’s about providing people with accurate and unbiased information so they can make informed decisions. It’s about sharing information to help people,” he explains.

Asked about his plans for the platform, Grant believes much more can be done. “We are scratching the surface of what it will become, and with all the ideas we have, it will certainly evolve in interesting ways. Can we get there organically? Yes, but organic growth is typically slower than the investment route, so we will see how things develop in that regard. It is a creative and dynamic business which will undoubtedly attract likeminded people.”

He also believes Property Monitor’s users will ultimately define its future. “We can try to summarise what direction we think we should take, but ultimately it’s the users and subscribers of Property Monitor that will dictate where it needs to go. We have done very well releasing new products to the market and have involved people from different backgrounds.

Agents have been very supportive and even our competitors are clients, and I’m very pleased to be working with such people. Their feedback will 16 OCTOBER 2018

Cavendish Maxwell is now looking at the future, and Grant is keen to address and create opportunities, despite current challenges.

“The big challenge now is the cost of living. Dubai by its nature is a transitory city and people will always come and go. It is part of its attraction. But woven into the fabric of Dubai are the people who arrived 15-20-plus years ago, and I have noticed this year that many of them are leaving. I think the government is aware of the living cost issue, which is why I think house prices have been allowed to gently fall.

“Certain initiatives, such as the freezing of school fees, have also been introduced. The cost of living must be relatively sensible or good people will be priced out. Housing is an individual’s largest expense, so as it gets cheaper, this issue will self-regulate to an extent. The other issue is the changing tax regime and how various taxes will be introduced. I will leave this to the policy-makers and leadership, but I hope the UAE and Oman remain attractive work destinations.”

Asked to outline territories that CM is keen to expand into, Grant comments, “I’m a big believer in thoughts become things, and if you look at a lot of our marketing, it states that we operate throughout the Middle East and Africa – and we do. We have worked on many projects outside the UAE, and this area of the business will increase over the next few years.

We currently have offices in Dubai, Abu Dhabi and Muscat, but Saudi Arabia is an obvious destination for a lot of businesses, ours included.

“Kuwait is an interesting proposition, but we are reviewing many options. I think people who are following what we do are going to see some surprising developments in the next 12 months. It’s not just about

IN PRACTICE

“We have worked on many projects outside the UAE, and this area of the business will increase over the next few years. We currently have offices in Dubai, Abu Dhabi and Muscat, but Saudi Arabia is an obvious destination for a lot of businesses, ours included” having dots on maps, it’s about establishing and operating good businesses that suit our clients’ requirements.”

Discussing triggers that would set expansion plans into motion, Grant explains, “I don’t wait for opportunities, they just tend to happen or we make them happen. I’ve never been a fatalist – I’m a determinist, if anything. Thoughts are powerful, and once an intent is set, new departments or offices tend to be client-led or an interesting individual or company approaches us. If we like it, we’ll pursue it and the door is always open for those conversations.”

Speaking about goals for the next five years, Grant is focused on moving the firm from a “strong local business to a stronger regional one”.

The journey to get there is just as important, says Cavendish Maxwell CEO Nigel Armstrong. “We really want our team to enjoy the journey and for staff to be part of the business long-term, so we move forward together. The longer we’re happy and enjoying it, and the team is as well, the longer the business can continue to grow and flourish.”

Grant smiles and concludes: “Our motivations are genuine and we are in business for the right reasons. We are honest when we speak, but we are not out to undermine others in the market. If another company is better, it is up to us to raise our standards rather than talk them down. We want to be the best company we can possibly be, and that is underpinned by our integrity.”

OCTOBER 2018 17

02

IN PRACTICE

18 OCTOBER 2018

IN PRACTICE

INTERVIEW

Master of Infrastructure Jason Saundalkar talks to Pierre Santoni about infrastructure development in the UAE and the security challenges asset owners face when using technology arsons has been working in the MEA region for over 60 years and has substantial resources in place. The firm’s project portfolio in the region is vast and includes bridges, major highways, rail and transit, airports, ports and water infrastructure.

In the UAE, and more specifically Dubai, the firm recently delivered the Dubai Water Canal project, and is now working towards delivering the equally transformational Shindagha Corridor project.

“We are the engineer for the whole corridor on behalf of the RTA,” says Pierre Santoni, senior VP/division manager – Infrastructure & Transport at Parsons. “We designed the $107m Shindagha Bridge that was recently announced, as well as the entire corridor that begins at the Sana Junction, which we delivered a couple of months ago. The project involves the evaluation of the existing tunnel under the waterway, nearly 10km of a 12-lane expressway, several major interchanges and a number of road improvements.”

“There’s a strong emphasis on that project and there are obviously a lot of developments that will rely on this infrastructure project.

It was designed and planned over the last two years, with a lot of advanced forecasts of what are going to be the needs of those different communities, and we’re going to implement it in stages, as you’ve seen.”

Asked whether the project poses any unique challenges, given its scale and the fact that it involves heavily used areas of the city, Santoni simply comments, “It’s no different from the challenges we’ve been facing for the last 15 years that I’ve been here, when building very large and ambitious infrastructure programmes in the middle of live traffic. If you look at the Dubai Water Canal, that’s a great showcase of how proper planning, as well as careful and advanced construction methodologies, can mitigate the impact of such large projects. I don’t think anybody was

significantly affected by the fact that Sheikh Zayed Road was diverted for nearly two years.”

He continues, “The project was progressing on an accelerated schedule and we found some innovative methods of building those overhead bridges on a fast-track basis, and we were working closely with the client, the RTA and the contractor. The whole thing was managed by Parsons. It was quite nicely done, and there are learnings that we gained that we’ll apply to the Shindagha Corridor and to other projects. We’ll also look at using new technologies that provide additional benefits and enable us to deliver this project faster.”

Commenting on the state of the industry, Santoni believes efforts have been far more cohesive and collaborative in the last couple of years.

“There’s increased cooperation and the understanding that everybody has to work together to deliver these big projects, to deliver on the vision of the leadership of these countries. Before the global crisis in 2008, everyone was doing their own thing, building and developing at a frenetic pace, without thinking about the environment or considering things around them. That has changed completely now, there’s more thought about sustainability and making the best use of what we have, so we move towards a better future in line with the country’s vision.”

“There is a very concerted effort across the company to come up with cyber security solutions and technology that we can apply to projects everywhere in the world” OCTOBER 2018 19

IN PRACTICE 01 Parsons was part of the JV that designed and delivered the Dubai Water Canal project.

Securing Infrastructure

Technology has become more and more integrated into infrastructure projects in recent years, and while there are significant benefits, this also means nefarious individuals and groups can hijack or shut down these systems. Santoni points out that Parsons pays close attention to this and works with clients to safeguard their assets.

“The question about securing technology used in infrastructure projects is a good one. There has been a realisation over the last 12 to 18 months that infrastructure is at risk, and that protecting it is the mandate of these asset owners. Before, people didn’t realise that there will be a time where things will all be connected and so everything needs protection. As you see, highlighted by some of the issues publicised around the world, the weakest point is not where people always think it is. It’s always a backdoor somewhere.”

“In the past, people would say, ‘We have a very secure front,’ but then the attack would come from somewhere else, so it didn’t matter how secure the front was. The ‘front’ is becoming difficult to identify, and that’s where Parsons have a differentiator, because we

have very strong cyber security offerings. In the past, we’ve worked on providing very specific solutions to specific customers. We are in a position now where we can integrate all of this. We’re developing critical infrastructure protection tools which will be rolled out in the next few months, and we hope that it will answer a lot of the questions about security. We’re trying to provide an end-to-end solution through our strong offerings.”

Asked whether Parsons works with third parties to develop cyber security solutions or has internal resources, Santoni notes, “We are a cyber security company, so we do it internally. It’s not very well-known in this part of the world, but we do develop solutions internally. We work with a lot of agencies and entities in the United States and provide these services, and it’s definitely not something we outsource.”

He concludes, “We are working very hard to bring these solutions to the region, with some caveats obviously, because some of these solutions are developed for very specific customers. But there is a very concerted effort across the company to come up with cyber security solutions and technology that we can apply to projects everywhere in the world.”

“If you look at the Dubai Water Canal, that’s a great showcase of how proper planning, as well as careful and advanced construction methodologies, can mitigate the impact of such large projects”

01

20 OCTOBER 2018

The name defines us!

35 Years of engineering excellence Mechanical, Electrical, IT, Electronics & Wet Services Consulting Dubai - Johannesburg - Cape Town - bengaluru Tel +971 4 338 4277

IN PRACTICE

22 OCTOBER 2018

IN PRACTICE

INTERVIEW

WIC Profile: Roxy Malan Jason Saundalkar talks to ALEMCO’s Roxy Malan about her inf luences, career and gender diversity in the construction industry ollowing 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 Roxy Malan, MEP quantity surveyor at ALEMCO. What drove you to get into construction and your very first role in the industry?

We had a career day at high school and they were presenting about the construction industry and, more specifically, about quantity surveying.

I have always been a very driven individual who loves challenges, being outdoors and solving problems, so it ticked all the boxes.

when I got given the reins to run my own project (although small). In ALEMCO, I’m the only female QS, so it was a good result if you bring gender into it. I hope it is a good motivator for my female colleagues within the construction industry.

What are some of the barriers to women entering the construction industry? What was your personal experience?

I find that because of the stereotype that construction is a male-only industry, there tends to be a wariness when you meet and work with males in the industry. I often feel as though my capabilities get questioned because of my gender, which could prove to be a barrier in career development. There are also not a lot of female role models to look up to within the industry. If I look at construction firms within Dubai, I do not know of many female commercial managers, which could be discouraging for young females aiming for those roles.

Tell us about your career, mentioning key milestones.

I started off with a job in South Africa as a junior QS for a building contractor. After finding my feet, I managed to work on four different construction projects – a hospital, a high court, a high-rise office building and a factory refurbishment.

After a year, I decided to focus my energy back on studying and completed my BSc (Hons) in Quantity Surveying, before setting off to Dubai to join ALEMCO at the beginning of 2016. I started my first year creating a master database for the estimation department on construction software (Candy), and assisting with various projects with the set-up of working Candy Files. Last year, I moved away from the estimation department and joined the commercial department to start fulfilling my role as a project QS.

How do you see the GCC construction markets changing in the coming years? Share your thoughts and views of the market.

While the construction sector is still heavily male dominated, there is now a lot more awareness around diversity. As companies hire females and see the benefits of having a diverse workplace, they will tend to keep hiring females. In saying this, I also think retention of females is very important.

Reading the stats, many females enter the construction industry and then leave after some time. This is not a good reflection for young females who are thinking about entering the industry.

Everyone has a part to play in diversity and equal pay. What would you like to see government authorities and construction firms do to increase diversity and make pay a level field?

What would you say is your proudest moment in the industry?

I would like to think I have cemented myself as the CCS expert in the company, so when any other colleagues have questions regarding the software, I am generally the first person they call. Proudest moment –

I believe the responsibility for the level playing field lies in the hands of the individual people (female employees and managers), rather than authorities and construction firms as a whole. As a female, if you work hard, constantly learn and succeed in your current position, then I OCTOBER 2018 23

IN PRACTICE

At my first job in South Africa, the project director took me to a client meeting to introduce me to the project team and said that I would be the QS on the job. The principal agent on the job looked at me straight away and asked if I was qualified enough for the job. I am not sure if this was gender discrimination or because I looked so young.

Nevertheless, my employer kept me on the job and had a good word with the person questioning my skills.

cannot see how a firm cannot reward you for that, in the same manner that they would reward males.

Besides authorities and construction firms, who else can play a part in increasing diversity and balancing pay scales?

I think institutes such as the RICS and CIOB can promote the increase in diversity and balanced pay scales.

As a woman in the industry, what has your experience been working in the GCC

Do you feel there’s a limit to

construction sector? If you

how far you can progress

have worked in markets

within your organisation?

outside the GCC region,

No. I have career goals that I have shared with my manager/mentor, so that we can track how far away I am from these goals.

how does your experience here compare with what you’ve experienced in those other markets?

I have been extremely lucky to be surrounded by amazing managers over the past two years, who have not made me feel like I am inferior or treated me differently because of my gender. This was very similar with my company in South Africa. As for the external environment (interaction with other companies) in South Africa and Dubai, there is definitely a sense of resistance when engaging with me. A lot of men feel more assured when talking to a male colleague, rather than myself. It just requires more hard work to gain their trust and show your capabilities.

How does the firm you currently work for approach diversity in the workplace? What more can your firm do to increase diversity?

I wouldn’t say that it gets ‘approached’, it is just normal practice at ALEMCO to have males and females in the workplace judged on performance and position rather than gender.

How do you personally push for diversity and equal pay in the construction sector? Are you involved in any groups or councils that focus on increasing diversity and equal pay?

In your opinion, what is the biggest challenge women in the construction sector face in GCC countries? How can these challenges be addressed?

Cultural differences. It is extremely difficult proving your value to a male who believes that a female does not belong in the workplace. These challenges need to be addressed within the firm. What I really liked when I arrived at ALEMCO was that my line manager called myself and all my colleagues into a meeting to introduce me and explain my role to everyone. This created the right environment and straight away I got respect from the team.

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

24 OCTOBER 2018

I am not part of any groups or councils. I am however very active on social media, sharing a lot of work-related content.

I hope this motivates young females to study construction and see that it is not as daunting as it sounds. I also engage with my university and do talks and write-ups about my experience so far in the GCC. What advice would you give to a woman entering the GCC construction industry today?

Work hard – it will be noticed. Find something you’re good at and keep improving your skills – this will help your firm to recognise your worth in certain tasks. Take everything with a pinch of salt – our male colleagues are insensitive and often do not mean it.

Fire SaFety SPeCiaL

OPINION

01 Craig Ross is a partner and head of Project and Building Consultancy at Cavendish Maxwell.

Further Lessons from Tragedy Cavendish Maxwell’s Craig Ross discusses developments in fire safety standards in the UK and UAE

01

F

ollowing my article in August 2017 on the subject of building fires in Dubai, and following the Grenfell fire tragedy in the UK, there have been several interesting developments in both the UK and the UAE, in terms of fire safety standards.

While the Grenfell enquiry is still underway and the site itself remains cordoned off as a crime scene by UK police, work has been going on in the background to figure out what went so drastically wrong, and what can be done to improve the situation.

26 OCTOBER 2018

One of the things to come out of the tragedy was the ‘Independent Review of Building Regulations and Fire Safety’ report (also known as the Hackitt report after its leader, Dame Judith Hackitt), which is now complete. As well as intending to make the public feel safer through transparent government action, the report set out to make sure that ”a suitably robust regulatory system for the future” was established.

The report followed a logical process of information gathering, including an industry-wide questionnaire seeking to establish the status quo including the clarity of legal requirements, the various roles and responsibilities and the competency of these parties involved in the fire safety process, as well as comparisons with international and separate industrial sectors. An interim report covering the various flaws discovered was issued at the end of 2017, with the final report making conclusions and recommendations made available online in May this year.

Exposing Issues

Hackitt’s team have exposed various shortcomings and problems, and there are some very interesting parallels that can be drawn with the UAE. For example, they found that a culture of doing things as quickly and as cheaply as possible causes problems with building quality, which, as obvious as it sounds, is still the main problem I find in the building trade here today, and why the time-

cost-quality equation is still a major theme in our professional studies.

There are also issues with poor record keeping, a lack of consistency in product testing and labelling, and a lack of clarity over responsibilities, which are familiar issues we often find with the older building stock in this region. One point I thought was particularly provocative was that the voices of UK residents speaking up about safety and condition issues often seem to go ignored, requiring better involvement in decisionmaking and improved responses for residents in terms of reassurance and recourse via the residents’ associations. Given the feedback we often receive from JOP owners in Dubai, this is something that some of our Owners Association Managers should also consider.

Hackitt concluded that there are currently many complex systems involved in the design and construction of highrisk buildings, the integrity of which can be compromised by the people involved.

This draws us to the requirement for a new regulatory framework, necessitating a radical overhaul and cultural changes to future proof the solution.

The Importance of Competence

The report also makes specific reference to the UAE, as one of several international comparisons. It points out that the UAE’s Fire and Life Safety Code is based largely upon the American NFPA codes, which are

Fire SaFety SPeCiaL

considered highly prescriptive but have no regulated checks to ensure that particular materials and components meet a particular fire design methodology. Most importantly, it does nothing to ensure that the consultant demonstrates competence when applying the codes.

Professionally, this is apparent due to the various defects in fire safety we routinely discover in existing buildings, discussed in my previous reports and articles on fire risk in the region. The UAE code was due for revision last year and the draft version I received went some way to address changes in accountability and the ongoing cladding issues, but as yet the 2011 version remains in practice and on the DCD website.

Following Hackitt’s statement that this problem is not just a UK issue and that “continuous improvement and bestpractice learning through membership of an international body” is required, a new International Fire Safety Standards (IFSS) is being developed and implemented globally through the IFSS Coalition, a group of professional and non-profit global organisations which includes the International Code Council, RICS, the World Bank and the Federation International des Geometres. I can see this working in a similar way to the International Property Measurement Standards (IPMS), which have now been adopted in many global locations (including the Dubai Land Department)

to ensure a welcome transparency and consistency in the way property is measured.

As discussed previously, combustible cladding is not the only issue we face here, and it is important to consider the holistic view of fire safety and learn from these global lessons. It is vital to ensure we have the correct materials, detailing and best practices, and if this is addressed on an international scale, it can only ensure consistency in safe design during the inevitable increases we will see in globalisation and the resulting trends in cross border consultancy.

It’s unfortunate that it takes such a tragedy to promote this level of action, but we should do our best to establish positives, and the IFSS is most likely to be one of them.

“It is vital to ensure we have the correct materials, detailing and best practices, and if this is addressed on an international scale, it can only ensure consistency in safe design” OCTOBER 2018 27

Fire SaFety SPeCiaL

OPINION

01 Leigh Hayman is managing director of 4see (part of the Socotec Group of companies).

The Importance of Safety System Inspections and Audits Leigh Hayman weighs in on the deadly 2018 Russian shopping mall fire and identifies issues to look out for in the GCC region

01

O

n March 25, a fire broke out in a Russian shopping mall. It is thought to have started in the trampoline room on the fourth floor, but even now the exact details about the cause of the fire are unknown. Tragically, 64 people are thought to have lost their lives in the blaze. 41 were children.

The way the fire started, however, is not the cause for concern or action. It is more important to look at why a fire in a localised, relatively small area resulted in such a massive tragedy unfolding. The reason for the extensive and tragic loss of life was the failure of the very systems put in place to prevent injuries and fatalities in the event of such an emergency.

28 OCTOBER 2018

Among the reports and eyewitness accounts, it is quite clear that there was a catastrophic failure of the emergency control systems in place. This includes the physical systems as well as the competence and training of those meant to react and deal with such emergencies.

On further investigation, it was found that failures included: • Fire alarms being deactivated due to numerous false alarms • Fire exits being blocked and/or locked • Fire extinguishers that did not work properly or were empty • Emergency lighting systems that did not work or function properly • A mall public address system to inform people of the need to evacuate being switched off • No pre-practised or organised evacuation plan or procedure • No one trained in the evacuation requirements or to act as an incident controller at the mall The shopping mall owner had appointed a service provider to undertake the management of the centre and ensure that these systems were in place. This is fairly common practice in the GCC and around the world.

The remit of the service provider is to ensure that all life systems are fully maintained, operational and tested. It often has a role in the event of an emergency, as either the incident controller or part of the emergency response team.

Service providers have their own internal systems for ensuring these systems, both physical and management, are in place, which include inspections and checks by the safety officer or similar. Less common, however, is having a frequent owner-led check or audit of the service provider systems, in relation to health, safety and life codes.

As with any part of business management, a regular audit or check is essential to ensure that the services provided are meeting expectations. Health and safety vetting of all suppliers before appointment is, of course, common and almost standard across the region. Furthermore, contractual requirements relating to health, safety, well-being and life systems are often very clear and robust.

In day-to-day operations, however, lapses often do occur and continue to proliferate if not kept in check. Common issues are fire alarms being switched off if there have been multiple false alarms, emergency exit doors locked to increase security, sporadic checks of fire extinguishers and poor training due

FIRE SaFETy SPECIaL

“Simple issues are all too often found by our specialist teams, and these could have devastating effects in the event of a major emergency” to high turnover of staff. Simply put, if a fire has never broken out, the mindset of ‘it won’t happen here’ grows. avoiding Tragedy

A detailed, regular and unannounced (if possible) audit, instructed by the owner or management agent and undertaken by an experienced and competent audit team, could highlight significant issues or gaps.

This would then require action by the service provider and could result in process changes as a result of poor performance.

Our general recommendation is to have properties audited at least annually. Similar to a financial or cyber security audit, the aim is to provide assurance that the providers are doing the job correctly, and that this type of

incident is unlikely to occur at an owner’s premises. The importance of having regular audits undertaken by competent companies is highlighted by the Russian case.

Apart from the tragic loss of life, there is the related impact on brand and reputation of the company, city and country. Furthermore, the cost of such an incident cannot be underestimated, with physical repair costs being added to claims, loss of ongoing revenue, insurance costs, etc.

What about the GCC?

From experience, shopping malls and other commercial properties in the GCC are generally well managed in relation to safety systems. That said, simple issues are all too often found by our specialist teams, and these

could have devastating effects in the event of a major emergency.

Every single item found in the investigation of the Russian mall incident has been found by our team in properties, including shopping centres, within the GCC. Although these are often minor issues in themselves, left unchecked, the likelihood is that they are ignored until they become the operational norm. The next minor issue is then added to the poor practice, and before long, the severe lapses found in the Russian mall are embedded in the day-to-day operations of a property.

Implementing regular auditing and thorough checks is an essential part of property ownership, as well as brand and reputational security.

OCTOBER 2018 29

Fire SaFety SPeCiaL

INTERVIEW

Fire Safety in Perspective Kingspan Insulation’s Andrew Pack discusses the region’s fire and safety codes and outlines key issues ingspan Insulation produces a variety of products and technology for the built environment and has outfitted some of the region’s most prestigious projects, including the Louvre Abu Dhabi, Dubai International Airport and the King Abdulaziz Centre for World Culture.

Here, Middle East Consultant speaks to Andrew Pack, global technical support manager at Kingspan Insulation, about fire and safety codes in the UAE. Discuss the current fire and safety codes and building regulations in the UAE.

Building regulations have evolved tremendously in the Middle East in recent years, including the recent update of the UAE Fire and Life Safety Code. The Fire Code has been in existence since 2011 and references already well established International Fire and Building codes. The chapters relevant to the insulation industry are Chapter 1, Construction, and Chapter 18, Responsibilities of Stakeholders.

Chapter 1 places a strong emphasis on large-scale fire testing of complete wall and façade assemblies. Also detailed in Chapter 1 are the requirements and approvals necessary for insulation products and accessories. Since the recent Fire Code update, we’ve seen an increase in large-scale fire testing and in clients requiring full system approvals.

It’s important the UAE Fire and Life Safety Code is relevant to the ever changing market, to ensure new innovations are always considered.

What can authorities do to ensure structures are up to date in

specific chapter highlights the mandatory duties of individual stakeholders in their individual occupancies and their role in supporting and executing the regulations of Civil Defence. Stakeholders include owners, tenants, developers, architects, contractors, manufacturers and consultants.

What tests in the Fire Code can be used to test the performance of materials?

There are many different tests referenced in the Fire Code that can be used to test the fire performance of façade materials and complete wall and façade assemblies. These range from small-, medium- and largescale, depending on the application and requirements. I’ve noticed a considerable emphasis on large-scale fire testing of complete wall and façade assemblies in the code.

Which type of test best ensures that a façade meets current fire and safety requirements?

Trusting in simplistic classifications for materials based on small-scale testing is not the solution to ensuring that a façade meets the Fire Code.

The reality is that a whole range of factors affect the fire performance of a façade, including design of cavity barriers, fixings used and cavity width. We must continue to improve our knowledge of how these different elements interact. Even if a façade system is considered to be compliant with the UAE Fire and Life Safety Code, it could contain a surprising quantity of combustible material, hence the importance of large-scale system testing for the full system. As any fire expert knows, even some ‘non-combustibles’ are still capable of burning and, in isolation, are no guarantee of fire safety. Therefore, we recommend that large-scale system testing be always used to test fire performance of facades.

terms of fire safety?

Authorities can ensure this through education and enforcement of the UAE Fire and Life Safety Code of Practice with the industry. The recently updated Fire Code, specifically Chapter 1, Construction, now provides the backbone to compliance for the industry on fire safety of all structures.

Authorities can reference Chapter 18, Responsibilities of Stakeholders, to remind all stakeholders of their responsibilities to fire and life safety. This 30 OCTOBER 2018

What are some examples of large-scale fire tests?

NFPA 285:2012 (Standard Fire Test Method for Evaluation of Fire Propagation Characteristics of Exterior Non-Load-Bearing Wall Assemblies Containing Combustible Components), BS 8414-1:2015 (Fire performance of external cladding systems. Test method for nonload-bearing external cladding systems applied to the masonry face of a

FIRE SAFETy SPECIAL

01

OCTOBER 2018 31

Fire SaFety SPeCiaL

01 Kingspan Kooltherm K15 cladding board being installed on a project in Abu Dhabi.

02 Andrew Pack is global technical support manager at Kingspan Insulation.

building) and BS 8414-2:2015 (Fire performance of external cladding systems. Test method for non-load-bearing external cladding systems fixed to and 02 supported by a structural steel frame) are good examples of large-scale tests that replicate the wall façade and are designed to measure fire spread.

The tests replicate a fire that starts internally inside a room, breaking out through a window and exposing the external façade to fire. The tests are conducted on the entire system assembly that is intended for use on a building façade. This includes the wall panels, cavities, insulation, panel rails, joints, sealants, seams, fasteners, barriers and other construction details. The UAE Fire and Life Safety Code references NFPA 285 and BS 8414 for wall façades on low-rise, medium-rise, high-rise and super highrise, and across many different occupancy types ranging from residential to offices and mixed use, including hospitals, schools and malls.

set required levels of thermal insulation when carrying out building work for new build or refurbishment projects.

Thermal performance is expressed as a U-value. The required U-value depends on the location of the project, type of building – domestic or non-domestic – the application (floor, wall or roof) and the regulations that are in place in the region.

Across the Middle East, regional building regulations are in place that prescribe different U-value requirements for architects, consultants and contractors to adhere to when constructing a building.

For Dubai, this is the Al Safat and Dubai Green Building regulations.

For Abu Dhabi, this is the Abu Dhabi International Energy Code and Estidama. For Riyadh, this is the draft Saudi Arabian Standard, SASO and, where applicable, ASHRAE Energy Standard 90.1-2013 (for all buildings except low-rise residential buildings) and ASHRAE Energy Standard 90.2-2007 (for low-rise residential buildings). And for Muscat, ASHRAE Energy Standards 90.1 and 90.2 should be considered, as no local standards are in place.

How compliant are Kingspan’s solutions with current regulations

What requirements are you seeing from customers in the UAE

in the UAE?

and the GCC with regard to façade and insulation solutions?

What other regulations should the industry be aware of?

We offer façade solutions in the Middle East market that comply with the latest guidance as per the relevant sections of the appropriate chapter within the UAE Fire and Life Safety Code of Practice. This includes products in our Kingspan Kooltherm wall solutions range – the Kooltherm K5 exterior wall board and the Kooltherm K15 cladding board. They are approved for use by the region’s government entities, including Dubai Central Laboratory and Civil Defence, in the combinations tested.

When looking outside fire regulations, another thing to consider on buildings is thermal performance. Local building regulations and standards

Countries in the GCC experience harsh weather for a significant

I’ve seen substantial requests for improved U-values on facades with thin solutions that are tested in accordance with a large-scale fire test, for the complete wall and façade assembly, using high-performance insulation products that offer longevity and durability in application.

“It is important the UAE Fire and Life Safety Code is relevant to the ever changing market, to ensure new innovations are always considered” 32 OCTOBER 2018

portion of the year. How does Kingspan approach insulation?

Kingspan Insulation invests in a considerable amount of R&D in its product ranges before bringing a solution to market. The solutions that Kingspan brings to the GCC provide customers with the certainty that the products will perform and remain durable for the lifetime of the assembly into which they are installed. We provide first-class technical service, which is one of the most advanced support services in the industry, offering a full spectrum of advice free of charge for all types of design projects. Services include U-value calculations, condensation and dew point calculations, advice on product selection and product data for all ancillary items, and installation and fixing advice.

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ON SITE

Educate ME Forth Ports, Dundee.

They Told Us to Stop Chasing the Bottom Line 200 Years Ago Allan Joyce, MBA FCIM FCMI FIOD, managing director, Balmoral Tanks, discusses the construction industry at large

H

aving been involved in tank manufacturing for 20+ years, I felt compelled to pull a few thoughts together in an attempt to summarise what is happening in our industry.

During my time, I have witnessed many positive developments which, unfortunately, seem to be overshadowed by a lack of vision, strategy and medium- to long-term planning capability.

It seems that the never-ending pursuit of orders, with the race to the bottom line – regardless of concepts such as market share, price/volume analysis, research and development, productivity and investment – 34 OCTOBER 2018

represents all the skills needed to seemingly succeed in the tank industry.

And it’s not just our industry; there is plenty of evidence to suggest that global multinationals are similarly affected.

Does Size Matter?

The size of a company would seem to be irrelevant. Carillion, a $6.8bn company, went straight to liquidation, bypassing the normal route of administration and resulting in tens of thousands of job losses. Some of the post-failure analysis focused on the impact of just four contracts. It seems failures in the construction of

two English hospitals, one Scottish road project and a development in Doha were enough to finish the company.

There appears to be a lack of discipline regarding the risks of such projects, which subsequently means the pricing procedures and result must have been inadequate. Here was a company trusted to build some of the UK’s most important infrastructure – from NHS hospitals to much-needed new roads – yet the foundations of the construction giant were shaky enough for the group to be felled by just four contracts. How could the management team allow this to happen?

ON SITE

For further information, please contact: +44 (0)208 665 4100

watertanksales@balmoral.co.uk

Tank Company Failures

In the world of tank manufacturing, we’ve witnessed the failure of some major European players over the past few years. Most importantly, we should be aware of the human impact of these failures; hard-working staff rely on the professionalism and decision-making capabilities of their directors, that take account of all stakeholders.

Leadership of a business is a privilege, and the sacrifice you have to make, at least mentally, is that you are there for the benefit of everyone, not just yourself or the chosen few at the top. If serving is beneath you, then I’m afraid leadership is above you.

Moving on from personal effects, there is the impact on warranties, accreditation standards, suppliers, and customers who need their projects complete otherwise they may be exposed to additional costs such as LDs. When a major player goes to the wall, the fallout is messy and affects a lot of people, as well as the supply chain.

Experience suggests a lack of management and overall business skills is evident in the tank industry. This is not a criticism of people, it is simply down to the low cost of entry to this market. The reality is almost anyone can set themselves up as a tank manufacturer and, with minimum investment and some intangible assets such as tank industry experience, you can establish a tank business.

You will undoubtedly set yourself up as a limited company, as you will already be thinking of your exit, should things prove difficult. This is not a strategy for success, it’s a recipe for disaster.

It will ultimately result in price wars and lead to yet another failure. In the world of business, sales less cost of sales must equal a surplus.

Anything less is unsustainable.

Quality is Never an Accident

In 1819 John Ruskin, a leading English thinker, said: “Quality is never an accident; it is always the result of intelligent effort. There is hardly

Allan Joyce, managing director, Balmoral Tanks.

anything in the world that some man can’t make a little worse and sell a little cheaper, and the people who consider price only are this man’s lawful prey.”

“It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.”

“The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”

It’s difficult to argue with this statement of 200 years ago.

Are Lessons Being Learned?

I don’t believe so. A recent example involved Balmoral losing out to a new competitor that established its business only weeks before. A company that had been in business for less than a month – with no quality assurance system, no product warranties, no manufacturing or

proven installation capabilities – successfully winning work.

The customer involved had a credit limit of $650 and Balmoral refused to offer credit facilities on an order value exceeding six figures.

The competitor offered the customer 30 days’ credit and won the order. How can a customer place an order with a company that had been operating for less than a month?

I am continually disillusioned with the behaviour of companies who seem to underrate investment in their supply chain, while overrating the principle of price.

25 years ago, I was involved in the industrial gas market. I was the marketing manager and attended a two-day course on the impact of pricing. Two thoughts remain with me: The most effective way for any business to improve its financial performance is product price. If you add real value to your customers’ business, you can probably charge more. If you’re a ‘me too’ business, you will resort to price as your main approach to success. If you run a $65m business and can increase your prices by 1%, all other things being equal, you can add about $655,000 to your bottom line.

The second point relates to the concept of price/volume analysis. In simple terms, you must understand the consequences of price reduction and volume over your given gross margin levels. For example, a 10% discount from a gross margin of 30%, will require a 50% increase in volume to deliver the same profitability level.

Allow me to conclude by saying that business is exciting and subject to rapid change.

It’s imperative that business metrics include a focus on risk. The key is to understand the market segment served. By that, I mean look for like-minded customers who have a requirement for your products and services and therefore value what your business offers.

If this piece chimes with you, come and see us on Stand 3/B139 at The Big 5 Exhibition; we’d be delighted to meet you.

OCTOBER 2018 35

ON SITE

EVENT REVIEW

Women in Construction

Attendees were given insights into a senior executive’s career and briefed on the magazine’s plans in support of gender diversity

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iddle East Consultant held its inaugural Women in Construction event on September 24 at the Plantation Lounge, Sofitel JBR in Dubai. The first event of its kind, it brought together a predominantly female audience from across the built environment for an evening of inspiration, recognition and networking.

The event welcomed over 100 professionals and two key announcements were made about the magazine’s ongoing focus on gender diversity in the industry.

The first was the official unveiling of a dedicated Women in Construction website (www.womeninconstructionme.com), which will serve as a digital base to highlight women working in the sector.

The site’s content will include profiles of female professionals, thought leadership articles and features focused on gender balance in the construction industry.

The second major announcement was that of a larger Women in Construction event. Planned for H1 2019, the new event will take on

the shape of a fully-fledged summit and will focus on the importance and benefits of gender diversity in construction. It will include panel discussions and an educational element targeting female students.

On the evening, the audience was also addressed by Lara Poloni, chief executive of the EMIA region at AECOM. Poloni shared insights into her 20-plus-year career in the construction industry, discussed the importance and benefits of gender diversity and highlighted AECOM’s own focus on balancing the scales and empowering women. Poloni also identified key issues that the industry has to tackle in the move towards gender balance.

Speaking about the event, Poloni said, “I was honoured to be part of the Women in Construction event and share my career journey with so many talented female professionals. It was evident that there is a vibrant sisterhood in the region, teeming with women keen to support each other to navigate their careers. There is still much more we can do to make sure our industry benefits from all this female talent and I look forward to continuing to support this effort.”

Thanks to all our sponsors

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ON SITE

OCTOBER 2018 37

ON SITE

EVENT REVIEW

2018 Value Engineering Summit Professionals working in the built environment gathered to discuss and learn about efficiency in construction

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ig Project Middle East and Middle East Consultant hosted the 2018 Value Engineering Summit on September 5 at the Habtoor Grand Hotel in Dubai. The inaugural event examined how VE is being used in the industry, and sought to explore ways to improve efficiency without having a negative impact on the quality and intent of a project.

The summit was attended by over 180 delegates from the region’s top consultants, contractors, developers and government agencies. The event was chaired by Sameer Daoud, CEO of MECIC Contracting, who set the tone with a brief presentation, following which Dr Rashid Alleem, chairman of the Sharjah Electricity & Water Authority (SEWA), addressed the delegates with an engaging keynote speech.

Anchored by three panel discussions, the agenda was rounded off by two presentations. Information and videos can be found on www. valueengineeringsummit.com and on www.meconstructionnews.com.

Commenting on the event, Raz Islam, publishing director at CPI Trade, said, “Through its construction-focused publications and associated events, CPI Trade looks to bring trends and critical issues in the regional construction industry to the forefront. VE is certainly a polarising topic, but as we’ve seen in various case studies and discussions at the summit, when carried out properly it can have a considerable positive impact on the overall project and a client’s bottom line. The feedback we’ve received has been very positive, and we look forward to hosting a follow-up event in 2019.”

The 2018 Value Engineering Summit was sponsored by Autodesk, LACASA, Pace, CCS, CKR Consulting Engineers, Trimble, CIOB and RICS, and endorsed by the Sharjah Electricity and Water Authority.

“I’d like to extend special thanks to our valued partners for their ongoing support, without which hosting events such as this would not be possible,” Islam concluded.

Thanks to all our sponsors

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ON SITE

OCTOBER 2018 39

THE BACK PAGE

LAST WORD 01 Mohammed Adnane Retmi is head of IMEAR – Orange Applications for Business at Orange Business Services.

Leading by Example Orange Business Services’ Mohammed Adnane Retmi on building the smartest city in the world from the top down Focusing on the Smarts

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ubai’s ambition to be a ‘nextgeneration’ place to live and work is being realised, but the vision of His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Ruler of Dubai, VP and Prime Minister of the UAE, goes much further – to make Dubai the happiest city on Earth. Digital technology and smart initiatives are at the centre of that vision and key to driving the emirate forward.

What is behind Dubai’s rise as one of the most sought-after destinations in the world for technology start-ups, tourists and business in general? A constant flow of new ideas, initiatives and projects, all underpinned by innovation, is focused on creating a sustainable future that leverages digital technology in a number of ways.

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The Smart Dubai Government initiative is central to the overall plan, with the government setting out to remodel how it functions. ‘The government that never sleeps’ is one name that has been given to it, and a mission statement of improving lives and enhancing the happiness of citizens and visitors is a strong starting point.

It’s a high-level, top-down strategy, and we are seeing the government developing the technological tools and projects to deliver on it. Data sharing is a key element, and the Open Data Law announced in Dubai is designed to help underpin this and improve services.

The vision and commitment to the future is clearly demonstrated in two major initiatives, Smart Dubai 2021 and AREA 2071, one a shortterm project and one much further reaching.

Changing Thinking, Changing Habits

In achieving these ambitious goals, one of the most important recent developments is the commitment to innovation, turning Dubai into a new Silicon Valley. The Mohammed bin Rashid Initiative for Government Innovation is taking the lead and driving Dubai forward at the top level. The work it is doing in offering creative work environments in the government sector to encourage government workers to embrace creativity and foster innovation is stimulating new projects setting the innovation agenda. It is working and we are already seeing the effects of smart government thinking in general.

Dubai’s innovation leadership is influencing the entire region – we recently opened a new

Middle East innovation hub and regional business headquarters in Dubai Silicon Oasis (DSO), aimed at encouraging collaboration and innovation; the hub is also our regional centre of excellence for smart cities.

Investing in Ideas, Driving Innovation

The government’s commitment to incubators and accelerators is propelling Dubai forward, and start-ups across the UAE are attracting interest. Of note, investment in start-ups in the UAE was more than $1bn in 2016. Investment has been targeting the very latest enabling digital technologies such as IoT, AI, big data, cyber security, cloud and robotics. We have also seen entrepreneurial start-up successes like ridehailing app Careem and Souq.com showcase Dubai’s innovation and entrepreneurial skills and attract international interest.

What sets the UAE apart from most countries around the world is that leadership on technology, innovation and a sustainable future is coming from the top. Everything is about investing in human capital, along with digital technologies to create a smart and sustainable city.

Investment in technologies like AI and blockchain continues to increase, and the vision is quite clear: a major commitment from the government, with the public sector in Dubai leading the way and encouraging private companies to join in, backed by the energy to implement this thinking, puts Dubai in pole position for today and for tomorrow. It’s called leading by example.

Inspiring Innovative Leadership

Leaders in Project Management

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