INTERVIEW: George Xydas, director and partner of Drywall Qatar, on specialist building products – PG 39
issue 2.10 October 2015
FEATURE STORY
Standardising Qatar’s property market
TECHNOLOGY
AV in the Gulf construction sector
PLUS
Helping employees achieve a better work life balance
Ghost Towns will Qatar’s stadiums fall into disuse after 2022?
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Renovation works are underway at the site of Khalifa International Stadium. After the World Cup, the stadium will continue to remain a sports venue, supporting Qatar’s legacy. In our cover story, we discuss why Qatar should possibly consider temporary structures for its stadiums. (Image Supreme Committee for Delivery and Legacy)
contents OCTOBER 2015
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Qatar has unveiled designs for five stadiums for the 2022 World Cup – all planned to remain post-2022 as part of the country’s Ghost Towns emerging sports will Qatar’s stadiums fall into disuse after 2022? legacy. But is it time to look into the opportunity of temporary structures for its unreleased stadiums? QCN ’s Farwa Zahra explores the feasibility of legacy stadiums and the possibility of introducing temporary structures, to be repurposed later into profitable facilities in Qatar. INTERVIEW: GEORGE XYDAS, DIRECTOR AND PARTNER OF DRYWALL QATAR, ON SPECIALIST BUILDING PRODUCTS – PG 39
issue 2.10 October 2015
FEATURE STORY
Standardising Qatar’s property market
TECHNOLOGY
AV in the Gulf construction sector
PLUS
Helping employees achieve a better work life balance
Retail Price: QR15 / AED15
Regulars
20. 28.
31.
From the Editor - 6 Construction News - 8 Guest Column - 18 Legal - 43 Careers - 46 Qatar Tenders - 48
39.
Technology AV in the Gulf construction sector: Projects, trends and challenges
Feature story Industry Insights From local to global: Standardising Consultants typically drive the Qatar’s property market material standards in Qatar
A modern construction project is not complete until it is equipped with the necessary audio-visual (AV) aids. Richard Tan of InfoCommAsia Private Limited writes about the current status of AV technology in Qatar and the regional construction market.
Measurement terms used for building space are defined and reported differently from country to country. Robert Jackson of the Royal Institution of Chartered Surveyors explains why Qatar needs to adopt an international measurement system.
In an exclusive interview with QCN, George Xydas, director and partner of Drywall Qatar, talks about specialist building products in Qatar and latest trends and challenges in the market, along with details of some recent projects of Drywall Qatar. QCN | October 2015
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editor’s letter
If Qatar continues to aggressively bid for key sports events, there is no reason for its legacy stadiums to turn into white elephants.
October 2015 | QCN
A decision on who will host the 2021 and 2023 world s wimming championships is pending until November 8. Not surprisingly, Doha is among the three cities competing with its bid, alongside Japan’s Fukuoka and China’s Nanjing, according to Reuters. The final contention among these countries is followed by withdrawal of a number of states – including Australia, Germany, Argentina, Turkey and the United Arab Emirates – that had earlier shown interest in hosting the two championships. A m o n g t h e m a j o r re a s o n s f o r withdrawing their bids remain the immense costs that come with such mega events… costs which do not always break even. As a number of countries withdraw, the chances of a winning bid are even more positive for Qatar at the moment. Having successfully hosted the 24th Men’s Handball World Championship, with the ongoing AIBA World Boxing Championships, and preparations for the International Paralympics Committee Athletics World Championships, Qatar has also secured its position as the host nation for the 2018 World Artistic Gymnastics Championships, 2019 World Athletics Championships and, of course, FIFA’s 2022 World Cup. Ostensibly, all these events provide tremendous opportunities for the Gulf nation to strengthen its position as a sports hub, while boosting its tourism in other areas simultaneously. Behind the obvious excitement and glamour, however, is the fact that international tournaments come at huge costs. The capital invested in preparing worldclass facilities for players and fans is not always guaranteed to turn into profits. This is even more applicable for FIFA world cups. In fact, Brazil – the latest host country – has reportedly incurred losses after the World Cup. A key source of these damages remains the
extravagant stadiums prepared for the 2014 World Cup. Once the tournament is over, these ‘white elephants’ demand humongous maintenance costs, necessitating the need for diligent forethought before bidding for the games, let alone proposing the stadiums’ designs and numbers. In our cover story on page 20, we discuss some strategies Qatar can consider in order to avoid the fate Brazil is facing today. Speaking to construction professionals in Qatar and Brazil, we try to understand the possibility of legacy and temporary stadiums for the World Cup. While the former is built to remain as a sport arena after the tournament, the latter is dismantled and turned into a different type of facility, which is more useful for the residents, instead of becoming a burden on the national economy. Qatar has released designs for five stadiums so far – all planned with legacy structures. Five legacy stadiums, according to some experts, is a big number for a country as small as Qatar. For designs of the upcoming stadiums, s o m e c o n s t r u c t i o n p rof e s s i o n a l s suggest Qatar to look into the possibility of entirely temporary stadiums. Irrespective of its type of structure – temporary or legacy – a lot will depend on Qatar’s future position in the world of international sports. If the country continues to aggressively bid for key sports events, there is no reason for its legacy stadiums to turn into a burden. Eventually, whether Qatar’s stadiums would turn into white elephants or profitable entities will be clearer sometime in the future. For now, keep reading QCN to stay informed about Qatar construction news.
Farwa Zahra Editor
regional sma News Construction
greenfield projects to double i
Although the majority of new smart city projects globally will continue to be l cities, the Gulf Cooperation Council (GCC) countries, including Qatar, are exp which is expected to reach QAR5.46 trillion by 2020.
Qatar is among the front-runners in the Middle East to adopt many smart city practices, which include not only building greenfield projects but also integrating city infrastructure with the information and communication technology. (Image Fotoarabia)
October 2015 | QCN
art cities:
in next two to three years
led by European, North American and advanced East Asian pected to play a very significant role in driving this growth
construction news
9
The global smart cities market is expected to grow significantly over the next five years, reaching anywhere between USD400 billion (QAR1.45 trillion) and USD1.5 trillion (QAR5.46 trillion) by 2020, according to a recent report by Deloitte. According to Monitor Deloitte’s new report Smart Cities, Not Just the Sum of its Parts, stakeholders in the Middle East are paying significant attention to the growing smart city industry and it is expected that new city sub-developments will incorporate elements of smart infrastructure. Michael Romkey, director at Monitor Deloitte in the Middle East, said, “Developers in the GCC are becoming increasingly interested in adopting the information and communication technology (ICT) infrastructure and master planning that will aid the development of modern smart cities. This presents key opportunities in both the private and public sector to leverage this trend and increase investment in new smart technology.” However, he added, a greater emphasis must be placed on how to leverage these developments to ignite a shift to better, smarter cities. The report pointed out that the region’s smart city growth will largely be driven by developments in the government planning, administration, and operations area, backed by significant GCC government investments in e-government and mobile services. It is estimated that the number of new smart city greenfield developments in this region will double within the next two to three years. This follows the launch of six entirely new, master-planned smart city developments in the GCC over the past decade. Qatar, for instance, has a number of projects such as Lusail City, The Pearl-Qatar and Msheireb Downtown Doha that are incorporating various smart city elements. Safder Nazir, vice president, Smart Cities & IoT, Huawei Middle East, said, “The continued expansion of smart cities initiatives in Qatar is being driven by the overall advancement of Qatar’s economic landscape. Today, ICT is required for literally every business segment, from telecommunications to oil and gas, education, healthcare and transportation.” With the right ICT infrastructure now in place, Nazir added, the real opportunity lies within these vertical sectors, and how they can leverage this new architecture to operate more efficiently and intelligently in the digital era. However, the report highlighted that one of the most salient challenges for the development of smart cities is not the creation of new technologies, but changing the way that governments and organisations operate through technological innovation to make better, more efficient cities. QCN | October 2015
Construction
News
Industry Views
In QCN’s September issue, we reported about a local construction company firing its labourers and supervisors for moonlighting. Meanwhile, we approached construction and legal experts to learn about some steps contractors can take to ensure their workers are not involved in projects outside the company’s scope. Here is what they had to say.
It is important that employers look at why employees choose to moonlight All companies involved in the construction industry must embrace the concept of corporate responsibility. Their key concern has to be the health and wellbeing of their people. Moonlighting can create tired, distracted employees, which brings associated risks. Employers have to proactively educate their people on the dangers of excessive working and the real need for proper rest and nutrition, particularly those in physically demanding jobs.
It is important that employers also look at why employees choose to moonlight. There is a need to get close to their people and understand what motivates them. The reward strategy needs to reflect this, while also being right for Qatar’s unique market conditions. Investment in building a family feel across the workforce is something to pursue, particularly by creating connectivity and social outlets for people outside of working hours.
Michael Connor is the associate director, Faithful+Gould, Qatar.
A fine, dismissal or repatriation sanctions for transgression is a strong deterrent to moonlighting
“Construction companies should ensure that they have considered and put in place clear policies that set out fair and minimum working and living standards for its labour.” Cheryl Cairns, partner, Construction and Arbitration, at Trowers and Hamlins LLP, said that if contractors apply and enforce such policies at the outset and throughout the duration of a construction project, which should deal with issues which are key to its workforce such as payment of wages, working hours, health and safety and accommodation, then the temptation for staff members to seek moonlight or work on other companies’ projects is likely to be reduced.
October 2015 | QCN
The effective control of workers on major construction projects is essential from a management, accountability and especially from a welfare and safety perspective. A common and proven method used more commonly outside the Gulf Cooperation Council region to meet these challenges is for each worker to carry an electronic identity access pass with personal photograph (or fingerprint). On entering the site, workers are electronically and visually checked both by scanner and a gateman. Some more sophisticated systems also allow location information to be recorded, which is essential in an emergency, evacuation or accident scenarios, with workers being more easily located and accounted for. Knowing who is on site and where is paramount to ‘Safety First’ culture. A robust fine and/or dismissal or repatriation sanctions for transgression
is a strong deterrent to flouting/ moonlighting by individuals and supply agencies, backed up by passes and photographs being renewed every one to two months.
Andrew Jeffery is the managing director, Capital Projects Advisory, Deloitte Corporate Finance Limited.
Construction
News
Qatar unveils expansion plans for its transport sector Pictured here is a site of Rayyan Road project. (Image Ashghal)
Many expansion plans have been recently revealed in all major areas of Qatar’s transport sector. While expansion plans for the Hamad International Airport had been there long before its launch last year, Peter Daley, project director of New Doha International Airport’s Steering Committee, announced details of these plans, along with other representatives updating about other transport projects underway in Qatar.
Airport Speaking at Meed’s Qatar Transport Forum, Daley told the expansion will include the extension of the main terminal building, construction of concourse D and E, and the connection with the Red Line of the Doha Metro. Most imminent of these plans will involve the construction of a hotel.
Seaport Also revealed for the first time were plans for two additional container terminals at Hamad Port. The first phase of the mega project is due to open at the end of 2016, Aecom’s programme director, Tim Verdon told, the Forum’s attendees.
Railways Qatar Rail’s chief of service delivery, Andrew Tailor updated the forum on Qatar’s integrated transport plan. A world record 21 tunnel boring machines are being used on the Doha Metro project, which so far has completed almost 50 kilometres (km)
Qatar’s Astad Project Management goes international
Engineer Ali bin Nasser Al Khalifa, chief executive officer of Astad, speaking about the launch of Astad International.
Widening its operations beyond Qatar, Astad Project Management has launched Astad International. Commenting on the company’s expansion, Engineer Ali bin Nasser Al Khalifa, chief executive officer of Astad, said, “This is an exciting opportunity to work together across borders. We will share knowledge in an
effort to develop regional home-grown solutions and strengthen the region’s booming construction industry.” “Our team offers an average of 20 years of specialised experience across the board to ensure that only the world’s best practices and highest standards are applied to each one of our projects,” he added.
October 2015 | QCN
of tunnels. A total of 26,000 workers are working on the project, equating to more than 78 million manhours worked as of end of August. Work on the Lusail tram scheme is more advanced, with four of the five at-grade stations completed, while the tender for the first phase design and build of the long-distance freight and rail network will be issued to contractors early next year.
Roads On the roads side, Engineer Nasser Al Kuwari, manager of highway projects department at Ashghal, presented an overview of the QAR40 billion expressway programme. The massive project, which involves 1000 km of new or upgraded roads, 240 major interchanges and 360 bridges, has already seen 43 major contracts awarded. A total of 15 contracts are either in the market or being prepared, while a further 23 are in planning.
October’s Big Number
USD
300
million Mega events across the Gulf Cooperation Council will drive the wider region’s audiovisual (AV) market for venues to cross USD300 million (QAR1.1 billion) by 2016. The Middle East and Africa’s AV market for venues and events is set to grow by 61 percent in 2016, according to a report by InfoComm International.
Construction
News Firefly
• A joint venture between Al Futtaim Engineering’s Qatar operations under the name Hamad and Mohamad Al Futtaim and Voltas Qatar has been awarded a mechanical, electrical and plumbing (MEP) contract for the Doha Festival City. The contract, worth over QAR500 million, will include MEP works for the main mall. The project is expected to be complete by 2016. • The Ministry of Infrastructure of Qatar awarded a EUR300 million (QAR1.2 billion) project Doha Industrial Area Package 2 to the joint venture of the companies: Terna SA, premium half page ad.pdf 1 10/7/15
Awards
Key recent contracts awarded in Qatar Gulf Consolidated Contractors and Wade Adams Contracting WLL. The project refers to the reconstruction of urban roadwork, construction of a new sewerage network, and new sub‐stations, etcetera. • According to Meed, Hill International has won a contract to provide project management consultancy services for local contractor Contraco on the USD1.1 billion (QAR4 billion) Salwa resort project in Qatar. Hill’s contract has an estimated value of USD2.3 million (QAR8.4 million) and will run for two and a half years. The Hilton Salwa Beach Resort and
16:46
Villas will be built on about one square kilometre of coastal land 97 kilometres southwest of Doha. • The Public Works Authority (Ashghal) has awarded two contracts for the design and construction of sewage tunnels to Bouygues Travaux Publics, a subsidiary of Bouygues Construction, in partnership with a local contractor UrbaCon Trading and Contracting. The two contracts are worth around EUR550 million (QAR2.2 billion), of which Bouygues’ share amounts to roughly EUR285 million (QAR1.2 billion). The project is expected to be complete by 2019.
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News Events Construction
13 – 14 October
Qatar Transport Infrastructure 2015
26 – 27 October
Future Landscape & Public Realm qatar Qatar’s upcoming projects, such as the Mall of Qatar (illustrated here), are increasingly focused on indoor and outdoor landscaping.
Sheraton Doha Resort & Convention Hotel
19 – 20 October
Projects Delay Analysis and Claims Assessments Millennium Hotel
19 – 20 October
Future Landscape & Public Realm Qatar will be held at InterContinental Doha – The City. The event aims to provide networking and business opportunities to companies operating in areas such as exterior lighting, irrigation/water supply, artificial turf/
5 November
exterior flooring, exterior stone/ granite/cement/concrete, timber, exterior paints and coatings, tools and machinery, pool and spa, recreational equipment, street furniture/fencing/ access control, garden supplies/ plants/horticultural suppliers, facilities management/maintenance and landscaping services.
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Power Qatar Summit 8 Annual Bridges and The Ritz-Carlton Highways Qatar th
InterContinental Doha
8 – 10 NOVEMBER
Facilities Innovation Forum Qatar This major facilities management (FM) event brings together global and regional decision-makers to highlight the importance of improved building safety management, design, systems, and responsible longterm operational maintenance. To be held at Oryx Rotana Hotel, the forum will feature the latest innovations and newest FM practices being implemented by the industry around the globe, and increasingly across the Middle East.
15 – 17 November
Sports Infrastructure Expo Qatar Qatar National Convention Centre
23 – 26 November
The Big 5 - Dubai Dubai World Trade Centre, United Arab Emirates
24 – 26 November
Annual Plant Shutdown & Turnaround Conference InterContinental Doha
October 2015 | QCN
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18
guest column
Avoiding onsite disasters
through safety training Accidents happen on construction sites all over the world. While Qatar and the wider Middle East is no exception, the recent incidents of crane collapses highlight the need to focus on robust safety procedures by contractors involved in construction projects, writes Andy Reid of Qatar International Safety Centre.
Andy Reid is the business development manager at Qatar International Safety Centre.
The key safety issues on construction sites include electrical hazards, overloading, and materials falling or slipping from overhead hoists.
October 2015 | QCN
Many of us are aware of the recent incidents in the Gulf Cooperation Council where two tower cranes collapsed, resulting in injuries and fatalities. Looking around Qatar presently, or any metropolitan skyline for that matter, tower cranes can be seen almost anywhere, about 80 to 260 feet in height, with some even reaching more than 400 feet when attached to a building. Countless companies in the construction industry rely on overhead cranes to lift and transport material. When installed and used correctly, these systems make operations easier and safer. Preventing disasters linked to crane collapses requires workers to recognise certain hazards that can occur during operation, and follow safety procedures to avoid them. However, with the recent crane accidents, one wonders whether contracting companies and workers have a knowledge about the hazards surrounding this type of work on site. It is evident from the recent cases that there are three common safety hazards that every company using overhead lift systems should be aware of in order to keep their workers and other people safe. These key safety issues on construction sites include electrical hazards, overloading, and materials falling or slipping from overhead hoists. One commonality that all three hazards share is the qualification of crane operators. It is the responsibility of the crane owner and supervisors to ensure that crane operators are competent and qualified to do their job. Once an accident has taken place, it is important to understand that crane rescues are inherently complex. It is only with proper training and preparation that
you can ensure that workers bring out the victim and get them to ground where they can receive immediate medical aid. There are a number of safety training centres in Qatar, such as Qatar International Safety Centre (QISC), which offers up-to-date training to assist workers in avoiding crane collapse, as well as in rescuing people in case the accident has occurred. Such training sessions can be completed on site using the contractor’s equipment, giving its workers the most comprehensive experiences of using equipment and correct techniques to remain safe and perform effective rescues. A number of safety centres in Qatar also provide inhouse facilities where workers can be sent to the centre where they are required to attend theoretical classes and later perform various safety procedures. Having incidents such as crane collapse is not just hazardous for human lives, but also poses reputational risks to contractors involved on concerned projects. In order to prevent such incidents, construction companies should ensure that their employees know and understand all appropriate safety procedures and necessary precautions prior to working on site, particularly when using specialist equipment. Similarly, if there is a risk of a fall from height for staff, contractors are required by law to provide safe working procedures, safety equipment, maintenance of these machines and equipment, necessary emergency procedures, and sufficient appropriate training as well as appropriate personal protective equipment such as hard hats. Work on construction sites is bound to be dangerous. Onsite injuries are inevitable but a sound basis in terms of safety procedures and training can reduce the intensity and number of injuries in the future.
Ghost will Qatar’s stadiums fall into disuse after 2022?
October 2015 | QCN
Towns Seven years ahead of the 2022 World Cup, Qatar has unveiled designs for five stadiums for the football tournament – all planned to remain post-2022 as part of the country’s emerging sports legacy. However, considering the size of the state, and its newfound love for the game, is it time for Qatar to look into the opportunity of temporary structures for its unreleased stadiums? QCN’s Farwa Zahra approached construction professionals in Qatar and the 2014 World Cup host, Brazil, to explore the feasibility of legacy stadiums and the possibility of introducing temporary structures, later to be repurposed into more profitable facilities in Qatar.
QCN | October 2015
22
cover story
O
ne year after the 2014 World Cup, most of the 12 stadiums Brazil prepared for the tournament have fallen into disuse. Those being used are struggling to make a profit. From the onset, many had exceeded their allocated budgets, crossing a total cost of USD3 billion (QAR11 billion). Also known as Brazil’s most expensive stadium, Estadio Nacional Mane Garrincha was completed at an amount thrice the budgeted cost, while Arena Pantanal, Cuiaba was constructed at almost double the amount allocated for it. Overall, the country managed to prepare only two stadiums within their budgeted range. Then there was Arena Corinthians, another stadium that was not complete on the day it hosted the World Cup’s opening game. Works on this venue eventually finished almost a year after the tournament, and the list does not end here. Concluding the post-World Cup situation in Brazil, the mayor of Rio de Janeiro, Eduardo Paes, told ESPN FC, “Brazilians have not benefited from the tournament… The World Cup still makes them angry. There is regret that we even staged it.” Going back by another four years, South Africa spent approximately USD2 billion (QAR7.2 billion) to prepare the necessary infrastructure and 10 stadiums for the 2010 World Cup. While many of these venues are in use today, not all are running in profit. South Africa also overestimated the number of tourists, leading to unnecessary costs during the World Cup. Exceeding the spending made by South Africa and Brazil, Qatar has allocated a hefty budget of USD4 billion (QAR14.5 billion) for its eight stadiums (as of now) and linked facilities. But is it enough to ensure the country does not face the fate of Brazil? This, only time will tell, but a defining factor would lie in how efficiently Qatar spends this capital. While the development of infrastructure such as the new port, airport and metro services had long been a part of Qatar National Vision 2030, not all FIFA venues necessarily have to last after the tournament.
World Cup preparations As of now, Qatar has announced designs of five World Cup stadiums: Al Rayyan, Qatar Foundation, Khalifa International, Al Bayt and Al Wakrah. While site preparation works had begun on the giant 80,000-seat Lusail Stadium in September, its design is only due to be released next year. Ground breaking works for the 40,000-seat Al Wakrah commenced last year, with the first concrete laid above
“We had a stadium per host city, 12 stadiums in total. Many of them are now falling in disuse.” – Vicente Brandao, architect and partner at Santini & Rocha Arquitetos in Brazil.
October 2015 | QCN
Pictured here is a site of Al Wakrah Stadium – the first proposed host venue for the 2022 World Cup – where ground breaking commenced in 2014. (Image Supreme Committee for Delivery and Legacy)
ground earlier in February this year. With about 90 percent of the structural concrete work done, the 40,000-seat Khalifa International Stadium is scheduled for completion by the end of 2016. Contract for the 60,000-seat Al Bayt was awarded in July. In April, Qatar unveiled designs for the 40,000-seat Al Rayyan Stadium. On the design and research side, the Supreme Committee for Delivery & Legacy has developed entities such as Josoor Institute is a ‘Centre of Excellence’ for sports and events, which according to its acting executive director, Mushtaq Al Waeli, envisions “to provide people in Qatar, the Middle East and North Africa region with the knowledge and skills to deliver large-scale sporting and nonsporting events, before and long after 2022 World Cup,” by providing training to the concerned professionals here. As the progress on its announced stadiums continues, Qatar is yet to take a call on the final number of World Cup venues. Seemingly surprising, this is not the first time for a FIFA hosting nation to be uncertain about the number of venues. South Africa, for instance, initially planned to prepare 13 stadiums, later bringing it down to 10 only four years before the 2010 World Cup. That said, with seven years ahead of the tournament, increasing the number of stadiums from the current minimum eight might call for design and build changes in the venues announced already. According to some experts, keeping the number of venues to eight might work as a good strategy for Qatar. Comparing Brazil’s 12 stadiums with Qatar’s eight, Vicente Brandao, architect and partner at Santini & Rocha Arquitetos in Brazil, says, “We had a stadium per host city, 12 stadiums in total. Many of them are now falling in disuse. FIFA asks for eight stadiums because there are eight groups in the first phase. I think eight is a good number.” Speaking about the locations of stadiums in Qatar, Brandao says the presence
“Maintenance costs are far greater than initial construction costs on any given facility and that’s so much more true for stadiums.” – Andrew Seibel, vice president of Bobrick Washroom Equipment. of some stadiums in the outskirts of Doha is important to represent diverse areas of the country. Linking the location to acoustic aspects of the stadiums, Maro Puljizevic, acoustics section manager at Al Mana and Associates, adds, “Besides obvious cheering of the fans; public announcements, various side events, increased traffic flow, concerts, shows, noise of cooling systems, etcetera, can all present nuisance for the community. To reduce nuisance to the surroundings; stadium location should be carefully chosen, main entrances correctly orientated, traffic flow and parking well regulated and cooling systems acoustically enclosed.”
Legacy vs. Temporary structures Stadiums meant for mega events can have either temporary or legacy structures. While the former are purpose-build for the event, later demounted or repurposed, the latter remain as part of the country’s wider sports legacy. With the unveiling of designs for five stadiums, the Supreme Committee for Delivery and Legacy has also announced its legacy plans. Al Wakrah’s seating capacity will be cut down to 20,000, with upper tiers donated to other countries, as is the case with the upper tiers of Al Bayt. Khalifa International will remain as a sports and fitness destination, while the seating
Built in 1976, Khalifa International Stadium is one of the oldest sport venues in Qatar. Currently going through renovation to accommodate a seating capacity of 40,000, the redesigned stadium (illustrated here) is scheduled to be ready in 2016. (Image Supreme Committee for Delivery and Legacy)
QCN | October 2015
24
cover story
Andy Young, owner of New Resolution Ltd. and senior consultant at Wembley Consulting says, “The areas I know will be particularly important to Qatar are the end-to-end spectator experience, the players’ experience, sponsors’ activities, ticketing, transport, accommodation and, as with any mega event, security operations.”
capacities of Qatar Foundation and Al Rayyan stadiums will be reduced to 25,000 and 21,000, respectively. Clearly, Qatar has so far only focused on legacy structures. But is it time now for the country to consider temporary stadiums? According to Kadir Kaan Sekerciler, business development coordinator for MENA, Spor Sanayi, Qatar needs more temporary structures than the legacy ones. “The country is small, so when you build 80,000 capacity stadium, it would not do for the country in the long term.” While cutting the number of seats down after the World Cup is one way to bypass the problem of over-
“It is always useful to run a few smaller events in a venue before you host a mega event. It allows you to check if everything is ready.” – Andy Young, senior consultant at Wembley Consulting.
October 2015 | QCN
construction, plans to repurpose venues into other facilities right from the design stage can help Qatar avoid posttournament costs of these stadiums. Speaking about the overall cost, Andrew Seibel, vice president of Bobrick Washroom Equipment, says a key for Qatar is to not just look at the installation price of these stadiums, but also the recurring costs through the lifecycle of a sports venue. Cape Town Stadium, for instance, has been running in loss, costing approximately USD32 million (QAR116 million) since 2010. Warning about the risks of having excessive sports facilities after the tournament, Seibel says, “Maintenance costs are far greater than initial construction costs on any given facility and that’s so much more true for stadiums. So making sure that the design community focuses on the needs of the operations and the maintenance community at the back end will be critical for the long-term success of these venues.” With designs for at least three more World Cup stadiums yet to be announced, Brandao says, “I would suggest that the other three stadiums could be totally temporary.” Indeed, adding more stadiums to Qatar’s landscape might endorse the country’s newfound love for soccer, but this legacy would come at a cost, which Qatar may or may not be ready to bear, particularly amid the ongoing uncertainty around international oil prices. To have completely temporary stadiums needs comprehensive planning well ahead of the enabling works. A clear idea on the kind of repurposed facilities needs to come right from the design phase, continuing through the construction and procurement stage. Offering his suggestion about repurposing FIFA venues, Sekerciler says the best way for Qatar is to build modular stadiums that can be used for other purposes after the games. “All those stadiums should be able to be disassembled and then combined to
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After hosting a few games during the 2010 World Cup, South Africa’s Cape Town Stadium has been running at a loss, costing approximately USD32 million (QAR116 million) since 2010.
“Stadium location should be carefully chosen, main entrances correctly orientated, traffic flow and parking well regulated and cooling systems acoustically enclosed.” – Maro Puljizevic, acoustics section manager, Al Mana and Associates.
create a much bigger structure somewhere else in Qatar,” he says. In the context of Qatar’s plans to send stadium tiers to other countries, he comments, “Instead of delivering them outside Qatar for charity, you can use them to build a much larger, a giant structure here that can be used for some other purpose… If you have climatised environment, a closed enclosure like that, you can use them even for farming. You can create a huge farm here, or a garden or an exhibition centre.” Across the world, stadiums are given a second life to increase their longevity and avoid demolition toll. London’s Highbury Square was Arsenal Stadium for almost a century until 2006 when the league moved to a bigger venue, with the stadium turned into a 650-unit apartment complex. In fact, architects of 1Week1Project have suggested design proposals to turn Brazil’s World Cup stadiums into housing units for the homeless. According to their proposal called ‘Casa Futebol’, turning all disused stadiums into housing facilities can provide affordable accommodation for about 20,000 persons. With the field remained untouched, these units can be turned back into seating systems whenever required. Making temporary structures also means saving a large chunk of initial costs. Suggesting some cost-effective strategies, Sekerciler mentions telescopic seating systems that can be transferred to some place else. Another way of curtailing the cost is by renting seating systems. “You can rent the seating and then send it back. But for a project as big as 2022, you still need to pay something to the manufacturer because no one will have that much excess ware in their hand that they can rent to you,” says Sekerciler.
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at Wembley Consulting says, “Qatar has a good combination of people who know and understand their country and the MENA region, alongside people that have experience of planning and delivering mega events. That is the ideal combination.” Speaking about some logistics and procurement challenges, Sekerciler adds, “We are hearing reports about how some contractors were unable to deliver the projects on time because of the imports restrictions or because they were not able to bring in the materials they needed here on time.” While the civil contractors are expected to face procurement issues, Atiqul Alam, senior mechanical engineer for Qatar’s infrastructure division of Keo International Consultants, mentions mechanical and electrical contractors on these stadiums have to be extra careful in order to achieve compliance of their design and installations to FIFA standards. “This is especially true for stadium lighting design and its strict technical compliance with the FIFA standards. Experience in design and workmanship in installation can ease out any challenges that may be faced in FIFA 2022 stadium design,” he adds. While civil and MEP works make up the backbone of any stadium, in today’s digital world, construction alone can only do enough. Spectators today have higher expectations from a sports venue, which brings into discussion the technological side
Technical challenges Whether it is legacy or temporary structures, construction of these stadiums is not free of challenges. At one hand are the generic issues that blanket the entire construction sector. In the years leading up to the 2022 World Cup, Seibel mentions the challenges of scale, which involve manpower, materials, and the expertise that are required to go into these sports facilities, and other infrastructure projects. Explaining the advantage of Qatar’s richly expatriate workforce, Andy Young, owner of New Resolution Ltd. and senior consultant
Vicente Brandao, architect and partner at Santini & Rocha Arquitetos in Brazil, suggests Qatar to have temporary structures for the stadiums the country has not announced so far.
QCN | October 2015
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Repurposed sport venues around the world London, United Kingdom
Indianapolis, Indiana
Arsenal Stadium
Bush Stadium
After being the home ground of Arsenal for more than 90 years, the stadium was transformed into an apartment complex, now known as Highbury Square.
Built originally to host baseball games, the stadium later turned into a dirt track and storage facility before it was repurposed to become an apartment complex.
Memphis, Tennessee
Houston, Texas
Pyramid Arena
The Summit
Originally constructed to host basketball games, the facility was not regularly used until 2015 when it was reopened as a megastore with hotel, restaurants and shops, etcetera.
Used for basketball, ice hockey, indoor soccer, and concerts, the stadium was eventually turned into a 16000-seat worship house.
Atlanta, Georgia
Arsenal Stadium
Now known as Turner Field, the stadium was turned into a baseball park in 1997.
Beijing National Aquatics Center
Build for the for the swimming competitions of the 2008 Summer Olympics, alongside Beijing National Stadium, half of the facility was turned into a waterpark after the games.
of World Cup stadiums. Technologies such as robust acoustics not only enhance the spectator experience but also add to the value of a sports venue. However, according to Puljizevic, “It is not uncommon that certain design aspects get sidetracked due to fast pace of the project or in favour of good appearance; particularly stadium acoustics which is more of a hidden design gem rather than a first glance impression-maker.” Subtle acoustic details, therefore, should ideally be considered from the design stage.
Verdict Having planned a number of legacy stadiums for its small size, Qatar is expected to unveil designs for at least three more stadiums in the short term. Deciding on the temporary or legacy
October 2015 | QCN
Beijing, China
Berlin, Germany
Stadion An der Alten Försterei Temporarily turned into a giant living room to screen the 2014 World Cup games.
structure of the future stadiums would partly depend on the size of these stadiums, following the fundamental rule that larger legacy stadiums would be more expensive to maintain in the short term. Similarly those located far from populated areas would be harder to attract either visitors or tenants. That said, whether Qatar plans to build temporary stadiums at all or not, the country is headed against a definite deadline of 2022. Providing a guideline on the best time of completion, Young, says, “It is always useful to run a few smaller events in a venue before you host a mega event. It allows you to check if everything is ready and an opportunity to change things if you realise you can make improvements. It also means the people operating the venue have more knowledge and therefore more confidence before staging the mega event.” Based on his experience in the design and renovation of one of 2012 World Cup venues, Beira-Rio Stadium, in Porto Alegre, Brazil, Brandao suggests a one-year rule. “The idea is that one year before the host cities must be prepared for the event, and during that year you focus in operation and details,” he says.
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technology
AV in the Gulf construction sector: Projects, trends and challenges A modern construction project is not complete until it is equipped with the necessary audio-visual (AV) aids. The importance of AV technology becomes even more crucial considering the nature of key projects, such as stadiums and metro, underway in Qatar. Richard Tan of InfoCommAsia Private Limited writes about the current status of AV technology in Qatar and the regional construction market.
Among some of Qatar’s projects featuring advanced audio-visual technology is the Hamad International Airport. (Image Flickr/Jademattma)
October 2015 | QCN
The essential use of AV technology is to facilitate communications, eventually increasing the attractiveness of a construction project. Digital signage placed in the lobby of a residential apartment or office complex makes information conveniently available to tenants and visitors to these buildings. Control panels allow lighting, HVAC and entertainment systems to be managed from any part of the building. Unified conferencing systems allow many-to-many meetings to take place without having to leave the premises. Video walls in museums, shopping malls and airports are used not just to convey information, but create mood. In the context of today’s hyper-connected world, such ability to communicate information and emotion is no longer a luxury, but a necessity. It allows building occupants to be connected to the outside world in ways previously unimaginable.
This creates value not just for the building owners, but also for the tenants. In the Middle East, there are some significant factors driving the growth of the AV industry. The first is that this entire region is on a fast march to development. There is widespread recognition that the traditional source of wealth from oil revenue is not going to last forever, and there needs to be a transformation to a sustainable form of economy supported by world-class infrastructure. The seriousness with which this transformation is being undertaken is evident in the vast number of construction projects you see going on around you. From universities and airports to residential complexes and commercial offices, the pace of development is impressive. In the immediate horizon, the advent of the 2020 World Expo in Dubai and 2022 World Cup in Qatar is also boosting the demand for AV. Aside from the core infrastructure that needs to be built at the sites of these events, there is much more to be done to expand hospitality, entertainment, retail and transportation, all of which need AV to varying degrees.
GCC projects AV technology has been employed in many recent projects throughout the Gulf Cooperation Council (GCC) region, including the Doha Festival City, petrochemicals complex at Ras Laffan, Qatar Energy City, Qatar University, the Riyadh Metro, Jazan Integrated Gasification Combined Cycle project, New York and Sorbonne
technology Universities in the United Arab Emirates (UAE), and the Kuwait metro and airport projects. Speaking of some key projects in Qatar, the new Hamad International Airport in Doha has incorporated impressive technology, including radio frequency identification (RFID) luggage handing system, high-tech air traffic command and control systems, specially developed and patented security surveillance system, and a cutting edge public address system, most if not all of which utilise highly advanced AV technology. Similarly, the Zayed Grand Hall in Abu Dhabi, which is the centrepiece of the Federal National Council, has also recently been retrofitted to incorporate the best of breed AV technology to serve very demanding requirements of high-level government meetings. In fact, it is the first such facility in the region to employ a 7x4 metre high-resolution LED video wall, with monitors at each delegate’s seat connected via full HD broadcast set-up for live streaming.
AV market trends Technology development in this part of the world is largely influenced or decided by expertise from the more developed markets, in particular Europe and the US. It is not uncommon to find projects in the Middle East that are designed by European or American architects, consultants or integrators, who will incorporate technology into these projects based on design and
standards expected of the more advanced markets. Hence, the use of AV technology in the GCC market is at least on par with that of the international market. Lately, the AV market in the region has shifted its sights in a more definitive way to developments planned for the two biggest events slated to happen in the Gulf region – the 2020 World Expo and the 2022 World Cup. We are also seeing a significant rise in the use of digital signage in this region, particularly with the employment of LED screens. There are also investments going in the education sector, with new educational institutions being planned and built particularly in Saudi Arabia, Qatar, Kuwait and the UAE.
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The ability of integrators and installers to take advantage of GCC’s market demand is going to rest in their capacity to recruit and retain skilled and experienced manpower.
Challenges For AV players, a key challenge in the GCC market is linked to the availability of skilled manpower. With upcoming mega events creating additional demand for AV installations in a region that is already buzzing with infrastructure projects, the ability of integrators and installers to take advantage of this market demand is going to rest in their capacity to recruit and retain skilled and experienced manpower. Traditionally, many of these AV technicians and engineers are from India, but with India’s economy becoming one of very few bright spots left in the world, sourcing manpower from India may prove increasingly challenging in the near future. In the short term, skilled manpower may have to be sourced from non-traditional markets, and the cost may escalate to some degree. In the longer term, on the other hand, the sustainable solution lies in training and upgrading of skills augmented by a sound human resource philosophy that ensures people are well looked after. However, in a market where a large percentage of the workforce are non-indigenous, this itself may get challenging.
Richard Tan is the executive director of InfoCommAsia Private Limited.
QCN | October 2015
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The Pearl-Qatar (pictured here), is measured by a system different from the one used in some other developments such as Msheireb Downtown Doha.
From local to global: Standardising Qatar’s property market Built up area, gross external area, gross internal area, net internal area, net useable area, leasable area, air-conditioned area, carpeted area, common area, and limited-use area‌ These are just some of the terms used in defining building space measurements across the world. However, the problem is that in many countries, each of these terms is defined and reported in very different ways. At present, real estate sector stakeholders across the globe are certainly not talking the same language, writes Robert Jackson.
QCN | October 2015
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W
hen measuring a particular floor space within a building, the elements, which are included and what is excluded differ from country to country. For example, building areas in New York are commonly measured from the tip of the nose of the gargoyles which protrude from the external corners. In certain countries, external features such as swimming pools or car parks are included in building areas, even if the car park is remote from the building. In such markets, the inclusion of such features may be appropriate as per the local standards, but the real estate sector is now far from local, turning into a truly global market. Despite this, there are many differing standards across the world relating to building space measurement that one could say there is no standard at all. Research undertaken by Jones Lang LaSalle has shown that if an area is measured by using a range of common standards from different parts of the world, the same floor space could theoretically be reported with up to a 24 percent variance. Clearly this has huge implications on all stakeholders involved in real estate. Therefore, it is highly relevant if we were to ask questions such as: What floor space is a developer selling? What floor space does an investor think he is buying? What floor space is used for valuing a built asset? What floor space does a corporate occupier need for operational
Currently, there are ongoing consultations with key stakeholders in Qatar surrounding the opportunity of introducing the International Property Measurement Standards here. October 2015 | QCN
While still under consideration in Qatar, the International Property Measurement Standards (IPMS) is receiving huge support in the United Arab Emirates, which was also the first government in the world to commit to adopt IPMS.
purposes? What space is included for rental purposes? Does the tenant understand what he is leasing and paying for? The inconsistency in building measurement is a significant problem, which can lead to considerable numbers of disputes, legal costs and brand/relationship damage. To bring the issue closer to home, Qatar is only a few years away from hosting the 2022 World Cup, which dovetails in with Qatar National Vision 2030. There is clearly a considerable amount of built assets linked to these plans and successful delivery would be impossible if there are not standardised rules that all parties associated with the delivery clearly understood. To make an analogy with football, all teams know the off-side rule, what merits a foul and free kick, and how big the pitch should be, etcetera. Now imagine if each team played by different rules specific to their home country. Consequently, no one would be clear as to which rules to play under and follow, thus resulting in confusion and chaos. Without international standards, football would not be the global game it is today and the World Cup would probably not exist the way we know it.
International Property Measurement Standards With the backing of the World Bank, International Monetary Fund and other key stakeholders, in mid-2013, an initial
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For real estate markets not aligned with international measurement standards, investors have to spend resources for translating and converting local measurement standards.
group of 13 professional bodies from across the globe, including the Royal Institution of Chartered Surveyors (RICS), convened a meeting in Washington to address the lack of standardisation in the real estate sector. As a result, for the first time, it was agreed that the organisations would work together to produce a set of industry standards, which could be adopted globally. The first set of these standards is the International Property Measurement Standards (IPMS). The initial coalition of 13 now stands at over 65 with growing numbers of industry stakeholders, including governments and global corporate occupiers committing their formal
While Qatar’s property market is dominated by tenancy, the country is opening up more areas for purchase by non-Qataris. In order to attract international investors to its real estate market, Qatar needs to add transparency and consistency in property measurement systems by introducing global criteria such as the International Property Measurement Standards. (Image Flickr/Mohamod Fasil)
QCN | October 2015
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feature story
There are no consistent property measurement standards in place in Qatar. The Pearl, for example, is measured by a different system than Msheireb Downtown Doha.
support to the standards and plans for their adoption. Across the Middle East, RICS has been working with several governments to ensure the new standards will be ‘fit for purpose’ in the local markets. The IPMS initiative is receiving huge support, with Dubai and Ajman in the United Arab Emirates already pledging their support and the Saudi Arabian government now actively engaging with stakeholders in its market on IPMS. Dubai has in fact the first government in the world to commit to adopt IPMS as they recognised the significant benefits IPMS brings in terms of market transparency and confidence for all stakeholders, particularly as the Middle East and North Africa markets look to target more international clients and investors.
Standardising Qatar’s property market With Qatar’s incredible growth and development over the last few decades and its ever-increasing presence on the world stage, IPMS is a very important step that would add many benefits to the local market. If Qatar wants to perform as a global player in the world’s real estate sector, the IPMS would add transparency and consistency that some suggest is currently missing.
24%
The maximum amount of variance in the floor space if measured from various standards across the globe. October 2015 | QCN
As it stands, there are no clear and consistent property measurement standards in place. The Pearl-Qatar, for example, is measured by a different system than Msheireb Downtown Doha. This poses risks to investors as they cannot compare across the properties, and hence, can be a principle cause of disputes between parties. If an investment offered the same apparent returns in London as in Doha, it is very likely most investors would choose London as they would clearly understand exactly what they were buying. For real estate markets not aligned with international measurement standards, investors have to spend time and resources for translating and converting local measurement standards. This of course also increases cost, adds risk and hence, makes the investment less attractive. By way of another analogy, if you were to buy the same model of a car in New York or Doha, you would know they were basically the same in terms of features such as fuel consumption, top speed, engine size, and overall performance. However, this is currently not possible with Qatar’s property market. With a significant variance on property measurement,
QCN spoke to two real estate industry professionals to get their views on the IPMS. Here is what they had to say:
Mark Proudley, director, DTZ Qatar
Nick Witty, director, estate, Deloitte
To date, there is no standard measuring approach adopted in Qatar, with individual landlords quoting and charging rents on varying basis. Adopting it (IPMS) will bring greater transparency to the market and enable all parties with an interest in real estate – investors, financiers, developers, occupiers and professionals – to more easily compare and assess properties. Introducing it in Qatar would be a challenging process and we anticipate reluctance from a number of landlords to adopt IPMS. It would be an educational process that highlights the benefits of adopting IPMS.
As far as we are aware, no public announcement of the government’s intention to adopt the standards has been made yet. Having said that, we do not think that means the relevant departments are not working behind the scenes. I think the large private and quasi-government property companies who have real estate assets outside of Qatar and the region are likely to welcome the adoption of the IPMS because of the improved consistency and transparency associated with them. This will allow these companies to better understand their portfolios.
real
By having an international property measurement system, the investors will be better informed and know exactly what they are getting for their money. This in turn will reduce any disputes in transactions. (Image Arabian Eye/Corbis)
it is impossible for an investor to gauge what they are actually purchasing without having the property re-measured. Carrying out this exercise means lost time, effort and resources. This could also lead to reputational damage to the developer and indeed the risk of legal disputes arising between buyer and seller, or landlord and tenant. Clearly international clients and end users of property information will benefit from IPMS as a means of comparing property across borders and also at a more localised level. Whether internationally or domestically, IPMS will increasingly become the norm. Currently, there are ongoing consultations with key stakeholders in Qatar surrounding the opportunity of introducing IPMS in Qatar. It is widely acknowledged that the market needs standardisation. If we look at International Financial Reporting Standards (IFRS), there has been a standard method for financial reporting for many years. This allows all parties to clearly understand the standards and requirements for financial reporting. Similarly, property measurement standards will bring the same kind of consistency to the real estate market. Of course, as with every new introduction to the marketplace, there will be a degree of resistance to change. In this case, it is most likely to come from a lack of understanding. Many local valuation experts, who have been measuring in a traditional way for many years, will understandably wonder why things have to change. Similarly, certain developers and brokers may not be too positive to the change as it may impact on how much space they can actually report as sellable/leasable area. The opposite of this, of course, is that the buyers will be better informed and know exactly what they are getting for their money. This in turn will reduce any disputes in transactions, which are currently not uncommon in the Qatar market. Much of the concern to date has been a result of stakeholders wondering how to transition from one reporting system to the new IPMS. However, this is not a major issue.
The inconsistency in building measurement is a significant problem, which can lead to considerable numbers of disputes, legal costs and brand/relationship damage.
To address this issue, in many countries, a dual reporting system has been put in place. By doing this, space measurements may continue to be reported to the current standard but additionally reported to the IPMS. This is how IFRS was introduced with companies often producing two sets of standards. As with IFRS, it is likely that over time, as more stakeholders start to recognise IPMS, the need to report to local standards will quickly phase out. RICS and the other coalition partners are also now working on a range of supporting professional statements, conversion tools, training, and certification schemes, etcetera, to ensure the standards are successfully implemented and can be embedded in Qatar and across the globe. QCN | October 2015
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BIM and IPMS One final consideration, which is relevant to IPMS is Building Information Modelling (BIM), rapidly becoming the norm in terms of technology and practice of construction project delivery globally. The benefits of BIM are well documented, but, for BIM to work effectively with collaborative and complete alignment between all parties, appropriate data has to be provided into the system. To have standardised information is therefore crucial, not only for the effective use of BIM, but also for all engaged parties to have a clear understanding of measurements that are being used. Imagine if the architect was working with one method of measurement, while the construction team was working with another. The problems are easy to see. Hence, if all parties are aligned with IPMS, there would be no confusion in the data and there should be cohesion and clarity among all the parties involved in a project. BIM technology and working practices are definitely the future in the built environment industry. It provides an A to Z approach for a project from initial architectural designs to facility management of the project years after completion. IPMS indeed complements the objectives of working with BIM, especially in the built environment sector which is now truly global. Internationally, the new measurement standards are being introduced on a rolling basis with the first standard, IPMS for offices, already released in November 2014, while the next one is IPMS for residential properties to be released by the end of this year. Focus will then shift to retail and industrial properties. For now, if you are involved in any kind of real estate discussion which involves building areas and floor space measurements, be specific as to which standard has been used and ensure you know the correct measurements by requesting or specifying the IPMS.
October 2015 | QCN
Based on the type of system used for property measurement, the floor space can vary up to 24 percent. These variations can also impact the design and construction details of a property. (Image Arabian Eye/Corbis)
Robert Jackson is the regional director of Royal Institution of Chartered Surveyors for the Middle East and North Africa region.
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industry insights
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Consultants typically drive the material standards and quality in Qatar George Xydas, director and partner of Drywall Qatar, says that as most of the building materials are imported to Qatar, all entry points into the country are overwhelmed with the sheer volume of products that need to be transported and delivered to construction sites.
In an interview with QCN, George Xydas, director and partner of Drywall Qatar, talks about specialist building products in Qatar; latest trends and challenges in the market, along with details of some recent projects of Drywall Qatar – a Qatar-based company that supplies interior finishing materials for a variety of construction projects here.
What are some specialist building products that are in high demand in Qatar? Drywall Qatar’s product range includes dry-lining systems, suspended ceilings, raised access flooring, demountable partitions, acoustic and vibration control systems, fire protection systems, marble and joinery. As the Qatar construction market is booming, all our products are in high demand, but recently, the attention has turned to fire protection systems as well as environmentallyfriendly building materials. Given the government’s attention to safety, most of the projects require tested systems to offer fire protection. Qatar Civil Defence is doing a great job at certifying high-quality materials and systems that offer fire protection in a wide variety of public and non-public areas. In regards to the environment, a number of projects have very strict requirements for the usage of environmentallyfriendly materials, and the LEED scoring system, which has been developed to rate how green a building is, has been in use for quite some time in Qatar.
What are some emerging trends in terms of flooring, ceilings and interior panels in Qatar? The trend in all three areas is one of higher quality products being specified by the consultants and architects with attention to acoustic quality as well as environmentalfriendliness. Qatar is proving to the world that it is a country where businesses can come to flourish. The infrastructure that is being developed for the education, sports, medical, services, and oil and gas industry are of world-class quality. QCN | October 2015
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industry insights
A view of Naufar Rehabilitation Center’s site under construction. Drywall Qatar has been involved in providing dry-lining systems, acoustic seamless ceilings, and acoustic ceiling tiles for this project.
In terms of the quality of products and their installation, are there any minimum standards adhered to in Qatar?
The building of Qatar’s Ministry of Economy – a project by Drywall Qatar.
An example is the Al Sadd Multipurpose Hall, which hosted the 24th Men’s Handball World Championship. The hall, which was constructed using the highest quality materials, offered world-class facilities for athletes as well as spectators and the media.
When talking about these building products, what is the level of Qatar’s reliance on foreign market?
“Recently, the attention has turned to fire protection systems as well as environmentallyfriendly building materials.”
October 2015 | QCN
There is a heavy reliance on the foreign market as the local manufacturing industry is still quite young. There are quite a few local manufacturers of building products. However, most of our products are imported. Many international manufacturers have actually set up plants in the United Arab Emirates (UAE) to service the Gulf Cooperation Council (GCC) region. Hence, one of the biggest suppliers to Qatar is the UAE. For example, Knauf from Germany and Saint Gobain Gyproc from the United Kingdom (UK) – which are two of the biggest dry-lining manufacturers in the world – have manufacturing plants in the UAE. This has led to a reduction in the lead-time to service the local market. Other major supply countries are Germany, the UK and the United States.
The installation standards are often driven by the main contractors and the reputation they carry in the market with guidance from the consultants as to the level of experience required for a main or sub-contractor to be prequalified. In this area, the market is classified into two categories: the large high-profile projects (either private of government sponsored), and the small- to medium-sized residential or commercial projects. For the former, there is strict adherence to the material specifications and the preferred product manufacturer or vendor. Materials must meet specific requirements regarding their physical properties and their suitability for the project properties as well as meeting LEED requirements. For the latter, typically, we see a deviation from the specification as project owners strive to achieve lower costs to maximise project value and profitability.
Tell us about some major projects you have done in Qatar, what are some current projects you are working on? For material procurement, we have serviced and are servicing projects such as the new Hamad International Airport, for which we provided acoustic floor insulation for the VIP lounges and ceiling acoustic barriers. For the Naufar Rehabilitation Center, we have been involved in providing dry-lining systems, acoustic seamless ceilings, and acoustic ceiling tiles. In Qatar’s New College
industry insights of Engineering, Drywall provided dry-lining systems, which we are also providing for Tawar Mall and Qatar Foundation Research and Development Complex. For Qatar Petroleum District located in West Bay, we are behind the supply and installation of metal ceiling systems. Similarly, for a number of Palestinian and Sudanese schools here, we provided fibre cement boards, fire-resistant dry lining systems, acoustic ceiling tiles, acoustic wood wool panels, and acoustic wall panels.
What is the usual practice in Qatar’s market – purchase with or without installation services? The market is segmented in this area and the decision depends on the strategy of each main contractor. There are companies that have in-house workforce, who purchase materials and install them internally. For many contractors, the strategy is to sub-contract specific scopes. This allows them to negotiate better terms and have more capacity to take on projects as their core team concentrates on project and construction management. The overall trend, however, is in the direction of sub-contracting, given the market dynamics and rise in construction projects. This trend is not without challenges, as the main contractor needs to ensure that the subcontractor’s quality is compliant with project requirements, and that they are not selected purely on price criteria.
How will SIG Plc’s acquisition of Drywall Qatar impact the company and its operations here?
distributors in Europe, has been monitoring the progress of Drywall Qatar since Q2 2014, and in August 2015, Drywall Qatar and SIG PLC entered into a strategic partnership agreement through which SIG PLC acquired a controlling shareholding in the company. The partnership with SIG gives immediate access to more than 600 manufacturers from Europe and the US and to more than 30,000 products, which Drywall Qatar can provide in the market. Another important impact is the access to procurement services for key areas such as rail infrastructure. Qatar’s rail and metro systems are well underway. For us, it is a great opportunity to be in a position to service this crucial sector of the country’s economy. SIG has been successfully involved in major rail projects in the UK such as the London cross rail which is Europe’s largest infrastructure project, and the northern line extension of London underground. Other major infrastructure projects that we can now service include the New Doha Port as well as the new highways that are being constructed.
What are some challenges of dealing in the Qatari market? The Qatari construction market is growing at a very fast pace and this growth comes with challenges that market participants are called to face and manage. Given the fact that most of the materials are imported, all entry points into the country are overwhelmed with the sheer volume of products that need to be transported and delivered to construction
SIG Plc, one of the largest material
Pictured here is the under-construction Qatar Petroleum District for which Drywall Qatar is responsible for supplying and installing metal ceiling systems.
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“Currently, there are severe delays at Doha port as well as at the borders with Saudi Arabia for road transport.”
sites. Currently, there are severe delays at Doha port as well as at the borders with Saudi Arabia for road transport. These delays have knock-on effects on project timelines, and the situation is not expected to get any better as the market picks up pace. Hopefully, with the operation of the temporary terminal at the Hamad Port, the situation will get better. Other challenges in the market are typical of any market that is growing fast, such as scarcity of qualified personnel and the restrictions that exist in their mobility as well as companies stretching themselves too thin on human and financial resources, which in some cases may lead to challenges in project completion. We see Qatar’s market as an opportunity that should not be missed by the world as the country has much to offer in key areas of the global economy and society.
QCN | October 2015
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legal
43
Is your claim time-barred? Most contracts awarded in Qatar usually state that a contractor will not get additional time and money if a notice of claim and supporting documents are not served within specified time limits, thus making them ‘time-barred’. Paul Prescott and Gabriel Olufemi of Pinsent Masons discuss some of the issues surrounding such time bar provisions in Qatar.
U
nder a contract governed by the International Federation of Consulting Engineers (FIDIC), contractor’s claims must be submitted in accordance with Sub-clause 20.1, which states that a notice of claim must be submitted within 28 days after a contractor became aware (or should have become aware) of the event or circumstances giving rise to the claim. If the contractor fails to submit the notice within 28 days, it will have no entitlement to more time or money. In other words, the contractor’s claim is ‘timebarred’. Let’s consider a scenario in which a contractor building a metro receives a letter from the engineer instructing it to extend the tunnel and build an additional station. The letter does not specifically refer to the variation mechanism in the un-amended FIDIC contract. The contractor is obliged to comply with the engineer’s instruction. The contractor serves a notice of claim for more time and money 30 days after receiving the letter, but the engineer rejects the claim on the basis that it is time-barred. The contract is governed by the Qatar law. Is the contractor’s claim valid? Let’s explore some of the arguments typically deployed by contractors and engineers to support their views on whether a contractor’s claim is timebarred and invalid under the contract and at law.
Trigger point The contractor could argue that it is only required to give notice under Sub-clause 20.1 within 28 days from when it becomes aware of the event or circumstances giving rise to a claim. Furthermore, Sub-clause 8.4 requires a notice for additional time to be given if the contractor “is or will be delayed”. The wording in these subclauses suggests that the contractor has discretion to give a notice (1) when the delay actually occurs, or (2) when the contractor knows the delay is likely to occur, which is after completing a delay analysis to ascertain the anticipated delay. On this basis, if the contractor was aware of the potential time and cost impact of the instruction five days after receiving the engineer’s letter, the notice was served on time. The engineer could argue that the date the contractor received the letter of instruction was the date the contractor should have been aware of the potential time and cost impact. The notice of claim should therefore have been issued within 28 days of receiving the letter. Under Qatari law, parties to a construction contract have at least 10 years to bring a claim under a contract and the law states that any contract term to the contrary is prohibited (Article 87 of Trade Law and Article 418 of Civil Code). The contractor could argue that the 28-day period in Sub-clause 20.1 is invalid and not binding on the parties under Qatari law, and that the time bar clause seeks to deny access to justice. The engineer could respond by asserting that Sub-clause 20.1 does not deny the contractor’s underlying right to the claim, but that the contractor waives the opportunity to claim those rights by failing to serve the notice on time. For example, Article 708(1) of the Civil Code requires a contractor to give immediate
notice to avoid losing its right to more money. This article recognises the ‘time bar’ principle, which is not contrary to the law on prescription periods. In any event, Qatari law clearly states that the court will look at customs and practice when interpreting a contract, and it is customary to include time periods within which notices must be served (Article 172(2) of the Civil Code).
Disproportionate loss and intent to harm Qatari law provides that it is unlawful for a party to exercise its rights if the interest to be achieved is disproportionate to the loss to be suffered by the other party (Article 63 of Civil Code). The law also prohibits the exercise of rights by one party solely to cause harm to the other party. A contractor could argue that (1) the employer has suffered no loss or damage by the late service of the notice, but that the contractor will incur significant cost for executing the additional works and paying liquidated damages for delay; and that (2) by rejecting a valid claim, the employer is not acting in good faith, and is acting unlawfully to cause disproportionate loss with the purpose of harming the contractor. The engineer’s response might be that the employer incurs loss because the late service of the notice hampers its ability to manage the projects and anticipate the impact of the instruction on other projects and contractors. Ultimately, it is a fundamental principle of Qatari law that parties are free to choose, and will then be bound by the terms of their contract, including relevant notice periods (Article 171 of Civil Code). If a party becomes enriched for no lawful reason at the expense of another party, that party should pay compensation to the extent of the enrichment (Article 220 of Civil Code). QCN | October 2015
44
legal
is in doubt about when the notice period its claim. A court or tribunal starts from, the notice should be issued at might be persuaded, in the the earliest possible opportunity. metro scenario, to rule that Taking a conservative approach, the the contractor’s claim is valid contractor in the metro scenario above as there was a two-day delay should issue the notice within 28 days and the value of the variation of receiving the letter. The contractor is potentially significant. Each only needs to notify the engineer of the case will ultimately turn on its contractual basis of the claim (for instance, own facts, and the outcome is the variation), and needs not provide details unpredictable. Before relying (if unknown at the time) of the time and on the arguments relating to cost impact of the claim within the 28-day time bar provisions under the notice period. In any event, the contractor law, we recommend that you is still required to submit further claim seek legal advice. documents with detailed particulars of claim within certain periods of time after the 28-day The verdict Most contracts in the Middle East contain notice period. If an otherwise bespoke terms. We have seen notice periods ranging from 24 hours to three valid claim is rejected days, so contractors should thoroughly on the basis that the review the notice and claim provisions in claim is time-barred, contractor their contracts. Contractors should also the Adtake HHPaOctober 2015.pdf 1 by 9/30/15 11:35 could AM rely on the conservative approach complying Paul Prescott is legal director at Pinsent Masons. strictly with the notice provisions to avoid provisions of the Gabriel Olufemi is solicitor at Pinsent Masons. the risk of being time-barred. If a contractor Qatari law to support A contractor could argue that (1) the employer is being unlawfully enriched through having the benefit of the varied works and at the same time levying liquidated damages; and that (2) the employer should therefore pay the cost of the variation and grant an extension of time as relief against liquidated damages. The engineer could respond by stating that (1) liquidated damages are to compensate the employer for the losses suffered, and that the parties must be bound by the terms of their contract; and that (2) the employer does not receive the benefit of the variation until the additional station and underground line generates revenue and profit.
DRI
46
careers
Helping employees achieve a better work-life balance Far from being a luxury, the notion of achieving an optimal work-life balance has become a key goal for working professionals worldwide. According to the Bayt.com Personal Fulfillment in the Middle East and North Africa poll, conducted in August 2015, 33 percent of professional respondents in the region say a better work-life balance would cause them to feel more fulfilled overall. Below are some tips to make the process of achieving work-life balance more attainable for companies in Qatar. 1. Set the example: Management support for work-life balance is critical, and it must come from the top. Too often, the perception that hard work is the only way to rise in a company keeps employees at the grindstone, working themselves into illness. Top executives can set examples of good work-life balances and make it known that the same is expected from all employees. 2. Have clear priorities: Setting priorities allows employees to schedule tasks over a reasonable period of time. Results from the Bayt. com Work-Life Balance in the MENA poll indicate that 35.4 percent of MENA professionals very often end up working outside work hours by choice, while 27.8 percent of them admit they work outside work hours due to necessity. If the overtime is chronic, talk to your team and suggest an alternate solution they would be happy with. 3. Recognise signs of overwork: Line managers can spot increasing error rates, absenteeism and signs of stress-related burnout more easily than anyone else in the organisation. Employees who show these signs of a poor work-life balance can be referred to employee-assistance programmes.
October 2015 | QCN
4. Use flexible work arrangements: Achieving a good work-life balance for your employees could be as simple as altering work arrangements by including flexible hours, part-time, sabbaticals for long-serving personnel, and extended leave periods for new parents. 22.7 percent of respondents in the Work-Life Balance in the MENA Region poll said a flextime arrangement with same total hours would be most appealing to them at work. 5. Promote telecommuting: Telecommuting is a way for employees to work from home. It cuts down on stress and unproductive time due to a commute. Telecommuting was favoured by 10.4 percent of respondents in the Work-Life Balance in the MENA Region poll. 6. Encourage vacation and sick leave: Advise employees to use their vacation and sick leaves whenever signs of burnout or illness arise. Sponsoring employees’ family-oriented activities is another way to combine work and life. Sporting events, excursions to amusement parks, fishing trips and other family-oriented jaunts are good opportunities to help employees strike a better work-life balance. 7. Adopt a policy for special cases: A formal leave policy for employees with dependents recognises the need to care for sick children or elderly parents. More than 20 percent of respondents in the Personal Fulfillment in the Middle East and North Africa poll said they would like to spend more time with their family. 8. Limit homework: The line between work and home tends to blur when employees regularly take work home. This practice should be monitored by management personnel, who should also develop plans for making sure that work gets done at the office.
mena employment in numbers
71%
of MENA professionals say they are stressed on a daily basis.
89.3%
of professionals in the MENA region believe that balancing work and life is absolutely possible.
35.4%
of MENA professionals very often end up working outside work hours by choice.
27.8%
of them admit they work outside work hours due to necessity.
22.7%
of respondents said a flextime arrangement with same total hours would be most appealing to them at work.
13%
of respondents are looking for the freedom to do what they love.
24%
of respondents associate happiness with mental and physical health.
8%
see happiness as enjoying better relationships with people.
Sources: The Bayt.com Personal Fulfillment in the Middle East and North Africa poll, August 2015, Work-Life Balance in the Middle East and North Africa, September 2012.
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October 2015 | QCN
Fee(USD)
Closing (m/d/y)
INTERVIEW: George Xydas, director and partner of Drywall Qatar, on specialist building products – PG 39
issue 2.10 October 2015
FEATURE STORY
Standardising Qatar’s property market
TECHNOLOGY
AV in the Gulf construction sector
PLUS
Helping employees achieve a better work life balance
Ghost Towns will Qatar’s stadiums fall into disuse after 2022?
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