INTERVIEW: Ghassan Bharghouth and Charbel Aoun of Schneider Electric on smart cities in the Middle East – PG 33
issue 2.8 August 2015
ENVIRONMENT
How can Qatar control the problem of construction noise?
PROJECT FINANCE Prospects of PPPs for Qatar’s infrastructure
PLUS
To pay or not to pay: Liquidated damages under Qatar Law
Qatar Construction:
The Next Generation Encouraging young nationals to pursue engineering with QSE chairman Ahmad Jassim Al Jolo
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contents AUGUST 2015
www.qatarconstructionnews.com
Cover Story Reanault DokkerVan Ad FP August 2015.pdf
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Increasing reliance on expatriates is not a sustainable option for Qatar’s construction sector Qatar Construction: in the long term. In The Next exclusive interview Generation an with QCN’s Syed Ameen Kader, Ahmad Jassim Al Jolo, chairman of Qatar Society of Engineers (QSE), discusses why the country’s construction sector lacks Qataris, and what QSE is doing to turn the situation around. INTERVIEW: GHASSAN BHARGHOUTH AND CHARBEL AOUN OF SCHNEIDER ELECTRIC ON SMART CITIES IN THE MIDDLE EAST – PG 33
issue 2.8 August 2015
ENVIRONMENT
How can Qatar control the problem of construction noise?
PROJECT FINANCE Prospects of PPPs for Qatar’s infrastructure
PLUS
To pay or not to pay: Liquidated damages under Qatar Law
Encouraging young nationals to pursue engineering with QSE chairman Ahmad Jassim Al Jolo
Retail Price: QR15 / AED15
18.
The growing regional competition for manpower is going to have an impact on Qatar’s construction sector as it heavily relies on expatriates. In QCN’s cover story, Ahmad Jassim Al Jolo, chairman of Qatar Society of Engineers (QSE), says that one of the goals of QSE is to attract more Qataris into the construction profession. (Image Arabian Eye)
26.
28.
Regulars
From the Editor - 6 Construction News - 8 Guest Column - 16 Legal - 36 Careers - 38 Qatar Tenders - 40
33.
Environment The noise and nuisance of construction in Doha
Project Finance Prospects of PPPs for Qatar’s infrastructure performance
Industry Insights gulf cities are vying to be smarter, sustainable and better connected
Where there is construction, the sounds of drilling, dumping, excavating and crushing are bound to create noise pollution. Maro Puljizevic of Al Mana & Associates looks at some ways Qatar can control the problem of construction noise in Doha.
Globally, public-private partnership (PPP) models of project financing are used to avoid an upfront hit on the state budget. Philippa Chadwick and Susan Bastress of Squire Patton Boggs look into the scope and potential role of PPPs for Qatar’s growing infrastructure.
Ghassan Bharghouth, the executive president of Schneider Electric in Qatar, Kuwait and Bahrain, and Charbel Aoun, senior vice president for Smart Cities, Schneider Electric, speak about smart cities in the Middle East, and the progress of Qatar in this realm. QCN | August 2015
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editor’s letter
Contractors in Qatar are actively hiring engineers from all over the world, but is this a sustainable option for Qatar’s construction sector to rely on expatriate workforce?
August 2015 | QCN
According to The World Economic Forum’s annual Global Competitiveness Report 2014 - 2015, Qatar has the most efficient government. Comparing 144 states worldwide, the study evaluates the performance of governments on the basis of factors such as “wastefulness of government spending, burden of regulation and transparency of policy making”. While many have received Qatar’s ranking with scepticism, the ongoing developments within Doha are self evident of the state’s spending, or at least a part of it, in the right direction. As of July, a major par t of Doha drainage project was completed with the excavation of a 10-kilometre long and 30-metre deep tunnel. On the transport infrastructure side, Qatar Railways Company has released the prequalification list, comprising 15 consortiums, for the first phase of long distance rail. Embarking on new developments, the government in July announced plans for establishing an industrial zone spanning across 6.3 million square metres. All these developments over the last month show massive investment by the state, creating a momentum for further growth. However, despite the government’s willingness, infrastructure development is only a part of the capital budget. Add to this the ongoing status of hydrocarbons market, and the need for the private sector’s involvement becomes imperative for Qatar’s sustainable growth in the long run. While not very common in the Gulf, the public-private partnership (PPP) model of project finance is gradually making inroads in the region. On page 28, Philippa Chadwick and Susan Bastress of Squire Patton Boggs discuss the scope and potential of PPPs for infrastructure. Building a premise that the PPP law has had a positive impact on the pipeline and progress
of projects in Kuwait, the authors propose that Qatar can benefit by taking guidelines from PPP models used in mature markets. In other news linked to Qatar’s infrastructure sector, the government of Pakistan has announced its plans to send 200,000 more workers to Qatar in the next four years. Prior to their arrival, the workers will go through a course involving occupational training, basic understanding of English, security checks, vaccinations, and awareness on industrial safety, etcetera. While the influx of blue-collar workers for construction outstrips other sectors, contractors in Qatar are actively hiring engineers from all over the world. A positive sign indeed for unhindered construction ahead of the 2022 World Cup. But is this a sustainable option for Qatar to rely on an expatriate workforce? In our cover story on page 18, Syed Ameen Kader interviews Ahmad Jassim Al Jolo, chairman of Qatar Society of Engineers (QSE). As a Qatari-only organisation, QSE was established t o e n c o u ra ge n at i o n a l s t o w a r d s engineering careers linked to the construction sector – a sector where the locals’ presence, if at all, is limited to senior management or ownership roles. Looking into some reasons behind this trend, Al Jolo explains what QSE is doing to motivate young locals into construction careers. The result of QSE’s agenda, however, will only show with time. For more on latest news and views, keep reading QCN.
Farwa Zahra Editor
Construction
News Qatar’s
estate regis impressive performanc The property market continues to outperform some of its regional neighbours by registering steady growth in sale prices in the first half (H1) of 2015, writes Syed Ameen Kader.
Qatar’s property market is currently driven by increased sales in the residential and developed land segments. (Image Damon McDonald)
August 2015 | QCN
real sters ce in H1
construction news
9
According to the Qatar Central Bank’s (QCB) real estate price index, property prices in June surged by 23.5 percent, hitting a record high of 284 points in comparison with 230.6 points during the same month in 2014. Commenting on the overall status of the real estate sector, Nick Witty, director of real estate, Deloitte, Qatar, said, “The market has performed well over the last six months, both in terms of rental and sales growth, and particularly in relation to land.” It has been a challenging period for some of the other regional property markets such as Dubai, which reported a fall of two percent in residential sales prices in the second quarter, although the prices are still around one percent higher than the same period last year. Qatar’s strong economic fundamental coupled with heavy investment in the infrastructure development – contracts worth of USD29 billion (QAR105 billion) awarded last year, followed by USD13 billion (QAR47 billion) in Q1 2015 – is expected to drive the country’s real estate sector in the coming quarters as well. The country’s property market is currently driven by increased sales in the residential and developed land segments while investors expect the demographic changes would further fuel the demand in the near future. Christopher Seymour, head of Middle East markets and development at Arcadis, told QCN , “There has been an unsurprising improvement in the real estate sector, focused on residential and land sales in Q2 as the supplies become restricted for developed land, particularly for locations proximate to the new metro.” Although Qatar’s real estate market is relatively small in terms of both the total value and number of transactions, Seymour said it is proportionate to its geographical size. “Indeed, much of the investment is from Qatari nationals who are investing inwardly to their own economy,” he added. From an occupational perspective, the market rentals have been relatively stable over the first half of the year. However, from this perspective, Mark Proudley, associate director, DTZ Qatar Consultancy, said, the residential market is generally performing better than the commercial market with demand remaining high on the back of continued population growth. The demand for commercial accommodation has been stagnant in the first half of the year as the office market is heavily reliant on the oil and gas, and public sectors – both of which are generally looking to rationalise their operations on the back of reduced oil prices. “As yet, the reduction in demand has not translated into lower rentals, mainly due to the limited stock availability in the market. With a large pipeline of supply, there is potential for rents to fall in the coming years unless demand starts to increase again,” said Proudley. The market sentiment is positive and there is all likelihood that Qatar’s real estate sector would maintain this growth trajectory over the second half of the year as well. “Price corrections are difficult to predict in any emerging market and Qatar is no different. However, as long as the economic fundamentals remain positive and there is ongoing governmental support, any significant price correction in the near term is unlikely,” concluded Witty of Deloitte. QCN | August 2015
10
Construction
News
Industry Views
For project management companies, what are some key characteristics that make them successful in Qatar? QCN approached representatives of some project management firms operating in Qatar to know about the core features that help them win more contracts compared to average companies here. Here is what they had to say.
Project management companies need to operate and deliver to the highest STANDARDS It is an exciting time to be a project management firm in Qatar. The construction industry is booming with large-scale and complex projects, and there is strong demand for experienced and qualified project managers. The nature of the industry in Qatar is fast-paced and demanding. To succeed here, a company needs to be able to operate and deliver DRI to the highest August2015.pdf international QuarterPage
industry standards, be flexible to accommodate for changes, offer solutions for unforeseen challenges, have insight into the cultural nuances of the market, and be effective by working in harmony with the local business environment. Unlike other industries, when a construction project is delivered successfully, it is visible to everyone. So, when prospective clients see a 1 large-scale complex project 8/11/15 9:23 AM
delivered in the best quality and as per international standards, they recognise the value of the project management company, leading to more opportunities. Ali Al Khalifa is the chief executive officer of Astad Project Management.
“Good relationships across the supply chain with consultants and contractors allow project management companies to meld inputs and deliver successful projects for their clients.” John Jo Hammill, operations director at Mace, said that key characteristics for success in Qatar are an understanding of the local market and the requirements of stakeholders, such as Qatar Civil Defence Department.
“To be successful in Qatar means you need to be fully familiar with local market conditions, understanding client sensitivities and... providing added value to the project and client.” Clive de Villiers, senior vice president of contracting and quantity surveying services at KEO International Consultants, believes that the achievement of success in Qatar is probably not very different from any other area, where the biggest success barometer is the invitation from repeat clients. Another key for project management companies is the need to be objective, and not merely agree to all that the client says.
August 2015 | QCN
Construction
News
Qatar opens two advanced health centres
With the opening of Al Ghuwairiya and Al Karaana Health Centers, the new facilities have entered the operational phase.
New
The two centres are launched as part of a plan to build new and improved health centres aiming to provide advanced primary healthcare services in the State of Qatar. The plan is being implemented by the Public Works Authority (Ashghal) in cooperation with the Supreme Council of Health and the Primary Healthcare Corporation. The new health centres are larger in size when compared to older healthcare centres. This will increase their capacity in terms of building more multi-specialty internal clinics, hence USA HochikiaHHP QCN2.8.pdf 8/6/15 9:05 AM a greater receiving larger number of 1patients and providing number of parking spaces.
Qatar announces a mega industrial project Qatar has announced a mega project to feature its industrial zone, located in the country’s south. Planned to be spread across a space of more than 6.3 million square metres, the facility will provide assembly and storage units, showrooms and shops, commercial offices, labour camps, workshops, warehouses, service centres and depot. In total, the zone will feature more than 1850 units, which will be developed across the Al Wakra, Birkat Al Awamir and Aba Sali areas.
Al Ghuwairiya Health Center spreads over 20,000 square metres (sqm), with a built-up area of 2404 sqm while Al Karaana Health Center spreads over 24,000 sqm with a built-up area of 2329 sqm. The centres are also characterised by advanced medical services, clinics, and many other sections that are aimed at providing the visitors and staff with a healthy and comfortable environment.
Al Ghuwairiya Health Center.
construction news
Contractors by value of work underway in Qatar (USD million)
26.5% Growth in the number of cranes in Doha in May 2015 compared with December 2014. Doha saw the highest growth in the number of cranes, according to Rider Levett Bucknall Crane Index. While Dubai saw a growth of
Co ns olid ate dC o C ntra NS omp ctor a s CC Int ny ern a tio HB na KC l on tra cti ng Co ETA As con
up Gro th on ig r Le too b Ha
23.57%
, the number of cranes in Abu Dhabi declined by
1.67%
QD VC Sa ms un gC &T La rse n& Tou bro
6,000 5,000 4,000 3,000 2,000 1,000 0 Al Jab er Ke En ntz gin En eer gin ing eer s& Co ns tru cto rs
12
Source: MEED Projects
Number of cranes in Doha compared to Dubai and Abu Dhabi
279
353
May 2015
Doha
475
587
Dec. 2014
Dubai
251
247
Abu Dhabi
Source: Rider Levett Bucknall Crane Index
Awards
Key recent contracts awarded in Qatar • A contract, worth QAR206 million, for the development and management of the new Souq Haraj has been awarded to Triple A Trading and Contracting Co. The contract involves design services for the market, provided for 324 shops. • The Public Works Authority (Ashghal) has awarded a 30-month contract to a consortium of Italy’s Salini Impregilo and Qatar’s Bin Omran. Worth USD335 million (QAR1.2 billion), the deal is part of the Local Roads and Drainage
August 2015 | QCN
Programme and is aimed at building infrastructure in northern Qatar. The award was made a day after a joint venture of Salini Impregilo, the local Galfar Engineering and Italy’s Cimolai was awarded the USD850 million (QAR3.1 billion) contract by the local Aspire Zone to build the Al Bayt stadium in Al Khor, stated MEED. • Manateq has awarded a QAR1.69 billion contract to a joint venture of Spain’s Sacyr and the local Urbacon Trading & Contracting.
The scope of this contract includes design and construction of civil works for Qatar Economic Zone 1 (QEZ-1) in Ras Bufontas. The contract is due for completion in 2017, according to MEED. • South Korea’s Samsung C&T has been awarded a USD1.8 billion (QAR6.5 billion) contract on Facility D independent power and water project in Qatar. The contract covers engineering, procurement and construction of a 2500-megawatt combined cycle power plant, stated MEED.
News Events Construction
14
6 – 9 September
14 – 16 September
26 – 27 October
Port Development Week Qatar Transport Forum Future Landscape & InterContinental Doha 2015 Public Realm Qatar 7 – 8 September
Sheraton Doha Resort & Convention Hotel
InterContinental Doha – The City
9 – 11 November Future Interiors qatar 4 – 7 October Doha, Qatar Bridges and Highways In the coming years, Qatar will see Health Facilities Design Qatar significant increase in investments InterContinental Doha and Development in across the hospitality, retail, transportation, commercial, and Qatar residential sectors. While most of the projects are currently under construction, the next phase of activities will include fit-outs and furnishing of the completed projects. To be held at InterContinental Doha – The City, the event will bring together project owners, project managers, design professionals, contractors and consultants.
InterContinental Doha
11 – 13 October
Sports Infrastructure Expo Qatar
Employee Health and Wellbeing Conference
23 – 26 November
InterContinental Doha
13– 14 October
Qatar Transport Infrastructure 2015
Pictured is the interior of the Lagoona Mall in Doha.
8 – 9 September 4th Annual ITS & Road Safety Forum St. Regis Hotel, Doha
August 2015 | QCN
15 – 17 November
Transport is a key enabler to the Middle East economy and, as such, will be a cornerstone to its growth in the near future. Qatar Transport Infrastructure 2015 Conference will take place at the Sheraton Doha Resort & Convention Hotel, Qatar. The focus of this conference would be the land transport sector in the emerging markets especially in railways under urban transportation.
Qatar National Convention Centre
The Big 5 - DUBAI
The Big 5: International Building & Construction Show is one of the largest annual construction events in the Middle East, attracting more than 80,000 visitors. To be held at Dubai World Trade Centre, United Arab Emirates, the event will exhibit more than 30,000 construction products by 2800 plus manufacturers and distributors from 65 countries.
Bridge piers at a construction site in Qatar. (Image Ashghal)
16
guest column
Making Qatar’s road network sustainable for the future Elie Khairallah of Advanced Construction Technology Services discusses some challenges regarding Qatar’s road networks and how they can be improved for long-term sustainability.
Elie Khairallah is the head of Geotechnical Practice at Advanced Construction Technology Services.
August 2015 | QCN
The planning, design and structural quality of roads is a crucial part of city planning. A city’s road network is the set of nerves that enable the flow of life, promoting the development and the execution of ongoing and future projects. Hence, it is essential to have a well-established set of motorways that embrace the urban plan covering the possible movements around a city. From the construction development point of view, a wrongly established road network can create bottlenecks in supply chain of materials and can also impact the progress of projects by causing delays in meetings, which can further postpone future projects. The road network in Qatar is still under development. In this period of heavy construction, it is expected to have traffic jams at certain times of the day in parts of the city. Some road plans are seemingly challenged by the current and future growth. For instance, The Pearl-Qatar has only one way in and out intersecting with the Lusail highway. This looks puzzling until the final scheme is completed and tested. Other areas where the main project is completed experience a better flow of traffic, such as the completed section of Salwa Road once you cross the junction of the Doha Expressway D-Ring Road towards the industrial area. When it comes to road development and maintenance in Qatar, the country’s climatic conditions are important to keep in mind. Considering the weather in Qatar, the main challenge is reaching an optimum pavement design – mainly the bound material of the pavement which is sensitive the most to heat and humidity – that extends the life of a road, limiting the rehabilitation and/or reconstruction works. That said, the State of Qatar is continuously reviewing this aspect of
pavement design, trying various solutions and embracing advances in the field. A key concern for Qatar is that Doha is not expanding enough into neighbouring towns and still has a dynamic development scheme. Much of the development is concentrated within the capital with limited development across other areas of the country. This means the roads can get obsolete very fast with new development plans. On the other hand, from a materials point of view, there is still no proven design that will guarantee the long life of the pavement. However, the positive outlook is that Qatar has vast undeveloped areas and a good subgrade that can help extend the lifespan of the road network. On the other hand, the country’s ongoing development will likely promote future expansion and evolution of its road networks. In the long term, Qatar’s roads should secure anticipated traffic growth with limited intervention needed for rehabilitation and/ or reconstruction. They should be designed large enough in order to accept the future flow of vehicles. A standard design approach embraces a traffic growth for a period of 20 years using the latest technology in construction materials. Moreover, the country’s road network should be designed based on the urban area that it covers, taking into account its function that may be industrial, residential or touristic, etcetera.
In the long term, Qatar’s roads should secure anticipated traffic growth with limited intervention needed for rehabilitation and/or reconstruction.
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smartphone and tablet optimised.
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The Edge | 1
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cover story
Ahmad Jassim Al Jolo, chairman of Qatar Society of Engineers, says, “You don’t expect everybody to become engineers because there are other attractive fields such as medicine, business, besides government sector. But it is one of our goals as an organisation to attract more Qataris into the construction profession.” (Image Syed Ameen Kader)
June 2015 | QCN
cover story
19
developing Qatar’s next
generation An exclusive interview with Ahmad Jassim Al Jolo, chairman of Qatar Society of Engineers.
QCN | June 2015
20
cover story
While Qatar has large numbers of construction professionals coming from all over the world, increasing reliance on expatriates is not a sustainable option for the country in the long term. In an exclusive interview with QCN’s Syed Ameen Kader, Ahmad Jassim Al Jolo, chairman of Qatar Society of Engineers (QSE), discusses why the country’s construction sector lacks Qataris, and what QSE is doing to turn the situation around.
A
s Qatar continues to go through a massive construction phase to implement projects for Qatar National Vision 2030, and, of course, the 2022 World Cup, the participation of local talent in the construction sector is critical. Compared to the hydrocarbons industry, the construction sector has not been able to attract many Qataris. Those who are engaged in the building and construction sector are mostly limited to senior managerial or ownership roles. That said, the trend is gradually changing. Ahmad Jassim Al Jolo, chairman of Qatar Society of Engineers and one of the founding members of Qatar Green Building Council, can take some credit for working towards changing this trend. When, in 2007, Al Jolo and his fellow engineers set up the organisation, which currently has 200 Qatari-only members, a motivation behind was to encourage young Qataris to pursue civil engineering for their professional careers. Clearly, the idea was to expand locals’ share in the country’s construction sector, that was already showing signs of rapid progress in the future. No country can build without active participation of its local talent, and Qatar is no exception. For the construction sector to develop in a sustainable manner, Qataris will have to play greater roles sooner or later. “We are a small country with just about 300,000 Qataris. You August 2015 | QCN
The team of QSE regularly visits universities and high schools in Qatar in order to encourage students to study engineering. don’t expect everybody to become engineers because there are other attractive fields such as medicine and business, besides government sector. But it is one of our goals as an organisation to attract more Qataris into this profession,” says Al Jolo, who has spent almost three decades in Qatar’s construction industry, holding key positions in major industry bodies such as the Professional Engineers Committee and American Society of Civil Engineers. A graduate in civil engineering from
Civil engineering is not a popular career choice among Qatari students who generally prefer specialising in finance and energy fields. (Image Arabian Eye)
cover story
the Seattle University, Al Jolo tells QCN that the team of QSE regularly visits universities and high schools in Qatar in order to encourage students to study engineering. “But it is a challenge for us and we all are working towards that direction,” he says, adding that he is happy to see that some of the new generation Qataris are open to taking up field jobs in the country’s construction sector. Al Jolo acknowledges that the construction sector, in general, has always been a difficult profession to be in, due to the relatively tougher working environment. As a result, many students stay away from civil engineering, and prefer to pursue their careers in other fields such as oil and gas, mechanical, electrical or IT. Another factor that plays a key role in limiting Qataris’ presence in construction is the lack of government job opportunities linked
to the field of civil engineering. Being the richest country in the world, Qatar offers its local candidates lucrative job opportunities within the public sector. Add to this lower pay scale in the construction sector, compared to some other industries, and the reason behind the lack of local talent in construction becomes even clearer. Highlighting the long-term impacts of salary variations, Al Jolo says, “When you compare it (pay scale) with oil and gas sectors, those fields are attracting more people due to higher salary. I think the construction sector too has to be competitive when it comes to pay scale. The decision makers here have to take the salary of construction engineers more seriously;
21
The growing regional competition for manpower is going to have an impact on Qatar’s construction sector as it heavily relies on expatriate professionals. (Image Arabian Eye/Corbis)
“I think it (manpower) is going to be a big challenge. I am sure construction is happening almost everywhere in the region.” - Ahmad Jassim Al Jolo, chairman, QSE. QCN | August 2015
22
cover story
else, all the other fields will just take them away.” Al Jolo says the main intention behind setting up a non-profit professional organisation such as QSE was to form a core group of engineers who can contribute to the construction industry and development of Qatar, in general. “We want to achieve this through coordination within the construction sector and other governmental organisations. We are also trying to become the only regulatory body for engineering profession, with regard to registration, consulting and setting up offices,” he says. QSE is currently the only government-recognised engineering body that is working towards promoting engineers, locally and internationally. Before its formal registration with the government, it was operating under the name of Forum of Qatari Engineers. With the idea of attracting young graduates towards construction careers, the society has been working with some of the leading academic institutions in Qatar, including Qatar University and Texas A&M University. The collaboration with these institutions includes sharing of knowledge, experience and research with students besides offering them trainings. “Our main goal is to help integrate the profession of engineering and at the same time the engineers. We do present training courses, workshops, seminars, and lectures. We are also a member of the Gulf Engineering Union, and part of the Federation of Arab Engineers. We are now in the process of applying for partnership with the World Federation Engineering Organizations,” says Al Jolo.
Regional competition While the involvement of locals in all key areas are important for national sustainability, for Qatar, the integration of local talent into workforce is even more crucial given the fact that the country heavily relies on expatriate professionals. Today, manpower is one of the most critical issues for the construction industry, not just in Qatar but also across the region. What makes the situation more challenging for Qatar is the increased competition August 2015 | QCN
from regional countries such as the United Arab Emirates (UAE), Kingdom of Saudi Arabia and Kuwait, which are also building massively to meet their domestic demand. “I think it (manpower) is going to be a big challenge. I am sure construction is happening almost everywhere in the region – UAE, they are hosting Expo 2020 in Dubai; Saudi Arabia, they have big projects, railways, housing projects, and so many infrastructure works; and Kuwait,” says Al Jolo, adding that those who will pay more will be able to attract more talent. “I think this will be a contest between UAE, Qatar and Saudi Arabia,” he foresees. While the issue of regional competition is there, Qatar is often criticised for its Kafala sponsorship law (labour law), which is perceived as restrictive for people working in the private sector, including construction. When asked about the impact of Kafala on the overall attractiveness of Qatar’s employment market, Al Jolo says he sees this more as propaganda from the West. “Kafala system has been working for us for many years. There have not been big issues with this system except these days. Why now? They have not been talking about it a long time ago. If you go to other countries, it’s the same thing. For example, if I am a Qatari and I go to Europe now for work, there are certain laws that I have to conform to,” he explains. Al Jolo says these laws are being applied keeping the country’s security and safety in mind. That said, Kafala system is also being reformed now. “I am not expecting everything to be 100 percent perfect overnight. The people who are working on this are taking care of the workmen,” says Al Jolo, adding, “I don’t think the government wants to break the hearts of these people or anything. They are trying to protect these people but also at the same time, we are all human beings, so you have to give time.”
Overcoming challenges Unlike some developed markets, Qatar does not have a long history of practicing advanced construction methods since the sector started
“The amount of work that you are seeing here, you will not find anywhere else in the world. There is not much construction work happening in Europe or America.”
cover story to peak only a few years ago. As a construction market, which is on its way towards maturity, how does Qatar cope with the engineering and architectural challenges that these mega projects offer? Al Jolo feels design and innovation are some aspects that do not have boundaries, they cannot be controlled by any one country. “If you go to big countries, even they are using expertise from all over the world. For example, in China, most of the iconic buildings are not built or designed by the Chinese. Mostly, those are designed by the Europeans, and it’s the same when you go to America,” he says. Al Jolo believes in smooth transfer of knowledge without any restrictions in reaching beyond borders. He agrees there are some dominant countries such as Europe and America which have excelled in innovation, but “that is not going to last forever. I think, in general, some mega projects depend on certain countries because they have
got specialisation in those. I am sure there will be some sort of cooperation between all the countries.” Emphasising on the roles of Qatari companies that have earned local experience and knowhow to execute these critical projects, Al Jolo says, “I am not telling you that it’s not a challenge, but we also have experiences available here in Qatar. You simply cannot implement something that is applied in Europe or America or in China, as it is too hard to make it adaptable here. That’s why you need shared knowledge between developed markets and Qatar through some sort of joint ventures,” says Al Jolo, adding that one company or country cannot do everything by itself. “There is always demand for everybody working together in a project.” According to Al Jolo, Qatar offers invaluable experience to expatriates who are working here in many of the construction projects. “The amount of work that you are seeing here, you will
23
View of a construction site in Doha, Qatar. The country started building only a few years ago and it is now seeing a construction boom ahead of the 2022 World Cup. (Image Arabian Eye/Corbis)
QCN | August 2015
24
cover story
“We are going to prove to the world once again that we are capable of holding the 2022 World Cup and many more activities beyond the 2022 [event].” not find anywhere else in the world. There is not much construction work happening in Europe or America. That’s why they bring their people here to gain experience,” he says. Regarding the architecture and design, what kind of changes is Al Jolo witnessing in the country? What is applicable for a European country may not be suitable for Qatar. But does this translate into increasing influence of local architecture on the projects that are coming up in Qatar? “There are many projects which have strong local architectural influence,” he says, adding that Qataris have long been influenced by European or Western architecture because they started to travel more frequently after the oil boom here. “But now they are coming back again. You would see people here, even for their average villas, are coming back to the old way, but they are doing it in a modern way. They are using the new technology but in a traditional way,” says Al Jolo. Similarly, Qatar is not building big glass towers because the weather here does not suit such construction designs. “I believe even the designs are changing. You don’t want to walk close to a building and feel strange about it because that does not belong to you,” he adds.
2022 World Cup Amid the ongoing controversy surrounding the 2018 and 2022 World Cups, how confident is Al Jolo about Qatar’s ability to overcome the ongoing criticism and put up a good show? Al Jolo explains that there were some doubts raised even during the Asian Games 2006. “We proved to the people and the other countries what we are capable of doing. I think we are going to prove to the world once again that August 2015 | QCN
Having spent almost three decades in the construction industry, Al Jolo sounds passionate about the future of Qatar and the kind of role young Qataris can play for the country’s construction sector. (Image Syed Ameen Kader)
we are capable of holding the World Cup 2022 and many more activities beyond the 2022 [event],” he says confidently. Al Jolo points out that what one sees in Qatar has come up in just 30 years or so, in comparison to 150 to 200 years that Europe or America took to build. “I know there are some negatives because when you do things in a hurry, you tend to hear all these. But it does not mean that we have to stop or delay things,” says Al Jolo, who feels one cannot undermine the achievement that Qatar has made in such a short time. “What’s been built from that time until now, it’s an achievement. So I think we are doing very well and it will continue. I know we are not perfect, but I think we are in a better situation than other countries,” he adds. He predicts that people will continue to talk about labour issues until Qatar
finally finishes building all projects. “They do not want a World Cup in the Middle East,” says Al Jolo, adding that while the international forces continue to criticise, Qatar will continue its work to successfully deliver the 2022 World Cup. Having spent almost three decades in the construction industry, Al Jolo sounds passionate about the future of Qatar and the kind of role young Qataris can play for the country’s construction sector. “I want to encourage the Qataris to attend the engineering schools and to develop themselves and take care of themselves. I would tell them not to rely on their organisations to develop them. They have to take the initiative. Furthermore, some Qataris, after university, would be interested to open their own companies. Why not? Go ahead, start some sorts of small and medium enterprises (SME),” he concludes.
Construction noise is an inevitable reality in Doha, where massive construction is currently in progress. Some of the most common means of construction noise mitigation include noise barriers, acoustic enclosures, use of excavated soil as embankments, and conduction of noisy activities during the daytime in residential areas.
The noise and nuisance of construction in Doha Where there is construction, the sounds of drilling, dumping, excavating and crushing are bound to create noise pollution. Maro Puljizevic of Al Mana & Associates looks at some ways Qatar can control the problem of construction noise in Doha. Qatar, a relatively young nation with an unprecedented pace of development, undoubtedly houses some of the biggest construction sites in the world. Being one of the driving forces of Qatar’s economic growth, construction presents an inevitable part of daily lives for the residents of Doha. Whether it is about living in the vicinity of a construction site or just commuting through the city’s ever-changing maze of roads, as residents of Doha, we are all drawn into this very complex process of construction. Construction activities certainly have an impact on the environment, such as the creation of various pollutants and waste. One of these pollutants is linked to the issue of noise. Unless regulated properly, the noise pollution generated by ongoing construction will pose a significant threat to our comfort and health. Construction noise includes unpleasant August 2015 | QCN
sounds originating from various construction activities such as transport and dumping of materials, demolition, piling, excavation, grinding, and temporary power generation, etcetera. Various effects of noise on human health are thoroughly documented while the World Health Organization has acknowledged noise as one of the key factors impacting human wellbeing. Exposure to excessive noise, whether at work, home or school, has severe repercussions on our health; causing chronic fatigue, depression, loss of energy, lack of concentration, and high levels of stress, etcetera. Virtually epidemic proportions of construction noise pollution in Qatar are evident. Regardless of the area and real estate value, stories from frustrated residents are regularly appearing in newspapers and online.
The majority of population as well as the contractors are unaware that there are general guidelines related to construction noise set by Qatar’s Ministry of Municipality and Urban Planning.
environment
27
Controlling construction noise While noise disturbance continues to become a part of Doha’s everyday life, a correct approach to the problem and management of construction noise can significantly reduce annoyance and improve the overall quality of life here. The biggest hurdle in overcoming this problem is lack of clear laws regulating construction noise in Qatar, which is further amplified by uncoordinated jurisdiction on the matter among municipalities, Ministry of Municipality and Urban Planning (MMUP) and police. The issue of noise pollution also necessitates the establishment of a department dedicated to handling residents’ noise complaints. Such an entity can encompass all aspects of community noise, including construction noise. The majority of population as well as the contractors are unaware that there are general guidelines related to construction noise set by the MMUP. Although not very comprehensive at this point, they provide a good basis for reference. According to these guidelines, contractors are permitted to work 24 hours a day in financial district from Saturday to Thursday; and from 10:30 am to 1 pm on Fridays. In residential areas, working hours of contractors are restricted from 6:30 am to 6 pm from Sunday to Thursday, and from 8 am to 2 pm on Saturdays. However, due to unclear division of districts into financial and residential categories, ignorance and nonchalance of contractors, and the lack of a dedicated governmental body to regulate and monitor these guidelines, contractors often breach the time limitations set for them. Clearly, the guidelines marked out by MMUP are intended to control noise in residential areas, but controlling construction noise around schools and workplaces still needs to be taken into consideration. Excessive noise at workplace severely diminishes employees’ concentration. It is also considered as one of the main components causing workers’ dissatisfaction, leading to reduced productivity. Similarly, for schools, impacts on teaching process and inability of students to concentrate are linked to surrounding noise. Furthermore, contractors are allowed to work round the clock on projects considered highly crucial for Qatar. This leaves enough room to resourceful contractors to bend already fragile guidelines. Despite best intentions, placing limitation to the working hours alone is not enough. Laws regulating construction noise should mandate maximum noise levels that cannot be exceeded by the contractors regardless of the time of the day. By doing this, contractors would be obliged to consider certain noise mitigating strategies and plan sound-producing activities in advance. Anticipating construction activities and estimating noise impacts should be a part of mandatory documentation required to obtain a building permit. The key purpose of these noise management plans is to predict noisy construction activities and define suitable noise mitigating treatments. Although challenging, construction noise can be mitigated to a certain extent. Some of the most common methods include noise barriers, acoustic enclosures, use of
In residential areas, working hours of contractors are restricted from 6:30 am to 6 pm from Sunday to Thursday, and from 8 am to 2 pm on Saturdays.
excavated soil as embankments, and conduction of noisy activities during the daytime in residential areas. To achieve the goal, contractors should list all the noisy activities foreseen, and plan their execution during the daytime if the construction site is located in a highly populated area. Noisiest activities such as demolition or excavation should never be executed early in the morning or during the night time. Where a contractor fails to do so, tight time schedules should not be used as excuses for poor planning of construction activities. Finally, the most important measure of any noise management plan, which is by far the most neglected aspect of the construction process in Qatar, is the encouragement of positive community relations. In general, people tend to tolerate high levels of noise for a longer period of time if they are aware of timings and expected start and end dates. Accepting the residents of neighbouring properties as allies rather than enemies can make everyone’s life easier. Informing residents well ahead of noisy activities and keeping them up to date with noise control measures undertaken builds strong community relations and helps mitigate frequent complaints.
Maro Puljizevic is Acoustics Section manager at Al Mana & Associates.
QCN | August 2015
28
project finance
Prospects of
public-private
partnerships for Qatar’s infrastructure
Philippa Chadwick and Susan Bastress of Squire Patton Boggs look into the scope and potential role of public-private partnerships for Qatar’s growing infrastructure sector.
Q
atar has one of the fastest growing economies in the Middle East and ambitious plans for infrastructure development – plans which are in part driven by the 2022 World Cup and the requirement for a sustainable legacy. The sheer scale of the infrastructure programme in Qatar across a broad range of sectors makes a public privatepartnership (PPP) model more attractive, in particular to leverage private sector investment and expertise. As governments in the Gulf Cooperation Council (GCC) continue to face challenges in addressing the medium- and long-term needs of their expanding populations, some are developing strategies to diversify their economies and build the infrastructure required for growth. Where access to capital diminishes over time, a case for PPP on a more comprehensive basis becomes more compelling. In the next few years, we expect to see a PPP model (or indeed a variety of sector specific models) The development of a emerge for Middle Eastern countries that acknowledges dedicated directorate into the structural issues unique a PPP unit to coordinate, to this region, and the rise market and regulate of a local delivery market tailored to its specific needs. the projects would be a
milestone for the promotion Drivers for PPP as an of a PPP solution to Qatar’s option What are the key issues for diverse infrastructure Qatar that are influencing plans. and driving the need for a PPP model for infrastructure?
August 2015 | QCN
• Population growth: The increasing influx of expatriates across all GCC states, along with a governmental desire to diversify economies away from dependence on oil and gas revenues and to nurture local, skilled workforce, are some factors driving the development of education projects and facilities of all kinds. • Accommodation needs: Residential demand linked to population growth and developments in healthcare have resulted in a need for more affordable housing projects in Qatar similar to those successfully completed in Oman and Bahrain. • Healthcare requirements: Healthcare needs particularly for an expanding and aging population and for longer-term care for diabetes, heart disease and congenital medical problems, will lead to more specialised facilities. The need for facilities is not just about new build but also operational facilities. • Environmental impact: The rapid urbanisation in Qatar and across the Middle East means that the treatment and disposal of waste and wastewater has become a significant issue. Increased consumerism, expanding leisure and tourism industries, and the need for specialised disposal facilities have all sharpened the focus on waste. These pressing infrastructure concerns in Qatar
project finance
29
With increasing demand for infrastructure development, governments in the GCC are looking to partner with the private sector for the skills and expertise to develop and execute projects, to bring efficiency in management of projects, and to provide employment for growing young populations. (Image Arabian Eye/ Corbis)
and neighbouring states are developing in tandem with financial and economic changes, which are conducive to the emergence of a PPP-based solution: Changes to project financing are a very new development as few projects have been funded so far using alternative funding methods. That said, the adoption of new financing models in Qatar will still require concrete project pipelines. GCC countries typically have a significant public sector and less developed private sector, though Qatar has seen important growth in this area. Governments in the region are generally looking to partner with the private sector for the skills and expertise to develop and execute projects, to bring
Globally, PPP models of project financing are used to avoid an upfront hit on the state budget by distributing it with private investors. With Qatar planning vast infrastructure projects within the next few years, the option of PPPs has become even more appealing.
As we watch infrastructure developments in the Middle East, it is certain that PPP models developed in mature PPP markets in other regions can be used as a guideline.
efficiency in management of projects, and to provide employment for growing young populations.
A PPP framework for Qatar’s infrastructure The use of PPP in Qatar to date has been in the power industry and through the use of Design-Build-Operate (DBO) models for certain sectors including road, water, waste and residential accommodation projects. Formalising a framework and law has been under discussion and the creation of a directorate to develop policies and business is a step in the direction of the development of a PPP unit. Among the reasons for taking this approach is the need to properly QCN | August 2015
30
project finance
Partnership of public and private sectors have worked successfully in a number of countries. Similarly, having a robust PPP law can be a catalyst for development of PPP across a broad range of sectors in Qatar. (Image Arabian Eye/Corbis)
define a scope of the PPP law, giving the commissioning authority the power to contribute to the projects whether through financial means by guaranteeing revenue streams, tax incentives or providing compensation mechanisms, or more tangibly through land provision. Having a robust and clear PPP law and regulatory framework has been successful in other countries and could be a catalyst for development of PPP across a broad range of sectors in Qatar. In nearby Kuwait, a positive impact of the PPP law has been seen on the pipeline and progress of projects since last year. It has created confidence in the community bidding for projects. Perhaps the development of a dedicated directorate into a full blown PPP unit to coordinate, market and regulate the projects would be a milestone for the promotion of a PPP solution to Qatar’s diverse infrastructure plans.
Challenges and status While the government is building (and regulating) the facilities, the challenge is to create incentives for foreign August 2015 | QCN
long-term investment, balancing the assumption of risk. Qatar has set out plans to invest over USD30 billion (QAR109 billion) in projects across a broad range of infrastructure but particularly focused on transport and connectivity. Highprofile projects such as rail and road programmes need to be supplemented by social infrastructure programmes in healthcare, housing and education all of which are needed to support the development of the population. The commercially available financing for the development of these projects on a project finance basis is a small pool. More locally financed solutions and multi-sourced approaches bringing in export credit agencies, and multilaterals alongside local and international commercial lenders can provide not only the finance but the rigorous due diligence that many projects ultimately require to be successful. The development of local solutions using a variety of financing techniques including shari’ah products and contractor financing offsets the decline in activity since the global financial crisis which has meant that European banks have been less active in the market here. As of now, the public sector investment in projects is strong with that sector participating in many of the existing infrastructure assets as a direct stakeholder. This is an unusual position in PPP models outside the Middle East region but a feature of a number of GCC countries. Holding shares alongside the private sector reflects not only the desire to maintain some direct control, but also acts as a safeguard for key assets of the country while also sharing with the population an interest in key assets. Without a doubt, having the right political support for infrastructure projects is key. Qatar is no different and the government has an identified pipeline, a mix of high-profile and smaller projects and the unstinting support from the government to complete a robust programme. Such certainty is crucial for foreign investors, contractors and funders to commit costs to bid for these projects. As we watch infrastructure developments in the Middle East, it is certain that PPP models developed in mature PPP markets in other regions can be used as a guideline. Ultimately, however, states such as Qatar will look to adopt a PPP delivery solution and find their own structures that are adapted to the local market and to government requirements.
Philippa Chadwick is the head of the global infrastructure group, and Susan Bastress is the Doha office’s managing partner at Squire Patton Boggs.
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industry insights
33
Qatar is the second most competitive economy in the Middle East. To maintain this, Ghassan Bharghouth, the executive president of Schneider Electric in Qatar, Kuwait and Bahrain, says that the country must continue investment on education, research, foreign trade, infrastructure and hospitality as these industries can benefit from smart solutions. (Image Fotoarabia)
Gulf cities are vying to be smarter, more sustainable, and better connected
In an interview with QCN, Ghassan Bharghouth, the executive president of Schneider Electric in Qatar, Kuwait and Bahrain, and Charbel Aoun, senior vice president for Smart Cities, Schneider Electric, speak about smart cities in the Middle East. How would you explain the concept of smart cities? Charbel Aoun: Many will define smart cities by the technology that is being implemented. While this is a piece of the puzzle, the people and communities who live in them more aptly define smart cities. Smart cities have citizens at the heart, technology and data are
enablers that need to be rooted in the unique culture and dynamic of the city’s inhabitants. It is the combination of public governance, people ownership, and business collaboration that drives the need for improved city services and enhanced quality of life. One of the most definitive aspects of a smart city is that no one can create
a smart city alone. Collaboration is needed across the city departments as well as between governing visionaries, leading academics and researchers, and best-in-class industry partners. Once this collaboration is put into place, the city is better equipped to tackle the challenges of departmental issues such as transportation, water, public services, as well as changing urban population needs, environmental concerns and business demands with a holistic view for implementation. QCN | August 2015
34
industry insights
What are some integrated smart city solutions Schneider Electric provides? Ghassan Bharghouth: Schneider Electric has established its Center of Excellence to harness its knowledge, experience and success in working with over 200 cities in smart management projects worldwide. It has accumulated global expertise in technology, building management systems, traffic solutions and infrastructure. In Qatar, we have worked with several private and governmental authorities, such as Qatar Petroleum, Kahramaa, Lusail, Qatar Foundation, Gulf Organisation for Research & Development’s Global Sustainability Assessment System (GSAS), where our systems help end users conserve resources, achieve LEED certification, and provide a platform to drive measured organisational behaviours with respect to sustainability, and their contribution to the environment, and reduction of CO2.
Technology is changing rapidly. How will it impact smart cities built with relatively older technologies? Aoun: The future of smart cities technology resides on the premise of an open and flexible configuration. To be successful in this space, one must be sure that new technologies have the backward integration capabilities to take these older technologies into account. With that said, the onset of the cloud is changing everything. We are seeing the rise of platforms, which can house older technology and make it compatible with new systems. Connected to this rise of platforms and investment, International Data Corporation states that spending on ICT products and services in the Middle East and Africa will grow by nine percent year on year in 2015 to cross USD270 billion (QAR983 billion). By implementing some of the new smart city technologies, organisations and cities can monitor the utilisation of energy sources through smart grids, which enable real-time visibility, minimise downtime, and provide analytics and forecasts for future
August 2015 | QCN
Ghassan Bharghouth, executive president of Schneider Electric in Qatar, Kuwait and Bahrain, has 15 years of experience in the Gulf region serving in critical roles across energy services and energy management companies. At Schneider Electric, he oversees powergeneration services and I(W)PP projects.
Charbel Aoun, senior vice president for smart cities, Schneider Electric, says a smart infrastructure can provide long-term advantages such as improved sustainability and reduction of carbon footprint.
improvements. This provides longterm advantages such as improved sustainability and reduction of carbon footprint.
Transmitter’s waves are often linked to negative health impacts. Smart cities are heavily dependent on transmitters. How safe are such cities for human health? Aoun: There is some debate on whether or not transmitter waves have a significant negative impact on human health. While Schneider Electric is not the expert on this specific field, we can share that many third-party studies have not identified or confirmed negative health effects. Many wireless smart metres, when properly installed, have much smaller levels of transmitter waves compared to other common household devices, such as cell phones or microwaves.
How do you see the progress of the smart city concept in Qatar, and the Gulf region? Bharghouth: Across the Gulf region, cities are vying to be ‘smarter’, more sustainable, and better connected, offering citizens the best in quality for
“The [Gulf] region’s governments are learning from global city systems and industry leaders, and are on the right path to becoming smart cities in the near future.” - Ghassan Bharghouth, executive president, Schneider Electric in Qatar, Kuwait and Bahrain.
industry insights
5 key considerations for a smart city
35
Vision A vision and road map of how your city could be smarter, efficient and greener.
Collaboration Constant engagement between global experts and local stakeholders; private and public enterprises, and governments and citizens.
Investments and solutions State-of-the-art resources and financial investments.
Research and development Entrepreneurship and innovation from local and global sources to help organisations create a specific business model based on what works best for the city.
Integration Integrating operations of government, energy management authorities, legal bodies and transport networks, etcetera, to enhance the efficiency of overall city management.
Source: Charbel Aoun, senior vice president for smart cities, Schneider Electric. transportation, daily living, education and mobile accessibility. In 2013, Dubai announced its ambitions to become a smart city and started developing its e-government in order to service this goal. Saudi Arabia, Qatar and Bahrain are making huge strides in this direction with their Economic Cities, Energy City, and Bahrain Bay developments, respectively. There is an increasing trend toward ICT readiness, and adoption of cloud; this is positively impacting the smart city momentum. Other factors include the growing urban population and their energy utilisation, influx of tourists and a global call toward sustainability. Leadership in the Gulf region is keen to leverage advanced technology to create an urban ecosystem which is friendlier to and for its people. A recent World Economic Forum study ranks Qatar 16th in the Global Competitiveness Report 2014-15. It is the second most competitive economy in the Middle East after the United Arab Emirates. In order to remain competitive and for its economic development, Qatar must continue investment in
education, research, foreign trade, infrastructure and hospitality. These industries can benefit from smart solutions and a more interconnected city network. Responding to growing tourism from upcoming mega-events and high energy utilisation, Qatar plans to invest USD45 billion (QAR164 billion) in the smart city of Lusail, which will extend to 72 square kilometres, integrating unobtrusive transport systems with highly digitised command and maintenance centres to manage all traffic flows. The region’s governments are learning from global city systems and industry leaders, and are on the right path to becoming smart cities in the near future.
What are some aspects of profitability linked to smart cities in the Middle East? Aoun: Smart cities not only have a goal of improved quality of life for citizens, but a focus on increasing the efficiency of its operations. In improving efficiency of a city, whether through advanced mobility enhancements or energy reduction, the achieved savings can
be transferred to focus on areas of the city’s priorities. In addition, a smart infrastructure can increase the long-term sustainability and resiliency of a city. An intelligent electricity grid can reduce power losses, reduce the demand of power, and as a result, increase the attractiveness and eco-friendliness of the city. The attractiveness of city not only draws the attention of potential future citizens, but investment and businesses alike.
“Smart cities have citizens at the heart: technology and data are enablers that need to be rooted in the unique culture and dynamic of the city’s inhabitants.” – Charbel Aoun, senior vice president for smart cities, Schneider Electric.
QCN | August 2015
36
legal
To pay or not to pay:
Liquidated damages under Qatar Law
Liquidated or delay damages are a useful tool to avoid a dispute when a project is late. However, your right to claim, or your obligation to pay liquidated damages may not be clear cut as it appears in the contract, writes Scott Lambert of Al Tamimi & Co.
L
iquidated damages allow an employer to claim a pre-agreed amount from the contractor where the contractor fails to meet set milestones or the date for completion. You should make sure that the amount or rate of liquidated damages is reasonable and calculable, or else you may face a challenge to its enforcement. The Civil Code provides that the contractor will not be liable for liquidated damages if he establishes that the employer did not suffer any damage. A court may reduce the amount payable if the contractor proves that the pre-agreed amount greatly exceeds the quantum of actual damage, or that he has partially performed the obligation in question. This cannot be excluded by contract. Furthermore, a court may reduce the rate of liquidated damages payable by the contractor where the employer participated in the occurrence of the damage or exacerbated it. This can be excluded by contract. In other words, the parties can agree to allow the employer to impose liquidated damages on the contractor even where the employer himself is responsible for the delay. While liquidated damages for delayed completion of works are permitted by the Civil Code, the Civil Code further states that where the amount of damages exceeds the rate of liquidated damages, the employer may only claim the balance if it can prove that the contractor committed ‘deceit or gross mistake’. In other words, a court or a tribunal can never award more than the liquidated damages unless the contractor’s breach was attributable to fraud or gross negligence on his part.
A court or a tribunal can never award more than the liquidated damages unless the contractor’s Contractor’s defence Under the Civil Code, where damages are prebreach was estimated or liquidated, the agreed amount may attributable to not be due if the contractor or consultant can fraud or gross show that: • no loss has been suffered by the innocent negligence on party; his part. • the level of the pre-agreed damages was “exaggerated to a high degree”; or August 2015 | QCN
• the obligation has been partially performed. In those instances, a judge (or arbitrator) can reduce the compensation due. Any contractual term attempting to exclude this principle will be void. Another defence available for a contractor is to rely on the general rules under the Civil Code, which protects a contractor who can prove that the failure was a result of extraneous causes beyond the contractor’s control. These circumstances include force majeure events, concurrent liability with the employer or mistake by a third party, such as a subcontractor’s failure to perform.
Government work In relation to government contracts, the Tenders and Auctions Law No. 26 of 2005 as amended empowers a government employer to impose a fine of up to 10 percent of the contract price if it grants an extension of time to a contractor. This entitlement is expressly stated to be without prejudice to the employer’s right to recover from the contractor any compensation otherwise payable in relation to such delay. In order to avoid future disputes in the case of delays, in all of your contracts, you should: • ensure that all pre-agreed damages are reasonable and calculable. If you have made calculations, keep these records in the case of a later dispute. • make sure your contract is drafted to ensure clarity as to the matters covered and compliance with the Civil Code.
Scott Lambert is the regional head of construction and infrastructure at Al Tamimi & Co.
38
human resources
How to secure your job in a
not-so-secure marketplace According to a 2015 survey by Bayt.com on Job Satisfaction in the Middle East, 41 percent of Qatar professionals do not see themselves working for the same employer in the next two years, while 61 percent are actively trying to move to another organisation. This is an alarming fact for both employers and job seekers in the country. For employers, this means higher turnover rates, and for job seekers, it could simply mean less job security. For job seekers in Qatar who are afraid of losing their job or worried about the rising job insecurity, here is some information to help you secure your job: 1. Find out about yourself: Know yourself, ask your colleagues about your strengths and weaknesses. This will go a long way towards keeping your job. 2. Let go of your fears: Paul Sweeney once said, “True success is overcoming the fear of being unsuccessful.” Put your fear aside and let go of that crippling feeling of anxiety in order to be able to start planning for ways that could save you from losing your job. 3. Be unique: Create a strong and unique personal brand in order to stand out from others. To increase job security, you must prove you are irreplaceable. Aim for excellence and try to show you are truly the best at what you do. 4. Enhance your skills: Work on
expanding your skillsets. Absorb a little knowledge of everything that is connected to your current job, even if remotely. Start by attending seminars, workshops and reading on relevant topics. 5. Learn about supply and demand: You can apply the concept of supply and demand on almost everything. Take your career, for example. Before you choose a skill or experience, you should always ask yourself this question: What skills are supplied more than they are demanded? Those skills are the ones you might want to stay away from. Rather, you ought to look for mastering skills that are demanded much more than they are supplied. 6. Know the hiring practices: Finally, you should learn about the market. Look for what employers are looking for and where they are searching for talent. For example, the Bayt.com Hiring Practices in the Middle East and North Africa survey, June 2015, has revealed that 77 percent of employers in the Gulf region, including Qatar, believe that online recruitment has facilitated their hiring processes. Another 69 percent say that first impressions matter a lot in a job interview. So have a good online presence, a great CV, good presentation and interview skills – in short, make yourself a part of what is in demand and enjoy a strong, secure career!
Current Vacancies in Qatar Organisation
Position
Reference
Mideco
Project Engineer
JB3127022
Nakheel Landscapes
Civil Architect/Senior CAD Operator
JB3294116
Qatar Power Construction
Project Manager
JB3292619
Atkins
Site Engineer – Roads
JB50067885
BKC Contracting
Construction Manager
JB3290691
Parsons International Limited
Site Engineer – Drainage and Micro-tunneling
JB3290289
August 2015 | QCN
Qatar employment in numbers
14%
of job seekers in the GCC are planning to look for a job in construction in the next few months.
26%
of fresh graduates in the Middle East and North Africa (MENA) say construction is the third most appealing industry for them in Qatar.
29%
of fresh graduates in the MENA say construction sector is hiring the highest number of fresh graduates in Qatar.
46%
of employers in the GCC say the length of a job interview is between 16 and 30 minutes.
64%
of professionals in the GCC are using general online job sites to look for a job.
37%
of Qatar professionals claim that their company pays for overtime.
19%
of Qatar professionals admit that they save nothing from their monthly salary.
Sources: The Bayt.com Fresh Graduate Survey, July 2015; Bayt.com Middle East and North Africa Hiring Practices Survey, June 2015; Bayt.com Job Satisfaction in the MENA Survey, April 2015, and The 2015 Bayt.com Salary Survey, May 2015.
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www.QatarTenders.com tender name
description
client
Fee(USD)
Closing (m/d/y)
Interior Design Modification Consultancy Provision of consultancy services for interior Services design modification
Qatar Gas Operating Company Ltd. (Qatar)
137
8/10/15
Scaffolding, Insulation, Painting, Fire Proofing Maintenance
Maintenance for scaffolding, insulation, painting, refractory, acid proof lining and fire proofing
Qatar Vinyl Company (QVC)
137
8/12/15
Emergency Control Centre Construction
EPIC of an emergency control centre
Qatar Petroleum (QP)
137
8/23/15
Living Quarters Construction
Construction of offshore living quarters
Qatar Gas Operating Company Ltd.
275
8/24/15
Road Improvement Works
Carrying out road improvement works in northern areas
Public Works Authority (Ashghal)
1099
8/25/15
Sports Lighting Fields Construction Works
Design and build for sports lighting fields
Qatar Foundation
412
8/26/15
Consultancy Services
Provision of consultancy services for analysis of Ministry of Municipal the real estate market & Urban Planning
41
8/30/15
Fit-Out Works
Provision of fit-out works
Qatar Railways Company (QRC)
549
8/31/15
Consultancy Services
Provision of consultancy services for a national housing strategy
Ministry of Municipal & Urban Planning
41
9/6/15
Enabling Works
Carrying out enabling works
Public Works Authority (Ashghal)
1648
10/5/15
Substations Construction
Establishment of new substations on different voltage levels
Qatar General Electricity & Water Corporation (Kahramaa)
4121
10/8/15
August 2015 | QCN
INTERVIEW: Ghassan Bharghouth and Charbel Aoun of Schneider Electric on smart cities in the Middle East – PG 33
issue 2.8 August 2015
ENVIRONMENT
How can Qatar control the problem of construction noise?
PROJECT FINANCE Prospects of PPPs for Qatar’s infrastructure
PLUS
To pay or not to pay: Liquidated damages under Qatar Law
Qatar Construction:
The Next Generation Encouraging young nationals to pursue engineering with QSE chairman Ahmad Jassim Al Jolo
Retail Price: QR15 / AED15