INTERVIEW: Mike Fritz, gM, Bahrain, Oman and Qatar, FAMCO, on the company’s recent launch in Qatar – PG 32
issue 3.1 January 2016
Trash to
treasure
Recycling construction waste in Qatar
Feature Story
Modular approach for offshore construction
TECHNICAL
Is it okay to reuse fire-damaged buildings?
PLUS:
Legal advice on settling constructionrelated disputes in Qatar Retail Price: QAR15 / AED15
Sights like these are not uncommon in Qatar which is building massive new projects for the future. Companies such as Msheireb Properties carried out major demolition works before starting the new construction for Msheireb Downtown Doha. In our cover story, we look at some ways to reduce the amount of construction and demolition waste generated in Qatar. (Image Arabian Eye/Corbis)
16.
contents January 2016 www.qatarconstructionnews. com
COVER STORY Since managing the construction debris has become a major challenge in the treasure region, civic bodies Recycling construction waste in Qatar and companies are looking for alternative ways to get rid of this waste – costefficiently and sustainably – to not only make this into a viable business proposition but also save the environment, writes Syed Ameen Kader. INTERVIEW: Mike Fritz, gM, Bahrain, OMan and Qatar, FaMCO, On the COMpany’s reCent launCh in Qatar – PG 32
issue 3.1 January 2016
Trash to Feature stOry
Modular approach for offshore construction
teChniCal
Is it okay to reuse fire-damaged buildings?
plus:
Legal advice on settling constructionrelated disputes in Qatar
Retail Price: QAR15 / AED15
Regulars
From the Editor - 4 Construction News - 6 Guest Column - 14 Legal - 36 Careers - 38 Qatar Tenders - 40
24.
26.
32.
Technical Evaluating the strength of firedamaged buildings
Feature Story Industry Insights Streamlining offshore construction Some of Qatar’s transport will projects with a modular approach be taken over by the metros
Despite advanced construction practices, it is impossible to have a building which is 100 percent fire-proof. Dr. Eun Gyu Choi explains some necessary measures that need to be taken in order to ensure that a fire-damaged building is safe for future use.
Energy firms are looking for engineering, procurement and construction companies to adopt a modular design approach, including offshore construction, to save time and money for oil and gas projects, writes Ossama Tawfick of AspenTech.
QCN’s Syed Ameen Kader speaks with Mike Fritz, general manager, Bahrain, Oman and Qatar, Al Futtaim Auto and Machinery Company, to understand how he sees Qatar’s growing bus market in particular, and the plant, machinery and vehicles sector in general. QCN | January 2016
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editor’s letter
Areas that have dominated QCN’s survey are civil/ contracting, project management, architecture, and MEP. January 2016 | QCN
As 2016 begins, we enter the third year of QCN – a magazine launched with the idea of covering Qatar-specific construction news featuring quality editorial. Since its first issue, we have seen QCN’s growing popularity in terms of its brand recognition, increasing subscription list, activity on social media, and its podcast’s listenership. To appraise the magazine’s performance and monitor its standard over time, we floated our reader survey in June last year. With a few thousand responses over a period of about six months, feedback from our audience have led to some interesting findings. The majority (approximately 42 percent) of QCN’s readers are between 26 and 35 years, followed by those between 36 and 45 years. 84 percent of our audience is male, reflecting the gender breakup of the construction sector in general, while most of these respondents hold positions of senior or middle managers. A majority of 59 percent belong to project management, civil and contracting area of construction. This is followed by MEP and architecture, at 15 and 13 percent, respectively. In general, about 54 percent of QCN’s readers rate it above average, with another 44 percent perceiving it on a par with other industry magazines. Speaking of editorial content, a majority of 58 percent want to read more of site visit reports and project reviews, followed by 38 percent looking for short articles and news stories, 27 percent for feature stories, and 25 percent for analysis or opinion pieces. Reflecting the speciality area of most readers, a majority of 61 percent want to read more about topics related to civil and contracting, followed by 44 percent interested in project management, 32 percent looking for architecture, and 24 percent wanting to read more about MEP, etcetera.
Areas that have dominated QCN’s survey are civil/contracting, project management, architecture, and MEP. However, that does not translate an absence of other core areas such as sustainability, technology, real estate, financing, facility management, legal, and machinery, etcetera. Overall, having more than 2000 respondents show our readers’ high level of engagement and interest, something we expect to grow this year with more professionals moving to Qatar to join its construction sector, which looks more promising compared to many other Middle East construction markets, according to a recent survey by Pinsent Masons. While great for the country’s economic and urban development, Qatar’s increasing scope of construction has a price to pay in the form of humongous volumes of waste generated in demolishing and building activities. The problem, however, can be curtailed if dealt via mechanisms supporting the concept of ‘reduce, reuse and recycle’. There is a saying that one man’s trash is another man’s treasure. This could be true for waste generated by Qatar’s construction sector, where one project’s waste can be turned into materials for other future projects using modern technologies. In our cover story ‘Trash to treasure’ on page 16, Syed Ameen Kader discusses where Qatar stands in terms of construction waste recycling and what can be done in the future to prevent landfills from unnecessary junk. Enjoy reading QCN’s first edition for 2016. Happy New Year.
Farwa Zahra Editor
Construction
News
Partial operations at Hamad Port expected to improve Qatar’s position amid GCC construction doubt
January 2016 | QCN
construction news
A ship sprays water during a ceremony marking partial opening of the Hamad Port in Mesaieed, Qatar. (Image Arabian Eye/Reuters)
9
Concluding year 2015, Qatar’s new port – Hamad Port – started early partial operations in December, thereby strengthening Qatar construction’s positive outlook for 2016, reports Farwa Zahra. With logistics being a major concern for construction companies operating in Qatar, the operational launch of Hamad Port was much anticipated by the industry. Speaking at the opening ceremony, Minister of Transport HE Jassim Seif Ahmed Al Sulaiti said that the initial operations involve opening of “the port’s general cargo and roll-on roll-off facilities” along with the establishment of “operations for the delivery of general goods, vehicles and construction equipment”. Operations commenced at the new port also bring a positive sentiment among industry players, who can now anticipate a drop in construction inflation and project delays as Hamad Port becomes fully operational in the near future. This will also strengthen Qatar’s position in the Gulf Cooperation Council’s (GCC) construction market. In fact, according to a recent survey conducted by Pinsent Masons, Qatar’s construction market has shown a positive trend, with 32.6 percent respondents saying the market will deliver the strongest growth in 2016. This is up from 13.5 percent last year, bringing Qatar to the top slot after the United Arab Emirates (UAE). Ironically, Qatar’s strengthening position comes against a backdrop of decreased optimism about GCC’s construction sector. Compared to 77 percent respondents optimistic about the region’s construction sector in Pinsent Mason’s 2014 survey, only 32 percent remained positive about 2016, according to the survey conducted in 2015. Furthermore, 59.5 percent of representatives said their companies experienced more disputes than they expected during 2015, while 95 percent agreed that payment period in 2015 was longer compared to that in 2014. Explaining the positive trajectory for Qatar, Sachin Kerur, head of Middle East region at Pinsent Masons, said, “In Qatar, they are benefiting from a natural bounce as the World Cup edges closer.” Indeed, in 2014, contract awards in Qatar reached a value exceeding USD33.3 billion (QAR121 billion) – the highest ever contract value for the country, representing a 42 percent increase compared to the previous year, according to Meed. The trend continued in 2015, with a value of USD78 billion (QAR284 billion) for projects in their preexecution phases. Perceptions about the market in Pinsent Masons’ survey were measured on the basis of answers regarding order books, contract conditions, payment periods and disputes. Commenting on the overall perception of the GCC’s construction sector, Kerur said, “This is the sharpest annual decline in optimism our survey has seen, and there is no doubt that economic and geopolitical concerns are playing heavily on people’s minds.” He added that any improvement in geopolitical circumstances can lead to a swift return to positivity. The level of optimism about certain markets is ostensibly in sync with the ease of doing business. When asked about the easiest construction markets for doing business, 97.6 percent favoured the UAE, followed by 52.4 percent for Qatar. Interestingly, despite the ongoing dip in oil price, a majority of 67.4 percent respondents said they are not involved or anticipate to be a part of a public-private partnership model for project financing. “The lack of anticipation of more PPPs was a surprise on account of the fiscal challenges facing many countries in the region,” said Kerur, who added that PPP arrangements could offer a favourable solution for numerous major infrastructure and construction developments, and there have been legislative changes made to make them more accessible and attractive. QCN | January 2016
Construction
News
Industry Views Concluding year 2015, QCN approached industry professionals in Qatar to learn about top challenges in the country’s construction sector during 2015, and their expectations for 2016. Here is what they had to say.
Cash flow management and cash collection look likely to be the top priority in 2016
The challenges to the Qatar construction market in 2015 have been several, gathering delays in some of the major programmes due to new government funding reviews, continuing challenges in construction and transportation logistics into and around Doha, the shortage of key skilled workers, and professional staff in some areas together with the recent changes to the labour laws on visas and workers payments. The redevelopment of some of the 2022 World Cup stadiums are increasingly visible in Doha’s skyline and development across the city
continues to increase from residential to retail, commercial to hospitality. For 2016, we see a continuation of these themes, all against a continuing uncertain backdrop of wider Middle East and North Africa’s political and economic instability. Cash flow management and cash collection look likely to be the top priority with more competition in the market likely for projects from neighbouring countries who are additionally feeling a slowdown related to these similar issues together with anticipated challenges related to the global oil prices.
“Despite the 2022 World Cup and Qatar National Vision 2030 programmes, it is likely that 2016 will be a volatile year for the construction industry.”
“Qatar’s construction sector has faced a number of challenges throughout 2015, including the global spotlight falling on the terms and conditions of the labour forces employed to undertake the infrastructure projects.”
Jason Morris, vice president, construction services, Aecom Qatar, said that a review of major programmes will result in the reprioritisation of the capital spend by both government and private clients. “We are already seeing the cancellation or deferment of significant programmes due to tighter fiscal policy implemented on the back of a lower than anticipated oil price,” Morris said, adding that the consultants in Qatar will have to be agile enough to respond to clients’ needs while maintaining world-class levels of delivery excellence across all projects to ensure margins.
January 2016 | QCN
Highlighting some other challenges, Cheryl Cairns, partner, Trowers & Hamlins, added that the construction sector had to deal with coordinating a multitude of high-value complex works in 2015. “Looking forward to 2016, we anticipate that these themes will continue together with issues focusing on project delivery, dealing with a series of competing deadlines as well as attracting and retaining qualified construction professionals,” Cairns added.
Andrew Jeffery is the managing director for capital projects advisory at Deloitte Middle East.
“The reevaluation of priorities and cash flow issues on client’s side have certainly challenged the sector in 2015, perhaps more than in recent years.” Talking about Building Information Mode ling (BIM) in 2015 in general, Christoph Weber, managing director of Hochtief ViCon Qatar, said, “We experienced a BIM ‘hype’ in the market. Especially local employers have insisted on some state-of-the-art methods.” For 2016, he added, they expect a movement towards more realism in relation to the hype. “But knowing Qatar, we will still be advancing at high speed, and we will see a number of pioneering work being done within our industry,” he added.
Construction
News
Qatar Primary Materials Company (QPMC) has signed four new agreements at the end of 2015, for the supply of 19.98 million tonnes of high-quality aggregates (gabbro and limestone) over the next three years from various sources. These agreements would help facilitate the stability of primary materials’ prices and ensure the continuous availability of aggregates. QPMC supplies primary materials to meet the local market demand of limestone and gabbro materials, to suit all construction requirements. The four agreements were signed with The Gate Primary Materials, Continental Trading Company, Qatar Engineering Alliance Co, and Al Baida Technical Services. Implementation of these contracts start early 2016. The procured materials from these companies will be stored in QPMC-owned facilities in Lusail, Mesaieed and Ras Laffan, ensuring accessibility of materials in the north, south and the capital city of Doha, and timely delivery to all construction sites around the country.
construction news
11
Qatar Primary Materials Company secures19.98 million tonnes of aggregates
Signing the agreements, QPMC’s CEO, Engineer Eisa Al Hammadi (right) said that the amount of aggregate which will be supplied by the four companies will be imported from Oman and the United Arab Emirates via private Qatari companies with quarries abroad.
Awards
Key recent contracts awarded in Qatar •
•
The Supreme Committee for Delivery & Legacy has announced the award of the main contractor for Al Wakrah Stadium to Midmac in a joint venture with Porr Qatar. Located approximately 15 kilometres south of Doha, the stadium’s design was inspired by dhow boats that carried Qatari fishermen and pearl divers. It will host matches up to the quarter finals of the 2022 World Cup. The stadium is set for completion by the end of 2018. Midmac and its joint venture partner are also developing the Khalifa International Stadium at Aspire Zone. Qatar Railways Company has signed a contract with Qatar Cool, provider of environmentally-friendly district cooling services, to provide district cooling services at seven of the Doha Metro Red Line stations. According to this contract, Qatar Cool will provide district cooling at The Pearl-Qatar and
West Bay stations (Legtaifiya, Katara, Al Qassar, Doha Exhibition and Convention Center, West Bay, Corniche and Al Bidda stations), and proactively contribute to cooling measures during the summer months starting 2019 – the projected operation date of the Doha Metro project (Phase 1). •
Arab Engineering Bureau, the oldest architectural and engineering consulting firm in Qatar, has been appointed as the design consultant for the eighth proposed host venue for the 2022 World Cup, which will be located in Al Thumama. The contract has been awarded by the Supreme Committee for Delivery & Legacy. The stadium in Al Thumama will have a minimum of 40,000 seats for the World Cup and host matches up to the quarter finals stage. In legacy mode, the stadium’s capacity will be reduced to a maximum of 20,000 seats.
QCN | January 2016
Construction
News According to JLL, an international real estate investment and advisory firm, lower oil prices are leading to a fiscal restructuring across the Gulf Cooperation Council’s (GCC) hydrocarbon economies, which involves both reduced government spending and increased government revenue through taxation. This scenario will have various implications for real estate investment, both regionally and globally. As governments become more cautious about their finances, there is a likelihood of cuts in infrastructure spending. While many of the already announced projects are likely to proceed, they may be scaled back or rescheduled over an extended timeframe, with future projects being curtailed. This will inevitably have a knock-on effect on local real estate markets. On the other side of the fiscal balance, GCC governments are also seeking to raise additional revenue through sales tax, land/ housing tax and reduction/removal of subsidies. Such developments could
Lower oil prices to reduce capital flows into real estate in 2016 “While some SWFs will retain their existing mandate to invest globally, we expect more funds will be diverted into local real estate (through direct real estate purchases and via funds and external managers). This will provide an important source of additional capital for real estate markets across the Middle East,” said Plumb.
also have implications for various real estate stakeholders. Commenting on this possible trend, Craig Plumb, head of research at JLL, MENA, said, “While we remain positive on the long-term outlook for real estate markets across the region, there is little doubt that the rebalancing of the fiscal position will result in headwinds and challenges over the next 12 months. While governments continue to spend on development and infrastructure projects, the level of this spending will inevitably be curtailed over the medium term as spending needs are realigned with the reality of lower oil revenues.” GCC investors have been active on the global real estate stage for many years. Despite lower oil prices, JLL’s data shows that Middle East sovereign wealth funds (SWF) remained active purchasers of global real estate during 2015. However, the volume of investment is expected to decline in 2016 as we enter a prolonged period of lower oil prices that will cause sovereigns to reconsider their objectives and strategies.
According to Craig Plumb, head of research at JLL, MENA, there is an expectation that more Middle East sovereign wealth funds will be diverted to the local real estate market, thereby providing an important source of additional capital for real estate markets across the region.
Sectors believed to provide the strongest opportunities in 2016 in the GCC Waste management
13.5% 9.3%
Real estate Public building products Waste and wastewater Power and renewables 2015 2016
Transport
SOURCE: Pinsent Masons 2015 Construction Sector Survey
January 2016 | QCN
48.1%
25.6% 25% 30.2% 30.8%
39.5% 46.2%
55.8% 69.2% 69.8%
construction news
13
Case Construction brings B-series excavators for Qatar projects
“There was an agreement about deciding the number of stadiums for the World Cup by the end of this year (2015) but because of the importance of this matter, we decided to postpone the decision.” Nasser Al Khater, assistant general secretary of Local Organising Committee (LOC) for the 2022 World Cup, has indicated the number of stadiums would now be finalised in January. Starting from 12 stadiums in Qatar’s initial bid, the number of venues for the World Cup can go down to eight. Speaking about the country’s preparation for the tournament, Colin Smith, FIFA’s director of competition, has said, “We are happy with the progress Qatar has made with its preparations for the World Cup and especially with the LOC’s dynamic timelines for the delivery of stadiums.” (Image Flickr/Doha Stadium Plus Qatar)
In partnership with Case Construction, Construction Enterprises Company, a contracting company in Qatar has received two Case crawler excavators (model: CX370B). In Qatar, Case Construction is represented by Nasser Bin Khaled Heavy Equipment. The Case B-series excavators deliver significant increases in fuel efficiency over the competition. The increased hydraulic horsepower on these excavators, which have been Other than B-series, Case Construction redesigned, has resulted in faster cycle provides excavators under categories such as SR, D and C pictured here. times and more material moved per hour. The excavators feature a quiet and comfortable cabin, which are among 13 to 80 tonnes and can be used the quietest in the industry. The ease for a variety of applications. The of maintenance of the Case machines larger excavators can store up to 10 patterns to results in significantly lower November2015.pdf ownership auxiliary1 hydraulic DRI QuarterPage 11/3/15 flow 2:26 PM and operating costs. Case crawler allow the operator to quickly adapt excavators are available in ranges from the machine to different attachments.
Qatari MEP firm awarded for sustainability in HVAC Qatari company, Arabian MEP Contracting has won a total of six trophies in recently held MEP Middle East Awards. More than 300 senior executives from consultancy firms and contracting companies in the MEP industry across the Gulf Cooperation Council attended the event. The firm was adjudged as winner in Sustainable Project of the Year for its heating, ventilation and air-conditioning (HVAC) work in solar renewables-related project. The announcement was followed by shortlisting by a panel of jury consisting of several experts in the MEP industry.
QCN | January 2016
News Events Construction
23 – 26 January
3 – 4 February
2nd International Conference on Desalination and Environment
Sheraton Doha Resort & Convention Hotel
25 – 26 January
MENA Rail Operational Readiness Summit
Pictured here is a tram service in the city of Dubai.
The Middle East has seen a rapid expansion of railway assets over the last few years which include metro, light rail and long distance railway projects as well as a host of new facilities and stations. As many of these projects progress towards commissioning and handover, the real challenge will be operating and getting the most out of this infrastructure. To be held at InterContinental Doha, the MENA Rail Operational Readiness Summit will draw on experiences from leading local and international operators as well as the experiences of railway customers, infrastructure managers, facility managers and leading consultants to deal with this challenge.
Waste Management and Recycling Summit Piles of garbage in a landfill.
Qatar is generating a total of 1.6 to 1.8 kilograms per day per person of solid waste. This number is predicted to reach 19,000 tonnes per day in 2032. With an annual growth rate of roughly 4.2 percent, out of which 70 percent is comprised of construction and demolition materials, only three percent is recycled, four percent is incinerated while the remaining is disposed into landfills. The Waste Management and Recycling Summit will offer a range of possibilities for efficient waste management. Participants at the summit will include government bodies, research institutes, waste management experts, health, safety experts, environmental consultants and recycling firms.
25 – 26 January
27 – 30 March 2016
Major Projects and Infrastructure Qatar
Health Facility Design and Development Qatar
InterContinental Doha – The City
21 – 23 February
8th Annual Façade Design and Engineering Middle East Intercontinental Doha
15 – 16 March
Qatar Projects Conference St Regis Hotel, Doha
23 – 26 March
Qatar Covertech 2016 Doha Exhibition Center
January 2016 | QCN
As the population of Qatar continues to grow at speed, it is critical that Qatar’s health developers and design experts develop health facilities, which are designed to effectively meet demand to the highest quality. With many big projects announced by the Qatar government and increasing opportunities for private healthcare providers, Health Facility Design and Development Qatar, to be held at InterContinental Doha, aims to address challenges surrounding health design and development and illustrate innovative solutions to develop Qatar’s healthcare infrastructure.
28 – 29 March
Sustainable Urban Drainage Middle East InterContinental Doha - The City
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16
guest column
KILLER CONTRACT CLAUSES: HOW TO AVOID BEING TRAPPED INTO CONTINGENT PAYMENT TERMS Subcontractors often do not pay enough attention to understand the meaning of critical payment clauses such as pay-when-paid and pay-if-paid, which can potentially put them into a difficult situation, writes Vasanth Kumar.
Vasanth Kumar is the chief executive officer of Arabian MEP.
January 2016 | QCN
A typical project would involve at least a dozen of subcontractors working under the main contractor, and the numbers could be even more in the case of mega projects. Subcontractors perform majority of works of a main contractor under the subcontract agreement, and one of the most important packages and high-value works is the mechanical, electrical and plumbing (MEP), which usually accounts for one-third of the main contract value. This speciality trade requires skilled resources, fabrication facilities, engineering expertise, and project management skills. The success of an MEP subcontractor is governed by timely approvals of design, submittals, shop drawings, inspections and most importantly, payments from the main contractors. In recent times, it has been observed that many MEP subcontractors in Qatar, including local subcontractors and new entrants with decades of experience in neighbouring countries and even in other continents, have failed to deliver their projects. The main cause of failures is a toxic mix of unsustainable low price and the contingent payment clauses such as pay-when-paid or pay-if-paid clauses, which is an unreliable promise of making payment to the subcontractor for his works. The pay-when-paid clause, generally, allows main contractors to take more time to pay their subcontractors. In other words, they will pay the subcontractors only after receiving payment from their clients. However, pay-if-paid clause is much harsher as it completely transfers the risk of non-payment (by the owner) onto the subcontractor by triggering the main contractor’s obligation to pay his subcontractor only if he receives payment from the project owner. Such
killer clauses are difficult to spot in subcontract agreements, but by taking a closer examination and watching out for words in contracts – such as ‘conditions precedent’, ‘only if’, and ‘to the extent paid by the client’, etcetera – one can identify the inherent risks. Some main contractors ignore the basic fact that success of their project is largely dependent on the performance of subcontractors, and it is of paramount importance to trust and support their subcontractors. On the contrary, there seems to be a strong desire to appoint a subcontractor who is not knowledgeable about the risks embedded in the subcontracts, and eventually, trap subcontractors with contingent clauses. While drafting a contract, risks are generally allocated to the parties that are in best position to manage them. So in examining the risks of the client’s creditworthiness, it is the main contractor
The main cause of subcontractors’ failures is a toxic mix of unsustainable low price and the contingent payment clauses such as pay-when-paid or pay-if-paid clauses, which is an unreliable promise of making payment to the subcontractor for his works.
QYP ad_Constructionsite_Nov15.pdf
12/7/2015
8:57:58 AM
Subcontractors should equip themselves with risk mitigation plan and be ready to walk away from signing an unfair and one-sided contract.
who is in the best position to identify and mitigate the risk, and not the subcontractor. Hence, it is unethical to transfer the risks to the MEP subcontractor and hold him responsible. The main contractor should request his client to provide proof of financial status or ability to finance and pay all invoices. Likewise, subcontractors should also request for such information prior to entering into a contract. Subcontractors should also take a note that courts have ruled out that payif-paid clauses are not enforceable, and pay-when-paid clauses still legally hold main contractor responsible to make payment to his subcontractors, within a reasonable period of time after the satisfactory completion of work. It is a sad fact that many subcontractors just go by intuition and blindly sign the contracts only on the basis of trust, without engaging legal counsel or taking legal opinions prior to signing. On top of it, many of them do not have a robust internal company policy, systems or procedures that can identify and mitigate the contractual risks. It is very important for subcontractors to be aware of their legal rights and remedies in order to protect themselves against any payment default. They should equip themselves with risk mitigation plan and be ready to walk away from signing an unfair and onesided contract. Unless they do so, it would be very difficult to find a common ground, and implement a mutually acceptable subcontract form and its terms and conditions.
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trash to treasure
recycling construction Since managing the construction debris has become a major challenge in the region, civic bodies and companies are looking for alternative ways to get rid of this waste – cost-efficiently and sustainably – to not only make this into a viable business proposition but also save the environment, writes Syed Ameen Kader.
A
s the Gulf region undergoes massive development and urbanisation due to rapid population growth, the volume of waste generated at various construction sites has increased substantially, making most civic authorities across the region increasingly wary of the issue. Since space is a major constraint for cities such as Doha, Dubai or Abu Dhabi, the authorities are fast realising that prevailing practices for disposing construction and demolition (C&D) waste into landfills is not a long-term solution.
waste in qatar
Qatar is building massive new projects for the future. Companies such as Msheireb Properties carried out major demolition works before starting the new construction for Msheireb Downtown Doha. (Image Arabian Eye/Corbis)
Working towards this direction, Abu Dhabi, for instance, has set up Tadweer, the Center of Waste Management, with an aim to set regional standards for C&D waste reduction, as part of the Abu Dhabi’s waste management masterplan. Eisa Saif Al Qubaisi, general manager, Tadweer, says, “Construction projects are rapidly increasing in the region with Expo 2020 preparations in Dubai, and the 2022 World Cup to be hosted in Qatar. With these developments, municipalities across the Gulf Cooperation Council are recognising the need for robust strategies to minimise the negative impact of large amounts of C&D waste.” For a country such as Qatar, which is building a diverse range of infrastructure projects – executing close to QAR1 trillion worth of construction work – the problem of C&D waste is even more critical. According to the statistics available for the period of 2008 to 2012, as reported by the Ministry of Development Planning and Statistics in 2014, Qatar generates around 10 to 12 million tonnes of solid waste every year – almost 80 percent of which comes from C&D activities. This waste, however, can be turned into a revenue-generating source if recycled efficiently and effectively. The opportunity seems imperative for Qatar as the country relies heavily on imports for construction raw materials. January 2016 | QCN
Nicola Maxwell, sales manager, Averda – a waste management company operating in Qatar – says, “It is understood that the quality of C&D in Qatar is fairly good, and certain projects are in the process of carrying out testing and quality of performance of such locally-sourced aggregate.” Referring to a report released by Qatar Development Bank a few years ago, she says that the revenue potential for the solid waste value chain in Qatar could be around USD663 million (QAR2.4 billion). “There are significant opportunities for revenue generation from C&D recycling (USD105 million or QAR382 million), household recycling (USD100 million or QAR364 million) and commercial collection and recycling (USD176 million or QAR641 million),” says Maxwell, who is also the chairperson of Solid Waste Interest Group – a part of Qatar Green Building Council (QGBC). Qatar recognises these business opportunities in C&D waste management, and accordingly has taken some initiatives under the Qatar National Development Strategy 2011-2016. These involve setting up a target of recycling 38 percent of the country’s total solid waste by 2030, up from the current figure of four percent. Explaining Qatar’s initiatives towards waste management, Matthew Kitson, regional director, Hilson Moran Qatar, says,
The production of recycled aggregate underway at Qatar’s Rawdat Rashid recycling plant, which has a current capacity to produce around two million tonnes per year (mta). This is a small proportion of the total demand for aggregate, but has the potential to reach over 10 mta.
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As the use of recycled aggregate is relatively new in Qatar, it is recommended to use specialised contractors who can separate different types of wastes on site and process them to meet different applications as per the Qatar Construction Specifications.
“Qatar has already implemented a number of policies and frameworks to reduce C&D waste including the application of the Global Sustainability Assessment System (GSAS) developed by the Gulf Organization for Research and Development.” He adds that this local sustainability assessment system is currently being applied to a number of new construction projects across Qatar. “Part of the assessment focuses on promoting a high degree of recycled content in construction materials and responsible sourcing of materials from local supplies,” says Kitson, who is a GSAS-certified green professional. Most large-scale projects in Qatar, such as those under Qatar Railways Company, QDVC, Qatar Foundation and Lusail Real Estate Development Company have construction waste management and recycling strategies, but the uptake level has been low among smaller construction companies as they are not fully aware of economic benefits of using recycled aggregates. Dr. Khaled Hassan, country director, Transport Research Laboratory (TRL), Qatar Science Technology Park, says, “Despite the large quantities of construction waste generated, the use of recycled aggregate is still very limited. There is great potential to convert construction waste from a landfill material, harming the environment, into quality aggregate generating income.” In order to do so, experts feel that the country needs to create a complete ecosystem, towards which some progress has been made in the last few years. In
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2011, Qatar National Research Foundation (QNRF) funded a project called ‘Innovative use of recycled aggregate in construction’, which was executed by TRL in collaboration with other government agencies such as Qatar Standards in the Ministry of Environment, Qatar University, and the Public Works Authority (Ashghal). Dr. Hassan, who drove the project at the ground level, believes the experiment has been working. The outcome of this pilot project helped the government amend its latest version of Qatar Construction Specifications (QCS 2014), which now allows construction companies to use recycled aggregate in various construction applications in Qatar. “This specification has been developed based on local evidence for building trials constructed in 2013, that exhibited great performance over more than two years,” says Dr. Hassan, who was responsible for testing the quality of recycled waste material in new construction projects such as buildings, roads and other infrastructure. The pilot project also helped the government develop Codes of Practice for sorting wastes at source before sending them to landfill sites. Now, Qatar has a government authority, Qatar Standards, which has been entrusted with the job of inspecting the product’s conformity with specifications and certifications. Meshal Al Shamari, director of QGBC, agrees the whole process needs to be regulated in order to meet certain quality standards. “You have to apply certain standards and specifications
Visual inspection of the recycled aggregate products is being done to determine their quality and usability.
QCN | January 2016
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before a recycled material can be used in construction. Sure, we care about the environment, but we also care about the quality of construction,” he says, adding that developers can earn certain credits for green building certification based on how they manage dust or reuse materials onsite. “But even the rating systems give you a limit for using recycled materials. You cannot use 100 percent,” he adds. Considering all these factors, efforts are currently being made to allow more types of recycled materials to be used for various construction applications. Following the success of the first project, QNRF has decided to fund another project entitled, ‘Implementation of recycled aggregate in construction projects’. “In this project, TRL and Qatar Standards will work jointly with government clients, consultants, contractors, and suppliers on implementing recycled aggregates in full-scale construction projects,” says Dr. Hassan, adding that the new project will mainly focus on government projects. Undoubtedly, such initiatives will help promote the usage of more recycled aggregates for construction purposes.
How to handle C&D waste? Managing waste sustainably and profitably is a specialised job. Ideally, if the project is large, this process should start at the initial stage and on the site, in order to derive better results. At present, almost all recycled aggregate production takes place at Qatar’s Rawdat Rashid facility. However, it could be economically feasible to set up a recycled aggregate plant on a site which generates sufficient volume of feedstock. For
example, sites carrying excavation waste from the Doha Metro could be ideal for recycled aggregate production. The obvious advantage of an onsite recycling is that the materials can be reused with minimum disposal to landfill. That also means one will have to extract less amount of virgin or raw materials for new construction. “Additionally, fewer materials are transported to and from site with savings in transportation and energy costs. This also results in reduced traffic congestion and project delay due to materials supply,” points out Dr. Hassan. Whether or not a company is able to create its own recycling system, it must allocate an area at its project site to stockpile all recyclable materials, collected during the course of construction. “This is usually the responsibility of the site health and safety executive (HSE) officer or the site supervisor. At the end of the project, the finance team members of the construction company along with their site
“You have to apply certain standards and specifications before a recycled material can be used in construction. Sure, we care about the environment, but we also care about the quality of the construction,” says Meshal Al Shamari, director of QGBC.
January 2016 | QCN
A file picture of a demolished area next to the Plaza in Souq Waqif, the central market in Doha.
Qatar recognises there are huge business opportunities in construction and demolition waste management, and has set up a target of recycling 38 percent of the country’s total solid waste by 2030, from the current figure of four percent.
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“There are significant opportunities for revenue generation from C&D recycling (USD105 million), household recycling (USD100 million) and commercial collection and recycling (USD176 million),” says Nicola Maxwell, sales manager, Averda.
HSE officer should review the recyclable items to see if any of those can be reused in their next projects or should be returned to the supplier,” says Salman Shaban, senior manager, Lucky Star Alloys – a scrap recycling company with operations in Qatar. Thereafter, he adds, the site HSE officer or the site supervisor can choose any of the three methods of disposing their recyclables: (a) assign a professional waste management company to dispose of the recyclables to the respective recycling facilities; (b) make arrangements directly with the local recycling companies to collect the waste from their construction sites; or (c) deliver the materials themselves to the recycling facilities. As the use of recycled aggregate is relatively new in Qatar, it is recommended to use specialised contractors who can separate different types of wastes on site and then process them to meet different applications as per the QCS 2014. Maxwell of Averda, a company which currently handles around 700 tonnes solid waste daily, says, “It is much less of a burden on any company, both logistically and financially, for a specialised waste management company to come in and manage the waste for them.” She explains this would avoid the asset investments, logistical and manpower investments, environmental impacts and also potential permits and legal requirements. “It would
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Besides Qatar, other regional cities are also looking at ways to increase the scope of construction waste management. Abu Dhabi, for instance, has set up Tadweer, the Center of Waste Management, with an aim to set regional standards for construction and demolition waste reduction. (Image Tadweer)
also ensure that the waste is handled as per the environmental standards of Qatar and according to corporate responsibility ethos.”
Cost implication As recycled aggregates are generated from waste, there is common perception that these materials should be used in low-value applications. Dr. Hassan of TRL explains that “this perception is incorrect, especially in Qatar where there is a shortage of quality aggregate with great potential to convert waste into a high-value products generating income.” Supporting his argument, he cites the example of the 2008 construction boom scenario when the price of imported gabbro climbed to QAR120 per tonne from the previous level of about QAR75 per tonne. “This scenario has been repeated in 2015 with the price of imported aggregate exceeding QAR150 per tonne.” By contrast, he points out, the cost of recycled aggregate for use in concrete is in the range of QAR40 to QAR50 per tonne, depending on the application. The current production of recycled materials QCN | January 2016
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cover story
4%
The percentage of construction waste currently recycled in Qatar.
at Rawdat Rashid landfill is around two million tonnes per year (mta), which is a small proportion of the total demand for aggregates, but has the potential to reach over 10 mta. “In the long term, recycled aggregates could contribute over 20 percent of Qatar’s aggregate supply,” estimates Dr. Hassan. As a prevailing practice, some companies in Qatar have set up their own temporary concrete crushers. They crush the concrete as per their needs and reuse it within their sites. Maxwell says, “Financially, it would not be easy to recover the costs by reusing or selling out the recycled products. This will become more feasible though when further legislation, codes of practices and/or landfill levies are put into place.” Shaban of Lucky Star Alloys points out that many companies still prefer to dispose waste into the landfill as it is a convenient and economical option for them. “However, on a positive note, we are also seeing that the awareness
for recycling is increasing among individuals and companies,” he says. As the awareness is increasing, he feels, companies are also getting monetary value for their recyclables to cover the cost of labour and transportation. “At times, they also manage to get additional monetary net value for their waste,” Shaban adds. With the implementation of stringent sustainability and environmental agenda’s across all of the major infrastructure projects in Qatar, Kitson of Hilson Moran Qatar says more and more main contractors are turning to the employment of full-time environmental managers. The manager has a role to oversee the implementation of a whole host of projectspecific environmental management plans and report back to the government on evidence-based compliance. “In essence, onsite sustainability and environmental management in Qatar has turned to the highest level of international standards and corporate responsibility,” concludes Kitson.
C&D waste management in qatar
20,000 tonnes
QAR40-50
– Construction waste generated every day.
per tonne – Cost of recycled aggregate for use in concrete.
2
million tonnes – Annual production capacity of recycled materials at Rawdat Rashid landfill.
Managing construction waste •
Assign the responsibility to HSE officer or the site supervisor.
•
Allocate an area at the project site to stockpile all recyclables materials.
•
If the volume is high, look for setting up an onsite recycling facility.
•
Use the Rawdat Rashid landfill recycling facility.
•
Disposing can be assigned to a professional waste management company.
“There is great potential to convert construction waste from a landfill material, harming the environment, into quality aggregate generating income,” says Dr. Khaled Hassan, country director, TRL.
January 2016 | QCN
•
Direct arrangements can be made with the local recycling companies to collect the waste.
•
Deliver on your own to the recycling facilities.
20%
- Potential percentage of total aggregate Qatar can recycle.
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www.qatarconstructionnews.com
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technical
Evaluating The Strength Of With increasing urbanisation, modern construction practices allow for heightened safety measures against odds such as fire. However, it is impossible to construct a building which is 100 percent fireproof. Dr. Eun Gyu Choi of CS Structural Engineering International, explains some necessary measures that need to be taken in order to ensure that a fire-damaged building is safe for future use.
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n Qatar, approximately 900 fire accidents occurred annually between 2009 and 2011, according to data released by the Ministry of Development Planning and Statistics. About 70 percent of these incidents occurred in building structures, and 50 percent happened in residential areas. With the increase in population, such accidents can further increase. The construction of high-rise buildings and large-sized structures are currently on the rise. Fire accidents in such structures may lead to more severe repercussions. While fire in buildings can result in injuries and human casualties, what is less obvious is the impact of fire on the health and longevity of buildings. Anywhere in the world, building structures have to be designed in such a way that they maintain their stability and strength for a sufficient time in order to limit human casualties and property damages from fire. Concrete has been the most widely used structural material for many centuries. Generally, concrete has been known to have good fire resisting properties. However, high temperatures can induce severe micro-structural changes and internal thermal stresses that can alter the mechanical properties of Portland cement concrete, resulting in a decreased load capacity and an increase in the deformation of concrete members. There are various types of damaged
January 2016 | QCN
concrete structures resulting from fire accidents. To mention a few, high temperature can cause crack of concrete members, delamination of concrete cover, spalling of concrete, reinforcement exposure, concrete neutralisation, structural deformation, and buckling of structural members. Considering the vulnerability of cement and concrete structure after being exposed to fire, it is crucial to properly evaluate the quality and health of firedamaged buildings. Such assessment exercises can then help determine the reusability and the extent of repair required in reusing the structure. Generally, investigation and evaluation of fire-damaged buildings are performed in three stages. Initially, investigation is performed with the naked eye. In this stage, structural engineers can presume the degree of damage by looking at the nature of cracks, breaks, exfoliation, bending, deflections or changes in the colour of concrete. By this inspection, engineers can figure out the fire condition and exposed temperature. After this, the range of specific investigation targets the structural aspect, and the required investigation methods are selected. At the second stage, the structural tests such as rebound hardness test of concrete, carbonation test, concrete core collection, rebar collection test and loading test are carried out. If the evaluation for detail classification is not available, concrete core test and assumption of subjected temperature should be conducted. For evaluating more severely firedamaged concrete structures, vibration test and loading test should be conducted once
A damage of structure subjected to high temperature is generally critical, and reduces the strength capacity of structural member.
Depending on the duration and intensity of temperature, fire cannot only damage the surface but also the steel rebar inside thereby affecting the durability and longevity of buildings for future use. Pictured in the site at a Turkish restaurant which caught fire after a gas explosion in Doha in 2014. (Image Arabian Eye/Reuters)
again. At the final stage, the fire-damage grade is assessed by the analysis of damage degree. Generally, fire-damage grades are classified into five grades according to the analysis and results from the previous two stages: investigation and evaluation. This classification leads to identification of appropriate repair and reinforcement methods based on damage grade, which are as follows: 1. No damage: This is the first grade of damage, which does not demand any structural repair. For any grade higher than this level, it is imperative to carry out repair work. 2. Damage on the concrete surfaces: This second grade of damage necessitates repair, as concrete surfaces become
technical
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Fire-Damaged Buildings A view shows the damage on the exterior of The Address - Downtown Dubai hotel and residential block, which was hit by a blaze on December 31, 2015. (Image Arabian Eye/ Reuters)
sooty because of being exposed to heat, which is less than 500 degrees centigrade (oC). Another indication of this grade is small delamination on slab or beam.
4. Damage on the adhesion of main steel rebar: In this fourth grade, concrete surfaces have large cracks and steel rebar is exposed. Considering the extent of damage, this grade calls for necessary repair and reinforcement.
3. Damage on concrete cover, not steel rebar: This grade of damage is reached when concrete is exposed to heat exceeding 500oC, resulting in small spalling in the columns.
5. Buckling of main steel rebar: In this extreme level of damage grades, structural member of a building is impacted severely. The range of spalling is large, and the main steel rebar is exposed severely. Bending or deflection of structural member is obvious in this degree
of damage. To fix this, structural members of concrete need to be replaced. To reuse a fire-affected building safely, the appropriate repair and reinforcement method should be selected depending on the nature of damage caused. A damage of structure subjected to high temperature is generally critical, and reduces the strength capacity of structural member. Furthermore, the surfaces’ deterioration such as cracks, delamination or spalling are visible in most cases. For this reason, the plan of repair and reinforcement is aimed at recovering the fine finishing material and strength capacity, while securing the durability of the building. Overall, once a building is exposed to a fire accident, we have to minimise the cost of recovery, while securing the structure’s safety features. More swift and precise evaluation methods and repair manuals for fire-damaged buildings need to be arranged in order to ensure the safety and continual use. From the onset, a building should be designed and developed to reduce the chances of catching fire. However, there is always a probability that a fire accident can happen despite the best-laid plans. Therefore, one needs to be prepared with optimum countermeasure to overcome the damage after accident.
Dr. Eun Gyu Choi, a Ph.D. in Structural Engineering, is the general manager at CS Structural Engineering International’s Qatar office.
QCN | January 2016
Streamlining offshore con
modular approach Offshore and onshore fabrication: Opportunities for major savings
January 2016 | QCN
feature story
struction with a A modular approach to offshore construction can save time and money by reusing designs for similar projects. Pictured here is a drilling platform under construction.
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A trend that is driven by oil and gas exploration, production and midstream organisations is the standardisation and reuse of designs. Energy firms are looking for engineering, procurement and construction companies (EPCs) to lead the way and adopt a modular design approach, including offshore construction, to save significant amounts of time and money for energy projects in Qatar and the wider Middle East region, writes Ossama Tawfick of AspenTech.
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roject overruns in the oil, gas and petrochemical industries have cost impacts that extend over the lifetime of the delivered asset, pressuring companies to deliver on schedule and remain profitable. Implementing standardisation designs and adopting a modular approach to process units reduces design, schedule and cost uncertainty and, therefore, saves significant amounts of time and money. For many Middle East EPCs and their clients, getting to the construction phase more quickly is the aim. With the use of model-based software applications, process designs can be created for reuse in a modular fashion on similar projects and based on varying locations, applications and scale, thereby increasing overall project management efficiency. Capital projects that overrun their budgets are a strategic issue in the oil and gas industries today. Modular design offers opportunities for savings and the options for onsite fabrication and offsite shop modular fabrication in order to add engineering accuracy and quality efficiency. Modular designs make costs more predictable while reducing uncertainties, such as local labour force dynamics and local resource availability. An integrated engineering software system that comprises integrated engineering modelling and analysis tools can uniquely support the concepts of repeatable design, standardised design and modular design. This ensures that the data does not need to be re-entered between individual engineering tools and to enable the optimisation of a design across the feasibility study, conceptual engineering and front-end engineering design (FEED) workflow. Many engineering and construction QCN | January 2016
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feature story companies (E&Cs) have modular capabilities, including the design and installation of facilities for upstream oil and gas processing, downstream refining, mining and minerals processing and chemical industries. With an offshore construction project, for example, the installation of structures in a marine environment would typically be pre-commissioned onshore. To optimise the costs and risks of installing large offshore platforms, different construction strategies have been developed. A fully constructed facility onshore can be towed and installed at the site floating on its own buoyancy. Bottomfounded structures are lowered to the seabed by de-ballasting, while floating structures are held in position with substantial mooring systems. The size of offshore lifts can be reduced by making the construction modular with each module being constructed onshore and then lifted using a crane vessel into place onto the platform. In essence, the use of standardised and modular designs helps engineering companies reduce costs and capital cost uncertainties on projects.
Streamlining projects Breaking the habit of reinventing solutions associated with traditional engineering methods can be difficult. Onsite build can be time consuming and costly where there are logistics constraints and unpredictable local
Many engineering and construction companies (E&Cs) have modular capabilities, including the design and installation of facilities for upstream oil and gas processing, downstream refining, mining and minerals processing and chemical industries.
January 2016 | QCN
labour conditions. Historically, engineers have often used traditional tools, such as Excel spreadsheets to model and calculate their project schedules, costs, risks and scope. However, by using specialist integrated engineering software, the strategy behind standardised modularisation offers a different approach and involves dividing a plant into modules that are then reused multiple times. EPCs can reduce direct project costs (related to product equipment units, logistics and installation) by 10 percent or more, and project engineering, procurement and construction delivery can be significantly expedited. Project design is the first key area to embrace a modular approach and reuse standardised design modules for oil and gas plants. Many oil and gas companies design and build customised projects
Onsite build can be time-consuming and costly where there are logistics constraints and unpredictable local labour conditions.
feature story
Workers at the building site of the Pearl Gas to Liquids (GTL) system in Doha, Qatar. Construction of Pearl GTL was completed on schedule with the complex starting up end of Q1 2011. (Image Arabian Eye)
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By capturing process technologies and best practice designs in reusable templates, engineers can apply them repeatedly for dramatic time savings in future projects. to specific locations with geological conditions. A more effective way of working in design is to reuse existing engineering templates, which unitise the work. This is a typical licensor workflow business model that has also proven to be highly successful. It has conventionally been thought that upstream oil projects had to be custom-designed for a particular oilfield and crude oil fingerprint. However, recent experiences with modular design approaches have proven to be successful. The concept of offsite fabrication and modularisation in engineering and design can be scaled from small to large projects, such as a floating production, storage and offloading vessels scaled to the oil and gas flow characteristics of the particular well. Something like a compressor module could be standardised because the same equipment design can be reused on many other vessels. For larger facilities, such as liquefied natural gas (LNG) plants, the focus moves to replicating modules that make up the plant. Another example could be less need for heavy lifting equipment and scaffolding, which would save space and costs. Many companies have successfully adopted modular standardisation to apply common design specifications and guidelines across each project such as a refinery or production platform. The use of libraries containing design templates, which include datasheets, equipment lists and line lists is a powerful way of avoiding unnecessary duplication of data entry and copying, helping minimise engineering time and reducing costly overruns. Key to this QCN | January 2016
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feature story
While many energy companies design and build customised projects to specific locations with geological conditions, a more effective way is to reuse existing engineering templates, which unitise the work. (Image Arabian Eye/ Corbis)
January 2016 | QCN
strategy is aligning the engineering stages from conceptual design through basic engineering to detailed design. Collaboration across the project teams is essential to leverage important documentation.
Leveraging technology saves time Offsite modular assembly is becoming the preferred method of construction in industrial development. This highly efficient process alleviates the challenges typically associated with tight project schedules, changing site conditions and availability of skilled field labour and minimises variability in quality of the finished product. The safe and correct assembly of equipment, such as columns and reboilers, is critical to performance and reliability. Units derived from fabrication workshops, such as steel casings, stacks and ducts, burners, piping, etcetera, can be pre-assembled
for shipping anywhere around the world and modular construction can be more easily executed with available onsite skills. As modular design and construction projects become the adopted standard, powerful and integrated engineering tools can help engineers to complete datasheets much quicker and allow the ability to communicate with all stakeholders working on the project. Many EPCs have standardised on AspenTech’s aspenONE Engineering software suite, which contains process modelling analysis and design tools that are integrated and accessible through process simulators. Engineers can optimise process designs for energy use, capital and operating costs and product yield through the use of activated energy, economics and equipment design during the modelling process. EPCs continually seek ways to improve workflow and streamline processes. Aspen HYSYS is the tool of choice with engineers using a modular approach to design. It comprehensively provides access to over 1000 assays representing global production, as well as to the world’s most extensive property database. Process units targeted for reuse can be captured as templates and quickly accessed from within the process model when the next project is in design. The tool helps deliver faster project execution, meeting increasing demands and minimising performance degradation, while complying to strict environmental and product quality standards. For EPCs, it is imperative to deliver accurate cost estimation earlier into the concept design and basic design stages. Implementing standard practices and methods ensures design
In essence, modularisation expedites project execution by compressing project schedules, and integrates global design teams for faster on-time delivery.
feature story quality, reduces maintenance costs and meets safety compliance. Crucially, it is also important to capture design knowledge to improve the ability of less experienced engineers in delivering high-quality designs. A scalable basic engineering software platform enables global organisations to seamlessly and accurately bring together all aspects of FEED and basic engineering. Now it is possible to achieve a great competitive advantage by delivering process data packages for licensed technologies and other repeatable designs in half the time currently required. By capturing process technologies and best practice designs in reusable templates, engineers can apply them repeatedly for dramatic time savings in future projects. In addition, robust capital cost estimating software is powerful for evaluating the efficacy of modules for projects. The software provides estimators with an early look at resource constraints, such as craft, labour and fabrication equipment and then enable them to easily evaluate and quickly shop versus field fabrication, including a whole host of trade-off scenarios.
Modularisation schedules
streamlines
With capital project investments under scrutiny in the Middle East, modularisation increases project management efficiency and presents opportunities for trade-offs between onsite fabrication and shop modular fabrication. When modular construction is considered, lead times can be improved and the shop fabricator can efficiently fabricate and then ship. Therefore, early and accurate conceptual design becomes even more important to achieve fast-track designs. Offsite modular assembly is an effective method of construction to help oil, gas and petrochemical companies manage projects more profitably. Standardised modular design gives EPCs the opportunity to gain a competitive position and take advantage of the unique characteristics of integrated engineering modelling and analysis software tools. This
supports the concept of repeatable designs, which save time to re-enter data and to enable optimisation of a design across the feasibility study, conceptual engineering and FEED workflow. The software tools also help knowledge sharing across the organisation and allow efficient access for project delivery teams to streamline and deliver accurate engineering solutions that meet deadlines. In essence, modularisation expedites project execution by compressing project schedules, and integrates global design teams for faster on-time delivery.
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The Pearl Gas to Liquids (GTL) is one of the largest GTL plants in the world. Pictured here is its building site before completion. (Image Arabian Eye)
Ossama Tawfick is the vice president of sales, MENA, at AspenTech.
QCN | January 2016
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industry insights
PMV sector: Qatar is a growing market for luxury transportation Al Futtaim Group has recently launched the Al Futtaim Auto and Machinery Company (FAMCO) entity with the delivery of its first Volvo Marcopolo bus to a local customer. QCN’s Syed Ameen Kader speaks with Mike Fritz, general manager, Bahrain, Oman and Qatar, FAMCO, to understand how he sees Qatar’s growing bus market in particular, and the plant, machinery and vehicles (PMV) sector in general.
Speaking with QCN, Mike Fritz, general manager, Bahrain, Oman and Qatar, FAMCO, said that the company has a huge portfolio in some countries, especially in the United Arab Emirates, and gradually it will add more products to its portfolio in Qatar.
January 2016 | QCN
industry insights
What engine are you using for this model? This specific vehicle is fitted with euro three engine. The reason why we chose the euro three engine is purely the fuel quality. Many of these countries are now introducing better quality fuel but to operate vehicles with a euro five or euro six, you would need a five-ppm (particles per million) diesel, and this is not freely available. Therefore, we have opted for the euro three version which means it can be operated anywhere with any quality fuel.
Why did you take so long to enter the Qatari market? It is not too late to be in Qatar. I would say the time is right for us. We have launched our new company in Qatar. We used to be trading under another name but now we are FAMCO in Qatar. We, as a distributor of Volvo buses, are present in a number of countries in the Gulf Cooperation Council (GCC) region. And now that our new company is fully operational in Qatar, I would say, it is a perfect time to launch a product.
Tell us about this vehicle that you have launched in Qatar. Can it handle the heat of this region? I think it goes without saying that if you take the best chassis in the world, which is the Volvo rear engine B11R, 11-litre engine chassis, and then you add Marcopolo, which is the biggest bus manufacturer in the world, well, what a combination. The Volvo chassis is designed to operate in this climate. When it gets tested during the engineering phase, it gets tested in very cold weather such as that of Sweden, even above the arctic circle, where the temperature level goes beyond -13 degrees centigrade (°C) or -14°C. Then it also gets tested in the Middle East, which operates at +50°C. The vehicle is fitted with a powerful air-conditioning unit, which is ideally suited for this kind of climate, and it can operate at temperatures above 50°C to give a very cool interior.
How do you see the bus market here in Qatar? It is a growing market, and a big part of it is also for luxury transport. For many years, you have had low-end of the market vehicles being operated by buses operators. But this combination of Volvo and Marcopolo is ideally suited for executive transport, oil and gas industry, to move executives around but also very well suited for the tourist industry. Qatar is such a fastgrowing market, and with more hotels coming up, they will need to transport customers. Then, obviously, leading into the 2022 World Cup, which is a big event for everybody, more of these vehicles will be required. I think this is the perfect vehicle for this application.
“Qatar is such a fastgrowing market, and with more hotels coming up, they will need to transport customers.”
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Since public transportation such as Doha Metro is still under construction, do you think that is one of the factors contributing to growth in demand for this kind of vehicles in Qatar? Yes, obviously, some of the transport will be taken over by the metro, but a substantial part of your discerning customers will always prefer a bus transfer rather than a metro. A dedicated transfer, which leaves when they want it to leave, and they do not have to wait for a metro to run on schedule.
What was the purpose behind rebranding FAMCO? FAMCO is really a regional brand, and it currently operates in all of the GCC. Qatar was the last country where we had not rebranded the business to FAMCO. It is really just to get the consistency throughout the region. We are part of the Al Futtaim group. It has become a global powerhouse, operating in 35 countries and it is just to get brand consistency throughout the region.
And in terms of the strategy, is there any change in that? I think our strategy has always been very simple – provide the best possible, worldclass, top quality products, which are backed up by the world’s leading service and standards. We are an industrial company. Although we do supply trucks and buses, which started as the backbone of our company, we supply power generation solutions with various successes over the last couple of months, especially with our Himoinsa brand. We have in the last few months delivered over 30 big generators in the region. We are proud to be powering the new Dubai Festival City. We supply all the backup power generation there. We also supply marine solutions. We supply Yanmar engines, marine generators and construction equipment attachments to the market. Hartl is one of our big brands. This is QCN | January 2016
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industry insights
MBM Transport to buy 25 Volvo Marcopolo buses
an attachment for screening and mobile crushing solutions. We also have Linde Forklift, which is the German brand and a world leader in material handling solutions.
What is your take on the construction equipment market in Qatar? It is a huge market and Qatar is an important market for us. We also supply Ingersoll Rand products, in two ranges: the air solutions, which can be used in anything from manufacturing plants to market segments where you need compressed air, and Winches and Hoists, which is a leading brand in the oil and gas industry.
Are you planning to introduce more products into the Qatari market? We would definitely be providing more products to our portfolio. We have got a huge portfolio in some of our countries, especially in the United Arab Emirates, and gradually we will add the products to our portfolio in Qatar. Obviously, we would not have production facilities here. We are distributors of these products, but we also have facilities. For customers, we have a new large facility here and we will be providing, selling and servicing the products here in Qatar.
How has your business been impacted by the fall in oil price? Of course, the low price of oil is affecting all of us, but we hope it will be shortlived and we will get through to the other side.
January 2016 | QCN
Saeed Mohamed Nazeer, chief operating officer, MBM Transport, taking delivery of first Volvo Marcopolo bus from Swedish ambassador Ewa Polano and Mike Fritz, general manager, Bahrain, Oman and Qatar, FAMCO.
Qatar-based MBM Transport, which mainly caters to the oil and gas sector, with a fleet of over 350 luxury buses, revealed its plans to buy a total of 25 luxury buses of Volvo Marcopolo brand. Saeed Mohamed Nazeer, chief operating officer, MBM Transport, who recently took delivery of the first vehicle in Doha, told QCN that the company has already placed an order for two more buses, and is looking to buy an additional 22 buses after two months. “Our target is to have 25 Volvo buses in the first quarter, and then extend it to 75 units by the end of 2016,” he said on the sidelines of the launch event. Volvo, which is already present through trucks and other construction equipment in Qatar, feels there is a growing market for luxury buses. Jithes KV, director of Volvo Buses for the Middle East region, said, “We see that Qatar actually holds a good potential. You have the 2022 World Cup on the back of which a lot of investment is happening. I am sure there will be more demand for premium coaches leading to the event. So I think we are here at the right time.” Jithes thinks Volvo has a good start with MBM, which is one of the leading operators to provide services to oil and gas companies. “We have a premium brand, good dealership and customer base. So we will do it slowly, but we will do it right and I think we will get a decent market share in the coming years but challenges always remain,” added Jithes.
38
legal
SETTLING DISPUTES IN QATAR: THE LEGAL REQUIREMENTS James Bremen and Leith Ben Ammar of Herbert Smith Freehills explain how disputes in construction sector can be settled in accordance with the contract and the relevant rules under Qatari law.
Q
atar is undertaking some of the largest and most highprofile projects in the world in a wide range of fields such as transport, healthcare, leisure, hospitality and sports, alongside some of the most frontline oil and gas projects. These projects are often characterised by their significant size, duration and complexity. It is thus almost inevitable that the project developers and contractors will disagree on some aspects of the project, and disputes will arise. For instance, disputes under construction contracts can arise in relation to the effect of variations to the scope of work on the duration and cost of the project, delays in the project, increased or unforeseen costs, or the work or materials not being of the required quality. Such disputes will either lead to litigation or arbitration, or be settled by the parties when the dispute arises or at the end of the project through negotiation or alternative dispute resolution mechanisms such as mediation. Where the substantive law of the contract is Qatari law, disputes must be settled in accordance with the provisions of the underlying contract and the relevant rules of Qatari law.
Contractual requirements The settlement of disputes arising under a construction contract during the life of a project very often lead to an amendment to the original terms of the contract. Construction contracts usually contain provisions setting out requirements the parties need to comply with to amend the contract. Article 171(1) of Qatar’s Civil Code provides: “The contract is the law of the parties. It is not permissible to breach it or amend the contract unless there is an agreement between the parties or a good reason determined by law.” Accordingly, amendments to the original terms of the contract will need to be made in accordance with the provisions of the contract if they are to be valid. Common contractual requirements are that the amendments be reduced to writing and signed by duly authorised signatories of the parties.
them, or avoid a contingent dispute by each party waiving the corresponding part of their claim.” In other words, any contract which settles an existing or potential dispute in which the parties waive their respective claims will be considered a reconciliation agreement. In order to determine whether an agreement is a reconciliation agreement, Qatari courts will consider the provisions of the agreement and the background circumstances. Article 576 of the Civil Code sets out the legal requirements that parties must comply with for a reconciliation agreement to be valid. It states, “Reconciliation shall not be effective unless in writing or recorded in formal minutes.” In addition, while the Civil Code does not expressly require that the written agreement or minutes be signed, the Qatari courts require that a reconciliation agreement be signed to prove that reconciliation was reached. In practice this means that in order to be binding and enforceable, a reconciliation agreement must be in writing and signed by duly authorised signatories of the parties. Alternatively, Qatari courts will also accept as binding and enforceable a reconciliation which is recorded in written minutes signed by duly authorised signatories before a notary at the Ministry of Justice. Failure to comply with the underlying contract or the Civil Code’s requirements will render a reconciliation agreement invalid and unenforceable. Developers and contractors must ensure that any reconciliation agreement they enter into is: (i) either reduced to writing and signed by duly authorised signatories of the parties or recorded in written minutes signed by duly authorised signatories before a notary at the Ministry of Justice, and (ii) complies with any other requirements of the underlying contract.
Statutory requirements Settlement agreements are referred to in the Civil Code as ‘reconciliation’ agreements. The Civil Code sets out specific requirements which parties must comply with in order to enter into a valid reconciliation agreement. Article 573 of the Civil Code states, “Reconciliation is a contract under which the parties settle a dispute between January 2016 | QCN
James Bremen is partner in Herbert Smith Freehills’ Doha office. Leith Ben Ammar is an associate in his team.
40
careers
10 job fair tips for ambitious recruiters Job fairs serve twin purposes. They allow employers to meet hundreds of candidates, and gather as many CVs in a single day. However, these events tend to be hectic, making it difficult to identify and connect with the right talents. According to Bayt.com Middle East Job Index survey of August 2015, 71 percent of employers in Qatar said they will be hiring in a year’s time. As an employer, you have to be ahead of the competition if you want to fight, and win, the war for talent. Here is a checklist to help you make the most of your time at the job fair as a recruiter. 1. Let people know you’ll be there: You can do this by advertising your presence through billboards, mass mailers, social media, or online ads. This will ensure that there is a decent crowd at your booth. 2. Prepare brochures and have an attractive booth: The goal is to stand out so that you can attract the best candidates. Make sure that all of your collateral is professionally designed and written, and does not contain spelling or grammatical mistakes. 3. Train your representative: Your staff going to the job fair must remember that they will be representing your company, and their actions are likely to leave a lasting impression on visitors of your booth. They should therefore be trained on how to conduct themselves and speak to people who come to your booth. 4. Arrive beforehand: Come at least two to three hours earlier to set everything up. Doing everything in a hurry will make your booth look shoddy which will likely repel visitors. 5. Make a list of your job vacancies: Staff representing your company at the job fair should be aware of what job vacancies are currently available and what the requirements are for each vacancy.
January 2016 | QCN
6. Decide if you will be accepting CVs: When someone hands you a CV, will you accept it, or will you direct him or her to apply online? If you will not be accepting CVs on the spot, you can consider setting up a web page for candidates to upload their CVs, without the need to gather a stack of papers. 7. Have your business cards and nametags with you: Have your business card with you at all times. Sometimes, event providers give nametags for security purposes. Ensure you have all the details and resources at hand before the job fair begins. 8. Stand beside or in front of your booth: Most company representatives prefer to sit behind the booth. What they don’t know is that job fairs can be intimidating to job seekers. In order for people to come to your booth, ensure that you are standing next to or in front of your booth. Be formally dressed and have a smile on your face. 9. Have competitions and giveaways: Some exciting competitions seen at job fairs include wheels of fortune, lottery tickets, and Instagram photo contests. Brainstorm with your marketing team on competitions and giveaways. This will ensure that your booth will be attractive to visitors and will be talked about even after the job fair is over. 10. Create a follow-up plan: Have a plan for following up with candidates you are interested in. Take their names and contact information and assign someone to send them a follow-up email or make a quick call thanking them for their interest. Also, make it easy for job seekers to follow up with you. If attendees contact you after the event, respond promptly and guide them what step they can take next.
The importance of employer branding
90%
of professionals say companies should actively market themselves to jobseekers.
60%
agree that absence of follow-up by the company is the most harmful thing to an employer’s brand.
60%
of professionals give importance to an employer’s brand name when judging a new job offer.
70%
would not work for a company they are not proud of.
16%
agree that errors on a job post negatively affect the employer.
60%
take it as a personal compliment when someone praises their company.
90%
use ‘We’ when referring to their organisation, thus showing a sense of pride and ownership towards their workplace. Source: The Bayt.com What Makes a Company an Attractive Place to Work poll, February 2014.
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www.QatarTenders.com tender name
description
client
Project Management Consultancy Services
Provision of project management consultancy services
Qatar Railways Company
Engineering Services
Provision of engineering services
Warehouse and Labor Accommodation Construction HVAC System O&M
Fee(USD)
Closing (m/d/y)
5495
2/25/16
Qatar Chemical Company Limited
549
2/9/16
Construction of warehouse and labour accommodation
United Architects
275
2/7/16
Operation and maintenance of HVAC system
Seef Limited
55
2/2/16
Mechanical Works and Shutdown Support Provision of mechanical works and shutdown Services support services
RasGas Company Limited
Parking Master Plan Services
Provision of a parking masterplan
Ministry of Transportation, Qatar
Hydrocarbon Testing Laboratory Building Construction
Construction of a new hydrocarbon testing laboratory building
Mechanical PCRs Plant
1/31/16
137
1/27/16
Seef Limited
27
1/26/16
Engineering, procurement, installation and commissioning of various mechanical PCRs plant
Qatar Petroleum
55
1/25/16
Fuel Station Construction
Construction of fuel station
Qatar Fuel Company
275
1/25/16
Field Maintenance Scaffolding, Painting, Insulation and Refractory Services
Provision of field maintenance scaffolding, painting, insulation and refractory services
RasGas Company Limited
Health Center & Extensions Construction
Preparing of site and building a health centre and its extensions
Red Crescent, Qatar
Tensile Structure Shading
Design, fabrication of full tensile structure shading
Lighting Control System Sensor Modification
Modification of sensors for lighting control system
January 2016 | QCN
1/24/16
275
1/20/16
Hamad Medical Corporation
69
1/19/16
Qatar Foundation
69
1/17/16
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