INTERVIEW: Matthew Kobylar of Arney Fender Katsalidis on interiors representing brand identity of a firm – PG 28
issue 3.2
February 2016
While the
sun shines
Exploring solar opportunities for Qatar projects
TECHNICAL
Counting the cost of project disruptions
TECHNOLOGY
BIM: Demand and supply
PLUS
How to successfully deal with stakeholders in Qatar Retail Price: QAR15 / AED15
contents february 2016
www.qatarconstructionnews.com
Cover Story Canter NEW FP QCN Feb 2016.pdf
1
2/10/16
12:13 PM
With an aim to produce 20 percent of its energy capacity While the from renewable Exploring solar opportunities for Qatar projects sources by 2030, Qatar’s government has a highly ambitious target to achieve 1.8 gigawatts by 2020, but is the country’s dusty and hot environment really a perfect host for solar? Farwa Zahra explores, while also looking at building facilities and some other concerns around solar power in Qatar. INTERVIEW: MATTHEW KOBYLAR OF ARNEY FENDER KATSALIDIS ON INTERIORS REPRESENTING BRAND IDENTITY OF A FIRM – PG 28
issue 3.2
February 2016
sun shines TECHNICAL
Counting the cost of project disruptions
TECHNOLOGY
BIM: Demand and supply
PLUS
How to successfully deal with stakeholders in Qatar
Retail Price: QAR15 / AED15
Regulars Qatar National Convention Centre, pictured here, meets 12.5 percent of its energy demands through solar power. In QCN’s cover story, we look at some recent projects in Qatar capitalising on solar power, while also discussing major opportunities and challenges in this realm. (Image FotoArabia)
22.
14. 26.
Technical Disruption Claims: Counting the cost
Technology BIM in Qatar: The demand and supply scenario
Disruption in construction stands for loss of productivity on a project. Disruption claims is a huge problem and its numbers in the construction industry are pretty frightening, writes Tom Kapapa of Quantum Global Solutions.
In recent years, Qatar’s construction sector has seen a significant increase in the usage of building information modelling, but the lack of national standards and local capabilities of consultants pose new challenges, writes Christoph Weber of Hochtief Vicon.
From the Editor - 4 Construction News -6 Guest Column - 13 Legal - 32 Careers - 34 Qatar Tenders - 36
28. Industry Insights Companies with legacy space will need to rethink their corporate real estate strategy Matthew Kobylar of Arney Fender Katsalidis, discusses ways to enhance buildings after the construction phase is over. Focusing on office spaces, he explains how interiors can convey the brand identity of an organisation.
QCN | February 2016
publications director mohamed jaidah m.jaidah@firefly-me.com general manager joe marritt j.marritt@firefly-me.com managing editor miles masterson m.masterson@theedge-me.com editor farwa zahra f.zahra@theedge-me.com deputy editor ameen kader syed a.syed@firefly-me.com associate editor aparajita mukherjee a.mukherjee@theedge-me.com international sales director julia toon j.toon@firefly-me.com | +974 66880228 head of business sales manu parmar m.parmar@firefly-me.com +974 33325038 sales manager jeremiah prakash j.prakash@firefly-me.com +974 5047 0401 senior advertising manager UAE nesreen shalaby n.shalaby@urjuan-me.com + 971 50 719 9707 distribution & subscriptions azqa haroon/joseph isaac a.haroon@firefly-me.com j.issac@firefly-me.com production manager/senior designer srimani welagedara junior designer genevieve barakat diab finaliser ron baron printer ali bin ali printing press Doha, Qatar firefly communications PO Box 11596, Doha , Qatar Tel: +974 44340360 / Fax: +974 44340359 www.firefly-me.com
February 2016 | QCN JaidahElectrical_Edge 9.3x21.4 Ad.indd 1
11/4/15 1:44 PM
editor’s letter
In an attempt to reduce costs, Qatar’s construction companies and clients will have to reevaluate their layoff and restructuring strategy, considering not just short-term financial targets.
February 2016 | QCN
Qatar is expected to spend about QAR80 billion on new contracts this year. This is 24 percent less than what the country spent in 2015. Decrease in the number of new projects is, to a great degree, a result of the ongoing dip in oil prices affecting almost every sector here. On the other hand, a reduction in new project releases will help focus on the existing project pipeline – particularly those most crucial for the 2022 World Cup. With construction deals for two stadiums awarded in 2015, contractors have now submitted bids for the expansion of Al Rayyan World Cup stadium, redesigned to have a seating capacity of 45,000. While the World Cup projects have to continue, the impact of the oil price has started to show its repercussions on the country’s construction and infrastructure sector. Qatar Rail recently announced a decision to lay off 50 employees at all levels as the company tilts its focus toward operational readiness. In neighbouring United Arab Emirates, Etihad Rail has suspended its stage two of tendering process, which was to connect Abu Dhabi with the Saudi border. The company has also trimmed its workforce by 30 percent in an attempt to reduce overall costs. Decisions like these will not only impact the workforce of clients but also of contractors bidding for and awarded for such projects. In general, where do such layoffs leave the morale of existing employees, mostly expatriates, is a key concern as uncertainty across the Gulf Cooperation Council’s job market continues to rise. Linked to this is a question mark on the willingness of specialised professionals to work in the Gulf region in the near future.
Speaking of Qatar in particular, more than 70 percent of the country’s export earnings come from oil and gas. Amid falling oil prices, the need for diversification becomes imperative. Diversification, however, would also mean procuring experts in areas Qatar has not ventured into in the past. In our cover story on page 14, we discuss one such area – solar power. Despite great potential in Qatar’s arid sun-rich environment, solar is yet to be exploited as a common source of energy. With opportunities, however, there are also challenges. Among major impediments, experts suggest, is the shortage of specialist staff in the country. When translated in numbers, the lack of professionals here attributes to a significant part of the increased cost of solar in Qatar. In January, the World Bank revised its 2016 forecast for crude oil at USD37 (QAR135) per barrel – down from its October projection of USD51 ( QA R 1 8 6 ) p e r b a r re l . W i t h o u t a doubt, the year will remain tough for all sectors, including construction, across the country. That said, in an attempt to reduce costs, Qatar’s construction companies and clients will have to reevaluate their lay-off and restructuring strategy, considering not just short-term financial targets but also keeping in mind the repercussions it may have on attracting talent once the oil price stabilises.
Farwa Zahra Editor
Construction
News
Qatar’s real estate Are Residential rentals heading for a correction?
February 2016 | QCN
construction news
market:
In The Pearl-Qatar, DTZ estimates that new supply of apartments is likely to increase by 30 to 40 percent in 2016 as up to 13 new towers in Porto Arabia and Viva Bahriya are near completion. (Image Foto Arabia)
7
Qatar’s property market could see residential rental prices softening in some segments of the market over the course of 2016. Although only at a marginal rate of up to five percent, this fall is expected to be recorded primarily in the secondary housing market that, besides the increased supply in recent months, is impacted by the redundancies in the oil and gas and government sector. Christopher Seymour, head of Middle East markets at Arcadis, said, “After a long period of rising or, at best, static residential rents, the real estate agents are finally reporting that rents in some locations are beginning to fall.” As often is the case, he said, this is a patchy market response and by no means across the board. “But the reduced demand is beginning to have an effect,” he added. Ostensibly though, residential properties meant for the blue-collar and low-income segment remain in short supply in Qatar amid growing population that climbed to 2.42 million by the end of January 2016. As Qatar’s residents, and particularly expatriates, continue to feel the pinch of growing inflation and cost of living, any softening of rental prices will provide some relief to tenants. But, with the market still not ready to see a substantial reduction in rents, only those who are willing to move out of popular neighbourhoods and explore options elsewhere can expect to get a bargain deal. According to Q4 2015 report by DTZ Qatar, demand for apartments in areas such as Najma, Umm Ghuwailina, and Al Mansoura increased as tenants seek more affordable accommodation. “As a result, rents in Al Sadd, Bin Mahmoud and Al Mirqab have softened over the last three months in order to attract tenants,” stated the report, which was released last month. Edd Brookes, general manager, DTZ Qatar, said, “The secondary market has substantial pressure from increasing supply, as well as housing the middle income sector that has faced the biggest impact in terms of the recent redundancy and resizing rounds. Although there has not been any rental reductions of late, this market may soften by up to five percent over the course of 2016.” He pointed out that the biggest challenge for landlords would be to accept that it is far better to have occupied buildings than unoccupied buildings. “The days of single tenants are long gone, with most organisations now providing housing allowances as opposed to villas and apartments. As such, the individual is far more likely to attempt to negotiate with landlords as well as view multiple apartments prior to signing a lease,” he added. Seymour agreed that for the investor, the challenge would always be to keep realistic yield expectations in a portfolio. “Where expectations are set too high, voids or empty units will occur which have a far more severe effect on overall yield than reducing rent by a few points to achieve lettings,” he explained. Seymour was also of the opinion that the fluctuation in demand and rent are the operating conditions of a maturing economy. “So, to a certain extent, we should not be surprised by these movements,” he concluded. QCN | February 2016
Construction
News
Industry Views
Amid recent reports about construction firms being fined for negligence resulting in involuntary manslaughter, QCN approached some industry players to understand what could be done to make construction companies more responsible towards their workers’ safety. Here is what they had to say.
In addition to following the Qatar Construction Specifications 2014, companies need to focus on educating their employees for optimising safety standards working below the floor. Construction companies can continue to prioritise safety by focusing on educating their employees about various aspects of working in a construction site. Especially, as at Rapid EPS, we find that the most vulnerable places that require protection for workers are lift shafts and voids. By educating workers and in turn making them feel safe and secure every time they step out onto a construction site, construction companies can ensure worksite safety and better productivity. Ultimately,
safe worksites reduce injuries and help save lives.
“A larger cultural shift is required in terms of increasing the perceived value of human safety among construction companies in the region.”
“Over the past year, we have seen positive steps from organisations ensuring the health, safety and welfare of their workforce.”
“Good health and safety performance is rewarding in itself, but there is effort and investment required to achieve excellence.”
Mark Ainger, country director, Faithful+Gould, Qatar, suggested that an immediate and effective response with the support from client bodies could be to utilise their procurement processes to greater effect. “This could be done by attributing greater value and significant weighting within the tender analysis process to those contractors exhibiting all the correct and preventative measures to ensure worker safety,” Ainger added.
Andy Reid, business development manager, Qatar International Safety Centre, said this is supported by implementing training programmes to familiarise the workforce with health and safety matters. Even though all these positive steps are realised within the construction industry, Reid added, “There is still a requirement for further improvement to ensure that suitable measures are taken to safeguard our workforce.”
Ian Maund, associate director, Quantum Global Solutions, suggested that employers should be using audited health and safety data in the selection of contractors for major projects. However, presently lowest cost is still all too common. “Enforcement through government inspectors still has a long way to go,” he added.
There are a number of simple, effective steps that construction companies can take in order to ensure they continue to place safety at the highest priority list for their workers. To optimise safety standards, it is vital that construction companies follow the Qatar Construction Specifications 2014 (QCS 2014), which makes it mandatory for construction sites to have a guardrail and toe board. A toe board is essential for stopping tools and objects from potentially falling and hitting somebody
February 2016 | QCN
Paul Gilligan is the general manager at Rapid EPS Middle East.
Construction
News The first phase of the Doha North Sewage Treatment Works (STW) includes the construction of the main treatment plant for the reception and treatment of sewage, which has been designed to treat up to 245,000 cubic metres of sewage per day, serving a projected population of more than 900,000 people by the year 2020. The second phase of the project includes the construction of a Thermal Drying Plant (TDP) within the Doha North STW. The construction of the TDP is substantially completed and is currently going through final commissioning. The roads and picnic areas are also completed, and the bird watching
February’s big number
USD
22
billion While spending cuts continue in most sectors across Qatar, the country is expected to award contracts worth USD22.2 billion (QAR80 billion) by the end of 2016, according to Meed. Compared with 2015, the figure is about 24 percent down from last year’s contract value reaching USD29.3 billion (QAR107 billion). However, the forecasted figure for 2016 aligns with Qatar’s contract award average experienced over the past five years. February 2016 | QCN
Project update: Doha North Sewage Treatment Works
lagoon is expected to be completed in Q1 of 2016. The remaining irrigation pipe work and planting are in progress as well as the construction of artificial mounds across the area, which is expected to be completed by mid 2017. STW is the first sewage treatment plant in Qatar to use advanced treatment techniques such as ultrafiltration and ultraviolet technologies to produce high-quality reclaimed water for reuse in irrigation purposes. It is located in Umm Salal Ali. STW became fully operational
External view of the Thermal Drying Plant for the sludge generated from the sewage treatment process. (Image Ashghal)
in December 2015, after a full year of inspection and testing processes completed by the Qatari Civil Defence and other entities.
New appointments for Cofely Besix Mannai Facility Management Qatar’s facilities management company, Cofely Besix Mannai Facility Management (CBMFM), recently announced the appointment of Robert Willem Cats as the new country manager for Qatar. Prior to joining CBMFM, Cats worked as international project director for facilities management and project management for Cofely FMO, and was assigned responsibility for the Katara Cultural Village in 2015. “Robert’s experience includes developing and implementing global FM programmes in the areas of safety, critical environments, continuous improvement and workflow. His proven leadership skills make him an ideal candidate to assume the general manager role and enable CBMFM to deliver the best long term outcomes for our clients as we continue to expand
Robert Willem Cats – the recently appointed country manager for CBMFM – has a degree in economics and facilities management from Haagse Hogeschool in The Netherlands.
our business in the region,” said Ian Harfield, CEO of Cofely Besix Facility Management.
construction news
Volvo Trucks celebrates
its growth in Qatar Domasco, the authorised distributor for Volvo in Qatar, hosted a business dinner in Sheraton Doha Resort & Convention Hotel, bringing together Volvo Trucks VIP customers and manufacturers. Speaking about the sales growth, Mohammed Majeed, sales and marketing manager of commercial vehicles at Domasco, said, “2015 was a very good year for Volvo Trucks. We have achieved full year target by the end of the third quarter and we are proud to reveal sales growth up by 100 percent this year over 2014.” A general product presentation about Volvo Trucks was conducted during the evening and invitees got the chance to examine the FMX Transit Mixer, the latest of the Volvo FMX construction trucks, packed with innovative solutions. The Volvo FMX engine delivers the required power for challenging work environments such as construction sites. The trucks have the highest ground clearance within the category and a robust suspension system to guarantee maximum productivity in the most extreme surface conditions.
11
Al Maysan Heavy Equipment holds customer appreciation event Mohamed Jaidah, group executive director of Jaidah Group, speaking at the event.
Al Maysan Heavy Equipment, held a customer event in January to showcase Sany Mobile and Rough terrain cranes models to contractors, logistics, and rental companies. The company also presented appreciation awards to its long-standing customers. Among key figures attending the event were Mohamed Jaidah, group executive director of Jaidah Group, Ayman Ahmed, managing director of Jaidah Equipment, Wang Fengkai, general manager of Sany Middle East, Hazem Kenawy, service manager of Al Maysan Heavy Equipment, and David Xu, chief representative of Sany Group in Qatar. Speaking at the event, Jaidah said, “Jaidah equipment Group has a history of long-standing relationships with major international manufacturers, making us perfectly suited for satisfying the high demand of equipment related to Qatar’s construction boom, driven by Qatar National Vision 2030. We are confident that Sany’s quality and our after-sales services will ensure that we continue to increase our market share in Qatar.” Ahmed of Jaidah Equipment said, “We would like to stress on the important role of the after-sales service, and want to assure our Sany customers that various new initiatives have been taken to enhance after-sales support to benefit our valuable customers and aid future business relations.” Al Maysan Heavy Equipment showcased Sany Mobile and Rough terrain cranes models to contractors, logistics, and rental companies present at the event.
Pictured here are Volvo Trucks’ products displayed at the event.
QCN | February 2016
News Events Construction
21 – 23 February
28 – 29 March
13 – 16 April
8 Annual Façade Design and Engineering Middle East
Sustainable Urban Drainage Middle East
Cooling, Heating, Refrigeration, Ventilation and Insulation International Exhibition
th
InterContinental Doha
15 – 16 March
Qatar Projects Conference
InterContinental Doha – The City
11 – 12 April
Arab Future Cities Summit The Ritz-Carlton
Doha Exhibition Center
26 - 28 April
Cityscape Qatar
St Regis Hotel, Doha
Doha Exhibition and Convention Center
23 – 26 March
Qatar Covertech 2016 Doha Exhibition Center
13 – 16 April
Qatar Pool and Spa Exhibition Doha Exhibition Center
27 – 30 March
Health Facility Design and Development Qatar As the population of Qatar continues to grow rapidly, it is critical that Qatar’s construction experts develop effective health facilities.
With many big projects being announced by key Qatari stakeholder governments and increasing opportunities for private healthcare providers, this conference aims to address the main challenges surrounding health design and
February 2016 | QCN
development, and illustrate innovative solutions to develop Qatar’s healthcare infrastructure efficiently. Drawing on the experience of healthcare providers, architects, structural engineers, and construction specialists, this event will provide strategies required to ensure successful project development and completion, and will be held at InterContinental Doha.
18 – 19 April
Smart Parking Qatar Smart solutions to parking can reduce situations of traffic jams and illegal parking in Doha.
Congestion and parking is a major challenge for Qatar. This presents opportunities for the parking industry to provide solutions for existing infrastructure and future developments. Developments such as Lusail City, Education City, Msheireb Downtown and The Pearl-Qatar are being developed with foundations for intelligent infrastructure to ensure they meet the country’s plans to have smart cities. Smart Parking Qatar will incorporate case studies and quality speakers from the relevant government agencies.
guest column section
13
dealing with stakeholders in Qatar Qatar is executing an unprecedented volume of mega projects, which understandably puts immense pressure on manpower, material, and logistics. The industry’s key players, that include clients, contractors, and engineering consultants, have been in constant dialogue to overcome these difficulties. However, one major challenge has not been given the importance it deserves – the challenge of stakeholder management, writes Walid Daniel Dib.
Previously a civil engineer, Walid Daniel Dib is a general adjuster working with Charles Taylor.
While a consultancy based in the United Kingdom or the United States is accustomed to age-old explicit standards and specifications, with clear design approvals mapped out in flowcharts, engineering design work done in Qatar is somewhat different. International design consultancies in Qatar, including WSP|Parsons Brinckerhoff, Atkins and Aecom may come across unusually tough – and often conflicting – requests from the wide array of stakeholders they deal with on a day-to-day basis. In fact, stakeholders play such an essential role in the development of megaprojects that these consultancies usually hire veterans with at least 10 years of experience just to handle stakeholder management. Such role would deal with all kinds of establishments from government entities – such as the Qatar Armed Forces – to companies such as Ooredoo, Qatar Petroleum, and the Qatar Museum Authority. For one thing, regulations are constantly evolving, and design approvals almost always
depend on the circumstances of the project, from the surrounding environment, to the conflicts with other stakeholder entities. Take, for example, a ‘design-build’ project of a highway somewhere on the outskirts of Doha. An engineering consultancy’s utilities team has to be certain that all of their proposed pipe designs (from telecommunications, to potable water or storm water drainage) do not clash with any of the existing pipes and cables from over a dozen stakeholders. A successful consultant ensures a constant balance between satisfying both the contractor and the stakeholder entity – a logistical nightmare that is much easier said than done.
Miscommunication Every single stakeholder entity I have dealt with had a common complaint with regard to design approval delays: consultants were not taking their design specifications seriously. So many meetings, submissions, and queries could be avoided if consultants simply refer to the regulations of the specific network they are designing. These complaints ranged from incorrect design submission formats (long A1 rolls instead of A3 papers), incorrect scales in the drawings, and yes, even incorrect addressees in the cover letters. While all of these may seem like trivial blunders to certain designers, the issue stakeholders might have with this is the following: if a designer cannot correctly spell the addressee’s name on the cover letter, who knows what design catastrophes lay in the 100 pages behind it.
Contacts Well, not entirely, but it sure does help. If I were to be a senior Kahramaa engineer reviewing Company X’s design for a potable water network, and have reviewed their work with ease often before, I would
review it with much more confidence. This is mainly because Company X has always answered my e-mail and telephone queries in a timely manner. Meetings with Company X are fruitful because if they re-submit a network design after we have given them comments, the comments are always addressed in a concise manner showing clear understanding of Kahramaa regulations. A common design consultancy misconception of the word ‘contacts’ in this case is to simply hire an Arab-speaking engineer because he will “work his way around” certain design constraints with the stakeholder. This is almost always a bad idea. In the past, where projects were much smaller in magnitude, the recipe of utilising an Arab-speaking public relations officer (PRO) would have sufficed. Nowadays, however, clients are demanding bilingual stakeholder managers with at least 10 years of experience in engineering and/or construction.
Qatari workforce Both contractors and consultants have neglected to engage skilled Qatari professionals in their workforce. Granted, there might not be a sufficient pool of Qatari engineers, but there is a sizable number of Qataris with experience in dealing with governmental entities such as Kahramaa, and the Traffic Department. A Qatari PRO, for instance, with sufficient procedural knowledge is greatly able to expedite approvals for traffic diversions. Finally, it is yet to be seen who assumes the ownership for resolving stakeholder conflicts in such large projects. Is it the ultimate paymaster (the client), or is it the design consultant, or will the poor contractor – the last in the food chain – inherit the conflict? QCN | February 2016
While the sun
Exploring solar for Qatar projec
By 2021, Qatar plans to generate at least two percent of its electricity via solar power. (Image Arabian Eye)
February 2016 | QCN
shines:
opportunities ts Qatar’s sun-rich environment provides the ideal host for solar projects. With an aim to produce 20 percent of its energy capacity from renewable sources by 2030, the government has a highly ambitious target of achieving 1.8 gigawatts (GW) by 2020 – also the year by which the cost of photovoltaic (PV) systems is expected to be reduced by 40 percent. With increasing opportunities, however, come some tough questions: Is Qatar’s dusty and hot environment really a perfect place for solar? Does the country have solar professionals and companies to drive the growth in this sector? Are developers ready to invest more to have projects with solar features? Speaking with sustainability experts in the region, QCN’s editor Farwa Zahra addresses these concerns, while looking at some recent projects in Qatar capitalising on what is one of the cleanest forms of energy available.
F
or the Gulf Cooperation Council (GCC), solar is the most abundant form of clean energy that can be capitalised on to meet its growing energy demand. But is the region sufficiently exploiting its natural resources? Ostensibly, governments in the region are well aware of solar’s potential. In 2015 alone, the value of awarded contracts for reusable energy projects in the Middle East and North Africa (MENA) region reached USD7.7 billion (QAR28 billion), representing a 450 percent increase from USD1.4 billion (QAR5.1 billion) in 2014, reported Meed. The rise in renewable energy projects also meant their share increased to 24 percent of the total power generation projects awarded during 2015. A key focus of sustainable power generation projects was linked to solar energy, followed by wind and more conventional hydropower. In fact, 58 percent of renewable projects awarded comprised solar utilities. Compared to the neighbouring GCC states, Qatar still has to grow its renewables sector as a part of its development drive towards the 2022 World Cup and Qatar National Vision 2030. Giving a comparative analysis of the region, Salman Zafar, founder of EcoMENA, says, “Qatar has been a bit slow in joining the solar energy bandwagon, though the government has a highly ambitious target of 1.8GW by 2020.” At the end of 2015, he adds, the installed solar capacity in the country was a measly 10 megawatts (MW).
QCN | February 2016
16
cover story
In contrast, United Arab Emirates and Saudi Arabia have current installed solar capacities of 100MW and 50MW, respectively. Both countries, Zafar says, have several largescale solar power projects in development stages. On the other end of the spectrum are Kuwait, Oman and Bahrain, lagging far behind in the renewable energy sector. According to Khaled A’amar, general manager at Al Emadi Solar, Saudi Arabia will soon become the region’s largest market for solar. “In other parts of the GCC where there are regulatory pressures or opportunities to secure financial incentives, the interest and roll-out is greater,” says Dr. Neil Kirkpatrick, head of sustainability, Middle East, for Faithful+Gould. Drawing examples from Abu Dhabi, he explains that Estidama Pearl Rating System, a government-owned building and community rating system linked to the planning process, includes mandatory requirements to ensure that a proportion of the energy supply for hot water generation for villas is provided by renewable energy. With no such mandate in Qatar, Kirkpatrick says, “Faithful+Gould is only recently beginning to see leaders and pioneers emerge both in the public and private sector where we are being asked to explore the possibility of incorporating renewable energy solutions.”
Growth opportunities As a country with significant reserves of hydrocarbons – readily available at low rates – it comes as no surprise that a large part of Qatar’s energy demands are met via conventional sources. Nevertheless, sustainability experts believe the region’s newfound inclination towards solar and renewables is a product of a few key factors which include reduction in the cost of implementing solar technologies, increasing demand as a result of growing population, and the government’s active stance on saving natural resources. As one of the major generators of greenhouse gas emissions, Mounir Bensegueni, Middle East business development director, OCS Group International – a subsidiary of Tadmur Holding – says, solar power generation development falls within Qatar National Vision 2030.“Leaders in the construction industry are starting to explore the possibilities of benefitting from the use of renewable energy solutions. We believe this has been driven by a sustained reduction in February 2016 | QCN
the prices of renewable energy solutions as well as the continued development of new products entering the marketplace,” says Kirkpatrick. Providing some statistics on the cost of solar panels, Luc Graré, REC’s senior vice president for Europe, the Middle East and Africa, says, “During the last six years, global PV system costs decreased by half. By 2020, a further decrease of 40 percent is expected, and will reach a global average of five to eight USD cents per kilowatt hour (kWh).” Summarising Qatar’s motivation to use solar energy, Zafar says, “Depletion of fossil fuel reserves, transition to low-carbon economy and adoption of sustainable development goals are major motivators for Qatar to embrace solar energy in industrial, institutional and domestic sectors.”
Projects In capitalising on the current opportunities to grow Qatar’s solar sector, a lot will depend on the willingness of the country’s construction sector. According to Zafar,
“Solar energy development is one of the main green aspects of our project,” said Engineer Abdullah bin Abdulaziz Turki Al Subaie, managing director, Qatar Rail.
cover section story
Across the Gulf Cooperation Council’s desert climate, a major factor weakening the capacity of solar panels is dust, which needs to be cleaned regularly to maintain optimum performance. (Image Arabian Eye/Corbis)
“It is quite expensive and operationally challenging to maintain a dustfree condition of the solar panels due to the cost of water produced from desalination process.” – Mounir Bensegueni, Middle East business development director, OCS Group International.
“Qatar’s global horizontal irradiance is 2140 kWh per square metre per year which makes it well-suited for rooftop solar PV systems. However, the construction sector is yet to capitalise on it as the country is lacking a coherent off-grid and on-grid renewable energy policy and feed-in-tariff mechanism.” That said, considering the fact that Qatar’s government has indicated to mandate green construction over the coming years, it makes more sense for contractors and clients to be proactive in their move from conventional to sustainable construction, a large part of which will comprise solar. Among some current projects using solar as a major source of energy is Qatar National Convention Centre. With gold rating as per LEED standards, the facility is equipped with 3500 square metres of solar panels which meets 12.5 percent of the centre’s energy needs. Apart from solar rooftop installations, the higher percentage of energy conservation is also achieved by energy-efficient LED lighting system. Another such project is the recently launched Evergreen
17
Dr. Neil Kirkpatrick, head of sustainability, Middle East, for Faithful+Gould, says, “Dust and sustained high temperatures are invariably cited as potential issues and challenges when using photovoltaic cells or solar thermal water heating.”
Building built in accordance with Energy City Qatar Design Guidelines. Explaining its solar features, Bensegueni says that the project’s design-and-build features enhance energy saving through PV solar cells installed on top of the circular structures of the building used to generate electric power which shall bring “energy saving of up to 15 to 20 percent of the lighting load on the common areas and the sub-ground car parking as well as the central domestic hot water system”. On the infrastructure side, Qatar Railways Company is working towards maximising the use of solar technologies for energy
QCN | February 2016
18
cover story
conservation, working closely with Global Sustainability Assessment System that provides specific guidelines for green rail projects. In July 2014, the company signed a memorandum of understand with Qatar Solar Technologies for the installation of up to 80MW of solar technology across its various rail projects underway in Qatar. Summarising Qatar Rail’s interest in exploring solar solution, Engineer Abdullah bin Abdulaziz Turki Al Subaie, managing director and chairman of the executive committee of Qatar Rail, told media, “Solar energy development is one of the main green aspects of our project.” Driven mostly by government projects, as solar energy makes inroads in Qatar’s construction practices, experts believe encouraging independent power producers (IPPs) will boost the scope of solar in Qatar.
Challenges With opportunities also come challenges that Qatar needs to be prepared for. With the concept of solar technologies new for the country, having experts in the field can be a major issue. Speaking about some turnkey solar projects in the GCC, Graré explains the cost of solar is higher compared to European states. A major factor behind this cost differential is linked to the shortage of expertise. “As an emerging region for solar, the local installation expertise is lower than in countries like Germany, hence more labour resources are required to complete installation,” he says, adding that the costs
for components are also three to four times higher in states such as Dubai, reflecting transportation costs and custom duty of five percent. Seemingly, Qatar’s sun-rich environment provides the ideal host for solar projects. In reality, however, the country’s arid desert climate also contains high amounts of dust, thereby increasing both frequency and proportion of soiling on PV modules and solar mirrors. Research work by experts at Boston University suggests that the problem of soiling is linked to decreasing yield of these panels. Another performance limiting factor relevant to Qatar’s environment is the region’s high temperature, which has also shown deteriorating results on solar panels. Ultraviolet radiation, atmospheric salinity and dust accumulation, Bensegueni says, have a direct and significant impact on the performance of PV modules and their lifespan. While soiling can be curtailed by increasing the altitude of panels, strong winds in the region pose another hindrance in doing so. When asked about optical panel contamination, Kirkpatrick agrees that dust and sustained high temperatures are invariably cited as potential issues and challenges when using PV cells or solar thermal water heating. Designed to perform better within a clean air climate, the solar cells’ performance is further reduced due to the lack of rain in the region, says Bensegueni, adding that “it is quite expensive and operationally challenging to
“Depletion of fossil fuel reserves, transition to lowcarbon economy and adoption of sustainable development goals are major motivations for Qatar to embrace solar energy.” – Salman Zafar, founder, EcoMENA.
Qatar’s Evergreen Building, has received LEED gold certification and has solar technologies that can save up to 15 to 20 percent of the lighting load on common areas.
February 2016 | QCN
cover story
Across the Gulf Cooperation Council’s desert climate, a major factor weakening the capacity of solar panels is dust, which needs to be cleaned regularly to maintain optimum performance. (Image Arabian Eye/ Corbis)
“Leaders in the construction industry are starting to explore the possibilities of benefitting from the use of renewable energy solutions.” – Dr. Neil Kirkpatrick, head of sustainability, Middle East, for Faithful+Gould.
maintain a dust-free condition of the solar panels due to the cost of water produced from desalination process.” That said, according to Kirkpatrick, “New materials are being developed to decrease the accumulation of dust as well as to safeguard against a decrease in performance at higher temperatures.” Indeed, with the advancement of solar technologies, companies are now introducing self-cleaning solar systems. For existing panels, there are panel cleaning devices being introduced in the market. In Saudi Arabia, the King Abdullah University for Science and Technology has developed a panel cleaning system called the NOwater Mechanical Automated Dusting Device (NOMADD). Requiring zero manual input, NOMADD can clean 99.6 percent of dust from panels, and can be retrofitted or deployed during the design stage. To ensure these systems work efficiently, Kirkpatrick emphasises the importance of involving facility managers in technical
19
aspects of the building before its handover. For Zafar, the largest barrier to growth of solar sector in Qatar lies in the lack of renewable energy policy framework, legislations, institutional support, feed-intariffs and grid access, “Qatar requires a strong, visionary and coherent renewable energy policy as well as a flagship initiative, like Abu Dhabi’s Masdar City, to accelerate its emergence in regional as well as global cleantech arena.” Another obvious challenge is subsidised energy prices. “With heavily subsidised electricity and falling oil and gas prices, the comparison between renewable energy solutions and conventional, fossil fuel-based solutions, becomes more challenging,” says Kirkpatrick. Zafar expresses similar concerns, explaining that solar power systems are still considered to be highly expensive for Qatar, which has abundant and cheap supply of fossil fuels for power generation. In consensus, Bensegueni says that despite the reduction in installation cost of PV panels over the last few years, the price differential is still significant. “The kilowatt hour of solar energy produced by PV technology costs almost double of that of electricity extracted from natural gas,” he says. According to the International Renewable Energy Authority (IRENA), by 2020, MENA’s investment on renewables will reach USD35 billion (QAR127 billion) per year. GCC’s solar, alone, will represent a share of USD10 billion (QAR364 billion), reports Frost & Sullivan. For Qatar, a part of its target this year will be achieved when operations start at Kahramaa’s first solar power facility with a generation capacity of up to 15MW, as announced by the state-run company last year. By 2020, the company aims to reach a target of 200MW solar
QCN | February 2016
20
cover story section
20%
The percentage of energy capacity Qatar aims to achieve through renewables by 2030.
power. Citing IRENA’s 2016 report, Ahmed Imam, director of business development, Solar Business, MENA Schneider Electric, says, “The Qatari government aims to produce 20 percent of its energy capacity from renewable sources by 2030,” adding that solar is anticipated to be a critical part of this mission. This, Imam explains, can be realised with the state’s support in terms of rising awareness on energy management and environmental protection, along with investment in solar research and development. Indicating a promising trend in Qatar construction practices, Kirkpatrick mentions contractors’ growing interest in renewables with a different perspective, “Contractors are starting to take a longterm perspective where they are looking at renewable energy solutions from the viewpoint of asset management. For instance, contractors [are looking at how they can] use the same renewable energy equipment on successive projects much like a contractor might do when using heavy lifting equipment, etcetera. For Qatar, the year 2016 started with a memorandum of understanding signed between Qatar Petroleum and Qatar Electricity & Water Company, preparing to establish a solar company. Recently, Qatar Environment and Energy Research Institute announced its ongoing works on a second generation of energy-efficient solar cells. In terms of motivation, Kirkpatrick sees a marked interest in the development and implementation of strategies to reduce carbon emissions. “This is being led mainly by the public sector where opportunities exist to make massive changes linked to the construction of new infrastructure and public buildings, not forgetting of course, the buildings and infrastructure being developed to help support and facilitate the FIFA World Cup 2022,” he concludes. Indeed, with right direction and continued support, Qatar can achieve what currently looks like ambitious target. February 2016 | QCN
Qatar National Convention Centre, pictured here, meets 12.5 percent of its energy demands through solar power. (Image FotoArabia)
MENA Renewables in numbers
450%
Increase in the value of contract awards for renewable energy generation projects in MENA in 2015.
USD7.7 billion
Value of renewable energy generation projects awarded in 2015. Source: Meed
7%
Share of renewable energy projects among all power generation awards in 2014.
USD4.5 billion
Value of solar power projects awarded in 2015.
24%
Share of renewable energy projects among all power generation awards in 2015.
2%
58%
Share of solar in renewable energy contract awards in 2015.
Qatar’s minimum target for electricity generation from solar energy sources by 2021.
QCN is international
International Sales Representatives Asia Sonney Media Networks Tel: +852-2783-1603 / +8522151-2351 E-mail : hemant@sonneymedia.com
QCN currently has a growing network of international media sales representatives across numerous jurisdictions. To reach Qatar’s thriving construction market from any location, please contact your closest representative to inquire about advertising in QCN, Qatar’s Construction Magazine.
For sales enquiries please contact: International Sales Director:
Julia Toon
Tel: +974 66880228 E-mail: j.toon@firefly-me.com United Arab Emirates Senior Advertising Manager UAE :
Nesreen Shalaby
Tel: +971 50 719 9707 E-mail: n.shalaby@urjuan-me.com Qatar Head of Business Sales:
Manu Parmar
Tel: +974 33325038 E-mail: m.parmar@firefly-me.com
India Media Star Pvt Ltd Tel: +91 22 42202103 E-mail: ravi@mediastar.co.in Australia & New Zealand The Media Machine Tel: +61 89 447 2734 E-mail: okeeffekev@bigpond.com Germany IMV Internationale Medien Vermarktung GmbH Tel: +49 8151 550 8959 E-mail: w.jaeger@imv-media.com Turkey Media Ltd Tel: +90 212 275 84 33 E-mail: tanbilge@medialtd.com.tr United Kingdom & Ireland Smyth International Media Representatives Tel: +44 (0) 208 446 6400 E-mail : jo@smyth-international.com
France Mediactiv Tel : +331 5688 2080 E-mail : info@mediactiv.com Switzerland Mediactiv Tel : +41 22 779 1289 E-mail : info@mediactiv.com Italy Mediactiv Tel : +39 02 58 322149 E-mail : info@mediactiv.com Benelux Mediactiv Tel : +32 2 335 1063 E-mail : info@mediactiv.com Seoul, Korea YJP & Valued Media Co., Ltd Tel: +82-2-3789-6888 E-mail : hi@YJPvm.kr USA WorldMedia Tel: +1-212-244-5610 E-mail: melissaworrell@worldmediaonline.com
22
technical
Disruption Claims: Counting the cost
February 2016 | QCN
technical
23
Disruption in construction stands for loss of productivity on a project. Disruption claims is a huge problem and its numbers in the construction industry are pretty frightening, writes Tom Kapapa of Quantum Global Solutions.
I
f we look at forecasted future spends being discussed in the market, Qatar is looking to spend over or close to USD200 billion (QAR728 billion) on construction projects in the next 10 years in line with Qatar National Vision 2030. Around 20 to 50 percent of this investment will be used on labour and plant costs. That is close to USD100 billion (QAR364 billion). Based on my experience, in the worst case, the average labour and plant productivity is lower than 20 percent and in the best cases, less than 40 percent. If we extend these numbers in relation to the investments planned for the industry, the following scenarios could be drawn: 1. Close to USD60 billion (QAR218 billion) will be lost by contractors due to unproductive resources, or 2. Close to USD60 billion (QAR218 billion) will be the money wasted by the project owners making the assumption that contractors are clever and pricing this risk within their bids, or 3. Close to USD60 billion (QAR218 billion) will be the ‘opportunity cost’ on potential investments for contractors and/or project owners, depending on any of the above scenarios. If we evaluate the costs further and extend these numbers looking at how much has been invested in Qatar in the last 10 years, it leaves me wondering why disruption (or unproductive use of resources) is understated and/or overlooked without any gravitas. Try extending these numbers regionally and globally, and one wonders why this has not been declared an investment crisis. The costs of disruption are frightening and surely cannot be ignored at legislative level, stakeholder level and construction industry level. It gets worse if you consider that construction is a key economic driver, and in most developing countries, it accounts to as much as 20 percent of gross domestic product (GDP), surely this ‘silence’ cannot go on and be left for the
contractors and project owners to fight it out in court. In Qatar, for instance, construction represents nearly seven percent share of the country’s GDP. Seeing that the level of opportunity that has been and continues to be lost, one wonders why disruption is not considered at a legislative level? Despite disruption claims or disputes in the construction industry running for years and probably centuries, not a single contract dares to mention disruption or provide any mechanism for managing this cost. Is it because disruption is deemed as a contractor’s risk and therefore should not get a mention in the contracts? This is clearly incorrect, because looking at the number of disputes and costs incurred to fight for such claims whether through amicable resolution or formal dispute processes, at the end of the day, project owners are paying for it. So why has the International Federation of Consulting Engineers or any other contract body decided not to address this fundamental financial and/or investment crisis? The word ‘disruption’ itself does not sell. Putting my marketing hat on, this is a bad product which has cost us a lot of money and we need to bin it or come up with a good name. Fundamentally and personally, I believe this could be the issue as in most cases I have found
It is the project owners who end up paying for disruption in one way or the other, while in the meantime, the costs of disruption to the industry and national economies keep growing. QCN | February 2016
24
technical
people shouting ‘disruption’ when in fact it is a variation under PWA General Contract – 51.1, such as a change in the levels, conditions, lines, position or dimensions of any part of the works and can be resolved by seeking a change in unit rate. It is, however, often that people call all sorts of additional costs as disruption – again a bad product and costing us a lot of money. Crucially, Clyde & Co. has indicated that there are two principle legal bases of a disruption claim: 1. Claims pursuant to the terms of the contract giving a defined contractual entitlement. 2. Claims for breach of contract or a legal obligation, resulting in an entitlement to damages. Looking at the two legal principles, it is no wonder that a disruption claim is easily disregarded as a baseless claim. We are too quick to call it disruption when in fact it is (1) or (2). So what is disruption then? My initial view on this is that we have been using a very negative word for two legal principles which provide clear entitlements to contractors, and we have made it easier for project owners and legal practitioners to find no basis to award compensation in most cases. Alternatively, is it that disruption is mainly related to contractor issues and therefore, rarely a client issue? A research paper titled A Survey of Factors Influencing the Productivity of Construction Operatives in the State of Qatar identifies the following as key causes of labour productivity issues: • Skill of labour • Shortage of materials • Labour supervision • Shortage of experienced labour • Communication between site management and the labour force • Lack of construction managers’ leadership • High temperature weather • Delays in responding to ‘Requests For Information’ • Lack of providing labour with transportation • Proportion of work subcontracted. Ironically, only one of these issues could be considered to fall within the two legal principles for disruption for February 2016 | QCN
Disruption is a product of lost productivity of a construction project. This can be caused by many reasons, such as labour’s lower productivity. (Image Arabian Eye/Corbis)
compensation to materialise. Debate remains on whether it is the methodology used for quantifying disruption which is wrong or is there no sufficient usable record to demonstrate an accurate scope of disruption. I see a fundamental problem here, that is the use of word ‘disruption’. Even if everyone used the right method for calculating disruption, would it solve the problem? By this I mean contractors being compensated and project owners happily paying out for issues, which arguably fall on the contractor. Clearly, people will argue that ‘disruption’ is a multi-faceted problem in nature and thus it is difficult to isolate and assess individual issues which is why disruption claims fail. I see it as a huge fundamental problem that needs industry stakeholders, legislators and the like to really look at the cost that is either being wasted in investments or leading to huge fallouts between parties. In my personal experience, it is the project owners who end up paying for it in one way or the other, while in the meantime, the costs of disruption to the industry and national economies keep growing.
Seeing that the level of opportunity that has been and continues to be lost, one wonders why disruption is not considered at a legislative level?
Tom Kapapa is the operations and technical director at Quantum Global Solutions. He is a member and qualified professional surveyor of the Royal Institute of Chartered Surveyors.
26
technology
BIM in Qatar: the demand and supply scenario Over the past few years, Qatar’s construction sector has seen a significant increase in the usage of building information modelling (BIM), but the lack of national standards and local capabilities of consultants pose new challenges for supply chain, writes Christoph Weber of Hochtief Vicon Qatar.
BIM provides a virtual prototype through which the design may be refined and improved prior to the actual commencement of construction.
T
he last few years have shown that Qatar is not only ready, but has also seen an exponential growth in the usage of BIM with more and more projects reaping its benefits. Large-scale projects and clients such as Lusail City, Qatar Rail, Ashghal’s Doha Expressways, Qatar Foundation, Qatar Economic Zones and the Supreme Committee have been leading the industry by demanding BIM in their projects. While this topdown approach is beneficial for the international consultants who are open to incorporate BIM into their practice, it has also negatively affected those participants who are still struggling or have been hesitant to adopt BIM.
Current demand Large players in Qatar’s ambitious construction industry understand the value that BIM is able to bring. Individual efforts have been made by various clients to establish certain regulations in the tenders to streamline the BIM processes and achieve positive benefits from it. Lusail City is the BIM pioneer in Qatar. It has the largest infrastructure February 2016 | QCN
BIM model that has been applied to many business processes such as building permits, marketing, design and construction. Lusail has appointed ViCon as its main BIM consultant to achieve the anticipated BIM implementation as well as to mandate and supervise BIM throughout the supply chain. Ashghal implemented detailed BIM requirements on their Doha Expressway project, which generated many benefits for all stakeholders. Such BIM requirements are expected to grow in Ashghal’s current highway and tunnelling projects and will soon be adopted as standards. The Supreme Committee for Delivery & Legacy has envisioned the stadiums taking full advantage of BIM. The ‘SC BIM Implementation Master Plan’ is a clear example that any potential consultants interested in participating in these developments will have to possess strong BIM capabilities. The Qatar Rail’s Doha Metro project began by adopting British standards into their BIM specifications, which were designed around the information
technology workflow and required implementation and interaction with other management systems. During the project execution, a complete set of BIM standards was developed aiming to take the highest level of benefit out of the contractor’s BIM deliverables. Qatar Foundation/Education City is not only attempting to implement BIM for a specific use-case, but also demands the project teams to actively use BIM across design, execution, construction and operations phases of the project life cycle. The number of tenders with specific BIM requirements is constantly increasing as clients are gradually reaping the benefits of BIM into their projects. BIM is becoming a prequalification requirement in the tenders and a standard that bidders must comply with. The demand for BIM is going up in Qatar and with time, it will only increase its pace and rise in expectations.
BIM supply While the demand is clearly rising in Qatar, the supply chain is still coping with the growth, especially in an environment where national standards and regulations for BIM are significantly lacking. There is also a big gap between the BIM capabilities available among the consultants in the market. Some are just starting off, while some specialise only in specific BIM applications or tools. Only a handful of consultants in the market are able to provide a holistic approach to BIM implementation, which is software independent and process driven. To bridge this knowledge gap, BIM education and awareness programmes need to play a key role in the future. Providing training and accreditations to the students as well as to the consultants could be a direction where Qatar may benefit in building up its supply chain. Organising BIM specific events which are free and open to the public, such as BIM User Day series, organised annually by Qatar University, Hochtief Vicon and Teeside University since 2011, are good methods to establish a knowledge platform with government, academic, research and industry experts. It also allows Qatar to build a strong professional network as well as position
27
Only a handful of consultants in the market are able to provide a holistic approach to BIM implementation, which is software independent and process driven. To bridge this knowledge gap, BIM education and awareness programmes need to play a key role in the future.
itself as a leading promoter of BIM in the Middle East. Along with its rising construction industry, Qatar has seen a significant increase in the efforts to integrate BIM on its large-scale projects. Lack of national standards, a regulatory body, BIM specific educational programmes and sufficient BIM capabilities of consultants are few of the key challenges that the supply chain is facing while trying to meet the increasing demand. Although, this developing stage of BIM in Qatar should not be seen as a free pass for market players to wait and rest. All consultants wanting to stay relevant and competitive in the Qatar market will momentarily need to assess their in-house BIM capabilities before BIM becomes a standard practice in Qatar. The clock is ticking, are you ready for BIM? Christoph Weber is the managing director of Hochtief Vicon Qatar.
QCN | February 2016
28
section insights industry
Companies with legacy space corporate real estate strategy Matthew Kobylar, director of Interiors and Workplace Strategy at Arney Fender Katsalidis, discusses ways to give life to buildings after the construction phase is over. Focusing on office spaces, he explains how interiors can convey brand identity of an organisation.
How can interiors communicate brand, culture and authenticity of an organisation? This is not an easy question to answer as I don’t believe there is one solution that works for every organisation. In the easiest cases, the use of established brand colours might seem like an obvious route to communicate a company’s brand. If you picture the corporate offices of an organisation with a strong brand like Coca Cola, it would not be hard to imagine their workplace using red on the walls or in the furniture. And it would not be wrong, but I think the workplace, to be truly authentic and reflective of the business culture, needs to look deeper than just the use of brand colours. We need to remember that this is a place where people come together to actually work and this behaviour, the ways people connect, the hierarchy, the business process, and the social connections, etcetera, is an important aspect to reflect in the space. So we need to tell a different story about the workplace that is more than just splashing corporate colour, but rather reflecting how and where people work and connect, and the business’ goals and objectives. February 2016 | QCN
Office sector in Qatar does not usually have brand-customised interiors. Why is that so? In some ways, large workplaces are relatively new in Qatar. Many organisations have literally sprung up overnight and the most pressing motivating factor is housing people quickly and efficiently. So many organisations are living in these legacy spaces that reflect the early growth years of their businesses in Qatar. While the focus has been on efficiency, I am not sure there has been as much consideration on effectiveness. Now as leases come to an end and companies have the opportunity to move to new locations, the next generation of workplace in Qatar will
Learning about clients’ motivations and objectives is a powerful way of developing a workplace strategy and an interior design that is bespoke and right for that client, says Matthew Kobylar, director of Interior Design and Workplace Strategy at global boutique architecture and interiors firm Arney Fender Katsalidis.
industry insights
29
will need to rethink their start to emerge. These spaces will reflect the brand, how people work today with technology and with space, and will seek to build loyalty to the company through an exciting offer of workplace and amenities. Companies with legacy space will need to rethink their corporate real estate strategy as these new progressive spaces are going to be great tools for companies in the race for attracting and retaining the best staff.
What is the role of architecture in reaching the overall efficacy of interiors in office spaces? Some organisations build their own buildings to house their interiors while some occupy a portion of a multi-tenant building. In the former case, there is the greater ability to shape the shell and core to the overall strategy and design concept. When a company only occupies a portion of a building, they have less opportunity to affect the shell-and-core architecture. In this case, more care needs to be undertaken to ensure that the building’s architectural design broadcasts the right message during the leasing stages. That may mean only looking at certain types of buildings or may mean negotiating with a landlord about some specific changes to the building to make it work better for that organisation. The role of the architecture should be aligned to the values, goals and aspirations of the organisation. While it is possible for an interior designer to think of a building only as a shell for housing the interior space, the building has a profound impact on the expression of the interior from the moment we first see it. The building is often that proverbial ‘first impression’ that staff and visitors will have of a workplace. When we think of authentic organisations, we need to think of a carefully crafted journey from first sight of a building to a staff or visitor sitting down in a meeting room.
There is another aspect to the building’s architecture that is important to the interior design, and that is simply put as ‘effectiveness’. How the building’s components are arranged affects how efficiently a company will occupy the space therein. Are things like the cores well considered? Are the columns too big and in the wrong location to effectively divide space per the company’s brief? Well-designed buildings that are thought through from the end-user experience and how the building systems relate to interior components are essential for maximising the efficacy of the interior spaces.
Can you tell us about some Qatar organisations that have successfully implemented interiors along their organisational philosophies? In developing a workplace strategy for RasGas, we talked with the C-Suite, ran countless numbers of workshops, surveyed the staff and undertook onsite observation studies. All of that was done before we put pen to paper in developing a design. The development of the workplace strategy led to a set of six design directives that the leaders of the company helped shape and agreed are the fundamental backbone of what the workplace needs to do in order to enhance the way they work, recruit and retain staff, build morale, engage staff and optimise productivity. The design was developed with these key directives in mind and we always went back to review these against our design progress. For instance, a few key directives were centred on the theme of collaboration. It was felt space should be something that helped people to collaborate and build connections within the organisation. As a result, there are specific meeting floors every five floors as you go up the building with specialist rooms with technologies for enhanced communication.
What are some ways office spaces can inspire staff, and impress clients and visitors? I think one of the most effective ways of impressing clients and inspiring staff is to let people ‘see under the hood’ of the organisation. By this I mean, let people see what the organisation does, how they work, how they interact and solve problems. We recently completed a project for Deloitte in Montreal where we created an atrium with a connecting stair. The space is impressive, but the lasting legacy that resonates in your mind after a visit is the palpable buzz in the air. The atrium allows you to see staff going about their business. They use the stairs
“Many organisations are living in these legacy spaces that reflect the early growth years of their businesses in Qatar.”
QCN | February 2016
30
industry insights Using brand colours in office spaces is an obvious route to communicating the organisation’s identity, but according to Matthew Kobylar, a workplace needs to look deeper than just the use of brand colours.
to navigate the building and there is a real sense of activity and energy in the building. You leave the building thinking, “I wish I worked there.”
In aiming towards meaningful office interiors, what are the starting questions for background research? I’m not sure the questions are as important as are the people we engage with from the outset. The leadership of the organisation needs to be onboard with developing a workplace that reflects their culture and enables staff. We, as workplace strategists, need access to the C-Suite so that we can fully understand where the senior leadership wants to take the business and develop a workplace strategy to suit. Other key people that need to be engaged with early include human resources (HR), IT and communications. Overlooking the role of HR, IT and communications will spell disaster for the project. The leaders of these departments
“Now as leases come to an end and companies have the opportunity to move to new locations, the next generation of workplace in Qatar will start to emerge.”
February 2016 | QCN
should have a good sense of a company’s appetite for change, what motivates staff, and what limitations are there with the current and future planned tools.
What are the cost differentials of brandspecific interiors when compared to regular interiors? A brand-specific interior that also captures the goals, aspirations and workplace drivers connected to people, tools, process and culture takes more time and should be entrusted to an accomplished experienced team. The development of a workplace strategy at the outset should really be thought of as an enhanced briefing or programming stage. Setting the workplace strategy gives the design team a roadmap for measuring the project’s success. Depending on the complexity of the project and size, the development of the strategy could take up to three months to conduct and add an additional two to five percent to the interior design fees. The costs and risks for not undertaking a full deep study of your organisation cannot be fully conveyed. As an organisation may be signing a lease for 10 to 15 years on a new location, any new workplace project represents a oncein-a-generation opportunity to align the workplace as an additional tool to engage staff, improve morale, heighten staff productivity, and impact the culture. Failure to acknowledge the opportunity can lead to the development of a design for your workplace that is not responsive to staff needs, does nothing to enhance
recruitment and retention of the best staff, and costs the business more in attrition of staff and lost productivity.
What are some challenges in convincing clients about the worth of organisationspecific interiors? Some companies do not view the workplace as an enabler of the business. They are only seeing the workplace as a facility to house staff. They do not see it as an additional tool of the business, like a mobile phone or a laptop, that could actually help leverage the experience and skill of staff. A high performance workplace also requires the alignment of several different streams of the business, which often exist in their own silos. Specifically, I am speaking about human resources, IT, communications and corporate real estate. The high performance workplace impacts all of these departments differently, so often, it requires an alignment and a coming together of these groups during the initial development of the workplace strategy and then continued interaction during the design and delivery stages. The high performance workplace may require a new paradigm for staff in working in the new environment and with new IT tools at their disposal, so the change management aspect of the project in the lead up to the move and post occupancy cannot be underappreciated. Again this requires a coordinated effort by HR, IT, communications and corporate real estate.
sector name | banner heading
a qatari magazine dedicated to the country’s booming construction industry
smartphone and tablet optimised.
www.qatarconstructionnews.com
The Edge | 1
32
legal
An interest-ing debate: Interest claims in Qatar construction contracts If you are suffering because of late payments from your employer as project costs are mounting, can you claim interest on the outstanding amount? Andrew Jones responds.
F
or contractors in Qatar, the position on interest claims can be uncertain, both up and down the supply chain. Below are some myths on claiming interest on late payments in Qatar.
“I can still claim interest on my late payments, even though my contract does not say so.” This is not necessarily true. In Qatar, legal interest is not recognised by the courts. Although interest is recognised in banking loans, the same cannot be said for other contracts, for example, construction contracts. There is no provision in the codified law which entitles a party to a default payment of interest. Usually, if a party makes an application to the court for interest, unless there is a contractual right enabling a party to bring such a claim, judges will be minded to reject it. While there is no current practice to award interest, depending on the facts of the case, there may be an opportunity for a party to recover interest as a claim for compensation under Article 263 of the Qatari Civil Code. Conversely, in the United Arab Emirates, except where the parties have agreed that interest is not payable, you may be entitled to interest on late payments due.
“My contract states that I can claim interest on my late payments, therefore, I can claim interest.” Generally speaking, contractual provisions agreed between the parties will be honoured by the court. Therefore, provided that your contractual provision is drafted with sufficient clarity, the court will February 2016 | QCN
usually uphold a payment requiring one party to pay interest to the other. The applicable rate of interest should be specified in the contract, to be paid upon default. In the eyes of the court, this is usually labelled ‘compensatory’ or ‘delay’ interest. The interest awarded will be the party’s only recourse for the damages allegedly suffered by the claiming party. However, Article 154 of the Civil Code entitles the court to cut across an agreement between the parties where such agreement would run contrary to principles of public policy.
“I am entitled to whatever rate of interest is stated in my contract” This is not necessarily the case. According to Article 171(1) of the Qatari Civil Code, the contract is the law of the contracting parties. However, where the parties have agreed upon a level of compensation which, in the eyes of the court, was exaggerated or where no loss has actually been suffered by the claiming party, a court can reduce the amount of compensation previously agreed between the parties. Applying this to an interest claim, even where the parties have agreed an amount of compensation for late payment in the contract, it is within the court’s discretion to reduce this amount. Additionally, compound interest rates are usually declined in favour of simple interest rates.
“A previous contract I entered into stated that interest is payable on late payments.” A previous agreement between two parties does not always bind the
same parties in future dealings. However, there are some provisions under the Qatari Civil Code which may prove useful to a party seeking to rely on previous arrangements. To conclude, it remains debatable whether or not a claim for interest on late payment would be upheld by the court, but in summary: • Where your contract does not stipulate that interest is payable, consider whether customary practice or a previous course of dealing would entitle you to bring such a claim. • Where your contract does stipulate that interest is payable, payment of interest must be articulated as a compensatory payment, and consider whether there may be grounds for the court to reject your claim in favour of public policy. That said, before relying on any of the points relating to claims for interest above, we recommend you seek independent legal advice.
Andrew Jones is partner in Construction and Dispute Resolution team at Dentons, Doha.
34
careers
Customise your CV
for the perfect construction job
Customising your industry CV is not optional in Qatar’s competitive construction industry. With the advent of online recruitment sites, employers come across hundreds of CVs when looking for the perfect candidate, and you need to stand out from the crowd. Only those with the best CVs and best first impressions will be shortlisted. So in order to succeed, it is essential to ensure that your CV is not only impeccable, but also perfectly relevant for the Qatari construction industry in particular. Here are some tips to write an impressive CV. 1. Pay attention to the layout and language You must maintain a clear and wellorganised CV. Use bullet points to enumerate; use an appropriate font and keep your CV concise. In fact, 42.5 percent of employers in the Middle East prefer a short and concise CV that is no longer than one page. Use action verbs and avoid any spelling and grammatical mistakes as 21.3 percent of employers say the biggest mistake on a CV is having poor language. 2. Include relevant information Include all your previous work experience, especially in the construction field, mentioning your internships and professional achievements. If you have experience that is not relevant to the construction industry and you do not feel comfortable leaving it off your resume altogether, using the phrase ‘additional experience includes’ can help you mention the experience quickly without wasting precious space and reading time. In case you don’t have prior professional experience, internships make a huge difference. Your work experience should include all the tasks of your previous jobs and all the projects you have managed. 3. Customise your career objective It is the first thing that a recruiter reads when sifting through thousands of CVs. Be very specific: include the words ‘Qatar’ and ‘construction’ – this will show the employer that you are very specially interested in the Qatar
February 2016 | QCN
construction industry. It should also be well written and specific in order to excite the reader and encourage them to learn more about you. Be creative and honest when describing how ambitious you are, as well as the talents that make you stand out. Do not copy/paste your career objective from random websites. 4. Include relevant keywords Whenever a recruiter posts a job online, hundreds of job applications start flooding in. Keep your focus on using searchable keywords related to the construction field as well as your skillsets. Of course, keywords need to be relevant not only to the construction industry but also to the job you are targeting. For example, ‘site and construction management’, ‘tendering contracts’, and ‘architectural
construction’ are some keywords that may be relevant, depending on your targeted job role. 5. Do not forget the cover letter According to employers, cover letters are really, really important. This is because a cover letter lets you provide an interesting summary of your profile, as well as highlights your key achievements and core competencies. A cover letter also helps you get shortlisted by projecting yourself in the best possible way. Similar to your CV, make sure to use the appropriate language, while also focusing on the target job role and your key achievements. In the conclusion of your cover letter, request an interview politely at the employer’s convenience.
Qatar employment in numbers
26%
of fresh graduates in Qatar find that the construction industry is one of the most appealing sectors from career perspective.
35%
believe that there is a shortage of skills in their country of residence.
14%
of unemployed respondents in the GCC said that they are looking/planning to look for a job in construction.
81%
say career development is very important to them.
29%
of professionals say that the construction industry in Qatar has the highest number of hiring fresh graduates.
62%
believe that their role is a good match with their abilities.
Sources: The Bayt.com Fresh Graduates in the MENA Survey, July 2015, The Bayt.com Hiring Practices Survey, June 2015, The Bayt.com Salary Survey, May 2015, The Bayt.com Career Development in the Middle East and North Africa Survey, November 2015.
sUBSCRIBE AND Get the magazine delivered to you FOR FREE A NEW QATARI MAGAZINE DEDICATED TO THE COUNTRY’S BOOMING CONSTRUCTION INDUSTRY BROUGHT TO YOU BY THE EDITORS OF THE EDGE, qATAR’S BUSINESS MAGAZINE FIRST NAME: LAST NAME: EMAIL: TELEPHONE: WORK TITLE: INDUSTRY SUB-SECTOR: AGE:
GENDER:
MAILING ADDRESS:
or sign up online at www.qatarconstructionnews.com MAIL TO : P.O.BOX 11596, DOHA, QATAR
NATIONALITY:
www.QatarTenders.com tender name
description
client
Utility Extension & Storm Water Drainage System Construction
Qatar Foundation Design, construction, installation and commissioning of North Site Utility Extension, Storm Water Drainage System, and construction of road
Toilets Modification and Refurbishment Works
Modification and refurbishment works for public and staff toilets
HVAC System
Design, fabrication and installation of HVAC system Qatar Chemical Company Limited (Q-Chem)
Design and Consulting Services
Provision of design and consulting services for a building
Qatar Railways Company
HVAC Maintenance
Service agreement for maintenance of HVAC on call-off basis.
Plant, Heavy Vehicles and Equipment Maintenance
Fee(USD)
Closing (m/d/y)
275
3/28/16
55
3/7/16
275
3/6/16
1374
3/6/16
Qatar Vinyl Company
137
2/29/16
Maintenance services for plant, heavy vehicles and equipment
Qatar Chemical Company Limited (Q-Chem)
275
2/28/16
Project Management Consultancy Services
Provision of project management consultancy services
Qatar Railways Company
5495
2/25/16
External Pavers
Supply and delivery of external pavers for a stadium
Aspire Foundation
137
2/23/16
Walkover Bridges & Walkways Construction
EPIC of walkover bridges and walkways in a tank farm area
Qatar Petroleum (QP)
55
2/22/16
Professional Design and Quantity Surveying Consultancy Services
Provision of pre-contract professional design and Ministry of Municipal quantity surveying consultancy services for parks & Urban Planning, Qatar
41
2/21/16
Buggy Path, Footpath Track and Wheel Chair Ramp Access Construction
Construction of buggy path, footpath track and wheel chair ramp access
412
2/21/16
Lighting Poles and CCTV Camera Poles
Supply and delivery of external lighting poles and Aspire Foundation CCTV camera poles
55
2/21/16
Turnaround Maintenance Services
Provision of turnaround maintenance services
Qatar Petroleum (QP)
137
2/21/16
Condensate Separators
Design, manufacture, inspection, testing and supply of condensate separators
Qatar Fertilizer Company (QAFCO)
55
2/18/16
February 2016 | QCN
Primary Health Care Corporation
Al Rayyan Hospitality
INTERVIEW: Matthew Kobylar of Arney Fender Katsalidis on interiors representing brand identity of a firm – PG 28
issue 3.2
February 2016
While the
sun shines
Exploring solar opportunities for Qatar projects
TECHNICAL
Counting the cost of project disruptions
TECHNOLOGY
BIM: Demand and supply
PLUS
How to successfully deal with stakeholders in Qatar Retail Price: QAR15 / AED15