INTERVIEW: Naoras Khalil, BIM manager at Al Darwish Engineering, on BIM adoption in Qatar – PG 24
issue 3.3 March 2016
A look into
QCS 2014 Retail Price: QAR15 / AED15
TECHNICAL
The impact of volatile oil market on construction contracts in Qatar
Feature Story Moving beyond financial benefits of green buildings
PLUS
Qatar’s logistics and warehouse infrastructure to receive further boost
contents m a r c h 2 0 1 6
www.qatarconstructionnews.com
Cover Story ASC FP QCN Mar 2016.pdf
1
3/3/16
9:58 AM
In February 2015, the Ministry of Environment published A look into the fifth edition of Qatar Construction Specifications (QCS). Issued as mandatory technical guidance for minimum acceptable standards to be applied to public and private sector construction projects in Qatar, QCS 2014 completely supersedes QCS 2010 in all respects. Senior contract specialist, Tony Distin offers an analysis of key technicalities and legalities of QCS 2014. INTERVIEW: NAORAS KHALIL, BIM MANAGER AT AL DARWISH ENGINEERING, ON BIM ADOPTION IN QATAR – PG 24
issue 3.3 March 2016
QCS 2014 Retail Price: QAR15 / AED15
TECHNICAL
The impact of volatile oil market on construction contracts in Qatar
Feature Story Moving beyond financial benefits of green buildings
PLUS
Qatar’s logistics and warehouse infrastructure to receive further boost
Regulars Section 1 of Qatar Construction Specifications (QCS) 2014 deals with the welfare, safety and protection of workers. The regulation sets out the minimum requirements for the provision of welfare facilities, in addition to other minimum health and safety requirements. In QCN’s cover story, we also take a look at other key areas included in QCS 2014.
18.
12. 20.
Technical The impact of the oil price drop on construction contracts
Feature Story green buildings: moving beyond financial benefits
Considering the spending cuts in Qatar across the board, construction companies may face delays and reduced scope of work at least until the oil price gains strength again. Stephen M. John advises on best approaches contractors and other stakeholders can take in the event of cancelled, postponed or reduced projects.
In an exclusive interview with QCN’s Syed Ameen Kader, Meshal Al Shamari, director, Qatar Green Building Council, shares how developers and construction companies can improve their financial performance, as well as the quality of life in buildings, by adopting green practices.
From the Editor - 4 Construction News - 6 events - 11 Legal - 28 Careers - 30 Qatar Tenders - 32
24. Industry Insights The industry is not yet clear enough on what BIM is, despite understanding different BIM aspects With the lack of a mandate, BIM in Qatar is yet to become a norm. In an interview with QCN’s editor Farwa Zahra, Naoras Khalil, BIM manager at Al Darwish Engineering, talks through the benefits and challenges of using BIM in Qatar, along with its current level of adoption. QCN | March 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 deputy sales manager shalaka dhaigude s.dhaigude@firefly-me.com +974 66264790 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
March 2016 | QCN JaidahElectrical_Edge 9.3x21.4 Ad.indd 1
11/4/15 1:44 PM
editor’s letter
What’s encouraging is the fact that Qatar’s government is actively involved in improving the state of construction practices in Qatar on technical, social and legislative levels.
March 2016 | QCN
Although lower than the value of contracts awarded last year, Qatar is still expected to award contracts worth USD22.2 billion (QAR80.8 billion) in 2016. Similarly, as layoffs continue across the board, a recent survey conducted by Bayt.com and research and consulting firm, YouGov, indicates that 70 percent of respondents working in Qatar expect their employers would be hiring more talent in 2016. Not surprisingly, construction is among the leading sectors in terms of favourability for new hires. What these findings represent is clear: while Qatar’s construction sector may not be as bullish as it was a year ago, down the line, things will likely improve. Reaching USD20 (QAR73) per barrel in the beginning of 2016, the oil price is recovering, albeit slowly, crossing USD40 (QAR146) per barrel by early March. After lowering its estimate for 2016, Standard Chartered forecasts Brent crude to reach USD50 (QAR182) per barrel, with further increase to USD78 (QAR284) per barrel in 2017. For the construction sector, like any other industry, this is the time for cautious optimism. There is a reconsideration to maximise efficiency with lesser resources. Tightening of resources, however, does not seem to impact Qatar’s key projects in progress. According to Research and Market’s latest report Construction in Qatar Key Trends and Opportunities to 2020, Qatar’s construction industry showed a compound annual growth rate (CAGR) of 15.6 percent between 2011 and 2015. From 2016 to 2020, the sector is forecasted to register a CAGR of 9.66 percent. Given the fact that the number of new contracts will gradually go down with the completion of much of Qatar’s infrastructure in the coming years, a 9.66 percent growth rate sounds promising for construction companies operating in the country.
Whether or not the countr y’s construction sector per forms as expected, what is encouraging is the fact that the government is actively involved in improving the state of construction practices in Qatar on technical, social and legislative levels. In February, the government cancelled licences of at least nine engineering consultancies in Qatar, for violating the laws enforced to maintain best construction practices in the country. First announced in mid-2015, a unified online system is being developed to evaluate the performance of contractors working on government projects. In February, Al Sharq also reported that the country is planning to bring an evaluation system that would cover all projects and would link contractors’ payments to their performance. Furthermore, 23 plots were allocated to private companies to develop modern housing facilities for their workers. To monitor the working and living conditions of labourers, Qatar currently has 300 inspectors. Clearly, initiatives are being taken to strengthen the sector in terms of projects’ quality and workers’ conditions. A hallmark in this realm was the launch of Qatar Construction Specifications a few years ago. Being regularly revised, QCS 2014 – the latest edition of QCS – that came to force in 2015 defines construction stakeholders’ rights and limits on a diverse range of areas, with special focus on health and safety of workers on site and in their accommodations. In QCN’s cover story on page 12, Qatar-based senior contract specialist Tony Distin provides a look into QCS 2014, as he explains some technical and legal issues around its scope and application. Enjoy reading QCN’s March issue.
Farwa Zahra Editor
Construction
News ECONOMIC ZO
Qatar’s logistics and infrastructure receiv The Qatar government’s recent approval to a draft law on economic zones is expected to improve the country’s logistics, warehousing and ancillary infrastructure, as well as encourage foreign companies to set up businesses. By Syed Ameen Kader
March 2016 | QCN
construction news
NES LAWS:
warehouse ves boost
New economic zones that are coming up closest to Hamad International Airport (HIA) and Hamad Port will help ease pressure on the country’s old port. (Image Getty Images)
7
The three ongoing economic zones, being developed by Manateq at Ras Bufontas, Al Karana, and Um Alhoul, will not only create high-quality infrastructure and business-friendly environments for overseas companies, but also provide a better alternative to local companies that are primarily located in ageing buildings outside of central Doha. The non-hydrocarbon, logistics sector is predominantly based in and around the old Industrial Area, located approximately 18 kilometres to the west of Hamad International Airport and New Doha Port. Nick Witty, director, Real Estate, Deloitte & Touche, Middle East, said, “With the exception of Logistics Village Qatar, much of the existing stock is old and in need of refurbishing. The location of the existing Industrial Area and its ageing infrastructure means it is not readily accessible from the airport and port, and as such, it is likely that, over time, the new economic zones will compete directly in terms of attracting some of the existing businesses to relocate.” From a commercial office perspective, however, it is difficult to predict at this stage exactly what effects the development of the economic zones will have, simply because the extent of the new office provision is not yet known. “It is difficult to say right now how many businesses currently based in Doha will be attracted by the benefits of being located within an economic zone as opposed to mainstream, commercial office locations and how many of those could, in practice, relocate given their existing onshore structures/partnerships,” said Witty. However, Mark Proudley, director, DTZ Qatar, said, “Qatar logistics sector will benefit from better quality infrastructure and availability of higher quality warehousing and ancillary spaces. These also aim to lower the costs of occupying this type of space if these schemes flood the market with space as anticipated.” As Qatar is looking to diversify from its energy-based economy, the government’s new law will allow any types of companies to be set up by a legal professional from Qatar or outside, without requiring to adhere to prevailing company laws applicable elsewhere. This is expected to encourage a large number of foreign companies from diverse fields to enter Qatar as they will be entitled to have 100 percent ownership, as well as freedom for the unrestricted transfer of capital, revenues or investments out of the country. In general, the draft law on economic zones in Qatar highlights the growing importance of the sector within the Gulf Cooperation Council. Qatar has been a late mover into this space although the country had already set up tax-free zones – Qatar Financial Centre and Qatar Science and Technology Park – to attract direct foreign investment within the industrial sector. But these new free zones would cater to all different kinds of businesses – something that can give Qatar an edge over other regional competitors such as the United Arab Emirates. QCN | March 2016
Construction
News
Industry Views
While the oil price has returned to above USD30 (QAR109) per barrel, it is not expected to come close to USD100 (QAR364) anytime in the near future. Keeping the forecasts in mind, QCN asked professionals how contractors and other construction companies should approach the current situation. Here is what they had to say.
Value Engineering exercises should be undertaken to look at ways of reducing costs without reducing overall quality of cost savings if they want to beat the market. Value engineering exercises should be undertaken to look at ways of reducing costs without reducing overall quality. Identifying better phasing strategies, to reduce construction workload, is another strategy. Similarly, the adoption of ‘shell and core’ packages, where the fit-out is done later when sales has been secured, is a proven way to delay and defer costs in the short to medium term for both contractor and client. Importantly, on the revenue side, contractors really need to administer their contracts properly and rigorously, through sound understanding of their contractual rights, along with clear paperwork evidence to support any
client initiated variations to scope and/or time. Being alert to serve the appropriate contractual notices in a timely fashion is crucial to revenue performance, and often the defining difference between the winners and losers on a project. As with most situations, more control, care and prudence through early and open communication is better than leaving it to the end.
“Now is the time for companies to implement some timely policies, efficiency initiatives, diversification and adjustments to their business.”
“In the past six months, we have seen clients and firms working in the construction sector rationalising headcount.”
“We are not going into a crisis,” argued Andrew Rotteveel, head of Project and Development Services, JLL MENA, adding that using some caution and strategic planning, most companies in construction should be able to weather this period, and position themselves better for more prosperous times. “With healthy competition in the construction sector, all companies are going to have to strive to sharpen their competitive edge both internally and externally and prioritise their identified opportunities to sustain growth,” he said.
Robert Jackson, regional director of RICS, MENA, explained that this rationalising of staff number is also linked to a drive towards operational efficiencies and higher performance with lesser human resources. The trend is also leading to an increase in the value of highly-skilled professionals such as chartered surveyors and engineers. “Despite the economic gloom, the RICS is actually seeing an increased demand in the construction sector for professionally-accredited chartered surveyors whose skills and competencies are independently assured,” said Jackson.
“This is a time of consolidation and cost management. Construction firms have to dig internally for further efficiency, and process streamlining to eliminate waste and redundancies in systems.”
With margins falling for both contractors and construction companies, including consultants, the ability to control and predict costs will be increasingly paramount to success or failure. Contractors should prioritise cost efficiency and mitigation, exploiting opportunities to procure labour, material and services at cheaper rates in a falling market. A review and tightening of governance, bolstering processes and procedures together with the review sign-off thresholds, and purchasing strategies will always yield savings, with excess resource becoming an important by-product. In addition, contractors need to identify more innovative ways
March 2016 | QCN
Andrew Jeffery is the managing director, Capital Projects, Deloitte ME.
Engineer Khaled Awad, chairman of Advanced Construction Technology Services, said that there is no solution that fits all construction companies as each subsector has its own dynamics. But in general, he added, companies need to look at ways to reach cost efficiency. “I would not call the current situation as a crisis, but another wave of maturity that the GCC construction industry will have to navigate,” said Awad.
Construction
News
Project update: Lusail Expressway
A delegation of members from the Central Municipal Council recently conducted a site visit to the Lusail Expressway project implemented by the Public Works Authority (Ashghal), where they were updated on the project’s progress. The works implemented in the project so far include the completion of most of the Light Rail Transit works, which will be 1106 metres in length, 9.5 metres in width, and 5.5 metres in height. Around half of the works associated with the North Canal Crossing are completed, while excavation and refilling works for the dam of the North Canal Crossing are underway. In addition, a large part of the South Canal Crossing works is completed, including the demolition of the existing Northern part of the Canal. Currently, construction of the piers and the supports is underway for the bridge, which will be built in the same area. A large part of the infrastructure facilities
is completed including the drinking water network, stormwater drainage network, sewage water drainage network, wastewater treatment networks, as well as the extension of the electricity of the Central Municipal Council visiting Al Wahda and communication Members Interchange Site-1. (Image Ashghal) cables. Currently, Al Wahda Interchange Expressway with the city. Works of is being converted into a three-level Onaiza Interchange are also ongoing, interchange including a tunnel with including three tunnels and a bridge. three lanes in each direction to connect The deck of one of these tunnels is Al Dafna area with Lusail, in addition being constructed, while excavation and to an upper bridge with three lanes refilling works are implemented on the in each direction to connect Lusail other two tunnels.
March’s big number Focus on building female human
USD
270 billion
According to Standard & Poor’s estimates, infrastructure projects in the Gulf Cooperation Council are expected to see a funding gap as large as USD270 billion (QAR983 billion) until 2019. The figure is calculated by projecting a difference between capital spending for projects by Gulf governments and project contracts awarded. On a positive note, the gap would mean possibilities of publicprivate partnerships and increased private participation in the construction sector over the next four years.
capital within the Middle East’s construction industry At the fifth series of Women’s Business Network held in Doha and Dubai, over 150 women and men were present with the express aim to highlight the benefits the construction industry can gain from the growing number of talented and ambitious women who are building their careers in this sector.
The event was opened by Campbell Gray, managing director of Faithful+Gould in the Middle East, who said, “We believe that by allowing for different attitudes and approaches within the workplace, we are better equipped to provide our clients with the best of service.” “Gender balance and diversity bring with them tolerance and cooperation, and in order to be able to have that competitive advantage, we must absolutely rely on the many talents of our staff,
specifically the high emotional intelligence quotient women bring to the work environment which is an indispensable asset to becoming a client-centric organisation and to ensuring success,” Campbell added. Atkins and Faithful+Gould are striving to create a good balance based on merit. In the companies’ three-year Middle East Graduate Development Programme, both combined have taken 45 percent females.
QCN | March 2016
Construction companies in Qatar to witness increased scrutiny and evaluation A frequent reason for cancelled licences was the use of engineers not registered with the government.
Qatar’s government has been taking measures to tighten the enforcement of existing construction laws in the country. Members of a committee at the Ministry of Municipality and Environment have been recently granted the judicial power to cancel companies’ work licences in case of any violation. This year, according to media reports, 87 violations have been detected on various sites, resulting in licence cancellation of at least nine engineering consultancies. A frequent reason for cancelled licences was the use of engineers not registered with the government. In other news linked to maintaining best practices and quality assurance, the Ministry of Finance will soon start a general review and evaluation of construction and infrastructure projects underway in Qatar. “The plan will evaluate the actual performance of the contracting companies and link it to their payment besides assessing project budgets, mainly those on long-terms basis,” Zawya reported Al Sharq’s statement.
Plots allocated to build labour camps To facilitate the development of labour camps, Qatar’s Ministry of Municipality and Environment has allocated 23 plots to private companies. This brings the total number of allocated plots to 433, apportioned to the private sector. The space will be used to create modern accommodation facilities, which are on par with international standards.
March 2016 | QCN
Qatar Rail advances on Doha Metro project Qatar Rail, which is overseeing the construction
of the country’s integrated railway network, celebrates as two tunnel boring machines (TBMs) successfully complete their section of the tunnelling currently taking place on Doha Metro’s Green Line. The Al Rayyan and Al Gharrafa TBMs each went through four breakthroughs before reaching the final destination at Msheireb. Commenting on the accomplishment, Qatar Rail’s project director Jassim Al Ansari said, “To date 30 kilometres (km) out of 33km have been tunnelled on the Green Line, a remarkable feat considering we began tunnelling less than 18 months ago.” The first phase of the Doha Metro project is expected to be completed in the fourth quarter of 2019, while completion of the Lusail Tram is set for 2020. By 2030, all the three networks – Doha Metro, Lusail Tram and the long-distance rail, which will link Qatar with the GCC Rail network – are expected to be complete. With the completion of the first phase of the Doha Metro and Lusail Tram, Qatar Rail expects to offer 600,000 passenger trips per day by 2021. By then, 37 metro stations are expected to be complete, with an average journey time of two minutes between adjacent stations.
“Waste issues are just one segment of an overall project lifecycle assessment and plan. They should be core components of the wider project sustainability and development agenda.” Qatar Project Management’s Dr. Mark Evans, who is seconded to Qatar Rail’s PMC Major Stations Department as environmental and sustainability manager, highlighted the importance of construction management at the 6th Waste Management and Recycling Summit in Doha. “From a builder’s perspective this should account for managing the construction process so resource utilisation is minimal, and that waste is segregated properly. It should be reused where possible, or disposed of responsibly,” he said, adding that the business of construction is rigid about final build quality and project integrity, but environmental sustainability calls on developers and project managers to behave ethically, mostly of their own volition.
News Events Construction
15 – 16 March
Qatar Projects Conference St. Regis Hotel, Doha
23 – 26 March
Qatar Covertech Doha Exhibition Center
27 – 30 March
Health Facilities Design and Development Qatar InterContinental Doha – The City
13 – 16 April
Cooling, Heating, Refrigeration, Ventilation and Insulation International Exhibition Doha Exhibition Center
18 – 19 April
Smart Parking Qatar
9 – 10 May
lightingtech qatar City Center Rotana Doha
11 – 12 May
Future bim implementation InterContinental Hotel – The City
9 – 12 May
Project Qatar Doha Exhibition & Convention Centre
InterContinental Doha – The City
26 - 28 April
Cityscape Qatar
16 – 19 May
World stadium congress
28 – 29 March
Sustainable Urban Drainage Middle East InterContinental Doha – The City
11 – 12 April
Arab Future Cities Summit The Ritz-Carlton
13 – 16 April
Qatar Pool and Spa Exhibition Doha Exhibition Center
A glimpse of Cityscape Qatar held in the past.
To be held at Doha Exhibition & Convention Centre, Cityscape Qatar will offer presentations by regional and international speakers covering four themes: trends and outlook, real estate sectors, design and sustainability, and investment hotspots. The event is aimed to target developers, financiers, investors, brokers, real estate consultants, engineering consultants, retail groups, mall operators, hotel groups, and lawyers among others.
Discussions at the event will include ways on diversifying a stadium to encourage multi-use for the entire calendar year.
As stadium stakeholders continually focus on improving their respective venues’ legacy programmes in order to avoid long-lasting losses, there remain additional issues at stake. To be held at the Westin Doha Hotel and Spa, the World Stadium Congress 2016 will provide discussions on best-practice solutions, future projects, forecast the future of both the broadcasting and fan experience, and hear international case studies from the most renowned stadiums in the world.
QCN | March 2016
12
cover story
a look into
Construction companies in Qatar – employers, contractors, and engineering or design consultants – must review QCS 2014 to familiarise themselves with the technical changes or additional requirements, and how they might affect their projects and contracts. (Image Arabian Eye/ Corbis)
March 2016 | QCN
QCS 2014
cover story
13
In February 2015, the Ministry of Environment published the fifth edition of Qatar Construction Specifications (QCS). Consisting of 311 Parts in 29 Sections, QCS 2014 came into force in May 2015, having been drafted by over 120 consultants and specialists in nine committees. Issued as mandatory technical guidance for minimum acceptable standards to be applied to public and private sector construction projects in Qatar, QCS 2014 completely supersedes QCS 2010 in all respects. Senior contract specialist, Tony Distin (MRICS) offers an analysis of key technicalities and legalities of QCS 2014.
Q
atar Construction Specifications, frequently known as QCS, is a guideline document mandating the minimum acceptable technical standards to be applied in private and public sector construction projects. The 2014 edition is an impressively large document consisting of 311 Parts in 29 Sections, covering the majority of construction-related activities. With regards to application, Sections 1 (General), 2 (QA/QC) and 11 (Health and Safety) apply to all construction-related projects. Section 7 titled ‘Green Building’ on sustainability applies to projects which include a design element, while Section 29 is specific to railway-related projects. The remaining sections of QCS 2014 are all, in essence, technical specifications to be applied to the construction process and will apply if that particular material/system specified in these sections is employed in the project.
Changes you need to know QCS 2014 has provided a major overhaul to QCS 2010 removing duplication and ambiguity, while restructuring and expanding some of the sections to produce a clearer and more user-friendly document. In addition, there have also been amendments to some technical requirements, especially around design standards and sustainability. Clearly, it is incumbent on us all to be aware of all of the changes but to identify the top two, it would be prudent to consider Sections 2 (QA/QC) and 11 (Health and Safety) to be the most significant, not only because of the improved and enhanced requirements but also because of their ever increasing importance in the industry today. QCS 2010’s Section 1 Part 8 on quality assurance has been considerably expanded to 15 parts and elevated to Section 2 in QCS 2014, in essence ‘swapping’ with QCS 2010 Section 2 on building demolition, which in QCS 2014, is now in Section 1 Part 8 (Building Demolition). Section 2 is very extensive in its requirements for quality management, including mandatory minimum standards and references to key performance indicators, and auditing, etcetera. Part 12 of this section provides a table of unacceptable performance criteria against which penalties may be levied, while Part 13 provides the right for the engineer to instruct suspension at the contractor’s risk for serious quality violations. Section 11 on health and safety (H&S) has been significantly restructured, not so much in terms of new requirements, but more in terms of improved clarity and strengthening the foundations laid by QCS 2010. The said section is now split into two parts.
QCN | March 2016
14
cover story
Section 29 of QCS 2014 sets out the minimum requirements for railways, such as tunnel design, geotechnical specification, tunnelling (including tunnel boring machine excavation, precast concrete and grouting for segment lining), dewatering and groundwater management, concrete and steel structures, and railway tracks.
QCS 2014 does not have any directly enforceable sanctions or penalty regime enforcing its incorporation into the contract documents.
March 2016 | QCN
Part 1 ‘Regulatory Document’ contains eight chapters. It retains the requirement to comply with the Construction Design Management (CDM) regulations, as adopted from the United Kingdom’s legislation and the table of recommended unacceptable H&S incidents against which penalties may be levied. In addition, some of the major changes include the right for the engineer to suspend activities for serious H&S violations, minimum requirements on the provision of welfare facilities and formal qualifications and experience for safety officers. Part 2 of Section 11 is titled Safety and Accident Management/Prevention Administration Systems (SAMAS), comprising four comprehensive chapters. As its title suggests, SAMAS provides references to requirements for H&S, and sets out how these requirements are to be administered. It also includes process maps, sample procedures and forms. With H&S being applicable to all aspects of a construction project, Section 11 must be read in conjunction with the other sections of QCS 2014 for an understanding of the particular H&S standards applicable
to each specific construction process. To aid this, Part 1 of Section 11 contains a summary table providing cross references for H&S matters relating to the other sections. In addition to the H&S standards set out in Section 11, Section 1, Part 10 contains the requirement to prepare a H&S plan and introduces the requirement to apply occupational H&S management systems to BS OHSAS 18001 – a framework for an occupational health and safety management system – and lays down, amongst other matters, the requirements and minimum qualifications for competent persons. In compliance with these requirements, contractors should appoint a H&S manager, a deputy H&S manager and a contractor’s environmental manager.
QCS within Qatar’s wider legal framework QCS 2014 is a technical regulation, which is brought into effect through compliance with Article 6 of the Environment Law (#30/2002) by reference in the contract
cover story documents. Technically, it is not a law in itself. Section 1, Part 1 of the document strongly suggests that QCS is not intended to have the force of law, but is rather intended to establish minimum standards and, in a sense, holds the employer responsible to make sure these minimum standards are achieved in construction projects. Together with the Environmental Law, the intention appears to be that an employer can require higher, but not lower technical standards than what is mentioned in QCS 2014. It is therefore a mandatory document to specify in the contract documents, as it can only be enforced through the contract. However, it is prudent to treat QCS 2014 as establishing mandatory legal requirements, not following which could leave the project contracting parties greatly exposed.
Application of QCS on site The standard way for employers to comply with Article 6 of the Environment Law (#30/2002) is to incorporate QCS into their contract documents. However, depending upon the contractual definition of the word ‘law’, QCS may be deemed as applicable without the necessity to express reference. For instance, the 1999 standard forms of contract by the International Federation of Consulting Engineers (FIDIC) define ‘laws’ as “all national (or state) legislation, statues, ordinances and other laws, and regulation and by-laws of any legally constituted public authority”. Article 1.13 states that in performing the contract, the contractor shall comply with applicable laws. Therefore, compliance with QCS 2014 is, in this circumstance, a contractual requirement. This introduces the QCS requirements as minimum requirements to be applied to the project, which are consequently applied as contractual obligations. A key consideration to keep in mind is that QCS’ minimum standards contain a significant degree of overlap with existing legislation, such as those in labour laws. Therefore, application of a number of items in QCS 2014 is not only a contractual obligation but also a legal requirement. Another point to consider is that failure to adhere to what are considered minimum standards under QCS 2014 potentially exposes employers to third-party liability
claims, not under the contract but from separate parties, enforcing rights under the civil jurisdiction. Such rights are those equivalent to tortuous duty of care that is not to cause harm. In this respect, the application of QCS minimum requirements is not just limited to the site operations but also extend to the operation of the completed facility. This implies that the exposure to claims may arise well after construction is completed and the project has been put into operation.
QCS on workers’ rights The subject of worker’s rights covers a range of issues, some of which already exist in Qatar’s existing legislation. QCS 2014 addresses workers’ rights by referencing existing laws, mainly Section 1 which makes express reference in particular to Labour Law 14/2004, specifically Part 10: Occupational Health and Safety. In addition to building on existing law, QCS 2014 further addresses areas where existing legislation is sparse. For instance, Section 1 paragraph 10.1.11.4 requires contractors to facilitate contact between project employees and relevant independent bodies offering social support; paragraph 10.9 sets out requirements for welfare facilities, and paragraph 10.10 sets out requirements for labour accommodation. Liability for enforcement of these minimum requirements from a contractual
15
Whether or not QCS can work as a source of claims depends on the strategic approach adopted by the parties and also the status of the contract at the time of promulgation.
The technical specifications for future projects must be reviewed by representatives of construction companies in order to ensure they are consistent with the requirements of QCS 2014. Pictured here is the construction site of the Qatar National Museum at night.
QCN | March 2016
16
cover story
It is prudent to treat QCS 2014 as establishing mandatory legal requirements, not following which could leave project contracting parties greatly exposed.
perspective would fall on the following stakeholders: 1. On the contractor for failing to comply with the contractually-specified requirements. 2. On the supervising engineer in his role as supervising the works (Section 11 has expanded to cover off-site locations including manufacturing premises as well as labour camps). 3. On labour camp managers and owners as ‘controllers of premises’ (deemed to be cognisant). 4. On employers through the CDM obligations contained within Section 11. That said, the actual routes for prosecution of some of the broader reaches are unclear, but due to the overlap with complementary laws, civil defence and municipalities would have the right to enforce overlapping requirements using legal as opposed to contractual remedies.
Consequences of non-compliance There are at least three potential avenues from which consequences of noncompliance with QCS 2014 may flow. First is contractual. The normal contractual remedies will apply for breach of contract obligation. In addition, both Sections 2 and 11 provide for the engineer to have the right
Pictured here are demolition works underway. Section 1 Part 8 of QCS 2014 deals with the minimum requirements for carrying out building demolition.
to suspend activities at the contractor’s risk for serious quality and H&S violations. The second avenue comprises complementary laws. Despite QCS 2014 not being binding outside contract, there is a degree of overlap between existing complementary laws and the requirements of QCS 2014, specifically in the area of health, safety and workers’ rights. So even if QCS 2014 was not specified or was not enforced under contract, this does not remove exposure under state legislation. The third route of consequences comes from the duty of care, highlighting that third-party legal obligations must always remain a consideration. With the exception of the right to suspend activities and impose penalties in relation to quality and H&S matters, QCS 2014 does not have identifiable sanctions or mechanisms to provide prosecution. Similarly, the Environment Law contains no sanctions for failing to comply with Article 6. However, the lack of supporting law at present does not mean that this will always be the case. It is therefore recommended to assume QCS 2014 applies and familiarise oneself with its requirements. As QCS 2014 does not have any directly enforceable sanctions or penalty regime enforcing its incorporation into the contract documents, companies may consider not incorporating the QCS 2014 mandatory standards into their contract documents. This, however, is not advisable because the parties will still be exposed to the specific requirements of applicable/complementary laws – labour and environmental, etcetera. Furthermore, supporting legislation could well be introduced at any time in the near future.
QCS as a source of claims Whether or not QCS can work as a source of claims depends on the strategic approach adopted by the parties and also the status of the contract at the time of promulgation. For contracts tendered post May 2015, there should be a few avenues for dispute as the document leaves less room
311
The number of parts covered over 29 sections in QCS 2014. March 2016 | QCN
cover story
The subject of worker’s rights in QCS 2014 covers a range of issues, some of which already exist in Qatar’s existing legislation. for ambiguity compared to its predecessor. Although if the QA/ QC and H&S penalty tables are populated with penalties and these penalties are applied in a zealous manner, dispute could arise as to the manner of their application as being a backdoor route to reduce the contract price and unjust enrichment. Also employers may instigate indemnity-related claims against contract drafters for recovery of damages in the event that QCS 2014 has not been incorporated into the contract documents. For contracts tendered before May 2015, this issue is considerably hazy as QCS 2014 contains no provisions for managing the transition or its implementation on live projects. Reliance on the provisions of Article 3 of the Civil Code, ‘the law at the time of contract execution will be the applicable law to the contract’ may not provide support in the implementation of QCS 2014, as the interpretation of ‘law’ would depend on the contract definitions of law and any additional contract provisions regarding ‘change in law’. Before embarking on any disputes in relation to the implementation of QCS 2014, it is important to consider the true impact as, with the exception of quality and H&S matters, the majority of the changes from QCS 2010 have been made with regards to clarity and usability as
17
Section 1 of QCS 2014 deals with the welfare, safety and protection of workers. The regulation sets out the minimum requirements for the provision of welfare facilities, in addition to other minimum health and safety requirements.
opposed to an increase in obligations. Whether the debate is about incorporating QCS 2014 in your contract, enforcing penalties through QCS 2014 or raising claims based on the application of QCS 2014, one should be cautious in arguing that QCS 2014 has introduced significant changes from QCS 2010 or brought new elements to Qatar’s current construction requirements, because it would be difficult to argue that these changes are substantive enough to go beyond good industry practices, and a number of these requirements pre-exist in complementary laws. As industry players await more clarity on the legal aspects of QCS 2014, the prudent would already have incorporated it as a mandatory requirement for new projects.
Tony Distin is a senior contract specialist based in Doha, Qatar.
QCN | March 2016
18
technical
The impact of A volatile oil market on construction contracts A general view of cranes and building works during the construction and refurbishment of the Khalifa International Stadium – the venue for the 2022 World Cup final. While projects linked to the World Cup are scheduled to continue with the same pace, other less crucial projects are expected to see delays if the oil price dip continues. (Image Getty Images)
March 2016 | QCN
Considering the spending cuts in Qatar across the board, construction companies may face delays and reduced scope of work at least until the oil price gains significant strength again. Stephen M. John advises on what best approaches consultants, designers, contractors and other stakeholders can take in the event of cancelled, postponed or reduced projects.
Q
atar, along with many other economies that derive substantial state income from oil and gas, is not immune to the recent run of below-average oil prices. The fiscal effects of such a crisis runs right through the market. The oil and gas exploration and operating companies cut back and the service companies suffer. Decreased state income pressurises public sector spending, including cut backs on state-sponsored infrastructure projects,
and with less money in town, the private sector eventually follows suit. Consequently, the market becomes difficult for consultants, contractors and suppliers as employers and buyers. In response to tight budgets, they need to look for savings, reductions in costs and opportunities to preserve cash. This affects the whole of the supply chain. Employers may find themselves over committed and possibly needing to
technical cancel, defer or descope projects, risking the timely delivery of their plans. Difficult analysis and choices may be needed to identify priorities and less critical projects. At its simplest, this could result in simply delaying an invitation to tender or award, if the contract is not let. Cancelling or deferring a project where a contract is in place may become necessary but can create difficulty if not done strictly in accordance with the terms of the contract and therefore poses a potential risk. Employers need to carefully consider the terms and effects of suspension and termination for convenience clauses, and follow them closely to avoid a claim or dispute. Discussion and negotiation with the other party often help and may even develop other options.
Impacts on consultants and designers
The assessment of costs incurred up to the termination may become a contentious issue, but good records can greatly assist in reaching a reasonable estimate.
Consultants and designers may find that their work is deferred, de-scoped, cut short or cancelled. Work cancelled or deferred before a contract is in place may be frustrating and tender cost may be abortive, while the employer’s tender or procurement rules may provide little or no remedy. However, where a contract is in place, the suspension or termination for convenience terms shall apply. The consultant needs to ensure any termination is contractually correct and properly documented as liability issues may arise later for part-completed designs, possibly completed by others or used in their incomplete state. Again, discussion and negotiation is recommended as it may be possible to delay termination or suspension until an appropriate milestone or break point in the commission is achieved, locking in value and reducing future risk for both parties. The assessment of costs incurred up to the termination may become a contentious issue, but good records can greatly assist in reaching a reasonable estimate. Therefore, attention to this simple management task can help avoid disputes later. Recent experiences in the market highlight clients simply asking for a percentage reduction in fees or costs as an alternative. Such fundamental terms of a contract cannot usually be unilaterally enforced. Usually, they can only be made upon the agreement of the parties, in which case there may
19
be difficult negotiations or choices to be made.
Impacts on contractors Contractors face all of the same issues when work is suspended or terminated. Again, until a contract is in place, there may be little comfort but it is always worth getting advice and check the tender rules carefully for the opportunity of recovering wasted costs. Where there is a construction contract in place, the terms and rights for suspension or termination for convenience need to be considered carefully. In doing so, it is critically important that all parties follow the requirements of the contract to avoid claims and disputes in the future. Caution should be taken in not only following the requirements closely, but also avoiding being manoeuvred into not following the requirements, which can make the situation worse. This can be a tricky time for both parties and the situation needs to be well informed or advised and carefully managed to avoid unnecessary losses. The dispute resolution provisions in a contract will usually apply to termination disputes, which can be raised by either party who may consider that they have not been treated in accordance with the contract. It is important in that situation to determine the detailed facts and circumstance and apply the contract correctly, again good records may be the key to success. Such disputes can be resolved by negotiated agreement between the parties or if necessary by a third party as provided in the contract. The conduct of the parties may be critical to the outcome and early specialist advice often can positively influence the outcome. Finally, other stakeholders such as subcontractors and suppliers are also vulnerable to cancelled orders or late reductions in contracted volumes. This can be a complex area, with disputes often arising on which or whose terms apply. As a rule, following the contract, keeping good records, and taking advice from authentic sources are some ways to avoid the negative repercussions of cancellation of, or changes in the scope of, the project. Stephen M. John is Claims and Dispute leader at Arcadis Middle East. QCN | March 2016
20
feature story
Green buildings:
Moving beyond financial benefits In an exclusive interview with QCN’s Syed Ameen Kader, Meshal Al Shamari, director, Qatar Green Building Council, shares how developers and construction companies can improve their financial performance, as well as the quality of life in buildings, by adopting green practices.
O
ver the last few years, the green building movement in the Middle East has grown due to increased coordination and partnership between the regional countries. As part of that process, Qatar Green Building Council (QGBC) works closely with the Emirates Green Building Council, and other green building councils in Kuwait, Oman, Jordan and Lebanon. Qatar and the United Arab Emirates (UAE) are now leading the green development approach in the region. Qatar, for instance, currently has 220 registered green buildings and that number is expected to increase further with the addition of about 60 buildings at Msheireb Downtown Doha. In this context, Meshal Al Shamari, director, QGBC, says, “In Qatar, we have very good support from the government, especially when Global Sustainability Assessment System (GSAS) was established in the market. It became a mandatory requirement for government projects in Ashghal and that gave a very good push to that development in the country.” Besides that, the mega
March 2016 | QCN
projects that have been developing in Qatar for the last 10 years use that approach as well. Qatar Foundation has decided to go for minimum Leadership in Energy and Environmental Design (LEED) Gold ratings for most of its buildings that are coming after 2006. Msheireb Properties which started with LEED Gold has now achieved LEED Platinum rating. On the other hand, the entire Lusail city will be a GSAScertified project. “All these projects have actually created a good market for the professionals who work in this field,” says Al Shamari. He adds this trend is not limited to the government sector alone, as many private companies are also developing green projects.
Responsible behaviour The energy-rich governments in this region have long been offering public utilities such as water, electricity and fuel at subsidised rates – something that many argue often leads to inefficient usage of natural resources. As regional governments are now discussing tightening expenditure, optimising resources and bringing in more efficiency, cheap resources soon become obsolete. Qatar has recently increased its water and electricity charges followed by a sudden hike in fuel prices in order to reduce the burden on the government’s exchequer, but most importantly to send a message to the people to behave more responsibly when using utilities and
Local elements Green building rating systems allow for adding local elements to suit the weather condition and environment of the region. This is called the National Priority Credits. “We work with the United States (US) Green Building Council for the energy rating system and it has some flexibility to be adapted to certain countries. So LEED can be applied differently in Europe and in the Gulf Cooperation Council (GCC) countries. There are some credits that each country can give a weightage for, like in Qatar, we give more weightage for the water, and in Europe they give more weightage for the natural ventilation,” says Al Shamari.
“We don’t need financial support from the government, what we need is the regulations because the market can adjust itself towards any development.” – Meshal Al Shamari, director, Qatar Green Building Council.
feature story
21
While many of the new regulations, policies, standards and codes are being developed, Meshal Al Shamari, director, Qatar Green Building Council says it is better for companies – whether developers, consultants or material trading companies – to be ready for the new regime of regulations.
QCN | March 2016
22
feature story
A file picture of Msheireb Downtown Doha which started with LEED Gold rating but now has achieved LEED Platinum rating. (Image Arabian Eye/ Corbis)
220
The number of registered green buildings in Qatar. March 2016 | QCN
natural resources. For green advocates, it has been a challenge to convince people to change their behaviours, as there has not so far been an incentive to do so when utility charges were so low. Al Shamari says, “If you ask any person here, do you have a water scarcity or issue, they will obviously say no. That’s because they don’t feel it. But in reality we desalinate 99 percent of our water because we don’t have water.” He points out that many countries despite having natural water sources such as rivers still face problems with getting clean and clear water. “That should be the driver for supporting green developments in Qatar because the government subsidises most of the services such as electricity and water, and any saving in that field is a big saving for the country,” he says. Since Qatar primarily uses gas to generate electricity, Al Shamari says it constitutes a large consumption of natural resources. Emphasising the need to rationalise domestic consumption to avoid scarcity, he gives the example of Saudi Arabia, which, according to some reports, will have to start importing oil from 2030 if they continue with the current rate of local crude oil consumption.
“Instead of selling gas, we burn it to produce energy, and rationalising that item will generate more income for the country so it’s a basic part of our economy,” Al Shamari states, pointing out that local consumption of any country utilises a chunk of their natural resource production. “The GCC countries with oil and gas resources such as Qatar, Saudi Arabia, the United Arab Emirates and Kuwait now have a problem. In Qatar, we don’t feel it because we have so many power stations and Kahramaa had a solid plan in power generation. But if you see in Kuwait, they have always a shortage of energy and they have real problems in power generation because of high consumption,” he says. Now in Kuwait, he adds, they have started applying tariffs on the locals and they are strict about its implementation. Al Shamari says that the awareness level is improving due to various initiatives that the government is taking to encourage green practices. The national campaigns such as Tarsheed has been started to encourage conservation and efficient use of water and electricity in Qatar. “If you see the Tarsheed programme, in the near future they will have so many regulations, special focus on heating, ventilating, and air conditioning (HVAC), lighting and other aspects. Last year, they issued some of the regulations related to HVAC, importing certain items of HVAC, and it was put on hold or became optional for sometime but I think in the near future it will be mandatory,” he explains. While many of these new regulations, policies, standards and codes are being developed, Al Shamari feels it is better for those companies – whether developers, consultants or material trading companies – to be ready for the new regime of regulations. “The government gave them enough time to adopt those things over the last four or five years but if you build your own in that field, you will be ready when those standards are published in the market which gives them a good chance to compete because they already have an experience,” he says. Sharing his observation about companies’ responses, Al Shamari mentions that when they meet with Qatar General Authority for Specifications and Standardisation, most of the companies complain about new and evolving
feature story
“There are some credits that each country can give a weightage for... in Qatar, we give more weightage for the water, and in Europe they give more weightage for the natural ventilation.”
regulations or policies because they are worried about extra cost. “Hopefully, it will not be an optional thing, as other countries are doing, because we have real problems in energy and water. Besides that, it has benefits and values to the developers, even to the owners,” adds Al Shamari. With the advent of the latest technologies and solutions, the cost of green buildings has come down substantially. Al Shamari says most of these expertise and technologies – right from HVAC systems, insulation and lightings to double-glazing, eco-friendly materials, and pints – are now locally available. “I was at a presentation in Dubai and we were talking about the costing of a green building in Qatar, and it is about five to eight percent extra than traditional buildings. They were impressed, and now they are trying to make it zero to one percent,” he says.
Beyond financial benefits Al Shamari stresses that government
23
“Instead of selling gas, we burn it to produce energy, and rationalising that item will generate more income for the country so it’s a basic part of our economy,” says Meshal Al Shamari, director, Qatar Green Building Council.
support is crucial to push the green building cause. “We don’t need financial support from the government. What we need is the regulatory framework because the market can adjust itself towards any development. But what we try to focus now is how to exceed the financial benefits. We talk about the quality of life in those buildings, the asset value of those buildings,” he says. Al Shamari explains that they try to tell developers that as an asset value, it is a very important item or element for any development because when they sell or rent a green building, they can get a higher value than any traditional building. “The quality of life, the indoor air quality and the impact on the tenants are totally different. When you have a green school, it is totally different than when your kids go to a normal school. Even for an office environment, the value or performance of your employees goes up,” he adds.
Qatar Foundation has decided to go for minimum LEED Gold ratings for most of its buildings that are coming after 2006. Pictured here is the Education City built by Qatar Foundation. (Image Arabian Eye/Corbis)
QCN | March 2016
24
section insights industry
The industry is not yet clear despite correctly understanding
By providing digital representations of physical and functional characteristics of construction and infrastructure projects, Building Information Modelling (BIM) can greatly assist engineers in identifying design, technical and operational issues at early stages. Essentially this means reduced waste of time and money. However, with the lack of a clear mandate, BIM in Qatar is yet to become a norm. In an interview with QCN’s Farwa Zahra, Naoras Khalil, BIM manager at Al Darwish Engineering, talks through the benefits and challenges of using BIM in Qatar, along with its current level of adoption in the country’s construction sector. Which are some of the most challenging projects you are involved with in Qatar? I have worked on a number of challenging projects in Qatar. In Education City’s (Phase 1) Research and Development Complex, the main challenge was in the project delivery method, which is design and build. Usually in this kind of project, you should have the ability for fast track construction. The use of BIM added value to the project in many ways, for instance, by generating accurate structural design to enable cost saving and clash detection exercises in addition to generating accurate quantities. As BIM manager in the New College of Engineering project at Qatar University, a number of requirements need to be achieved, across 76,605 square metres, during the project duration of 910 calendar days. The project is aiming a four-star sustainability rating as per Global Sustainability Assessment System (GSAS), and the scope of BIM includes 3D/4D/5D modelling. March 2016 | QCN
With his structural and infrastructural design career exceeding 10 years, Naoras Khalil – BIM manager at Al Darwish Engineering – has more than six years of experience in using BIM.
industry insights
25
on what BIM is,
different BIM aspects There is a lot of confusion around the word BIM? What is BIM? As you mentioned, there is a real misunderstanding about the term BIM. In October 2015, United Kingdom’s Teesside University published a research paper about BIM adoption in Qatar. In this study, analyses of the results of the conducted interviews have been presented in relation to policy, people, process and technology fields. The findings show that nearly three quarters of interviewees consider that the industry is not yet clear enough on what BIM is, despite correctly understanding different BIM aspects such as design and coordination, realtime collaboration and digital data management. According to the Building Information Modeling Project Execution Planning Guide: “BIM is a digital representation of physical and functional characteristics of a facility.” But I would prefer to use Autodesk’s BIM definition: “BIM is an intelligent model-based process that provides insight to help you plan, design, construct, and manage buildings and infrastructure.”
trends. For sure there is still more space for improvement in several aspects such as policy, upgrading of people skills on BIM roles, process, and the companies’ existing software used for creating, viewing, collaborating, coordinating and content managing.
Are there any BIM standards adhered in Qatar? To date, there in no official BIM standard in Qatar, but as per my knowledge, a Qatari BIM standard will not take too much time to come to life.
Tell us about some details of BIM at the College of Engineering, Qatar University? A 3D BIM model was created as per Level of Development (LOD) 300 specification in order to be used in 3D coordination, clash resolving, 4D construction scheduling, and 5D cost planning. 3D models are in progress in order to finalise the LOD 400 models to generate shop drawing and as built models in later stages. Autodesk software (Revit, Navisworks and Robot) were used for authoring, viewing, collaborating,
How do you see BIM’s adoption in Qatar? Majority of recent government projects’ specifications require BIM. Many events and conferences are regularly being held to discuss BIM’s implementation, challenges and adoption in Qatar. So it is clear that existing and prospective strategies, procedures, technologies, standards, challenges and opportunities for adoption of BIM by the Qatari construction industry are considered as high-level requirements to facilitate projects’ lifecycle information flow, reflecting the global construction
“As Qatar does not have formal BIM standards yet, it is so important to define BIM’s scope in the early stages of the project.”
coordinating and design checking of 3D models. On the other hand, RIB iTWO software was used to build 4D/5D model, RIB iTWO combines traditional construction planning and trailblazing 5D planning.
Tell us about some benefits of having 3D views of projects before construction. What is the role of BIM beyond 3D visualisation? There are many benefits of using or creating 3D model of projects, especially for large-scale and complicated projects. Some of the essential benefits of using BIM include: 1. BIM allows a better and detailed study of complicated building envelopes and helps creating many useful sections and elevations to study the complex areas such as landscape and auditorium, etcetera. 2. It performs professional coordination between various disciplines such as architectural, structural and MEP. This leads to reduction in the number of requests for information, while decreasing the number of clashes during the construction stage. Eventually, this means increased saving in terms of cost and time. 3. Through improved visualisation and presentation of internal finishes in 3D view with real colours, BIM reflects the actual colour scheme using other rendering software. 4. BIM verifies the structural elements of design, the 3D models can shed light on many structural problems, which were accidentally dropped during the design stage. 5. BIM generates accurate and professional shop drawings. QCN | March 2016
26
industry insights
What are some cost factors involved in the use of BIM on a project? The major cost factor is related to BIM software, in addition to other cost factors such as training the staff, and risk cost due to the lack of proper experience in using BIM technology, which usually leads to project delivery delays.
What are some important considerations companies should take when incorporating BIM on projects?
Speaking about some challenges in terms of BIM implementation, Naoras Khalil mentions Education City’s (Phase 1) Research and Development Complex, where the main challenge was in the project delivery method. (Image FotoArabia)
“Events and conferences are regularly being held to discuss BIM’s implementation, challenges and adoption in Qatar.”
March 2016 | QCN
All companies accomplish their own cost/benefit analysis before adopting BIM in their projects. This often leads to negative recommendations due to a number of factors. For example, senior staff, who are usually using classical tools to achieve their job, have doubts regarding the adoption of new technologies which may lead to delivery delay and low quality. On the other hand, some of them are afraid of losing their privileges or positions in favour of a new generation of engineers. In order to successfully incorporate BIM in their projects, senior managers in construction companies need to invest in BIM education and training of staff. They also need to see the potential of BIM in the wider context. All BIM staff in the project should get proper training to acquire BIM skills. Moreover, all project stockholders need to know the purpose of using BIM in their project, for instance, 3D coordination, generating shop drawings, 4D construction scheduling and/or 5D cost planning, etcetera.
These demands require greater interdependency and early involvement and cooperation between different project participants, such as those involved in planning and design, construction and facilities management. Key to this is an integrated design approach and an effective stakeholder engagement process, which also considers the users’ needs throughout the design phase – which BIM can facilitate. As Qatar does not have formal BIM standards yet, it is so important to define BIM’s scope in the early stages of the project. Accordingly, a company should clearly specify and explain: 1. A clear picture of what will be included in a BIM deliverable. 2. The information and details that need to be provided at various points during the project.
What are some challenges you see when using BIM on projects in Qatar? There are many challenges related to policy, upgrading of people skills on BIM roles, BIM process and the existing technology (software) used for creating, viewing, collaboration, coordination, and project management.
Which kinds of projects are most in need of BIM? BIM is a powerful tool for design, construction and for facility management. It is needed for all largesized projects and high-rise buildings; in addition to special-use building such as hospitals, universities and important government buildings.
28
legal
Direct claims may be subcontractors’ lifeline when the contractor won’t pay In the current environment of economic downturn and reduced oil price, contractors and subcontractors in Qatar are likely to face payment delays or difficulty in getting paid especially for variations. As subcontractors are particularly more vulnerable to this situation, Zehra Manni and Scott Lambert of Al Tamimi advise how they should deal with payment delays.
I
t is vital that during any economic tightening that payments are received in a timely manner from the party controlling the purse strings. As credit is squeezed, having multiple clients delaying payment can lead to business failure. This is a paramount concern for subcontractors, as they generally have a weaker negotiation position. In the construction sector, authority and money flow from top-down and contractual relationships between various parties on a project are clearly and rigidly defined. The employer enters into a contract with a main contractor, who will then enter into subcontracts with the many subcontractors to perform the works. These subcontracts will often reflect the terms of the main contract, a contract that the subcontractor had no involvement in negotiating. Within this framework, subcontractors lack a direct contractual relationship with the employer and must legally look to the main contractor for clarification of instructions, claims and payments. What happens then, when the main contractor becomes insolvent or is otherwise unable or unwilling to pay its subcontractors? Ongoing nonpayment by the main contractor could have devastating implications for financially vulnerable subcontractors. However in Qatar, the law provides relief by enabling subcontractors to secure monies due and payable by the employer to the main contractor, where the main contractor becomes insolvent or is unwilling or unable to pay. A party must satisfy certain conditions when asserting its rights under Qatar’s Civil Code for direct
March 2016 | QCN
payment. This means: 1. The subcontractor may only claim for the amounts owed by the main contractor to the subcontractor; 2. The subcontractor must commence court proceedings against the employer for the recovery of that amount; 3. Monies must be payable by the employer to the main contractor under the main contract; and 4. The subcontractor may only claim for the amounts due and payable from the employer to the main contractor at the time of initiating the court action. When commencing court proceedings, the subcontractor will name the employer as a defendant and seek an order from the court requiring the employer to settle the subcontractor’s claims. In addition, the subcontractor may apply for an attachment over the amounts payable to the main contractor by the employer. Once the subcontractor establishes its claims, the court will order the employer to pay the
In Qatar, the law enables subcontractors to secure monies payable by the employer to the main contractor, where the main contractor becomes insolvent or is unwilling or unable to pay. subcontractor, as applicable under the circumstances. This right to attachment, if granted, takes precedence over the rights of any assignees of the main contractor. Any payments assigned by the main contractor to a third party will only be payable after the claims of subcontractors. To use this right to direct payment, a subcontractor must take into account practical considerations in light of its individual circumstances, which are the following.
Zehra Manni is the associate at Al Tamimi’s Construction & Infrastructure team. Scott Lambert is the regional head of construction at Al Tamimi – a corporate law firm.
•
A subcontractor may put the employer on notice of the nonpayment of outstanding claims by the main contractor and the subcontractor’s intention to commence legal proceedings. Upon being so notified, an employer will generally stop paying the main contractor so that in the event the court or arbitral tribunal orders the employer to pay the subcontractors, the employer will deduct the payments from the monies owed to the main contractor. • The subcontractor may only recover up to the amount owed to the main contractor under direct payment. If the subcontractor’s claims exceed the amounts owed to the main contractor, then it may attempt to recover the remainder of the claim from the main contractor. • It is advisable for a subcontractor to name both the main contractor and the employer as codefendants or co-respondents in the legal action. However, where there is an arbitration clause in the subcontract, then the subcontractor will name the employer as the defendant, and apply to the court for staying the matter pending for conclusion of the arbitration proceedings against the main contractor. • In some instances, the subcontractor may be best served by filing legal proceedings as soon as possible to ensure that it secures priority for payment over the main contractor’s other creditors. The reliance on direct payment may provide relief to subcontractors who are struggling to be paid, especially in an economic downturn. In some circumstances, direct payment may form part of a larger overall strategy whereas in others, use of direct payment may not be appropriate. The practical considerations above are general and it is recommended that subcontractors obtain sound legal advice before deciding on a recovery strategy.
Read QCN. Online.
Smartphone and Tablet optimised. Get updates on leading projects shaping Qatar’s booming construction industry. Find out more about upcoming events and tenders, and read expert opinions and articles on architecture, materials, technology, project management, infrastructure, sustainability and more.
www.qatarconstructionnews.com QCN | March 2016
30
careers
Your guide
to advance your construction career in 2016 If you are looking for a job in the construction industry, there’s a good chance you will find one this year. In fact, the Bayt.com Top Industries in the Middle East and North Africa survey from January 2016, has revealed that the construction industry was one of the strongest growing sectors last year. In Qatar, specifically, 33 percent of respondents say that the construction industry witnessed the strongest growth in 2015, while 19 percent say it offers the best career growth. Here, the career experts at Bayt.com give you five tips to help advance your construction career in 2016. 1. Have a CV that matches the job Research the company you are targeting. Tailor your CV to show that you know everything about them. And more importantly, use keywords in your CV that will catch the recruiter’s attention. For example, if the job ad says that they are looking for a ‘team player’, make sure you add ‘team player’ somewhere in the beginning of your CV. The higher up you are in the rankings, the sooner employers can check your CV. Don’t forget to customise cover letters for jobs you are applying to make a difference. 2. Create an online presence The best way to create your own presence online is to build a public profile on Bayt.com, and complete it with full details of your professional experience and key specialties. To shine even more as a thought leader in your
field, we encourage you to join Bayt.com Specialties where all the specialists meet to network, get ranked, and share valuable knowledge and insights. 3. Find what skills are in demand When you are starting a new job search, it is of utmost importance to understand the market in your country, and to learn what skills and qualifications are in highest demand. Of course, you can spend hours researching this, and reading articles and guides, or even surveys. Online tools such as the career map by Bayt.com allows you to identify the skills that are most needed in your target role or industry. You can use additional filters such as years of experience and level of education that will help you compare your skills with the ones already in supply in the market. If you are changing careers, the career map reveals what changes you can expect depending on your decision. 4. Learn new skills In addition to traditional learning methods, such as classroom courses, there are entire databases of online courses that you can take to learn new skills relevant to your career.
With so many options to choose from, professionals can pick the method which best suits them. These courses aim to provide professionals with the tools and techniques important to improve their efficiency and that of their organisation. While the courses cover a broad range of topics – including project management, human resources and engineering – the interactive material is designed to enrich employees with cutting-edge and relevant information to guide them in their lines of work. 5. Apply for jobs Lastly, the most obvious way to advance your career is to apply for jobs. 75 percent of companies in the Middle East are either definitely or probably hiring in a year’s time, according to the Bayt.com Middle East Job Index survey, August 2015. So now is a good time to apply. Thousands of jobs are available on Bayt.com on any given day in Qatar and a great way to keep track of all the new and relevant jobs is to set up a job alert. You can create your job alert by choosing criteria you care about such as your target job location, role, company, career level, and more.
Qatar construction in numbers 40%
18%
40% of professionals in Qatar are satisfied with their salary packages.
50%
18% of them work in the construction industry, representing the majority of respondents.
53%
50% of Qatar respondents are satisfied with their work-life balance.
Source: The Bayt.com Top Industries Survey in the Middle East and North Africa, January 2016
March 2016 | QCN
53% are satisfied with their job security.
30%
47%
30% are dissatisfied with their working hours.
48%
47% believe that the construction industry was identified as the most stressful industry in Qatar.
48% identify construction industry the industry with the longest working hours in Qatar.
www.QatarTenders.com tender name
description
client
Helipads and Associated Facilities Construction
EPIC of additional helipads and associated facilities
Qatar Petroleum
137
4/3/16
Utility Extension & Storm Water Drainage System Construction
Design, construction, installation and commissioning of north site utility extension, storm water drainage system and construction of road
Qatar Foundation
275
3/28/16
Engineering Consultancy Services
Provision of engineering consultancy services for plant change requests and miscellaneous engineering support services at various locations
Qatar Petroleum
137
3/27/16
Automatic Fire Detection System
Installation and assistance during testing and Qatar Fertilizer commissioning of automatic fire detection system Company
55
3/24/16
Sewer Extension and House Connection Works
Carrying out sewer extension and house connection works
206
3/21/16
Supervision Consultancy Services
Post-contract supervision consultancy services in Katara Hospitality connection with the renovation of a staff housing complex
82
3/17/16
Tent Shades
Installation of tent shades
Qatar Foundation
137
3/17/16
Staff Housing Complex Renovation Works
Renovation of a staff housing complex
Katara Hospitality
302
3/17/16
Drilling/Completion Fluids, Additives, Equipment and Engineering Services
Provision of drilling/completion fluids, additives, equipment and engineering services
RasGas Company Limited
-
3/13/16
Automatic Gate Barriers and Sliding Doors Maintenance
Maintenance of automatic gate barriers and sliding doors
Qatar Fertilizer Company
55
3/10/16
Recyclable Wastes and Scrap Material Disposable Services
Disposal of recyclable wastes and scrap material
Oryx GTL
137
3/9/16
Marble Tiles
Supply and delivery of marble tiles
Aspire Foundation
55
3/7/16
March 2016 | QCN
Public Works Authority (Ashghal)
Fee(USD)
Closing (m/d/y)
INTERVIEW: Naoras Khalil, BIM manager at Al Darwish Engineering, on BIM adoption in Qatar – PG 24
issue 3.3 March 2016
A look into
QCS 2014 Retail Price: QAR15 / AED15
TECHNICAL
The impact of volatile oil market on construction contracts in Qatar
Feature Story Moving beyond financial benefits of green buildings
PLUS
Qatar’s logistics and warehouse infrastructure to receive further boost