INTERVIEW: RichARd AllEn, AmEY cOnSUlTing, On ThE lOng-TERm SERvicEAbiliTY OF inFRASTRUcTURE – PG 26
issue 3.6
Summer 2016
Can Qatar play it safe? Security concerns around stadiums for the 2022 World Cup
FEATURE STORY
Role of construction in Qatar’s tourism sector
PlUS
Impacts of VAT on Qatar construction
Retail Price: QAR15 / AED15
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contents SUMMER 2016 www.qatarconstructionnews.com
Cover Story ASC FP QCN JUN 2016.pdf
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Delivering the 2022 World Cup successfully is not merely about Can Qatar constructing the play it safe? stadiums and building the supporting infrastructure. ‘To deliver amazing’, Qatar needs to establish a safety strategy that addresses all the security risks an international sporting event brings. QCN’s Farwa Zahra explores major security threats and some strategies to address them both inside and outside the FIFA stadiums in 2022. INTERVIEW: RICHARD ALLEN, AMEY CONSULTING, ON THE LONG-TERM SERVICEABILITY OF INFRASTRUCTURE – PG 26
issue 3.6
Summer 2016
Security concerns around stadiums for the 2022 World Cup
FEATURE STORY
Role of construction in Qatar’s tourism sector
PLUS
Impacts of VAT on Qatar construction
Retail Price: QAR15 / AED15
Regulars
From the Editor - 4 Construction News - 6 events - 11 technical - 20 Careers - 34 Qatar Tenders - 36
A general view of Al Wakrah Stadium’s construction site in Qatar. In QCN’s cover story, we look at some security considerations in constructing stadiums for the 2022 World Cup. (Image Arabian Eye/ Reuters)
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Feature Story Role of construction in building QATAR’s tourism sector
Industry Insights Legal & Finance Qatar needs to focus on the long-term Value-added tax and its impacts serviceability of its infrastructure on construction companies
The Qatar National Vision 2030 promotes the need to have a diversified economy with less reliance on oil and gas sectors. Tourism is stated as being a key growth area in the country’s national vision. Naturally, the construction industry has a huge part to play in developing the tourism sector for the nation, writes Mark Shea.
Qatar has to deal with the challenge of working on a highway network that is constantly changing and developing as the country updates its road infrastructure, says Richard Allen, business director, Qatar, Amey Consulting, and a chartered civil engineer with over 35 years of industry experience.
The Gulf Cooperation Council (GCC) countries are soon expected to sign the GCC Framework Agreements for VAT and Excise Duties. Laura Warren and Ramiz Shlah of Clyde & Co look at some impacts that Qatar and other regional construction markets will face once VAT is implemented in the near future. QCN | June 2016
Primedia VHP QCN JUN 2016.pdf
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publications director mohamed jaidah m.jaidah@firefly-me.com general manager joe marritt j.marritt@firefly-me.com executive editor miles masterson m.masterson@theedge-me.com editor farwa zahra f.zahra@theedge-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 66 26 4790 senior advertising manager UAE nesreen shalaby n.shalaby@urjuan-me.com + 971 50 719 9707 distribution & subscriptions joseph isaac j.issac@firefly-me.com production manager/senior designer srimani welagedara 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
June 2016 | QCN
editor’s letter
The Supreme Committee has recently announced its intention to use 3D-printed stadium models to find costeffective solutions for cooling and ventilation in the World Cup venues.
June 2016 | QCN
Ramadan and summer can bring their own privileges. Needless to mention short work hours, what’s equally pleasant is Doha’s traffic gradually declining as we approach Eid holidays. For many construction professionals here working on project sites, the short hours have been accompanied by night shifts to avoid the soaring temperature, when many Muslim staffers are fasting. Change and reduction of work hours, however, does not indicate any slowdown in the pace of key projects here. The country’s construction sector achieved a number of milestones during May and early June. Qatar Rail, for instance, has completed 100 kilometres of tunnelling at Doha Metro sites, representing 90 percent completion of heavy tunnelling work on the megaproject. Similarly, the Mall of Qatar has announced October 29, 2016 as its opening date. In a recent welcome ceremony for retailers, it was unveiled that more than 100 retailers are already working on their shops’ fit-outs, while another 200 will begin the furnishing works in the coming few weeks. Speaking specifically about the World Cup stadiums, the Supreme Committee for Delivery & Legacy (SC) has awarded a joint venture comprising the local company Al Balagh Trading & Contracting, and India’s construction firm Larsen & Toubro as the main contractors of Al Rayyan Stadium. Construction work on the 80,000-seat Lusail Stadium is expected to start in December, as the SC in May invited bids from contractors with an early August deadline. In meeting FIFA requirements related to stadiums, the SC has recently announced its intention to make use of 3D-printed World Cup stadium models in order to find cost-effective solutions for cooling and ventilation. Once a stadium’s model is printed, as per its design features, at the College of Engineering at Qatar University, it is
tested in a wind tunnel for aerodynamic checks. So far, Al Bayt Stadium and Al Wakrah Stadium have been tested for their airflow properties. Findings from the laboratory analysis of all FIFA stadiums are planned for incorporation during the actual construction process of these facilities. Use of 3D printing is just one example of how Qatar is relying on advanced technologies for the development of its stadiums. In QCN’s cover story on page 12, we look at the security side of the 2022 World Cup stadiums. With opportunity comes responsibility. A global tournament brings all sorts of safety risks. To mention a few, a security threat may come in the form of increased chances of terror attacks, safety hazards such as fire outbreaks, crowd mismanagement leading to crushing and stampedes, and of course fan protests during the games. The probability of such dangers is as high outside the stadiums as it is inside the sporting venues. Therefore, in successfully delivering the World Cup, it is imperative for Qatar to appraise its security conditions, improve them, and scale them up, keeping in mind the country’s local population – as of May 31, 2016, the country’s population reached 2.58 million, indicating more expatriates than ever before – and the tourist numbers set to enter Qatar in 2022. Speaking with professionals from leading security systems providers and law firms, we identify the ideal time for contractors to involve security providers, as well as some aspects of safety at a broader city level, beyond the stadiums. With our June/July issue, QCN will be going on a temporary break, during which you can always stay updated on latest construction news through our website. Enjoy reading, and Eid Mubarak until we see you again after summer.
Farwa Zahra Editor
Construction
News
Qatar releases a 225-page guidebook on recycled construction products
Recycled construction materials are often perceived to have low quality. Clearing the misunderstanding, Dr. Khaled Hassan of TRL said that construction waste generally contains clean excavation waste and concrete products that can be converted into quality aggregate.
June 2016 | QCN
construction news
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Based on research work from construction and sustainability professionals, Qatar has recently launched a book titled Recycled Aggregate in Construction – Qatar Experience, which was supported by local data to highlight the advantages of using recycled construction materials, reports Farwa Zahra. Funded by the Qatar National Research Fund at Qatar Foundation, the 225-page book is a joint project of TRL, Qatar Standards, Public Works Authority (Ashghal), and Qatar University, among other key stakeholders in the construction industry. Speaking about the contents of this publication, Dr. Khaled Hassan, country director, TRL said, “The book provides information on the quantities and basic properties of the key solid waste materials together with guidance on how to use them in construction.” Featuring statistical data, photographs and case studies, the book brings findings from studies conducted in Qatar and the United Kingdom over a period of five years between 2010 and 2015. Results of the research programme have been used to develop codes and mechanisms to transform construction waste into viable and high-quality construction materials for future projects. Published by the Ministry of Municipality and Environment in Qatar, this guidebook on recycling materials in Qatar will be circulated to key stakeholders for implementation. “Due to the increased demand, Qatar Standards is currently considering making the book available online on the ministry website,” Dr. Hassan told QCN. Studies documented in the book also form the basis of the updated version of Qatar Construction Specifications (QCS), which now allows the use of recycled materials in a number of areas during construction. Giving more details, Dr. Hassan said that QCS 2014 permits the use of recycled aggregates from excavation waste and recycled concrete aggregate as coarse aggregate in concrete at up to 20 percent replacement of imported gabbro for structural concrete, and up to 50 percent for non-structural concrete. Recycled aggregates, he added, are also permitted up to 100 percent in sub-base applications, while excavated limestone waste is permitted as aggregate in asphalt in the lower layers of the pavement though not in the surface course. Speaking about the research methodology of the programme, Dr. Hassan said that the project began with an aim to promote green construction, which led to the identification of recycled aggregates from excavation waste and recycled concrete aggregate being sourced from a landfill site at Rawdat Rashid. Comprehensive laboratory tests were then conducted to identify the optimum use of excavation waste and recycled concrete aggregate as unbound pavement materials and coarse aggregate in structural concrete, non-structural concrete and concrete blocks. The resulting mixtures that passed a thorough selection process were then used in building and road projects before they were considered safe, sustainable and appropriate for use. Looking at Qatar’s reliance on imported materials, promoting recycled materials can greatly facilitate the country’s construction sector in maintaining its rising construction inflation. “A comparison of the likely costs of local recycled aggregates in Qatar indicated a significant reduction of 60 percent compared to imported aggregates. In addition, the use of local recycled aggregate reduced the carbon footprint by at least 50 percent,” said Dr. Hassan. Debunking the common myth that recycled materials cannot compete with new materials in terms of quality, he said that unlike other types of waste, construction waste is usually clean and therefore can be converted into quality aggregate. QCN | June 2016
Construction
News “Qatar has been spending an enormous amount of money for the expansion and development of the country’s economic and social infrastructure. This has helped catapult Qatar on to the world stage as one of the hottest markets for investment.” Rawad Sleem, project manager, IFP Group, the organiser of Project Qatar, said that ever since Qatar was awarded the right to host the 2022 World Cup, the country has become a major business hub for global investors. This, he added, has created the need for suppliers and buyers to meet with each other for new projects, generating a huge demand in the construction industry.
Industry Views Marking its second anniversary, QCN was at Project Qatar 2016. At the event, our reporters spoke with organisers, visitors, and exhibitors from Qatar and abroad to find out their views about Qatar’s construction sector. Here is what they had to say.
“Doha is a growing city and the Middle East is becoming a centre point for design with the world looking on.” Mark Vowles, director, Nulty+ Dubai, added that Doha’s fast-paced growth brings an opportunity for the region to create unique and world leading designs with Qatar at the epicentre of it all. “With the World Cup to be held in Qatar in 2022, there is a greater opportunity for local businesses to encourage trade,” he added.
“Qatar’s construction sector has experienced a boom of growth over the years by presenting key trends and opportunities.”
“Qatar is constantly developing and new and innovative designs are at the forefront of Qatar’s development.”
Jorge de La Rosa Salas, founder and CEO of Tecfire, said that the company’s aim is to play an important role in the Qatar construction market by providing a high-quality range of tested and certified glazed protection systems.
Speaking exclusively about lighting technologies, Andrew Young, master data manager, Amey, said that key challenges in this area are to ensure that accurate, current data and information is available to support the initiatives and to ensure that all of the data is available and interoperable to help drive further innovation.
June 2016 | QCN
“Qatar’s efforts in the development of radicalising technologies to increase energy efficiency, reduce water wastage, and ensure sustainability of its projects is improving.” Nisar A. Latif, CEO, Solar Sigma, said that there are a number of hurdles in the implementation of energy efficiency, which cannot be overlooked. “There is a need to address the rising cost of energy and the health implications of energy use,” he said.
“What we feel is that clients in Qatar lack access to good quality and high-end solutions, especially in terms of finishing.” Yaacoub Zgheib, managing director, Solid Interiors, said that Qatar is a big and open market for a lot of fit-out companies. Regionally, he added, the main demand for fit-out projects is coming from new malls where large retailers are opening new shops and outlets.
Construction
construction news
News
Instant ROI can be achieved by improving U-value
Awards
Key recent contracts awarded in Qatar •
•
United States-based KBR has been awarded an extension, valued in excess of USD185 million (QAR673 million), to its programme management consultant contract for Qatar’s Expressway Programme. Since KBR’s initial award in 2010, Qatar’s QAR50 billion expressway programme has become one of the world’s largest transport infrastructure plans, comprising 40 major projects, 900 kilometres of new and upgraded roads, and 348 bridges and underpasses. As programme manager to the Public Works Authority (Ashghal), KBR is responsible for overseeing supervision consultants, design consultants and construction contractors of both new roads and road network upgrades. The Supreme Committee for Delivery & Legacy has awarded a joint venture of Qatari contractor Al Balagh Trading & Contracting and India’s construction firm Larsen & Toubro Limited as the main contractors to build the 40,000-seat Al Rayyan Stadium. According to a press release by Larsen & Toubro, the contract has a combined value of USD360 million (QAR1.3 billion) for both JV partners and is slated to be completed by 2019. The scope for the stadium includes main works and construction of the site, following completion of the enabling works.
Net value of projects in pre-execution in the GCC Approximated total value of projects: USD2 trillion (QAR7.28 trillion) Saudi Arabia
38.91% Bahrain
2.97% Oman
6.49%
UAE
34.84%
Kuwait
8.22%
Qatar
8.57% Source: Deloitte GCC Powers of Construction 2016: The funding equation
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A new independent research has shown that improving U-value specifications, over and above the local baseline specifications, will decrease energy usage and carbon emissions in 100 percent of calculations, and can deliver instant return on investment (ROI) on the additional insulation cost. In this context, insulation solutions, such as Kingspan Kooltherm and Kingspan Thermaroof, offer superior thermal performance and can enable architects, consultants and specifiers to go beyond the regulatory U-values prescribed in different regions. The report titled Real Value of Improving U-values was carried out by Mott Macdonald on behalf of Kingspan Insulation. The research behind this study analysed six different building types modelled within five different locations across the Middle East. Baseline U-value specifications were considered for the roof, floor and external wall of each building type and in each location. Improved U-value specifications were then compared against these baselines and the energy savings were calculated. The results also showed that the strongest financial returns were seen in residential buildings, and also revealed significant returns in commercial buildings. For example, the ROI for improving U-value specifications in a hotel resulted in ROIs of up to 507 percent in Doha. Additionally, for the hotel model, up to 68 tonnes of carbon emissions savings could be made annually in a single location.
Jaidah Equipment launches UD Quester trucks in qatar
Jaidah Equipment and Japanese heavy trucks’ manufacturer, UD Trucks, has unveiled a range of trucks specifically built with Middle East customers in mind. Ayman Ahmed, managing director, Jaidah Equipment; Jan-Erik Thoren, business director, UD Trucks Middle East; Hasan Natafji, sales manager for UD Trucks in Jaidah Equipment, and Mikito Maruyama, UD Trucks’ director for Middle East and Africa, attended the event. “The all-new Quester is a multi-purpose truck for a wide variety of applications, including off and onroad use, construction, distribution and long-haul transportation,” said Ahmed. Jan-Erik highlighted that Quester is built and refined based on insights from customers’ day-to-day needs and cutting-edge knowhow gained from UD Trucks’ experience in Middle East and the Volvo Group’s global footprint. QCN | June 2016
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construction news
Construction disputes were the highest in the Middle East in 2015 According to the Global Construction Disputes: Don’t get left behind report released by Arcadis in June, the Middle East remains the only region with increasing dispute values compared to last year. The report found that construction disputes were the highest in the Middle East at USD82 million (QAR298 million), followed by Asia at USD67 million (QAR24 million). However, in North America, the United Kingdom and Continental Europe, dispute values dipped to an average of USD25 million (QAR91 million). Commenting on the findings, Craig Beeson, head of Contract Solutions,
Middle East at Arcadis, said, “In an economic environment impacted by the oil price, the market continued to see a restriction in decision making within the industry. This drove a lack of appropriate delegation to project management consultants and client representatives, thereby prolonging critical commercial decisions and generating cash flow issues related to instructed variations.” The top three causes of disputes in 2015 were failure to properly administer the contract, poorly drafted or incomplete and unsubstantiated claims, and incomplete design information or employer requirements
(for design and build, and design and construction). The three most common methods of alternative dispute resolution that were used during 2015 in the region were party-to-party negotiation, arbitration and mediation. The average length of disputes in 2015 increased to 15.2 months, compared to 15.1 months in 2014 and 13.9 in 2013. In the Middle East, where a joint venture (JV) is in place, the proportion of disputes caused by a JV-related issued dropped in 2015, moving down almost 10 percent to 32.3 percent. (See infographic)
Disputes in the Middle East
USD112.5 million QAR409.5 million 9 months
2010
2011
Year: 2010 Cost: USD56.3 million (QAR205 million) Length: 8.3 months
USD40.9 million (QAR149 million) 13.9 months 2014 2013 USD76.7 million 2012 (QAR279 million) USD65 million 15.1 months (QAR236.6 million)
USD82 million (QAR298 million) 15.2 months 2015
14.6 months
Source: Arcadis
Innovative wiring devices and workstation solutions unveiled for the Qatari market At an event that brought together construction professionals, Legrand presented its latest offers in wiring devices and workstation solutions. Attendees had the opportunity to discover the wide range of functions and finishes of Legrand wiring devices and the complete range of Legrand workstation solutions. The global specialist in electrical and digital building infrastructures also introduced the re-launch of its Mosaic range, which will be exclusively available through its local distributor, Jaidah Electrical, in Qatar. The event was also meant to highlight the strengthening of the successful cooperation between Legrand and Jaidah Motors & Trading Company. Speaking at the event, Altug Okay, general manager of June 2016 | QCN
(L to R): Jamal Mosallam, CFO, Jaidah Motors & Trading Company, Frederick Xerri, executive vice president for Exports, Legrand, and Altug Okay, general manager, Jaidah Electrical Division.
Jaidah Electrical Division, emphasised the strengthening of the two companies’ partnership over the past 12 months. Among other senior representatives attending the event was Frederick Xerri, executive vice president of Exports for Legrand.
News Events Construction
4 October
5 – 6 September 2016
Qatar Transport Forum
Future Interiors Qatar 2016
Doha, Qatar
Interior of a health centre in Qatar. (Image Ashghal)
24 - 25 October
3rd Annual Future Landscape & Public Realm Qatar
The interior contracting and fit-outs sector constitutes approximately 10 to 22 percent of the average construction project value in the Gulf Cooperation Council. To be held in InterContinental Doha – The City, the Future Interiors Qatar 2016 is designed to showcase the latest interior design projects and opportunities for fit-outs in Qatar. The event is aimed at bringing together architects, interior designers, hotel operators, developers, project owners/ managers, contractors, project developers, design/architectural consultants, construction consultants, and principal and engineering consultants.
27 – 28 September
8th Edition Hotelier Summit – Middle East
The 8th Edition Hotelier Summit – Middle East is designed to conglomerate over 180 industry experts, comprising international and leading hotel owners, operators, developers, architects, interior designers, consultants and service providers for one-to-one business meetings, making it the one stop B2B solutions platform for the Middle East hospitality industry.
27 – 28 September
Qatar Transport Safety Forum
After four years, the ITS & Road Safety Qatar Forum is now being rebranded as Qatar Transport Safety Forum in order to increase the scope
of the event to encompass all the other modes of transportation. The event will be held at St. Regis Hotel. Joining the forum will be government representatives, consultants, system contractors and global leaders driving road safety and smart mobility projects in the region.
28 – 29 September
6th Edition RESCOM Summit – Middle East
With a number of quality office schemes in prime areas due for completion in 2016, the trend seems to be towards more mixeduse developments. The RESCOM Summit aims to connect key decision makers and other real estate fraternity through structured, positive and specialised networks that are aimed to facilitate you to develop long-term, meaningful relationships with quality business professionals.
A recent example of landscaping in Qatar carried out as part of the Hamad International Airport (HIA) project. (Image HIA)
To be held at InterContinental Doha – The City, the 3rd Annual Future Landscape & Public Realm Qatar conference will gather local and international landscape, urban planning and design experts to discuss the latest guidelines and practices for the development of Doha as a world-class tourism and leisure destination.
30 – 31 October
Gulf Safety Forum Doha, Qatar
9 – 10 November
Middle East Sustainable Water & Drainage Summit 2016 Doha, Qatar
QCN | June 2016
Can Qatar p
Security concerns around sta
Brazil spent more than GBP498 million (QAR2.63 billion) on security for the 2014 World Cup. Despite promises of delivering the safest World Cup, fans broke into the Maracana Stadium during a match, causing damage to the stadium’s facilities. For Qatar, hence, delivering the 2022 World Cup successfully is not merely about constructing the stadiums and building the supporting infrastructure. ‘To deliver amazing’, the country needs to establish a safety strategy that addresses all the security risks an international sporting event brings. With insights from representatives of security providers and other companies, QCN’s Farwa Zahra explores the major security threats, and some strategies to deal with them both inside and outside the FIFA stadiums in 2022.
D
uring the 2014 World Cup, Brazil’s Maracana Stadium experienced a major security lapse when ticketless fans broke into the venue during a match between Spain and Chile. More recently in November 2015, France’s national sports stadium Stade de France was hit by terrorist attacks – part of the Paris Attacks – during a soccer match between Germany and France. Linked to the 2018 World Cup, Russia’s Luzhniki Stadium – venue of the next World Cup final, undergoing refurbishment – caught fire in October last year, raising concerns about the stadium’s overall safety features. While these are just a few examples, the world’s sport history is replete with examples of security hazards, from minor crimes of opportunity to more serious disasters such as the fire at Bradford City in 1985, which claimed about 60 lives, injuring more than 200 spectators.
June 2016 | QCN
Safety considerations construction
during
stadium
Security threats come in all forms – from vandalism to protests, from fire outbreaks to stampedes, and from terrorist attacks to extreme weather conditions. With a number of global precedents on security lapses during international sporting events, it is clear that Qatar will have to address safety concerns on various fronts. Without a doubt, the presence of trained security personnel is crucial to ensure the security of stadiums. The management and security staff, however, can only do enough without a robust infrastructure in place. From architectural details, such as ample and spacious egresses and ingresses to technological building aspects in the form of surveillance systems and control rooms, security of a stadium starts right from the planning stage.
play it safe?
adiums for the 2022 World Cup
A general view of cranes and building works during the construction and refurbishment of the Khalifa International Stadium, Qatar. (Image Getty Images)
QCN | June 2016
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cover story
Considering the security risks to stadiums, Youssef Fraiwat, general manager, Honeywell Building Solutions, Qatar, says it is crucial to plan safety and security systems in the early stages of building new facilities, “Physical security systems such as barriers, doors and perimeter fences will need to work together through an integrated security system to mitigate risks.” The provision of space to accommodate bollards and security systems installed outside the stadium’s premises is just as important as maintaining the internal security of the venue. “A key concern is obviously limiting the vehicles that actually get close to the stadium in the current situation that the world is in,” says Rob Ninnes, regional account manager of ATG Access – a company that specialises in providing a ‘ring of steel’ for stopping vehicles of up to 30 tonnes, carrying any explosive devices. In providing such security tools, Ninnes says his company works very closely with consultants and architects, specifying the parameters of security prior to the design of the actual stadiums. According to Christoph Hauser, Qatar, country manager, dorma+kaba Qatar and Bahrain, the complete security of a stadium Speaking at the World Stadium Congress, Jurgen Muller, head of planning and infrastructure and head of 2022 FIFA World Cup Qatar, said that what makes FIFA stadiums more challenging is the large scale of the event. (Image Arabian Eye/Reuters)
June 2016 | QCN
can be classified into three stages. Preevent measures will focus more on control over areas of ticketing and ingresses, while also staying vigilant to any extremist activities. During the match, the security will shift more to areas of emergency exits, riots, spectator control and any unusual weather conditions. Post-event, the focus will move to areas around egresses and crowd management.
According to Youssef Fraiwat, general manager for Honeywell Building Solutions, Qatar, ensuring the security of stadiums is deeply linked with early engagement of those who design, build, specify and provide technology.
Time constraints Of the eight stadiums that Qatar has announced so far, designs of five have been unveiled, with construction works at varying stages. Meanwhile, the Supreme Committee of Delivery & Legacy is currently in the process of shaping its strategy for the security of these stadiums, but how much time should Qatar ideally take before involving security providers in the development of stadiums? “The involvement of leading safety and security systems providers at the early design stage of a stadium is of great benefit to the overall project as inputs on possible future technologies and innovative solutions can then be well incorporated and integrated in the design,” says Volker Bischoff, general manager and vice president, Middle East, Bosch. Voicing similar concerns, Fraiwat says, “In order to ensure that stadiums are safe and make the best use of available resources, early engagement between those who design, build, specify and provide technology for buildings is crucial.” Speaking specifically about surveillance systems, Roland Meier, director of
“A key concern is obviously limiting the vehicles that actually get close to the stadium in the current situation that the world is in.” – Rob Ninnes, regional account manager of ATG Access.
cover story
A sound security strategy for a stadium looks at integrating multiple systems – such as digital video surveillance, perimeter control and access control systems, fire detection systems, public address voice alarm and lift and escalator management systems – on one platform, that can simultaneously control the systems in case of an emergency. (Image Getty Images)
Panomera, Dallmeier, says, “If it’s later, it might be that you don’t have the chance to select the right installation points and not the right network infrastructure. Such a system could be less effective.” Having the right place for each security component from the beginning also helps maintain the aesthetic appeal of the venue. “Working closely with architects can help in embedding the different field sensors and devices like cameras, fire alarm detectors, speakers and access control readers within the design of the building for a discrete nice look and feel,” says Bischoff of Bosch. While construction is already fast progressing, is Qatar lagging behind on timely contracts for security provision? Not necessarily. Paul Prescott, legal director, Pinsent Masons, believes the lack of available information on safety aspects of the stadiums might have to do with the sensitive nature of this specialist area. “We would expect that any security contracts would be privately tendered and not publicised because of the confidential nature of the services. It would not be in Qatar’s interest to disclose the nature of the services to be procured as this could undermine the safety and security of the stadium and infrastructure for the FIFA World Cup in 2022,” he says. Indeed, the
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assumption seems more plausible in light of QCN’s conversation with Meier Panomera, Dallmeier, who revealed that his company has been invited by the relevant authorities in Qatar for discussing their offerings in providing safety solutions. Speaking at the World Stadium Congress held in Doha in May, Jurgen Muller, head of planning and infrastructure and head of 2022 FIFA World Cup Qatar, FIFA, also mentioned the sporting body’s engagement with the Supreme Committee every day, adding that FIFA is currently in the process of creating a FIFA World Cup stadium requirements’ handbook, which is already being used for the 2018 and the 2022 preparations.
Challenges Just like any other technical area, security of the World Cup stadiums too has to comply with FIFA’s standards. Highlighting the need for Qatar to comply with the FIFA Stadium Safety and Security Regulations, Prescott says, “There are strict rules imposed by FIFA around the security of the stadiums during the construction and the operational phases. The supply QCN | June 2016
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cover story
To ensure a sound security plan of a stadium, it is important for contractors and project managers to involve security providers at an early stage of development. Pictured here is the construction site of Al Rayyan Stadium, Qatar. (Image Getty Images)
chain must consider matters such as void identification, certification and closure in order to eliminate the security risk.” Nevertheless, the safety conditions for a hosting nation may change on a case-bycase basis. Muller explained the sporting body’s stance in this realm, “Wherever FIFA requirements enter into a conflict with local or governmental regulations, in principle, the regulation in the country prevails specially when it comes to safety and security.” In his presentation, Muller added that while many safety aspects of FIFA stadiums are similar to any other international stadium, what makes the former different, and equally challenging, has to do with the large scale of the event, which requires proportionate sports facilities. Implementing security measures to meet this scale is one thing, but the bigger question, Fraiwat points out, is what to do with some of these security systems after the event. “In other parts of the world, we have found setting up temporary systems that can be re-used elsewhere is a costeffective and environmentally friendly alternative to permanent fixtures,” he says. Irrespective of the scale, speaking of common challenges in security provisions, Meier mentions clients’ conventional logic of ‘more is better’, which, in the case of safety, is not always true. “The most critical thing is probably to explain that in stadiums, it is not necessary to have hundreds of cameras but to have the right quality at the right spots,” he explains. Another challenge in equipping the stadiums with right levels of security is linked to the sophistication of technologies June 2016 | QCN
that will be used. In incorporating the right technologies, Bischoff highlights the importance of keeping in mind the fast pace of changing technology and the long-term nature of project development. “Such projects take years to realise and it is crucial to have visibility on technology trends and possible future solutions which leading technology houses such as Bosch would be in a position to contribute with.” Inside and outside the stadiums, some technologies for security include digital video surveillance, perimeter control and access control systems, fire detection systems, public address voice alarm and lift and escalator management systems, etcetera. Integration of these systems onto a single platform cannot only simplify the process but would probably require less human resources. Honeywell Enterprise Buildings Integrator, for instance, can connect diverse security systems and share data and information quickly to help understand complex situations quickly, and facilitate faster decision making when an incident occurs, as the platform can simultaneously connect with external authorities such as police and civil defence. “With the push of a button, for example, the access doors of a stadium can simultaneously be unlocked, while a voice alarm will guide people to the nearest exit, and all available escalators will transport people down to the ground floor instead of up to higher floors,” says Fraiwat of Honeywell, speaking about some rapid response functions of the system. For Hauser of dorma+kaba, the right solution needs the integration of different hardware and software systems, and
Volker Bischoff, general manager and vice president, Middle East, Bosch, says that involving security systems providers at the early design stage of a stadium is of great benefit to the overall project.
“It would not be in Qatar’s interest to disclose the nature of the services to be procured as this could undermine the safety and security of the stadium and infrastructure for the FIFA World Cup in 2022.” – Paul Prescott, legal director, Pinsent Masons.
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5 major Security disasters in stadiums across the world France England Egypt Peru
Venue: Stade de France, France Event: 2015, France vs. Germany Aftermath: Four killed, including three suicide bombers. Disaster: Three explosions occurred outside the stadium. After being caught by the security team at the entrance, the first bomber detonated the explosives, followed by another two bombers exploding themselves outside the stadium.
Venue: Air Defence Stadium, Egypt Event: 2015, Zamalek vs. Enppi Aftermath: 22 killed and dozens injured. Disaster: Fans attempted to storm the stadium gates by force, which prompted police to prevent them from continuing the assault, setting off a stampede. The iron cage, inside which most people died, was installed a day before the match.
Venue: Hillsborough Stadium, England Event: 1989, Liverpool vs. Nottingham Forest Aftermath: At least 96 killed and 766 injured. Disaster: In an attempt to avoid overcrowding, the exit gate was opened which led directly to the two already overcrowded enclosures. The overflow of supporters caused crushing.
Venue: Valley Parade Stadium, England Event: 1985, Bradford City vs. Lincoln City Aftermath: 56 killed and around 265 injured. Disaster: Fire broke out from the seating areas, which soon turned into a blaze due to wooden stands and roofs. Extinguishers were not provided in the stand’s passageway for fear of vandalism.
Venue: National Stadium, Peru Event: 1964, Peru vs. Argentina Aftermath: At least 328 killed and more than 500 injured. Disaster: Fans invaded the pitch. Panicked spectators moving down the enclosed stairways pressed those in the lead against the closed shutters until shutters finally burst outward as a result of pressure from the crush of bodies.
Source: Christoph Hauser, Qatar, country manager, dorma+kaba Qatar & Bahrain and QCN.
communication between the systems via different open protocols. Such a solution, he adds, should provide control over access (parking, perimeter, stadium), fire alarm system, escape route system, building management system, CCTV, intrusion/burglar alarm
system, ticketing system, payment solutions, intercom system and public address system.
Beyond stadiums Hosting a safe World Cup is not simply a matter of holding matches in a secure
environment. Explaining the idea of good security, Fraiwat says, “Good security needs to be balanced with a good user experience for visitors at the event.” This, he adds, means that visitors should be able to get in and out of the stadiums relatively quickly, QCN | June 2016
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“Good security needs to be balanced with a good user experience for visitors at the event.” – Youssef Fraiwat, general manager, Honeywell Building Solutions, Qatar.
without having to spend a long time standing in line to get to their seats or back to their hotels. Similarly, having seamless security across Doha would be equally important. Part of Qatar’s responsibility, hence, would be taking care of its residents and tourists during their stay in the country. A number of tourism projects are currently underway to meet the recreational needs of residents and fans during the tournament. Without a doubt, security of the city during the World Cup needs to be taken just as seriously as the safety of the stadiums. “All critical infrastructure and public spaces where people gather will require security measures. This includes public transportation hubs such as the Doha Metro and the airport, as well as shopping malls and hotels. The public’s safety is always a number one priority,” says Fraiwat of Honeywell. To ensure end-to-end security, this means starting with robust safety right from the airport. Giving details of the existing security mechanisms, Ninnes tells QCN that Hamad International Airport currently has around 4200 bollards, provided by ATG Access, protecting more than 15 control points for exit and entry. Across the country, and specially Doha, to maintain fans’ convenience June 2016 | QCN
Pictured here is the construction site of Al Wakrah Stadium, showing construction progress as of April 2016. The stadium’s model has also been tested for aerodynamics at the College of Engineering at Qatar University. (Image Arabian Eye/Reuters)
Roland Meier, director of Panomera, Dallmeier, says it is not necessary to have hundreds of cameras. What is critical is to have the right quality at the right spots.
and security, Fraiwat says, “it will be crucial for the country to quickly detect potential crowd disturbances.” Once detected, the authorities will need to be equipped to respond swiftly and mitigate the potential impact that a disruption could have. Although the World Cup is still six years away, having a futurist security mechanism across major infrastructure projects in Qatar
as early as possible will leave the country in a better position to address any safety threats during the tournament. “While full attention is typically paid during tournaments, it is actually equally, if not more, crucial to step up security measures off seasons and before events take place. This goes a long way in tackling risks associated with intrusion and other threats,” concludes Bischoff.
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managing and preve
scope creep in construction It is not unusual for projects to change their features and scope during the period of construction. Small adjustments, one after the other, can sometimes change the entire nature of the project. More importantly, however, changes that ‘creep’ in during the process of development often mean increased cost, delayed delivery and/or compromised quality, writes Ahmed Hassan.
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rojects do not fail at the end, but in the beginning. The statement is true for many construction developments struggling to reach a conclusion. From a technical standpoint, it also means that a project is prone to higher risks of failure if its scope is not well defined from the start. Project scope is the set of tasks, goals, deliverables, costs, and deadlines determined by the involved parties in planning a project. In construction, it is imperative for the scope to be comprehensive, agreed upon, and understood by all parties involved, meaning that the client, contractors, and the subcontractors all need to be in agreement regarding who is doing what, who is responsible for what, when it needs to be done, and for how much. This agreement is then formalised in a contract. The scope of a project, however, may not remain the same during its lifetime. Many times, the project scope goes through variation due to uncontrolled changes – a phenomenon also known as ‘scope creep’. While scope change is collaboratively decided by the client and project manager with changes accommodated in budget and delivery dates, scope creep usually happens when small adjustments gradually keep getting added to the scope of the project, without any formal compensation in terms of time and budget. Stated differently,
June 2016 | QCN
scope creep comprises changes that are not properly defined, documented, or controlled, and hence are generally considered harmful.
Causes What are the causes of scope creep? There is no one answer to this question as a number of factors can lead to a changed project scope. Gold plating: Scope creep is often a result of ‘gold plating’ – a term used for the practice of exceeding the scope of a project in the belief that it is adding value. One example of scope creep in the construction field is when decorative elements are added to deliver a better finish to a project, though they were not earlier mentioned in the initial project scope. Adding decorative elements costs more money, otherwise not budgeted
It is sometimes necessary to make project changes. When changes do occur, document the diversions from the scope and define them as ‘nice to have’ or ‘must have’.
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in the original scope of the project. Gold plating can be avoided if companies decide to reward their teams for delivering to specification, on time and within budget. To this end, organisations need to make it clear that undocumented features should not be added, but instead put through the change control process. Lack of experience: Many times when a company takes on a new project or does something for the first time, they run into problems staying within scope. Not knowing precisely what to expect out of a particular project, things can go astray quickly, typically causing the project to be over budget and often late. Not understanding when change is necessary: It is sometimes necessary to make project changes. When changes do occur, document the diversions from the scope and define them as ‘nice to have’ or ‘must have’. A good procedure should have a written request for change, and a period of time for the other side to consider the request and steps necessary to approve those changes. In short, not every change suggested needs to be implemented, as many times less is more. External forces: Apart from these internal reasons, scope creep sometimes happens due to a range of externalities such as overall market conditions, regulatory requirements, or technological advances.
Managing scope creep
For project managers, rejecting a project creep often protects a project from going over budget or getting delayed. However, if the adjustments are coming from the clients, project managers need to logically convince them about the repercussions of implementing such changes. (Image Phocal Media)
The project requirements and stakeholder needs should be determined and documented at the beginning of the project. The following are some tools and techniques that may be helpful in doing so: • Prepare a list of questions to ask the stakeholder, and note their answers as part of the requirement. • Arrange focus groups to discuss the project. Views from multiple perspectives will enable the integration of more information regarding your project and its requirements. • Facilitated workshops. This is mostly used for complex projects with a long list of important stakeholders and multiple contractors working on it. • Make use of group creativity technique. This technique involves a group of people brainstorming for new ideas and improvements, and is usually used
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to solve problems. Conduct surveys by sending out questionnaires to a group of end users for their answers. Compile them and analyse the results. • Come up with prototypes to show to the client. They are good to start with in order to see if the end result is what the stakeholder needs. • Benchmarking is commonly used to gather performance requirement of a project. All these tools and efforts made for understanding the project requirements help in preventing and managing scope creep in construction projects. Saying no to a scope creep in many situations protects a project from failure, but convincing the clients is easier said than done. To deal with this dilemma, it is always better to calculate the cost that a change in scope will require – in terms of time, money and/or resources. Supporting your case with numbers and data often helps convince clients on logical grounds. Project managers have a crucial role to play in avoiding gold plating, for instance, by never allowing a team member to add any extra function or feature to the product without approval and establishing proper communication lines within the project team. Furthermore, regularly monitoring the change control process ensures that each change introduced to the project environment is appropriately defined, evaluated and approved prior to implementation. For any project, it should be very clear to your customer that every change has an impact on the project cost, schedule, quality, risks and resource requirements. Clients, hence, need to clearly advise that the decision of applying changes in the project scope depends on their acceptance for the changes in project duration, cost and quality. •
Engineer Ahmed Hassan (PMP) is the electrical section head in Saudi Binladin Group, Cairo Technical Office. Hassan is also a project management trainer.
QCN | June 2016
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Role of construction in The Qatar National Vision 2030 promotes the need to have a diversified economy with less reliance on the traditional oil, gas and petrochemical sectors. Tourism is considered to be a key growth area in the country’s national vision. Naturally, the construction industry has a large role to play in developing Qatar’s tourism sector, writes Mark Shea of Faithful+Gould.
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lobal events such as the 2022 World Cup and other major sporting tournaments, together with Qatar’s diverse cultural offering are great drivers to boost the country’s tourism industry. Growth of tourism, in turn, also brings the requirement and demand for new facilities such as hotels, entertainment hubs and greater capacity in the country’s transport infrastructure. Taking the future demand into consideration, the Gulf state has a significant number of new hotel rooms planned or in the pipeline. In the past, hotel developers looked at five-star luxury hotel developments due to their high revenues per unit which is in contrast to the emerging trend for three- and fourstar properties that have proven to have comparable profit percentages. That said, in the quest of building new projects, it is important not to forget the existing assets that will require refurbishment and maintenance to protect the standards that we are used to seeing in the region.
Key projects One of most prominent impacts of Qatar’s growing tourism sector will continue to be seen on its airport facility. While the country opened its new hub-and-spoke facility, Hamad International Airport (HIA), in 2014, major extensions are currently under progress to further increase the airport’s passenger and cargo capacity. June 2016 | QCN
This, of course, will also mean continued expansion of the national carrier, Qatar Airways, providing a major transportation hub and key gateway for visitors to Qatar. While the continued development of infrastructure required to host the 2022 World Cup will be a high priority in the short term, investment for the development of cultural offerings such as museums will not only broaden the range of entertainment spots for tourists during the World Cup but will also serve as an asset for Qatar’s longterm goals of promoting its tourism sector. One such project is the National Museum of Qatar. Located in central Doha, the underconstruction museum inspires its design from the crystal formation of a desert rose. Likewise, the development of themed entertainment centres, such as those planned at Doha Oasis, will also provide opportunities for local and international tourism. Similarly, the under-construction Mall of Qatar claims it will bring a unique Live Interactive Visual Entertainment centre to the city. Some other recreational attractions scheduled to come to Qatar in the future include Angry Birds Activity
One of the future attractions for tourists is the National Museum of Qatar currently under construction in central Doha.
In designing and building tourism projects in the region, there has to be an appreciation of the natural climate.
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qatar’s tourism sector Park, Juniverse and Virtuocity for kids, teens and adults. Apart from cultural and recreational facilities, it is important to recognise the impact a broad retail, food and beverage offering will bring to a destination in support of its tourism development. While the construction of hotels progresses, Qatar must not lose sight of the development and refurbishment of its existing eateries across the various segments from budget to luxury.
Construction challenges
Anantara’s Banana Island Resort, pictured here, is one of the recent tourist attractions opened in Qatar.
Like any other project, tourism projects in general face the same challenges affecting the overall construction sector. Some obvious issues include securing skilled labour and the right resources to undertake the projects necessary to expand the tourism sector, securing appropriate visas for the expatriate workforce, and making sure that there is sufficient social infrastructure in place for the workers, such as affordable workers’ accommodation, while trying to manage wage rise inflation. Availability of key materials to support the construction industry is also a key concern given the volume of construction work that is anticipated over the course of the next five years across the wider Middle East region. Apart from these generic challenges, projects related to tourism are specially more sensitive to the environmental
conditions here. Therefore, in designing and building these projects, there has to be an appreciation of the natural climate. Building environments need temperaturecontrolled conditions in their operational state and this must be factored in right from the design outset. Careful consideration of the position of buildings within plots and orientation when considering sun paths, can impact on the shading and cooling loads required of the building systems. Proper attention to detail during the design detailing and real supervision of the building operations are key. For instance, the quality of build can help minimise air leakage from buildings and reduce the overall cooling requirements. Undertaking formal training and handover to the operators/maintenance teams of hospitality and leisure projects led by the designers and constructors of the building MEP systems will be invaluable so as to prevent such MEP systems from being operated differently to the way that they were designed to run in the first place. The summer periods are harsh with high temperature and humidity levels, which make the provision of projects with external elements difficult. Innovation and development of off-site pre-fabrication and the development of repetitive and simple component parts to install will assist. It would be equally significant to give due consideration to programming of major works in an external environment to be undertaken in the cooler months. In terms of the overall quality of the project, it is important to look at the owner’s motivation. Though not always, a project owner, who is looking to develop and sell on assets as part of an investment strategy, may only look to construct as cost effectively as possible, in order to increase the opportunity for margin. On the other hand, an owner with a longer-term mindset and one who is interested in the operational costs and efficiencies of the building in performance will be open to the options to spend more capital in the expectation of significant operational cost savings in the future. QCN | June 2016
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feature story Among Qatar’s longstanding tourist attractions is Doha’s Souq Waqif, pictured here.
Lessons learnt Across the region, there are many examples of tourism projects that have been a success. The development of luxury hotels and destination resorts has been a great success, with generally good levels of occupancy and good rates being achieved. In many ways, the region is synonymous with the provision of luxury and opulent destinations with a corresponding level of service. The development of major shopping and retail malls, often with hotel accommodation attached, has been well received in the marketplace, and continue to perform well while providing an added draw to the tourists. While the Gulf Cooperation Council (GCC) is full of success stories for its tourism facilities, many projects within the region did not turn out as expected. However, rather than looking at individual projects, it is important to understand the reasons behind their failure and identify the lessons to learn. PwC’s Middle East Capital Projects & Infrastructure Survey from June 2014, using insights from 130 project owners across the GCC, identified that more than 95 percent of projects are delayed beyond the original schedule, with 44 percent delayed by more than six months. To add to this, 71 percent of projects were reported as being over budget with six percent being more than 50 percent over budget. While the Middle East is an intensely competitive market, we are still seeing a lack of expertise in design and June 2016 | QCN
implementation causing budgets to soar out of control. Understanding an owner’s intention for the development of an asset from the outset can impact the approach to design and construction, leaving little room for expenditure on efficient design or sustainability despite a growing demand from the end user and the necessity for cutting costs in light of the current economic slump. Clearly, there are numerous reasons for such significant numbers of projects being over budget and late in their delivery. In order to avoid such incidents, it is important to set realistic project expectations from the start, along with a carefully constructed brief. In addition to the brief, the development of a realistic development budget – that is used to inform development appraisals with value at the forefront – together with the identification of appropriate timelines for the completion of each project stage, are some of the key elements to setting a project on the right path from the outset. A design that is well considered and developed to an appropriate level to allow procurement of construction partners, with the correct apportionment of risk, is another factor to be considered. Despite best-laid plans, mistakes can happen on any construction project. However, robust reporting and monitoring during the various project stages will help to identify potential areas of concern early enough in the project lifecycle so that remedial actions can be taken to bring projects back on track.
The summer periods are harsh with high temperature and humidity levels, which make the provision of projects with external elements difficult.
Mark Shea is the head of Hospitality Middle East at Faithful+Gould.
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section insights industry
Qatar needs to increase focus on the long-term serviceability of its existing and newly-created infrastructure When it comes to the maintenance and management of highways in Qatar, the country has to deal with the challenge of working on a highway network that is constantly changing and developing as Qatar updates its road infrastructure, so explains Richard Allen, business director, Qatar, Amey Consulting, in an interview with QCN’s editor Farwa Zahra. Tell us about Amey, your major service areas and your presence in Qatar and the Middle East? Amey is one of today’s leading international multidisciplinary engineering consultants and public services providers, managing the vital infrastructure that we all rely on. We are headquartered in the United Kingdom (UK) with over 22,000 employees across the globe. We drive value across an array of asset portfolios including roads, railways, and utilities networks, buildings, airports, smart cities, and other transport hubs. Our whole-life interest in asset management extends from advisory and design services, through to performance monitoring to the
June 2016 | QCN
“My vision for Amey is to leverage our global experience and place our comprehensive range of asset management and design professional services at the heart of the infrastructure here, which will help support the 2022 World Cup preparation and Qatar National Vision 2030,” says Richard Allen, business director, Qatar, Amey Consulting.
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Amey has worked with Ashghal to implement safe and effective procedures for the movement of large and oversized loads across Qatar.
management of asset operation and use. Our customers can choose from a variety of integrated or standalone solutions across the full range of our services. With the support of our global parent company, Ferrovial, we are making our mark internationally. We have successfully delivered intelligent infrastructure asset management and consultancy across the UK, Australia, Qatar and the United States of America. Qatar is our primary focus for the Middle East, and we have made Doha our regional headquarters, where we have recently obtained Engineering Registration – First Category (Civil). Over time, we will look for other opportunities in other Gulf Cooperation Council countries, but our primary target is to firmly establish ourselves as a market leader for the asset management of infrastructure in Qatar.
Please share details about the highway network management services you are providing in Qatar? In 2012, we began working with Qatar’s Public Works Authority (Ashghal) in a key advisory and design role for the operation and maintenance of the country’s roads. Working collaboratively with our client, we deliver a worldleading highway network management
service, using our expertise to help them better understand their road assets and how best to operate them. With our help and knowledge transfer, Ashghal is able to make informed, long-term decisions about building, managing and maintaining its highway network to improve the experience of the general public using the Qatari road network.
Apart from works with Ashghal, is Amey delivering any other projects in Qatar? What are your growth expectations for the coming years? Amey initially came to Qatar using a branch registration to deliver services for Ashghal’s Contract 4a. After successfully establishing the contract and realising the potential added value that Amey was able to offer clients in Qatar, we decided to establish a local engineering business. This means that we are now able to pursue new opportunities with a variety of government and non-government clients. We are actively seeking clients and projects where we can leverage Amey’s extensive experience in asset and infrastructure management and operations. Sectors such as roads, rail, utilities, smart cities, ports, and aviation are our key areas of focus where we can demonstrate proven global experience.
“Qatar proactively embraces the latest technologies and international best practice in the operation and maintenance of its highway networks.” What is your perception of the general condition of roads and highways network in Qatar? Compared to other markets, how soon will they require maintenance? We have seen the overall condition of the highway network within Qatar improve during our time here. There are several factors driving this change, some of which might not be apparent to the general public. We have worked with Ashghal to ensure that robust inspection and maintenance regimes have been developed, utilising the latest asset management and mobile technologies to identify issues or future improvement works, prioritise them, and track their completion. This is all supported by a dedicated customer service team that provides the direct link between customers and operations on the road network. The standard of newly-constructed
QCN | June 2016
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infrastructure projects has improved significantly over recent years, thanks to initiatives within Ashghal. We are working with multiple stakeholders to ensure that newly-built assets are handed over from construction into maintenance to the highest standards, through a variety of robust processes, procedures and knowledge transfer activities. This leads to the development of highway networks better able to serve the needs of the citizens of Qatar.
What are the main issues that you face in maintenance and management of highways in Qatar? We see two key challenges that face the maintenance and management of highways in Qatar. The first is a constantly changing and developing highway network that is still under construction. We are working with Ashghal to implement various approaches to manage the disruption by taking best practice from our international highways management business. We also need to be prepared for the challenges of a major event such as the 2022 World Cup and the demand this will place on the highway network. We have been offering support to Qatar using our knowledge and experience of large-scale event management and management of travel disruption, in particular, the London Olympics 2012.
How has your experience been of working with local teams in Qatar? What value do they bring to the team and what expertise do expatriates bring in general? The ultimate aim of our current project with Ashghal is to facilitate the transfer of knowledge and international best practice. We have successfully achieved this by bringing Amey subject matter experts, primarily from the UK, to Qatar to work with our client’s local team. Through our dedicated in-country HR change management professionals, we have structured a programme of training and knowledge transfer. At the end of the current contract, it is our goal
June 2016 | QCN
to be able to leave the organisation in a position where it is able to selfsufficiently manage future challenges.
With the unprecedented rainfall throughout 2015/16 and subsequent flooding, how has customer safety been prioritised and congestion minimised? We are supporting the development and delivery of the Ashghal Severe Weather Plan, Incident Response Action Plans, and emergency staff training, to respond more effectively to flooding and other incidents on the network. This has been delivered by emergency teams working 24/7 with appropriate resources, including key traffic management equipment which informs and directs the travelling public to alternative routes to avoid lengthy delays and potential hazards. As a result of this management function, the response times have improved and customer complaints reduced.
How advanced is Qatar in terms of solutions and technologies in the world of road/highway operations and maintenance? We believe that Qatar proactively embraces the latest technologies and international best practice in the operation and maintenance of its highway networks. We are pleased to have had the opportunity to drive and support several solutions during our time working with Ashghal. Initiatives such as the implementation of Enterprise Asset Management System (EAMS) give Ashghal a unique insight into the behaviour and performance of its infrastructure assets across the country. This facilitates the ability to make smarter and more informed decisions on the operation and maintenance of the road network. Integration of technologies to enable a better road user experience will become increasingly important over the next few years, as technology advances. The key will be to ensure that we use not only the latest expertise at our disposal but that we
Amey engineers on site overseeing planned changes being put into action.
“We have seen the overall condition of the highway network within Qatar improve during our time here.�
can also accommodate the integration of rapidly developing new technologies.
What do you see as the long-term role for an international firm such as Amey in Qatar? Qatar is currently in the process of constructing a significant amount of new infrastructure assets across the country. Not surprisingly, the main focus for most client organisations and other firms has been on construction-related activities. At Amey, we see the need to increase focus on ensuring the longterm serviceability of the existing and newly created infrastructure, through intelligent and robust approaches to the implementation of asset management principles and tools. We see knowledge transfer to the local workforce as a priority so that the local community is able to manage the asset long after the international firms have delivered their contracts, promoting self-reliance and generally making Qatar a better place to live, work and travel.
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legal & finance
VAT and its impact on The Gulf Cooperation Council (GCC) countries are soon expected to sign the GCC Framework Agreements for VAT and Excise Duties. Laura Warren and Ramiz Shlah of Clyde & Co look at some of the impacts Qatar’s construction sector will face once VAT is implemented.
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efore exploring the application of value added tax (VAT) to construction contracts, it is important to understand the meaning of the term in the regional context. The details of VAT in the GCC are not yet known, but tax professionals in Qatar are aware of its general shape, and it is understood that the VAT regime will draw upon best practices from elsewhere, subject to GCC-related requirements and exemptions on 94 food items as well as on education and health services. It is therefore useful to look at jurisdictions such as the European Union (EU) to understand how VAT is intended to work. According to the European Commission, VAT in the EU “is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union. Thus, goods which are sold for export or services which are sold to customers abroad are normally not subject to VAT. Conversely, imports are taxed to keep the system fair for EU producers so that they can compete on equal terms on the European market with suppliers situated outside the
The idea of introducing VAT in Qatar and the GCC is not new. Previous initiatives did not materialise, but it appears that the current initiative has traction. April 2016 | QCN June
While the application of VAT is still at least 18 months away, construction companies in Qatar need to be prepared and aware of the changes it will bring to their business. Such a preparation involves training the engineers in tax calculation.
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construction companies Union.” VAT generally applies to all commercial activities involving the production and distribution of goods and the provision of services. However, VAT is usually paid by the final customer of the goods or services, so it is not intended to be a charge on business. At each stage of production or distribution, VAT is charged as a percentage of price, so the tax burden is visible at each stage in the production and distribution chain. While it is intended for the tax burden to be paid by the final customer or end user, depending on how your subcontract, main contract or supply contract is drafted, you may be required to bear the burden of VAT instead of being able to pass it on. By way of a simple example, imagine a manufacturer of widgets (Company X) purchases the goods and services it needs to manufacture widgets at a cost of QAR500,000 plus VAT at five percent, that is equivalent to QAR25,000 (input tax). Company X purchases these goods and services from a range of suppliers, each of whom is registered for VAT and charged VAT on their supplies. Company X then sells the widgets to a retailer of widgets (Company Y) for QAR1,000,000 plus VAT at five percent, equivalent to QAR50,000 (output tax). At this point, Company X’s VAT return shows the following: • Output tax: QAR50,000 payable to the Qatari Tax Authorities • I n p u t tax: QAR25,000 reclaimable from the Qatari Tax Authorities • Net payable tax: (QAR50,000 – QAR25,000) = QAR25,000 Thereafter, Company Y sells the widgets to retail customers for a total of QAR1,500,000 plus VAT at five percent, equivalent to QAR75,000. Company Y’s (the retailer) VAT return shows the following:
•
Output tax: QAR75,000 payable to the Qatari Tax Authorities • I n p u t tax: QAR50,000 reclaimable from the Qatar Tax Authorities • Net payable tax: (QAR75,000 – QAR50,000) = QAR25,000 Note that in this example, each party in the supply chain is not out of pocket. Instead, the tax burden is shifted until the final consumer ultimately pays a higher price for the goods or service.
In February 2016, Christine Lagarde, managing director of the International Monetary Fund, urged the GCC to reverse years of resistance to taxation in order to make up for plummeting oil revenues.
Background The idea of introducing VAT in Qatar and the GCC is not new. Previous initiatives did not materialise, but it appears that the current initiative has traction. While some businesses have argued that VAT may have a destabilising effect, other analysts have argued that it is time for the GCC to implement a more robust tax system that reduces the generous tax subsidies provided to residents. For instance, in February 2016, Christine Lagarde, managing director of the International Monetary Fund (IMF), urged the GCC to reverse years of resistance to taxation in order to make up for plummeting oil revenues.
One suggestion from Lagarde was to introduce VAT on goods and services. From an implementation and harmonisation perspective, it is understandable that the GCC as a whole would likely want to ensure that VAT is applicable across the GCC. Failure to do so could result in parties opting to do business in jurisdictions which present lower tax burdens. This is also why VAT is likely to apply to imports (but not exports), otherwise parties would not procure items from the GCC if they could obtain the same goods without paying VAT by importing from outside the GCC.
While some commodities such as food items and education and health services will be exempt from VAT, the application of VAT to construction resources such as tools and heavy equipment will likely leave significant impacts on the sector.
QCN | June April 2016
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The application of VAT in Qatar will come with technicalities around documentation as there will be a host of new forms, registration requirements, exemption certificates, indirect tax processes and controls, accounting systems, record-keeping requirements and VAT returns, in addition to training of staff.
Considerations for contracting companies The first issue to consider is documentation and organisational readiness. There will no doubt be a host of new forms, registration requirements, exemption certificates, indirect tax processes and controls, accounting systems, record-keeping requirements and VAT returns in addition to the need to train staff. It is therefore likely that tax consultants will need to be engaged, presumably at earlier stages for larger organisations, in order to prepare for the tax. The second issue to consider is current contracts and how they treat taxes. A view must be taken as to whether they appropriately address VAT and whether one party may be required to bear the tax burden at the expense of its profits or by having its costs increase. For instance, if a subcontractor that is VAT registered in Qatar is required to purchase equipment from outside the GCC, then it is understood that the subcontractor will be required to apply VAT to the purchase price. If the subcontractor’s subcontract states that the subcontractor must bear the burden of any tax, then the subcontractor is not allowed to increase the sale or bill of quantities (BoQ) price of the equipment by the amount of VAT applicable upon sale to the main contractor. While the subcontractor should be able to reclaim the VAT paid June 2016 | QCN
upon import, the subcontractor will still be at a net loss, rather than a net zero position, upon sale to the main contractor. To demonstrate this with an example, let us assume that a subcontractor is required to import equipment from Canada, the cost of which is QAR1,000,000. The subcontractor must pay the supplier and add five percent VAT (QAR50,000, the input tax) to the purchase price. At the end of the month (or whatever period will be required by the legislation), the subcontractor must pay the QAR50,000 VAT because the Canadian supplier is not VAT registered in the GCC. Upon sale of the equipment to the main contractor, the subcontractor is not permitted to increase the BoQ price of the equipment because the subcontract does not permit this, so the subcontractor, being VAT registered, must again pay the net VAT. If we assume that the BoQ price
is QAR1,500,000, then five percent VAT is QAR75,000 (the output tax). The subcontractor can deduct the QAR50,000 VAT paid earlier from the QAR75,000 VAT applicable upon the sale to the main contractor, but this still leaves the subcontractor out of pocket by QAR75,000. The point here is that the VAT is not being passed on to the final consumer or end user because the subcontract does not permit the transfer of the tax burden. Similarly, the main contractor may be in the same position if its main contract with the employer does not permit an increase in the BoQ price for VAT. It is therefore important to understand how your current contracts work and whether there may be a change in law provision, gross-up clause or other contractual provision that would allow a subcontractor or main contractor to transfer the burden of VAT in the manner intended by the legislation or to be compensated for the additional tax. The third issue to consider is current tenders and future contracts. Given the scenario described above, it is important to ensure that future contracts accommodate the possibility of VAT so that the tax burden can be shifted to the end user. This requires the inclusion of appropriate tax clauses in your contracts. As can be seen above, while implementation of the GCC Framework Agreements for VAT and Excise Duties is at least 18 months away, companies need to think about how VAT will affect their business, operation models, cash flow, existing contracts, future contracts and ultimately cost and profitability.
Laura Warren is a partner and Ramiz Shlah is a senior associate in Clyde & Co’s Projects and Construction team.
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careers
are you jeopardising your online job search?
S
o you have been a registered job seeker with online job sites for a while now, but where is that call? Instead of sitting around and wondering why you have not yet been contacted, it might be time to start digging deep into your online job search activities. Here are some tips from the team at Bayt.com to help you optimise your job search and make it work for you. Complete your online CV Your CV is the first and, more often than not, the most significant impression you make on an employer. Therefore, take the time to fill each section impeccably; a high-quality CV is expected to be rich with just the right keywords to grab the attention of prospective employers, especially since automated searches are usually conducted by keyword and the absence of desired keywords can exclude your CV from an employer search. Stay active on job sites Are you active enough online? New job opportunities are posted on leading job sites round the clock. Bayt.com alone features more than 10,000 jobs on a daily basis, so make sure to check opportunities online regularly and apply to all relevant job openings. Regularly refresh your online CV Are you refreshing your CV as often as you should? Probably not. Prospective employers always come across CVs with the most recent updates first whenever they are searching for candidates. Updating or refreshing your online CV at least once a week is a must in order to improve its visibility to employers who typically have hundreds of CVs to search through. Request recommendations Do you have recommendations from your managers and coworkers on your
June 2016 | QCN
CV? Go that extra mile and request a recommendation from your current or former managers, colleagues and professors, etcetera. Such recommendations will, without a doubt, differentiate you from the pool of other applicants and sell you to prospective employers. According to the Bayt. com Modern Job Search in the Middle East and North Africa poll, November 2013, 62 percent of professionals who make hiring decisions say that recommendations are very important to employers whether or not they decide to hire a candidate. Have an online public profile According to the Bayt.com Personal Branding in the Middle East and North Africa poll, September 2013, 92 percent of professionals agree that good online personal branding can help them get more interviews and grow in their careers. Moreover, 61 percent of respondents in the same poll agree that their company checks the profiles of new recruits online before hiring them. The content of your online public profile forms the first impression before you even sit down for an interview. With that said, we cannot overemphasise the importance of having a well-managed public profile on leading professional sites. Follow up Mass-mailing your CV and waiting for companies to contact you is not an optimal job search strategy. The key is to follow up. Plan your follow-up strategy and execute it well. Follow up by phone to make sure the employer has received your CV, follow up again to ask for a meeting, and follow up with emails regularly until you have received some form of a response. Our Bayt.com research has shown that 70 percent of employers think that following up is essential.
Qatar’s job market in numbers
46%
of Qatar respondents did not receive a pay rise at all in 2015.
50%
anticipate a pay rise in 2016, 28% of them expecting a raise of up to 15%.
60%
believe their salary is lower than the industry average.
40%
say that they receive personal medical insurance.
47%
are allotted a personal air ticket.
34%
receive transportation allowance.
28%
believe their financial condition is better now than it was six months ago.
67%
are looking for mid-career or junior positions.
55%
plan to look for better opportunities in the same industry. Sources: The Bayt.com Middle East and North Africa Salary Survey, May 2016, The Bayt.com Middle East Consumer Confidence Index Survey, March 2016, and The Bayt.com Middle East Skills Gap Survey, May 2016.
هل تبحثون عن حمتوى ديناميكي ُمميز؟ جمالت مطبوعة ورقمية للشركات مبزود احملتوى األكرث نشرات إلكرتونية اتصلوا إذن ُ ديناميكية ومتيزًا يف الدوحة .كتب تذكارية خاصة ،وكتب لطاولة القهوة تقارير سنوية تقارير االستدامة تصوير ضوئي (فوتوغرافيا) تصوير فيديو ُمدونات وحمتويات صوتية تطوير التطبيقات بيع وتسويق اإلعالنات حمتوى أصلي راسلوا روجن عرب الربيد اإللكرتوينpremium@firefly-me.com : أو اتصلوا على الرقم +٩٧٤ ٤٤٣٤ ٠٣٦٠ :لتحديد موعد لالجتماع.
سناء بوكريع
جو ماريت جنڤياڤ دياب
مصممة جرافيك اإلبداع املُ َو ِّجه للسوق
مدير عام مدير اسرتاتيجي ُمحنَّك
روجن بايلي
مديرة حسابات العمالء خدمة العمالء االستثنائية
مايلز ماسرتسون رئيس التحرير التنفيذي خبري يف تطوير املُ حتوى
حمررة القسم العربي احملتوى العربي النموذجي
www.QatarTenders.com tender name
description
client
Interchange Repair Works
Repair works at an industrial interchange
Public Works Authority (Ashghal)
275
7/24/16
Pipes, Fittings & Flanges
Stocking and supply agreement of pipes, fittings and flanges
Qatar Chemical Company Limited (Q-Chem)
275
7/21/16
Inspection Services
Provision of inspection services with equipment
Qatar Gas Operating Company Ltd.
137
7/18/16
Consultancy Service
Consultancy service for Kahramaa Process Integration
Qatar General Electricity & Water Corporation (Kahramaa)
137
7/17/16
Manpower Supply
Provision of multi-discipline manpower services
Qatar Petroleum (QP)
137
7/17/16
Roller Shutter Doors, Access Boom Barriers & Motorized Sliding Gate Maintenance
Maintenance of roller shutter doors, access boom barriers, motorised sliding gate
Qatar Petroleum (QP)
55
7/10/16
Cable
Supply and replacement of cable for switchgear
Qatar General Electricity & Water Corporation (Kahramaa)
275
7/5/16
Residential Complex Lease & Management Services
Leasing and management of a residential complex
Qatar Petroleum (QP)
137
7/3/16
New Environmental Chamber
Design, supply, installation, testing and commissioning of a new environmental chamber
Aspire Zone Foundation
55
7/3/16
Altitude System
Design, supply, delivery, installation, testing, commissioning and maintenance of altitude system for dormitory rooms
Aspire Zone Foundation
55
7/3/16
Manpower Supply
Provision of personnel for fire and rescue services Qatar Petroleum (QP)
137
7/3/16
Roofing Sheets Repair/Replacement
Repair/replacement of roofing sheets
137
6/27/16
June 2016 | QCN
Qatar Gas Operating Company Ltd.
Fee(USD)
Closing (m/d/y)