exclusive interview: Dr. Salah Nezar, QPM sustainability director, ON DIstrict cooling – pg. 36
issue 1.1
September 2014
SPECIAL SECTION Qatar’s Heavy Equipment Sector
FIFA
World Cup
risk factors Can Qatar stand the test ahead of 2022?
Plus: gulf earth moving wll
Terminating construction contracts in Qatar Business Optimism Index for Qatar’s construction sector
INTERVIEW:
Engineer Ali bin Nasser Al Khalifa, CEO, Astad Project Management
Al Wakrah Stadium, one of the hosting venues for 2022 World Cup, is scheduled to be completed by 2018. (Image Qatar Supreme Committee for Delivery & Legacy)
contents Se p t e m b e r 2014 www.qatarconstructionnews.com
Cover Story EXCLUSIVE INTERVIEW: DR. SALAH NEZAR, QPM SUSTAINABILITY DIRECTOR, ON DISTRICT COOLING – PG. 36
issue 1.1
September 2014
SPECIAL SECTION Qatar’s Heavy Equipment Sector
FIFA
World Cup
risk factors Can Qatar stand the test ahead of 2022?
Plus:
Terminating construction contracts in Qatar Business Optimism Index for Qatar’s construction sector
gulf earth moving wll
Gem.indd 2
INTERVIEW:
Engineer Ali bin Nasser Al Khalifa, CEO, Astad Project Management
Ahmed Fouad gives an overview of Qatar’s progress on the eight stadiums the country has promised to deliver, and warns about the risks involved in the process.
9/16/14 12:26 PM
Regulars
From the Editor - 6 Construction News - 8 Guest Column - 18 Qatar Tenders - 52
22.
20. Technology Implications of BIM on Qatar’s construction industry Incorporating Building Information Modelling (BIM) in construction projects helps all stakeholders remain on the same page about ongoing activities and progress, thus avoiding project delays. Teodor Pop, BIM manager at NCS Qatar, clarifies some ambiguities around the concept of BIM and discusses its implications for Qatar’s construction industry.
30.
43.
Special Section Interview Qatar’s Heavy Equipment Industry Each project is special and presents its own unique challenges According to Qatar Economic Engineer Ali Bin Nasser Al Khalifa, chief executive officer of ASTAD Project Management, speaks about complexities involved in infrastructure development for the 2022 World Cup, as well as the challenges facing project management companies in Qatar.
Outlook 2013-2014 , the country’s capital equipment and construction materials imports will surge in 2014 due to rapid project-driven demands. QCN takes a closer look at Qatar’s heavy equipment industry with market insights from leading distributors and suppliers in the region. QCN | September 2014
2
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 digital editor/editorial asst. shehan mashood s.mashood@theedge-me.com international sales director julia toon j.toon@firefly-me.com | +974 66880228 head of business sales manu parmar m.parmar@firefly-me.com | +974 33325038 sales manager adam kynnersley a.kynnersley@firefly-me.com | +974 66079716 deputy sales manager komal bharadava k.bharadava@firefly-me.com | +974 33036245 area sales manager UAE roger cousin r.cousin@firefly-me.com | +971 508716076 distribution & subscriptions azqa haroon/joseph isaac a.haroon@firefly-me.com j.issac@firefly-me.com art director sarah jabari senior graphic designer niveen saeed production coordinator ron baron photographer herbert villadelrey 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 The Edge, Qatar Construction News is printed monthly by Š 2014 Firefly Communications. All material strictly copyright and all rights reserved. Reproduction in whole or in part, without the prior written permission of Firefly Communications, is strictly forbidden. All content is believed to be factual at the time of publication. Views expressed by contributors are their own derived opinions and not necessarily endorsed by The Edge or Firefly Communications. No responsibility or liability is accepted by the editorial staff or the publishers for any loss occasioned to any individual or company, legal or physical, acting or refraining from action as a result of any statement, fact, figure, expression of opinion or belief contained in The Edge. The publisher (Firefly Communications) does not officially endorse any advertising or advertorial content for third party products. Photography/image credits and copyright, where not specifically stated, are that of Shutterstock and/or iStock Photo or Firefly Communications.
September 2014 | QCN
www.enertechqatar.com
SAFETY TRAINING CENTRE DECADE OF EXPERTISE IN HSE TRAINING
HIGHLIGHTS
HEALTH SAFETY ENVIRONMENT
• State-of-the-art and the most modern Training Center in the Middle East • Located in the heart of Doha (Mamoura) • Multi-lingual instructors • 15 fully equipped classrooms • Chauffeur service & Dining facility • Flexible training hours • Round the clock call center assistance • Customized training solutions • Budget accommodation available www.facebook.com/Enertech Qatar
+974 4401 0888 F +974 4401 0889 | email : sales@enertechqatar.com / admin@enertechqatar.com Mr. Abdullah Shaik
Mr. Mukesh Murali
M +974 33997922 M +974 33998266 E abdullah@enertechqatar.com E mukesh@enertechqatar.com
advertorial
Supporting the Vision
QQSS IN qATAR Operating throughout Qatar and the Middle East, dedicated to serving the interests of the regions construction and engineering industries. QQSS Quantity Surveying Services have been established in Qatar since 2012, we are a professional quantity surveying services provider and specialist construction cost and contractual consultant to the Qatar construction and engineering industry. QQSS are the obvious ‘Partner of Choice’ providing high quality quantity surveying, estimating and tendering services in both the private and public sectors, which consistently meet and exceed the expectations of all our clients. Our vision is absolute, simple and reflects the ethos embedded in our commitment as a company, that is to firmly establish QQSS as the region’s leading ‘Partner of Choice’ for all commercial and contractual activities. A vision supported through partnership agreements with our clients. In a market that constantly demands greater certainty of professional standards and ethics, QQSS have attained RICS Regulated Firm status. Regulation is by the Royal Institution of Chartered Surveyors, an independent professional
body originally established in the UK by Royal Charter (1868). This designation ensures both professional and ethical standards are of the utmost importance and reinforces our commitment to leading the industry on a regional scale. Qatar has a vision, whether this is the World Cup of 2022 or beyond, wherever one turns you cannot avoid noticing the intensity of construction and infrastructure projects in the region. Stakeholders on construction projects strive to achieve ‘value for money’, which is often measured against clients’ expectations on time, cost and quality. Of these parameters, we firmly believe that the ability to define costs from inception of a project, the development and refining of these costs as the design develops, adopting an appropriate procurement strategy and to control costs throughout the construction phase is fundamental to achieving success. QQSS are characterised by robust commercial; and contractual skills, the integration of
these skills with our management leadership provide clients with an all-inclusive high quality service and in turn assists them to achieve their goals and objectives. QQSS is a Chartered Quantity Surveying Service, we specialise in providing a full range of commercial and contractual support services to clients throughout the MENA region. Our services range from pre contract tender take off and bill of quantities preparation through to construction phase, commercial and contractual management and quantity surveyor secondment. We also specialise in claims and dispute management which one may appreciate is a service in high demand in Qatar. Each and every client has a different requirement, whether this is adhoc contractual support, temporary or long term commercial secondment, advising on or preparing claim submission and/or defence. We pride ourselves on our flexibility to provide a bespoke, tailor made service that robustly protects our client’s interests.
PETER LOCKS MANAGING DIRECTOR - QQSS Peter Locks, Managing Director, is a dual qualified Quantity Surveyor holding a MSc in Construction Law and Dispute Resolution and a member of The Chartered Institute of Arbitrators. Peter has over 15 years’ experience in both local and international construction projects. QQSS operates throughout the Middle East and is one of the region’s leading commercial and contractual services provider, dedicated to serving the interests of the regions construction and engineering industries.
Peter Locks QQSS Quantity Surveying www.qqss.com.qa
PARTNER OF CHOICE
6
editor’s letter QCN was planned to be a quarterly publication until the magazine rolled out in print for the first time with its launch issue in May. Thanks to the overwhelming response we received from our readers, and keeping in mind their expectations, we are pleased to announce that starting from September, QCN will be a monthly publication dedicated to Qatar’s construction scene. The rationale behind this is simple: Qatar’s construction sector is more vibrant than ever before. It is then no surprise to see the sector showing the highest ranking in the latest Business Optimism IndexQatar among all non-hydrocarbon sectors. While much of the ongoing development is part of the Qatar National Vision 2030, a considerable share of this development is due to the country’s winning bid for the 2022 World Cup, which of late has brought negative spotlight to Qatar over bribery allegations, hot climate and migrant worker conditions.
With a 350-page report now delivered to the head of FIFA’s Ethics adjudicatory chamber, the fate of the 2022 World Cup is still not certain. FIFA is still considering a change of dates to push the tournament to the winter months, while there is ongoing outcry by professional leagues in Europe over clash of dates. The verdict, however, is not due until FIFA members meet in February next year. On the other hand, Qatar is yet to take a final decision on the number of stadiums, seemingly dependent on FIFA’s conclusion on the tournament’s dates. Once these uncertainties are sorted, another series of challenges is due to get more pronounced. This wave of complexities will be related to the construction, engineering, procurement and overall progress of the World Cup projects, which will soon take full force as the 2022 deadline draws near. On page 22, Ahmed Fouad discusses risks involved in the 2022 World Cup stadiums, focusing on issues of engineering and postponement. Covering the subject on a broader level, on page 30, QCN’s exclusive interview with engineer Ali bin Nasser Al Khalifa, chief executive officer of ASTAD Project Management, reveals complexities involved in infrastructure development for the tournament. Like any mega project, complexities around 2022 World Cup are here to stay until the tournament is successfully delivered, and in QCN, we strive to update you with key emerging concerns in Qatar’s construction scene. Otherwise, enjoy reading issue 1.1 of QCN.
Farwa Zahra Editor September 2014 | QCN
advertorial
7
Jaidah heavy equipment delivers six Komatsu articulated dump trucKs to urbacon trading and contracting
Jaidah Heavy Equipment, a division of the leading Qatari conglomerate Jaidah Group, announced it has delivered six Komatsu Articulated Dump Trucks to assist UrbaCon Trading and Contracting (UCC), for a new construction project in Qatar. Jaidah Heavy Equipment, the sole agent of Komatsu equipment in Qatar marks this delivery as a first of its kind in the country. The engine of the Komatsu Articulated Dump Truck has the most powerful and fuel-efficient Diesel engines, delivering 473 HP. In addition, the trucks feature an increased payload of 40 tons (24 Cubic meters). Ayman Ahmed, General Manager of Jaidah Heavy Equipment Division said, “The delivery of these Komatsu Dump trucks to UCC is of importance not only to our division and group, but to Qatari society as a whole. The trucks will greatly improve the speed and efficiency at which the new project can be completed.� The Komatsu Articulated Dump Trucks have been on the market in Japan and the USA since 2001. Subsequent sales of the truck have remained consistent and popularity has risen on account their performance and durability. The trucks have been delivered to Qatar in 2014 for UCC and expect to see similar popularity. About Jaidah Heavy Equipment Established over 50 years ago, the Heavy Equipment division provides up-to-date products, parts and service solutions covering transportation, power generation, construction machinery and material handling equipment needs in numerous major projects around Qatar.
QCN | September 2014
Construction
News Tenders for Qatar’s Long Distance Rail expected in 2015
“The first phase will be around 135 kilometres long which will connect from Saudi border.” - Engineer Abdullah bin Abdulaziz Turki Al Subaie, MD, Qatar Rail.
September 2014 | QCN
construction news
The excavation area at Qatar Rail’s Al Wahda site as part of the Red Line North Underground works for the Doha Metro project. (Image Qatar Rail)
9
Qatar’s rail ambitions are gathering pace. Speaking with QCN, managing director of Qatar Railways Company, Engineer Abdullah bin Abdulaziz Turki Al Subaie shares updates about Qatar Rail’s all three projects, namely Long Distance Passenger and Freight Rail, Lusail Light Rail Transit and Doha Metro. Long Distance Passenger and Freight Rail The Long Distance Passenger and Freight Rail, according to Al Subaie, is currently in the design phase. The surveys are being carried out to sort out design details while keeping in mind the project’s intersection with other utilities. “We expect, within a year from now, to finish all the design and planning and we will be able to float a tender for the construction of the Long Distance Rail,” he said. Speaking about the scope of the project’s first phase, Al Subaie told QCN, “The first phase will be around 135 kilometres long which will connect from the Saudi border, aligned next to Salwa Road and moving towards Mesaieed port.”
Light Rail Transit In June, a turnkey tramway system for a four-line tram network in Lusail Light Rail Transit (LRT) was awarded to provide the city of Lusail with its fully integrated tramway system, including the design, manufacturing, commissioning and servicing of 35 tramways, power supply equipment, signaling and track works. Speaking about the award, Al Subaie said, “This is the last contract to be awarded for the LRT. It is all about station fit-out, doing the tracks, also procuring all the trains set and doing the testing and commissioning, so this will take around four years from now. We expect that by 2018, we will have that up and running.”
Doha Metro
Engineer Abdullah bin Abdulaziz Turki Al Subaie, MD, Qatar Rail, informs that all contracts for Lusail Light Rail Transit have been awarded.
Speaking about the progress of the Doha Metro, Al Subaie said that seven major line packages have been awarded. Ground breaking has started for stations in 24 locations, while at six stations, the base level of about 27-metre depth has been reached. By the end of 2014, two more contracts are planned to be awarded for the Metro project’s Red Line North Elevated at Grade and Green Line Elevated at Grade. Al Subaie predicts the Metro project will be up and running by October 2019.
750 km Total length of Qatar Rail Integrated Project’s tracks.
QCN | September 2014
Construction
News “Currently, conversations are more focused on resource requirements and shortages in specialist areas such as project risk management.” Chris Scudamore, Partner, Capital Projects & Infrastructure, PwC, Qatar, says that from a client’s perspective, he has observed genuine concern and focus on the welfare of workers throughout the supply chain. As a consultant to clients and suppliers of the infrastructure market, he says, the most visible concern is one of inflation.
“The first and foremost concern is to achieve a construction programme on time while maintaining high standards.” Atiqul Alam, senior mechanical engineer, KEO International Consultants, adds that another major issue is maintaining good public relations. As the 2022 deadline approaches, he says, the rest of the world is scrutinising Qatar projects with high interest. Operating in a global PR context may prove challenging for some companies unless they do their homework correctly, he adds.
QAR
95
billion September 2014 | QCN
Industry Views
QCN approached a number of construction professionals in Qatar, asking about their key concerns in the industry right now. Here’s what they had to say.
“A key concern for all projects, and especially those working to immovable deadlines, will be the avoidance of disputes and, where disputes do arise, ensuring their timely resolution.” Nick Pinder, senior associate, Eversheds LLP, says the law firm is increasingly being asked to provide advice in seeking to resolve issues before they evolve into disputes, which might threaten projects. He sees the proactive management of disputes as being critical to successful project delivery in Qatar.
“The two greatest challenges facing the construction industry are project delays and payment delays. Any delay in receiving approvals and payments will seriously affect project progress” Vasanth Kumar, CEO, Arabian MEP Contracting, says that timely decisions and approvals from stakeholders such as client, consultants and local authorities play a vital role in successful completion of any project as contractors alone cannot do wonders.
“The construction market is now in recovery, and project procurement has become much more challenging and vital for signature projects in Qatar.” Nick Smith, Partner and head of cost and commercial at EC Harris, says that with the speed of change in the marketplace, project stakeholders need to adapt their procurement strategies rapidly in response to changed sentiment to ensure that projects continue to deliver certainty and value.
Gulf’s precast concrete market to accelerate Precast concrete is becoming increasingly popular in the Gulf, according to a report by construction intelligence consultancy Ventures Onsite. The demand is increasing as developers realise how its use can speed up completion time in major projects. It is also forecast to be a major part of Dubai’s 2020 build programme for structures that can be disassembled afterwards and relocated, according to the new report. Within Qatar, precast products have helped build low-cost housing for labour.
September’s big Number Expected value of Qatar’s infrastructure contracts awarded in 2014 New figures released by construction intelligence firm Ventures Onsite show a dramatic increase in contract awards across the Gulf region. The infrastructure awards in the Gulf Cooperation Council (GCC) are set to rise close to 80 percent in 2014.
Infrastructure projects make up 16 percent of the total construction value of GCC projects. In 2014, Qatar is expected to award projects worth USD26.2 billion (QAR95 billion) compared with just USD9.4 billion (QAR34 billion) last year.
construction news
11
QATAR’s project market status August 2014
USD
USD
490
24.5
(QAR1.78 trillion)
(QAR89 billion)
Projects on hold in the GCC, August 2014
Projects on hold in Qatar, August 2014
USD
USD
billion
589 billion
(QAR2.14 trillion) Projects cancelled in the GCC, August 2014
GCC construction project market status, August 2014 (% of USD2.4trillion)
billion
29.45
other ON HOLd
20% Main Contract PQ Main Contract Bid
7% 37%
(QAR107 billion)
Cancelled
24%
0% 49%
billion
8%
Design
Execution
Projects cancelled in Qatar, August 2014
Source: MEED Insight Research and Analysis; MEED Projects Source: MEED Insight Research and Analysis; MEED Projects
Renewable Energy Internship Arab Engineering Bureau and ProgramME in Qatar Ausenco sign MOU Arab Engineering Bureau (AEB), a Qatari multidisciplinary consultancy firm, has signed a memorandum of understanding (MOU) with Ausenco, a global engineering and project management company. The agreement is aimed to promote cooperation between the two companies in order to deliver better integrated infrastructure services to the region, and to establish general principles of cooperation with respect to the strategic relationship between the two firms. Kopernik offered onsite learning opportunities on renewable energy to students of electrical engineering in Qatar.
Innovations Unlimited ME, the company behind some of Qatar’s major solar energy project implementations, has recently completed the first edition of ‘Kopernik’, which is its renewable energy internship programme designed for electrical engineering students in Qatar to help them capitalise on the unique opportunity of hands-on training. The programme presented students with theoretical, practical and onsite opportunities that culminated in a project assignment to conclude the internship with factual takeaways in real-life application.
The MOU was signed by Arab Engineering Bureau’s CEO and chief architect Ibrahim Jaidah (right) and Ausenco’s executive general manager, Projects Delivery, Ed Skinner.
QCN | September 2014
Construction
News
Projects
With construction works beginning in August of 2012, the Mall of Qatar is scheduled to be finished in the last quarter of 2015, leading to a soft launch.
2500
Number of labourers the Mall of Qatar will employ at the peak time of its construction.
“In the 400-day rule, the installers of these systems are responsible to maintain, operate and train the staff for 400 days.” – Shem Krey, deputy managing director, Mall of Qatar.
September 2014 | QCN
400-day rule for the Mall of Qatar Is a safety hazard a consequence of lack of safety systems? Not necessarily. Oftentimes, it is the lack of ample understanding and efficient operations of these systems that leads to accidents. Shem Krey, deputy managing director of the Mall of Qatar, explains how the mall plans to ensure safety of visitors, retailers and employees once the mall is operational. Management of the Mall of Qatar plans to train the project’s employees in operating various safety systems installed throughout the mall. This, said Krey, will be done through a 400-day rule. “In the 400-day rule, the installers of these systems are responsible to maintain, operate and train the staff for 400 days after the project is completed. So if I am a contractor that has put in a fire life safety system, that’s critical for the operation in the mall. We are going to expect them to have the installers and the engineers of that system be directly accountable for the first 400 days to train those people,” he furthered. Once the 400 days are over, the contractor is expected to have trained the mall’s employees to understand and operate the system. Explaining the idea behind it,
Krey said, “It is not that we have a handover - thank you, you did a good job, here is your money, goodbye. We have this 400-day requirement that is a continuation of the original installers who know how to operate it, who know what the system is, they know the things that were buried behind the walls and ceilings and can immediately react to issues that may arise.” Some of the safety systems that will be installed in the mall, according to Krey, include state-of-the-art fire alarm sprinkler systems both above ceilings and below ceilings, “We are putting in full densities smoke detection systems.” Similarly, he added, the number of exits are guided by technical codes based on population movements. The mall’s emergency exits are designed in such a way that there are no dead ends in the facility. “You cannot go to one section of the mall and in order to get out you have to retreat, you can always go in two different directions,” said Krey. With about 50 percent of its structure finished since August 2012, the project is scheduled to be fully completed in the last quarter of 2015. Speaking about the plans to avoid delays, Krey mentioned that the mall has onsite warehouses to manage logistics issues. Furthermore, products with long lead times are being ordered in advance to avoid any postponements.
construction news
13
AT 54, the construction sector achieves the highest boi-Qatar ranking According to Dun & Bradstreet’s report sponsored by Qatar Financial Centre Business Optimism Index (BOI) – Qatar, the “construction sector remains the most optimistic amongst all the non-hydrocarbon sectors, with the expectations driven by the government’s infrastructure development plans and the planned projects for the 2022 World Cup.” The composite BOI of 54 is the highest the sector has achieved in the last three years. The improved BOI is considered to be a result of higher scores for selling prices, net profits and hiring. Furthermore, “hiring expectations have also firmed up with BOI for Number of Employees increasing from 59 in Q1 2014 and 51 in Q2 2013 to 61 in Q2 2014,” stated the report.
63% 48% 49%
respondents in Qatar planning to increase their employee strength.
of the construction firms in Qatar do not anticipate any obstacles to impact their business in Q2 of the construction firms in Qatar plan to invest in business expansion in Q2 compared to 47% in Q1
Awards
Key recent contracts awarded in Qatar • Atkins has been awarded USD135 million (QAR491 million) contract to be the lead designer of the Doha Metro’s Gold Line. The Gold Line is the largest package of works to be awarded on the Doha Metro. It crosses the city from east to west and includes 15 kilometres of twin tunnels and 13 underground stations. As lead designer, Atkins’ multidisciplinary services include station planning, architecture, tunnel design and track alignment. • Halcrow, affiliated with CH2M Hill, has won the award for call-off consultancy services to provide professional road safety engineering, road design, quantity surveying consultancy and
contractor supervision services to the Assets Affairs - Roads Operations and Maintenance Department of the Public Works Authority, Ashghal. The firm will provide various technical resources and locate a number of transport specialists at Ashghal’s offices to help implement a series of road safety improvement programmes, including those affecting pedestrians, schools, rural roads and intersections. • The Lusail Real Estate Development Company recently awarded Al Jaber Engineering a contract to construct the infrastructure of the Seef Lusail North and Waterfront Commercial districts of Lusail City. The package
includes the development of the entire infrastructure for that area which includes streets, pavements and lighting systems. In addition to work for sewage and storm networks, and all portable water and irrigation systems, Al Jaber Engineering will also develop and connect all power grids, telecommunications networks, central water, gas, district cooling and waste management networks. • Hill International has received a contract to provide project management services in connection with the construction of the Mall of Qatar. To Hill, the three-year contract has an estimated value of QAR35 million.
QCN | September 2014
Construction
NewsEvents Waste Management and Recycling Summit
17 – 18 September
Qatar Contractors Forum & Awards 22 – 23 September The Qatar Contractors Forum & Awards will bring together decision makers who will shape the country’s future landscape, to identify the potential issues that contractors are likely to face, formulate strategies, and find solutions that will assist in overcoming these problems.
Qatar Contractors Forum & Awards will discuss the challenges contractors face in Qatar. (Image Corbis)
Food Chain Conference 29 - 30 September
Qatar is taking significant initiatives to raise the bar on food safety. Among them is a programme to train approximately 250 food inspectors across the country through workshops on risk-based food safety inspections skills. The Supreme Council of Health has appointed Campden (United Kingdom) to conduct the training. Campden, and its associate, TSI, will be speaking at Food Chain Doha. Other participants are Doha Municipality, CIEH and Highfield. According to CPI Industry, the organisers, the conference will spotlight refrigeration issues in commercial cold storages and supermarkets.
Back2Business 1 October B2B (Back to Business) is one of the leading networking events in Qatar which involves more than 700 attendees from major economic fields, such as construction, oil and gas, professional services, education, transportation and logistics, financial, luxury items, hospitality and many more. The event will be held at Marriott Marquis City Center Doha Hotel, and joined by Italian, Dutch, German, British, Spanish, Turkish, French and other business councils in Qatar.
September 2014 | QCN
The ITS and Road Safety Forum will offer an evidence-based approach to developing integrated road safety strategies in Qatar. (Image Corbis)
ITS and Road Safety Forum 21 – 23 October The third annual ITS and Road Safety Forum, to be held at The Ritz-Carlton, Doha, will highlight key solutions to the latest challenges in the Middle East’s transportation and infrastructure industries. The event will focus on integrating safety into an exponentially growing road and transportation network, and enabling smarter traffic flows with a world-class ITS strategy.
Qatar Plastic, Printing & Packaging Exhibition 26 – 28 October
Future Landscape and Public Realm Qatar 27 – 28 October The Future Landscape and Public Realm Qatar – organised by Project Qatar – will provide an opportunity for landscaping and exterior design professionals, urban planners and high-level decision makers to gather together to discuss opportunities in Qatar’s landscaping and outdoor design industry.
The Three Factors Co.
18
guest column
infrastructure project trends The ability of utilities’ engineering, procurement and construction (EPC) partners to integrate technology into infrastructure construction will be vital in meeting Qatar’s increasingly important resource efficiency agenda, writes Mazen Alami, managing director, Black & Veatch, Gulf Cooperation Council (GCC).
Mazen Alami is the managing director of Black & Veatch, GCC.
“Combined cycle plants, for instance, generate nearly 66 percent more energy per unit of water used compared to traditional gas fired plants.”
September 2014 | QCN
The rapid demographic changes happening in Qatar – population growth, industrialisation and increasing urbanisation – are stimulating increased demand for power and water. Residents of the country consume 675 litres of water per capita per day, about twice the average consumption in the European Union. Qatar’s per capita electricity consumption is more than five times the world average. As the country’s population is predicted to increase eightfold by 2050, the volumes of water and power required can only grow. Meeting businesses’ and residents’ increasing need for power has to be achieved in a manner that will not impede the generation of revenues through oil and gas exports. One such initiative is Tarsheed, Kahramaa’s nationwide campaign aiming at reducing consumer demand for water and energy. Another approach is through technology. Building capacity alone is no longer enough especially for largescale engineering, procurement and construction projects (EPC). In Qatar, procurement is increasingly significant to ensure the use of technologies capable of delivering the required efficiencies. Utilities and integrated independent water and power projects need partners with world-class understanding of energy and water technologies, and the ability to successfully integrate them in a project. Insight into the interdependency of energy and water is another element to be considered for resource efficiency. Understanding the technologies available for utility infrastructure projects is also vital for effective outcomes. Combined cycle plants, for instance, generate nearly 66 percent more energy per unit of water used compared to traditional gas fired plants. So, by understanding the technology and the nexus of water and energy, you begin to see a virtuous circle with more efficient generation coupled with a reduction in demand for water. Expertise in renewable and efficient fossil fuel generation technologies will become another key element of energy
projects. Driven by the desire to diversify its fuel portfolio away from fossil fuel reserves, Kahramaa has announced an intention to generate at least two percent of Qatar’s electricity from renewable sources such as solar. Wind is another source of energy likely to find favour. Delivering successful renewable projects, however, requires more than just an understanding of the generation technology. Efficient project delivery requires companies with expertise in integrating renewable power into the distribution network, as well as the ability to design, procure and construct the renewable generation asset. A paradigm shift in how we view wastewater can contribute significantly to meeting Qatar’s resource efficiency aspirations. Consideration should be given to construction programmes aimed at developing wastewater infrastructure into resource recovery plants. Utilities will increasingly need EPC partners with experience in wastewater recycling and unlocking wastewater streams’ potential as sources of renewable energy and nutrients. By viewing water and wastewater holistically, rather than as separate entities, business cases can be made to create resources that can further fund growing infrastructure needs. Qatar’s interest in water reuse is growing. Adel Sharif, research director, water desalination and reuse, Qatar Environment and Energy Research Institute, has expressed the intention to increase water reuse by 30 percent by 2020. The pilot at Al Muntazah, to collect, treat and store storm water, is a recent instance of reuse in action. Water recycling technology means that virtually any population centre, which creates a significant wastewater stream, has the potential to create a renewable water source. Hence, domestic wastewater streams are also excellent sources of renewable energy. Biogas produced during wastewater treatment can be processed to fuel combined heat and power engines.
sUBSCRIBE AND Get the magazine delivered to you FOR FREE A NEW QATARI MAGAZINE DEDICATED TO THE COUNTRY’S BOOMING CONSTRUCTION INDUSTRY BROUGHT TO YOU BY THE MAKERS OF THE EDGE, qATAR’S BUSINESS MAGAZINE FIRST NAME: LAST NAME: EMAIL: TELEPHONE: WORK TITLE: INDUSTRY SUB-SECTOR: AGE:
GENDER:
NATIONALITY:
MAILING ADDRESS:
QatarSteel QCN May14.pdf
1
4/29/14
12:37 PM
EXCLUSIVE IntErVIEw: LEADInG QAtArI ArCHItECt IbrAHIm JAIDAH on moDErn ArAbIC bUILDInG DESIGn
or sign up online at www.qatarconstructionnews.com MAIL TO : P.O.BOX 11596, DOHA, QATAR
launch issue
CONSTRUCTION PERSPECTIVES 6 MUST-READ INTERVIEWS WITH LEADING PLAYERS IN QATAR’S CONSTRUCTION SECTOR
Localising QATAR CONSTRUCTION Why more Qatari nationals must be recruited in the industry
DOHA: SMART CITY? Exploring urban solutions through technology
Plus: Next steps for Hamad International Airport? Combatting corruption in construction
QCNCoverF-B.indd 1
Cover QCN 4 .indd 1
QCN is brought to you by the makers of The Edge, Qatar’s Business Magazine
QCN | September 2014 5/8/14 4:44 4:37 PM
In a country such as Qatar going through a construction boom, BIM helps find the right means to share the most accurate and up-to-date information about the project. (Image Corbis)
Implications of BIM on Qatar’s construction m a r k e t September 2014 | QCN
technology Teodor Pop, BIM manager at NCS Qatar, clarifies some ambiguities around the concept of Building Information Modelling (BIM) and discusses its implications for Qatar’s construction industry. One may find a lot of existing literature about BIM and yet there still seems to be a discrepancy about what it means to different people. Even if there are already clear definitions of BIM, the reality is everyone has a different version of it – their own vision and understanding of the meaning and usage of BIM based on their own area of expertise. BIM is commonly defined as a process that involves the generation and management of digital representations of physical and functional characteristics of a facility. The resulting building information models become shared knowledge resources to support decision making about a facility from earliest conceptual stages, through design and construction, through its operational life and eventual demolition. As BIM is so intertwined with the use of computing technology (hardware and software), most people limit the concept to modelling (mostly 3D) of a construction project. In fact, 3D, 4D and 5D models are but results of the BIM process and means through which we analyse and share the information about the project itself. BIM is all about collaboration. It is about removing all stakeholders of a project from their silos and bringing them together. It is about finding the right means to share the most accurate and up-to-date information about the project with everyone involved. Through collaboration and access to information inside a BIM process, we aim to create visualisations and simulations which help clients to understand the project even from the concept stage, thus reducing future variations or alterations of the design at later stages. It also helps reduce rework, conflicts, waste and delays by coordinating different disciplines in a shared data model. Furthermore, it efficiently identifies the optimum construction sequences of a project, easing the
obtainment of required approvals and permits in the process. In order to understand how BIM can help Qatar’s construction industry, we can take a look into the performance of BIM in other countries. BIM is now taking its place firmly in the North American construction industry. A McGraw-Hill construction report found that the adoption of BIM has expanded from 17 percent in 2007 to 71 percent in 2012 among companies based in the United States. A study commissioned by the Australian government’s Built Environment Industry Innovation Council has found that BIM improves the productivity of the construction industry significantly and that, if BIM were widely adopted, it would make a significant difference to the national economic performance. In Finland’s private sector, several companies are performing reserach in the area of BIM. For instance, Skanska Oy is investigating the integration of projectspecific BIM into industrialised building processes and adopting 3D modelling in practice. There is a five-year ongoing strategy within the United Kingdom to have BIM implemented by 2016 and the Government Construction Strategy published by the Cabinet Office established the requirements for a collaborative 3D BIM (with all project and asset information, documentation and data being electronic). According to some studies conducted recently, BIM usage in the Middle East is on the rise, still a survey on BIM adoption conducted by buildingSMART ME in 2011 characterises the region is in the ‘early adoption’ phase. The fear of change is a common motivation for resistance to BIM systems in the Middle East, which indeed has a rational basis. In 2008, an Autodesk web survey reported that 83 percent of respondents reported that BIM had altered their work process. By embracing a BIM-based approach, Qatar’s construction industry can drive beyond technology adoption, taking instant advantage of productivity benefits derived from using a virtual construction methodology, thereby offering BIM users a competitive edge.
21
Qatar is well-positioned to adopt BIM quickly – a fast-growing construction industry and significant investments in modern infrastructure, coupled with strong government support and pragmatic culture are good foundations for rapid BIM implementation and growth in the region. However, to achieve this goal, cooperation between the main public and private stakeholders involved will be crucial.
Survey findings on BIM A survey conducted by buildingSMART ME suggested that: 1. Governments in the region need to encourage the Architecture, Engineering and Construction (AEC) industry to adopt BIM through mandates and guidelines. 2. The AEC industry in the Middle East must seek to raise its BIM capabilities. 3. Educational institutions in the region should be encouraged to be at the forefront of BIM training and support. 4. BIM adoption in the Middle East will need to be swift, as new architectural and engineering achievements are building the region into a model for visionary urban development.
Incorporating BIM in construction projects helps all stakeholders remain on the same page about ongoing activities and progress, thus avoiding Teodor Popdelays. is the(Image BIM manager at NCS project Arabian Eye)
Qatar.
QCN | September 2014
22
cover story
Illustrated here is an aerial view of Al Bayt Stadium, one of the future venues for 2022 World Cup. (Image SC)
FIFA World Cup:
risk factorS Can Qatar stand the test ahead of 2022?
With ambitious plans to begin with, Qatar initially announced 12 stadiums to be constructed for the 2022 World Cup, later bringing the number down to eight. Ahmed Fouad, planning and risk management coordinator at Consolidated Contractors Company, Qatar, gives an overview of Qatar’s progress on the eight stadiums that the country has promised to deliver, and warns about the risks involved in the process. A general view of Brazil’s Castelao arena stadium, which suffered delays and accidents, and was not complete until February 2014. The postponements led to doubts about Brazil’s ability to deliver the stadium before the 2014 World Cup. The stadium eventually hosted four games during the event. (Image Reuters/Arabian Eye)
Excavation works being carried out at the site of Al Wakrah Stadium. The ongoing phase of the stadium is scheduled to be finished in 2015 leading to the next phase. (Image SC)
September 2014 | QCN
While the world was watching Brazil’s 2014 World Cup, for Qatar the event was more than a gaming tournament. For Qatar, as a future hosting nation of the FIFA World Cup, it was a perfect platfrom to learn how to be better prepared when it is time to deliver in 2022. And every lesson counts whether it is from construction or the operation of Brazil’s stadiums. After the latest tournament was over, the
country sent its construction and building professionals to Brazil to share the latter’s experiences. The rationale behind these knowledge-sharing meetings was simple: with the World Cup only eight years away, now is time to capture all the lessons from the 2014 World Cup and forecast the 2022 risks based on them.
cover story
Qatar originally announced plans for 12 stadiums, including nine new stadiums and three refurbishments. According to the FIFA bid evaluation report for Qatar’s submission, the renovation was scheduled to start from 2012, while the construction of new stadiums was planned for between 2011 and 2021. The forecasted construction and renovation costs of these 12 stadiums, as per the bid file, were stated at around USD4 billion (QAR14.56 billion). Later, however, the number of stadiums was reduced to eight, a decision which, according to some media reports, was motivated by cost-cutting following an assessment of the real needs on the ground. Eight is also the minimum number of venues required by FIFA. While the number of stadiums has been cut down, the forecasted cost remains at USD4 billion (QAR14.56 billion). Early enabling works have begun at Al Wakrah Stadium, while the remaining stadiums are expected for bids this year. Meanwhile, a final decision on the number of stadiums is yet to be made. However, regardless of delays in starting dates, once awarded, these projects are expected to have a fixed completion date with no contingency time to deal with delays. This would mean the projects would soon become increasingly aggressive in terms of construction schedules and resource availability. Meanwhile, Qatar has also announced its intention to bid for the hosting rights to the 2019 World Championships in Athletics, a tournament managed by the International Association of Athletics Federation, and typically held in August/ September. The bid evaluation process is expected to take place over the next
25
several months. If FIFA 2022 stadiums are to be included in the plans, Qatar is left with an even tighter construction period for some of the stadiums.
Postponement risks According to Project Management Institute’s (PMI) report published in PM Network in April 2014, 64 percent of Middle East capital projects ran over budget in 2012. 80 percent were delayed in 2012 and nearly half of the projects were more than six months behind the scheduled time of completion. To develop a contingency plan, delay risks need to be identified. Supply chain risks are among the most critical that have the highest probability rate. One of the major reasons for delay arises from the preferred vendor list (PVL). A PVL is a list of approved vendors that contractors are allowed to purchase from. A vendor’s factory in the United States may be on the list while the same vendor’s factory in Asia may not be on the list, in which case materials from the Asia factory will be rejected. With the expected simultaneous demand due to Qatar National Vision 2030, the Qatar’s 2022 World Cup and Dubai Expo 2020, experts in the industry forecast that the lead-time will increase by about 20 percent, leading to a surge in prices of imported building materials. Like any construction or infrastructure project, stadiums are also prone to changes during various phases of development. Hence, the forecasted changes requested by clients to keep the stadiums up-to-date and maximise the utility of their facilities are also likely to cause delays since materials need to be ordered accordingly. Usually, the purchasing departments
Al Wakrah Stadium, one of the hosting venues for the 2022 World Cup, is scheduled to be completed by 2018. (Image SC)
2022 World Cup projects will soon become increasingly aggressive in terms of construction schedules and resource availability.
QCN | September 2014
26
cover story
Other risks
The following are some high-probability risks leading to significant impacts on workflow at different stages of the construction phase:
01 Finishing Façade-roof or shell construction is always on the critical path of the works (as it seals the building; gives its final external shape, and allows for a dustfree environment inside the building for finishing works to be completed). Therefore, the specialised shell construction (S/C) works should be closely monitored.
04 Utilities Tie-in deals between government bodies and contractors to connect project facilities to the country’s grid for power and utility supply.
07
02 Permits Timely issuance of work permits for excavation and construction.
05 Technology Expected challenges during commissioning of stadiums including new technologies being used and their interface with other disciplines and systems.
08 End users The risk of end users involves impacts on cost and time. The end user for the stadium such as the owner club or Qatar Olympic Committee will have comments at the handover stage that will require reworks and could involve engineering and procurement and construction works.
Approvals Civil Defence approval at design stage and handover.
09 Climate Several service disruptions during the day, due to intense climatic conditions in Qatar. The labour time lost at work has a negative impact on the project.
September 2014 | QCN
03 Inflation From an economic standpoint, a major risk facing Qatar is that of inflation. The country has a history of significant inflation swings. During the previous construction boom (2006 Asian Games), the country’s inflation reached a record 15.2 percent, partly due to very short construction duration.
06 MEP works MEP works are at the heart of modern construction, and will be responsible for up to 30 percent of overall projects’ values. Specialised S/C’s performance, is thus one of the major risks. In addition to the scarcity of resources, MEP’s S/Cs staff and controls departments for S/Cs are not always strong. Due to the lack of sufficiently qualified S/C staff, main contractors often manage leading S/C functions, leading to increased staff for the main contractor which results in cost overruns.
10 Workforce The increasing influx of expatriates requires expansion in accommodation, schooling and other such facilities. If not managed efficiently, the lack of such facilities can be a major hurdle in attracting the foreign workforce.
69% Percentage of Middle East’s CEOs who see limited access to skilled talent as a potential threat to growth.
of subcontractors go ahead with noncomplying materials since the required materials are sometimes hard to procure and require custom manufacturing. Current seaport capacity is not enough to handle the required import requirements for Qatar National Vision 2030 and the 2022 World Cup, making the completion of the ongoing new Doha Port project critical for the future projects. Some contingency plans and solutions that can be adopted to avoid delays include: 1. Freezing design before construction starts. A fixed design means clarity on the required building materials and their quantities, hence leading to timely deliveries. 2. Early identification and purchasing of items with long lead-times. 3. Consolidating all forecasted project requirements by a government organisation to secure main construction materials such as cement and reinforcement steel. Consolidating schedules for contractors to order materials as early as possible and to plan for longer delivery times for items such as pipes and flooring materials. This, however, must be supported by a quick approval of design and material submissions by clients. 4. Revisiting the preferred vendors list to include more vendors and vendor factories in different countries.
The Aspire Zone Foundation, a stakeholder of the Supreme Committee for Delivery & Legacy (SC), will deliver Al Bayt Stadium - Al Khor City and the surrounding precinct. In 2022, the stadium will have the capacity to host 60,000 spectators.
Engineering risks According to PMI’s PM Network’s Metrics: The Latest Statistics, Surveys and Studies, published in April 2014, 1.2 million construction workers are required from 2014 to 2019, plus 135,000 highly skilled staffers. The report further states that for every USD1 billion (QAR3.64 billion) spent, 20,000 to 44,000 workers are required in the region. Hence, 69 percent of the Middle East’s CEOs see limited access to skilled talent as a potential threat to growth, while the forecasted construction inflation rate from 2016-2019 is 16 to 20 percent. The statistics clearly indicate the complexities involved in the preparation for the 2022 World Cup. Other than delay-related risks, some challenges are related to scope of work,
QCN | September 2014
28
cover story
More than 15,000 people attended the cooled, open-air Brazil 2014 Fan Zone, hosted by the Supreme Committee for Delivery & Legacy (SC) at Katara, to watch games across 10 nights from round 16 through to the final of the 2014 FIFA World Cup Brazil. (Image SC)
Forecasted changes requested by clients to keep the stadiums up-todate and maximise the utility of their facilities are also likely to cause delays.
September 2014 | QCN
engineering, construction environment, resources and subcontractors. A major issue within the Amazon Arena in Brazil was rooted in the contract signed between FIFA and each host city. One of the terms of this contract stated that the host cities were required to comply with all technical requirements, reserving to the Organising Committee and FIFA the right to modify, delete or add new requirements at any time until the date of the competition. In effect, this meant that the organising committee and FIFA could, at any time, require changes in the original project, even if they generated additional costs to those responsible for the construction. Typically, major lump sum contracts with government bodies have clauses that make the time and cost implications arising from such changes the responsibility of the main contractor. Additionally, the ‘No Claim Concept’ (that is, the contractor has no right to ask for extension of time) now applied in some projects increases the risks for the main contractors. Among many risks related to engineering, a
significant risk emerges from the complex nature of engineering workflow. The engineering process flows from concept design, to schematic design, leading to detailed design. Later, the process moves to Issued for Construction (IFC), Approved for Construction (AFC) and shop drawings. Due to the fast-track nature of the 2022 World Cup projects and their interface with other infrastructure projects in Qatar, various stages of construction have the potential to overlap in a risky manner. Lack of wellcoordinated AFC drawings between disciplines, especially architecture and mechanical, electrical and plumbing (MEP) can also raise problems. Another challenge is related to the specialised designers required for MEP services and extralow voltage systems for the state-of-the-art cooling, telecommunication and security systems. With great demand within Qatar and in the Gulf Cooperation Council for their services, extra costs are expected. Sustainability and heating, ventilation and air-conditioning requirements for stadiums can also present new
challenges during the engineering and design phase and their interface with other disciplines. A strong contingency plan, thus, would require a system whereby lessons learned from each project must be communicated to the ongoing and new projects to avoid similar pitfalls. Great opportunities come with great risks. While the 2022 World Cup has opened a window for Qatar to strongly position itself as a sports hub, the tournament has also brought the country into the global limelight. Given a fixed time of delivery, World Cup projects are unusually aggressive and risky in nature. However, these risks can be overcome and all challenges can be successfully resolved if all stakeholders involved work as one team with open minds.
Author Ahmed Fouad is planning and risk management coordinator at Consolidated Contractors Company, Qatar.
Engineer Ali bin Nasser Al Khalifa, chief executive officer of ASTAD Project Management, says that working on Education City represents ASTAD’s commitment to the Qatar National Vision 2030. (Image Corbis)
“We are 100 percent Qatari owned and this fact distinguishes us from our global PM/CM competitors.”
interview
31
Each project is special and presents its own unique challenges An interview with Engineer Ali Bin Nasser Al Khalifa, chief executive officer of ASTAD Project Management In an exclusive interview with QCN, engineer Ali bin Nasser Al Khalifa, chief executive officer of ASTAD Project Management speaks about complexities involved in infrastructure development for the 2022 World Cup, as well as the challenges facing project management companies in Qatar. Established by Qatar Foundation and Qatar Petroleum, the goal of ASTAD was to have a local organisation that could take on highly complex infrastructure projects, while contributing to Qatar’s knowledge-based economy. QCN | September 2014
The Museum of Islamic Art , which opened in 2008 and added an iconic feature to Doha’s skyline, is a project of ASTAD Project Management. (Image Reuters/Arabian Eye)
100% Astad Project Management is a 100 percent Qatari-owned company.
“Some of the stadiums are being built in areas where there is no existing infrastructure, so it’s not only a question of building the stadium, but also the surrounding infrastructure.”
September 2014 | QCN
Please tell us about some of ASTAD’s projects in Qatar which are near completion. Does the company plan to expand across the border? We have delivered some of Qatar’s most recognisable landmarks including the Museum of Islamic Art, Education City, the Qatar National Convention Centre (QNCC), and the Museum of Modern Art. We are in the process of delivering the National Museum of Qatar and many others. However, the programme that stands out for me is Education City. It is a great catalyst for research and development in Qatar and a clear example of Qatar Foundation’s commitment to future generations and ASTAD’s commitment to the Qatar National Vision 2030. The National Museum of Qatar is another important project we are currently managing. Looking forward, the Lusail development is an exciting challenge for us, as are the Qatar Economic Zones. With regard to international expansion, this is on the horizon. We are proud of our achievements in Qatar, and we see ourselves moving into the international market in the next two to three years. We are currently in discussions with Qatar Foundation to bring our expertise to its international projects, and we are continuing to build a strong international team. This will put us in a solid position to attract international
customers and establish ASTAD as a global brand.
Which areas should be Qatar’s focus in terms of lessons from Brazil World Cup? Understanding the requirements of FIFA and engaging personnel and expertise that have previous experience in dealing with FIFA and their stringent requirements is a key area. Also planning for all aspects of delivery, the materials, the design stage, and the loading up of stadiums. We are engaging with local communities around the stadiums so they do not feel excluded from the whole process, and involving them in the decisions to do with the local environment and local community. We are also building a team spirit among the local community, our citizens, and the stakeholders so that everyone has a shared objective and everyone is committed to delivering the best sports event that the world has ever seen, right here in Qatar.
Projects in Qatar frequently see delays. What are some ways to ensure the estimated completion dates of stadiums are more realistic? We feel that the completion dates are realistic, and that they are achievable. We will be implementing a partnership approach with all the stakeholders on the
interview
33
projects and we will be looking at ways to optimise the procurement and project delivery process. We will be working with authorities, project owners, the Supreme Committee for Delivery and Legacy, and also FIFA to make sure that the deadlines are achieved.
Which aspect of World Cup preparation do you find most complex for Qatar? Some of the stadiums are being built in areas where there is no existing infrastructure, so it’s not only a question of building the stadium, but also the surrounding infrastructure as well, and interfacing with the utility companies and the local authorities to make sure that it is all done in a coordinated and efficient way.
How is managing an infrastructure project different from other projects? There is a lot to consider in infrastructure projects. You are looking at how the infrastructure integrates with local amenities, at traffic flows, at minimising the effect of construction on the residents, on the general populace, and you are also looking at the capacity the infrastructure is being built for and how it will allow for future growth. In contrast, a building has four corners, and the capacity is more or less determined at the design phase, and fixed. With infrastructure, you are looking at ways to future proof the capacity and allow for future development.
Engineer Ali bin Nasser Al Khalifa, chief executive officer of ASTAD Project Management, says that knowing the local culture and business environment in Qatar gives a solid grounding to ASTAD in the PM/CM community.
In general, which projects in Qatar have you found most challenging? Each project is special and presents its own unique challenges. For example, the sheer size and nature of the QNCC presented quite a different set of challenges than the campus projects we are working on at Education City where sustainability is a key factor. However, in the end, they all require time, cost and quality. These elements seldom change and are consistent across all sectors. One of the most complex projects that ASTAD is overseeing, which has really caught the world’s attention, is the National Museum of Qatar. Its prominent location on the Corniche, and its hugely striking design make it hard to miss. The design itself was inspired by the idea of a desert rose, a formation of crystallised sand beneath the desert’s surface. The building
Exterior view of Qatar National Convention Centre, a project of ASTAD Project Management. (Image Flickr Isabell Schulz)
QCN | September 2014
Mathaf - Arab Museum of Modern Art is one of the ASTAD’s projects. (Image Corbis)
form grows organically around the former palace to celebrate the culture, heritage, and future of Qatar and its people. The structure is very complex and that has presented us with many design challenges. But we’ve managed the design process effectively and have been successful in using BIM (Building Information Modelling) to overcome these challenges.
What are some of the latest tools and technologies in Qatar’s project management scene? How up-to-date is ASTAD in following the latest trends?
“Given the unique environmental, social, and cultural dynamics in Qatar, some multinationals find it difficult to deliver projects and achieve cross-border success.”
September 2014 | QCN
The integration of new technology into building designs is playing an increasingly important role in project management methodology and is a critical element in the successful delivery of complex projects in Qatar. ASTAD is currently in the execution stage of a large stadium project for the 2022 FIFA World Cup, and we have our eyes set on some emerging technologies for the media package, which will be incorporated as the project evolves, and once the technology reaches maturity. Technology will also be used to enhance the spectator experience. ASTAD has tried to lead the way in the implementation of BIM in Qatar, using it on many projects, including the National Museum of Qatar, Qatar Foundation Headquarters building and the Qatar Faculty of Islamic Studies.
What are some of the difficulties project management companies face? One of the greatest challenges for a project management company is meeting the clients’ expectations. Understanding your client is the key, which can be a challenge for some multinationals working in this region. Given the unique environmental, social, and cultural dynamics here in Qatar, some multinationals find it difficult to deliver projects and achieve cross-border success. Past performance in their home markets can be difficult to replicate due to a lack of familiarity with the local environment. Local knowledge of the markets, customs and practices are embedded into our philosophy. Multinationals also tend to underestimate the sophistication of local clients. Selecting the proper local partner goes a long way in helping to overcome these issues. It also allows you to be more focused on deliverables. We have seen organisations do their best when they choose the right local partner, take the time to prepare for market entry, and stick closely to their core competencies. Patience, resilience, and commitment are essential qualities in succeeding in today’s project business in Qatar. Construction is not for the fainthearted.
How do you compare ASTAD with the global PM/CM companies operating in Qatar? As a local entity, what are the ups and downs?
interview
35
The new headquarters of Qatar’s Supreme Education Council are currently under construction under ASTAD Project Management.
clients are the beginning and end for us. From the beginning of a project, we fully engage with our clients to understand their needs and concentrate on delivery. This allows our clients to focus on what they will do once the project has been delivered. We make sure we know what the stakeholder requirements are and how we are going to deliver them from the outset. The answer to the first part of this question lies in how we started. When Qatar became the world’s largest liquid natural gas producer, the country started to focus on building infrastructure for education to support the Qatar National Vision 2030, and this was when Qatar Foundation and Qatar Petroleum formed ASTAD Project Management. The goal was to form an organisation that could take on highly complex infrastructure projects, while at the same time contribute to Qatar’s knowledgebased economy. Thus, ASTAD was born. We are 100 percent Qatari owned and this fact distinguishes us from our global PM/CM competitors. In addition to this, we have a team that concentrates on public buildings, and we are building the first train system in Qatar for Education City in partnership with Siemens. It is fair to say that over the years, we have built up a team with exceptional expertise. We have accumulated substantial knowledge and expertise across all of the main sectors, and the volume of work we are delivering means our portfolio management skills are extremely well developed. All of this needs the right team of course, and we are lucky to have experts from all over the world working with us. We are one of the most diverse organisations in Qatar. We know the local culture and business environment and this gives us a solid grounding in the PM/CM community. Our
“Patience, resilience, and commitment are essential qualities for succeeding in today’s project business in Qatar. Construction is not for the fainthearted.”
An interior view of the Museum of Islamic Art – a project of ASTAD Project Management. (Image Reuters/Arabian Eye)
QCN | September 2014
The future of district cooling in Qatar looks promising From its inception, Msheireb Down Town Project has incorporated district cooling. (Image Corbis)
September 2014 | QCN
interview In an exclusive interview with QCN, Dr. Salah Nezar, sustainability director at Qatar Project Management (QPM), speaks about district cooling in Qatar. As sustainability director, Dr. Nezar brings 25 years of diversified international experience. As a certified professional of Leadership in Energy & Environmental Design (LEED) and Qatar Sustainability Assessment System, he has led the engineering design, commissioning and design management of many prestigious projects around the world including The Pearl River Tower in Guangzhou China, which is the first net-zero energy skyscraper in the world. Dr. Nezar has recently been elected by the local engineering community as vice president of the Ashrae Oryx Chapter in Qatar.
37
Dr. Salah Nezar, sustainability director at Qatar Project Management, tells QCN that with 10 percent penetration rate of district cooling, Doha ranks second in the Gulf after Dubai.
Please explain more about District Cooling? District cooling (DC) is a centralised system that provides chilled water to the air-conditioning systems serving a variety of end users for cooling purposes. The engineering process uses an underground chilled water reticulation to deliver the chilled water at the right temperature and thermal gradient. Because it is ‘centralised’ with bigger chiller drivers, less energy is required to power a district cooling plant than a collective set of standalone air conditioning units in a community or district all running simultaneously. With persisting harsh weather conditions in Qatar as well as across the Gulf Cooperation Council (GCC), district cooling has gained significant momentum in recent years, providing a more efficient, cost-effective and environment-friendly cooling solution for a fast-growing population and increasing demand from several sectors such as infrastructure, buildings and industry. According to the International District Energy Association, district cooling systems have a documented reliability exceeding 99.94 percent, which is significantly more than standalone building cooling systems. Furthermore, district cooling provides more comfort and convenience through significant reduction of vibration and noise. It is for this reason that the Annual Middle East District Cooling Summit is held every year in Doha, bringing regional and global experts in cooling, tri-generation and innovative solutions such as solar cooling in the region. Expectations are high to see the latest and most advanced technologies and methodologies at this year’s summit in November.
In terms of advancement and growth, what is the progress of district cooling in Qatar? How do you compare it with the rest of the GCC? Awareness about the benefits of district cooling is ever increasing in Qatar as well as in the region. At the moment, district cooling in Qatar has reached a penetration rate of over 10 percent of the total air conditioning market and is increasing steadily year after year. Doha ranks second in the GCC after Dubai, which has a 20 percent penetration rate and is way ahead of other GCC cities with an average of a five percent rate.
“Qatar will need 3434 MW for cooling if the conventional cooling is used, while it will need only 1818 MW if district cooling is used.”
QCN | September 2014
38
interview
The largest district cooling plant in the world is located at The Pearl-Qatar.
99.94% The documented reliability of district cooling systems.
“Qatar is leading [the GCC region] by establishing a new department within Kahramaa dedicated to district cooling services.”
September 2014 | QCN
Qatar is also leading by establishing a new department within Kahramaa dedicated to district cooling services with a focus on mitigating the challenging and rapid growth in freshwater demand from the DC industry. The approach is to establish a regulation that promotes the use of district cooling and goes hand in hand with the overall corporation strategy in achieving the Qatar National Vision 2030 and Qatar National Development Strategy (2011-2016). According to engineer Essa Al Kuwari, president of Qatar General Electricity & Water Corporation, by 2022, Qatar will need 3434 mega watts (MW) for cooling if the conventional cooling is used, while it will need only 1818 MW if district cooling is used. These numbers are self-explanatory about the level of saving expected from the district cooling industry.
What projects are utilising DC in Qatar, and which are most progressive? New and large developments in Qatar that have used district cooling include Lusail City, Barwa Commercial Avenue, West Bay district, The Pearl, Msheireb, Barwa City, Hamad International Airport, Qatar Petroleum (QP) District, Al Waab City, Al Gassar Development, Sidra Medical Research Center, new Internal Security Forces camp, Aspire Zone, Qatar Foundation, in addition to a number of hotels and resorts. As preparations for the hosting of the 2022 FIFA World Cup in Qatar shift into full gear, together with the ongoing construction boom focused on infrastructure and new developments in line with the Qatar National Vision 2030 plan, opportunities for further implementation of district cooling systems abound.
Within Qatar, what are some challenges in executing DC systems? How can they be addressed? Among the main challenges faced by any country in executing district cooling systems is the lack of a national plan to formally frame the effort for, and to encourage the use of district cooling as a strategic choice in providing a cooling solution. This strategic plan should include the mechanisms for its implementation and the intended penetration rates target aiming, for example, a 50 percent level. The approach used in defining the mechanisms to be followed should include the following aspects: comprehensive project brief approved by key stockholders, capital investment allocation, services corridor reservation, plant rooms plot reservation, regulation appropriate for district cooling industry with preferential utility rates, optimal energy and water efficiency targets, fair pricing practices, and opportunities to form more public or joint stock district cooling utilities.
What is the role of DC in achieving decarbonisation of Doha? There has been an increased focus on environment-friendly solutions in Qatar as the problem of energy use is at its zenith. On the one hand, abundant, accessible, low-cost affordable energy is vital for economic prosperity of the country. On the other hand, the country’s pattern of energy brings massive future challenges in relation to carbon emissions and air pollution. Qatar’s current power spectrum is as follows: installed power capacity is around 8760 MW while the maximum peak demand is only 6000 MW, generally occurs in summer time (July or August).
interview
39
Doha’s Hamad International Airport (HIA), Dr. Salah Nezar says, is one of Qatar’s leading projects featuring district cooling technologies. (Image HIA)
The minimum peak demand is less than 2000 MW, generally occurring during winter time (January or February). Power demand related to air conditioning load represents around 70 percent of the peak demand in summer and annual energy consumption per capita is around 15,053 kilowatt hours. The water spectrum in Qatar is as follows: annual water consumption per capita in 2013 was 223 cubic metres. The decarbonisation of Doha plan is taking several momentums acting at diverse levels.
What are some programmes aimed to achieve decarbonisation of Doha? One of the effective initiatives launched recently by the State of Qatar is the Tarsheed Plan, an energy and water conservation programme launched in 2013 and led by Kahramaa aimed at reduction of average water consumption by 35 percent per capita in five years and a 20 percent decrease of the annual average per capita electricity consumption. Post one year, another programme on the path of decarbonisation is the promotion of solar energy usage. During the COP18 UN Climate Change Conference held in Doha in December 2012, Qatar announced the initiative to produce 200 MW from solar energy sources by the end of 2020. To meet this target, a number of solar energy initiatives, programmes and solution-driven projects are taking place in Qatar such as Qatar Solar Technologies, Solar Resource Map Project sponsored by the Qatar National Food Security Programme and
Centrifugal chillers inside Qatar Cool’s plant in West Bay.
executed by the German Aerospace Centre, research projects let by Qatar Environment and Energy Research Institute and QP initiative in building a 2MW solar photovoltaic pilot.
How do you see the future of DC in Qatar? District cooling in Qatar has become the preferred choice for cooling solutions for planned and newly established developments in addition to other areas. It is the most efficient and sustainable way to provide cooling solutions for the country. The numbers provided by the authorities and experts in relation to savings and longevity are here to support this choice. Therefore, the future of district cooling in Qatar looks bright and promising.
“District cooling in Qatar has become the preferred choice for cooling solution for planned and newly-established developments.”
Qatar’s Power Spectrum
8760 MW
of installed power capacity
6000 MW
of maximum peak demand
20% planned
reduction in electricity consumption by 2018
70%
energy consumption related to air-conditioning in peak time
10%
More than penetration rate of DC compared to GCC average of 5%
200
MW of solar energy to be generated by the end of
2020
QCN | September 2014
40
legal
Termination of contracts Experts from law firm Clyde & Co LLP, Alexa Hall and Laura Warren discuss the legalities involved in termination of construction contracts governed by Qatari law. The validity of contract termination is governed by the Qatar Civil Code unless that contract is under other specific local law. Termination in accordance with the Qatar Civil Code may occur pursuant to an agreement to terminate; under a court order, or by exercising a right to terminate.
Agreement to terminate automatically According to Article 184 of the Qatar Civil Code, parties of the contract may agree within the contract terms that the contract automatically terminates without the need for a court order. Importantly, the contractual terms must be sufficiently ‘explicit’ to evince an intention to create a right to terminate automatically. This may not be expressed in contractual terms as automatic termination but rather an entitlement of one party to immediately terminate following the occurrence of certain events (for example, the insolvency of a party). Furthermore, in all matters other than commercial matters, Article 184 provides that parties cannot contract out of a notice requirement relating to termination.
Termination under court order In the absence of termination of a contract pursuant to an agreement between the parties, and sufficiently clear contractual terms catering for automatic termination, the dissolution of contract must either be under a court order or pursuant to a right that is prescribed by law. According to Article 183, “In contracts that are binding on both parties, if one of the two parties to the contract does not perform his obligation the other party to the contract, after notifying him, may apply for the contract to be annulled with compensation, if compensation is required.” This article therefore permits either party to apply to the court for rescission of a contract on grounds of default. The applicant must establish an event of default and
September 2014 | QCN
notify the party in default. The court may, of course, refuse rescission.
Exercising a right prescribed by law The Qatar Civil Code contains several articles which prescribe termination rights. 1. Contractor/ Employer default: Articles 688 and 689 of the Qatar Civil Code deal with rescission of a construction contract for contractor default. Article 692 provides for rescission of a construction contract for employer default. Pursuant to Article 692(2), if the employer fails to perform a specified obligation within the aforementioned time period given by the contractor or at all, the contractor may apply to annul the contract without prejudice to its rights of compensation. 2. Termination at will: According to Article 707(1), an employer may release himself from the contract any time before it is completed on condition that “he compensates the contractor for all the expenditure he has incurred and the works that he has performed and what he would have been able to gain if he had completed the work”. Article 707(2) provides for a credit to be given by the contractor. The court is empowered to deduct, in its discretion, from the compensatory payment a sum representing that which a contractor would have saved as a result of the employer’s termination and what it would have earned by spending its time performing other work. 3. Impossibility: Pursuant to Article 704, a construction contract is ‘extinguished’ when execution of the works becomes impossible due to a cause that is not the fault of either party. Consequently, the contractor is entitled to claim against the
employer to recover the expenses it incurs for executed works, with such sum being “within the limits of the benefit obtained by the employer for the work”. Articles 187 and 188 deal with automatic rescission of a contract in circumstances where the “performance of the obligation becomes impossible [rather than onerous] due to some external cause” not the making of the debtor.
Remedy following rescission Finally, we turn to the remedy available to a party considering termination on the above grounds. As set out above, termination is effected by rescission. Article 185 of Qatar Civil Code stipulates, “When a contract is annulled, the two parties to the contract are restored to the state they were in before the contract. If this is impossible judgment may be given for compensation.” The parties will receive a remedy in restitution as decided by the court.
Alexa Hall is associate, Dispute Resolution team at Clyde & Co LLP. Laura Warren is Construction and Projects partner at Clyde & Co’s Qatar office.
Register Onlin e. Quote FLQM1 4 and get
10% discount Take part in Qatar’s leading landscaping and outdoor design conference
Supported by:
Exploring the challenges and opportunities in creating sustainable and attractive outdoor environments for Qatar.
27 – 28 October, 2014
Intercontinental Hotel The City, Doha, Qatar
CONFERENCE ADVISORY BOARD Geoffrey Sanderson,
Lee Allen,
Principal Landscape Architect, AECOM seconded to President’s Office, Ashghal
Official Supporting Partner
Supporting Partner
Mirna Melki Mills,
Sustainability Manager, ATKINS
Gold Sponsor
Urban Planning – Public Realm & Landscape, ARUP
Associate Sponsor
ﺟﻤﻌﻴﺔﺍﳌﻬﻨﺪﺳﲔ ﺍﻟﻘﻄﺮﻳﺔ
Qatar Qatar Society Society of of Engineers Engineers
Networking Solution Providers
Official Media Partners
Media Partners Partnered with:
Organised by:
For more information or to register: Tel: + 971 4 361 4001 | Fax: + 971 4 361 4554 Email: opportunities@acm-events.com or visit www.futurelandscapeqatar.com Advanced Conferences & Meetings, PO Box 478842, Dubai, UAE
section
43
special section
Qatar’s Heavy Equipment SECTOR According to the Qatar Economic Outlook 2013-2014, Qatar’s capital equipment and construction materials imports will surge in 2014 due to rapid project-driven demands. QCN takes a closer look at the country’s heavy equipment industry with market insights from leading distributors and suppliers in the country.
QCN | September 2014
44
special section
suppliers want to benefit from development of Qatar Ayman Ahmed, general manager of Jaidah Heavy Equipment and Industrial Supply and a non-executive board member of Cummins and Jaidah JV, shares key dynamics of Qatar’s heavy equipment market, and his company’s presence in the country’s rapidly growing industry.
“Due to the huge infrastructure projects going on in Qatar now, there is a big demand for heavy equipment and trucks.”
65,000
Tell us about Jaidah Heavy Equipment (JHE)? What are the major brands distributed by JHE in Qatar? JHE and Industrial Supply is one of the biggest dealers for heavy and industrial equipment and commercial vehicles in Qatar. We are representing the top suppliers of those segments, such as Komatsu machines and Forklifts, Bobcat, Doosan Infracore, Isuzu, UD Trucks, Palfinger Cranes, International Trucks, Link-Belt, STILL MHE, SAKAI, Redwing, Almeg Compressors, Redgid Tools and Fronious welding machines. All these brands are backed up by the best aftersales services to our customers, including field services at sites by highly trained technicians, and immediate parts supplies for all our brands.
How is JHE’s presence in Qatar? What is its product lineup?
JHE has been present for more than 50 years in Qatar. We are one of the strongest players in this market, offering full solutions to our customers, acting as a one-stop shop Line items in equipment parts for all their requirements of machineries centre, offering 90 percent and commercial vehicles. This is how we availability to customers. lined up our products. Contractors, utility
September 2014 | QCN
sector, transporters, oil and gas companies, aviation sector, logistic companies, etcetera, can find all their needs within our product range. Our highly trained staff can guide our customers about the best solutions for their operations. Post-sales, we offer a 24/7 service back up to our customers. Our field service team can reach all our customers’ sites at any time they need our support. We offer full repair and maintenance contracts to our customers. We have more than 65,000 line items in our parts centre, offering 90 percent availability of parts to our customers. In March 2014, Jaidah Heavy Equipment and Industrial Supply partnered with Bobcat Company. Pictured here is Bobcat S450 skid-steer loader.
special section
45
JHE and Industrial Supply is the official distributor of brands such as Komatsu machines and Forklifts, Bobcat, and Doosan Infracore in Qatar. Pictured here is Doosan DL450-3 wheel loader.
Which products are in high demand in Qatar? Due to the huge infrastructure projects going on in Qatar now, there is a big demand for heavy equipment and trucks, in addition to all the industrial products required to support the construction companies to execute these projects.
What are the benefits of being a local player in the industry? We have the benefit of being the preferred supplier of many of the ongoing projects due to our wide products range and aftersales service. Due to our long history in Qatar as a local supplier, our customers trust our capabilities.
How competitive is the heavy equipment market in Qatar? What is the unique selling point of JHE? The competition in Qatar is very tough. All suppliers want to benefit from the huge development of the country, especially with the high demand now. To differentiate ourselves in this market, Jaidah offers full solutions to its customers, including a wide range of high-quality brands, and aftersales services. We offer different in-house financing facilities, 24/7 service calls to assist, stock availability of machines and parts, and a highly trained sales team and skilled technicians, who we heavily invest
in, as they are our main assets.
Can Doha Port’s limited capacity affect the timely delivery of products? For the time being, we do not see it as a hindrance, it might be in future, but the new port project is progressing very well and we are eagerly waiting for its operations to start.
What are some latest products in the market? How responsive in Qatar’s market? From Jaidah, we are now introducing many new products, such as the Komtrax GPS system on our Komatsu machines, our new Bobcat S450 skid-steer loaders with the latest operation technology, and Charington Beach cleaners. The Qatari market is adapting well to the new technologies, aiming for higher productivity and a clean environment.
Buying products or renting them, what are the general trends in Qatar? The general trend now is buying, but many international companies working on new projects prefer renting for two or three years, through which they can control their operational costs during the projects. Furthermore, due to the higher demand for machinery, the rental business will grow a great deal during the coming years.
Ayman Ahmed, general manager of Jaidah Heavy Equipment and Industrial Supply, does not see Doha’s current port capacity as a limitation.
“Due to the higher demand of machinery, the rental business will grow a great deal during the coming years.”
QCN | September 2014
46
special section
Training is important for proper use of cranes
Available for all makes and models of overhead lifting equipment, Konecranes Crane Reliability Study outlines the current condition of the crane.
Konecranes has recently developed a Crane Reliability Study (CRS), providing a thorough analysis of overhead lifting equipment. Giving information about the machinery’s current condition and potential operating capacity, the comprehensive report is aimed to improve the quality and lifetime of lifting equipment. In an exclusive interview with QCN, Chris Hills, service director, Konecranes Middle East FZE, and Saku Aspelin, product manager, consultation services, Konecranes Finland Oy, speak about CRS and various aspects of cranes’ maintenance and safety. What are some key findings from Konecranes latest crane reliability study at an recent project?
“An active and consistent preventive maintenance programme is crucial to improving safety, productivity and lifetime of a crane.” - Chris Hills, service director, Konecranes Middle East FZE.
Saku Aspelin: At an Energy-From-Waste facility, we initially found the internal components of a hoist gearbox showing signs of fatigue. Combining this information with Design Life calculations, interviews and service records, we came to the conclusion that the hoisting machinery was nearing the end of its lifespan. As the crane is critical to the customer’s process, a hoisting machinery failure would cause tremendous loss of production. The customer was now able to schedule and budget a modernisation and prepare for possible rapid development of the situation.
How often do you recommend an inspection of a crane to avoid any accidents? Chris Hills: This very much depends on the
September 2014 | QCN
crane type, the operation it is working in and how much it is being used. We work with our customers to ensure an optimum level of inspections to maintain safety, reliability and productivity.
What are some future needs of the industry that will lead to crane upgrades? What would be some expected upgrades? Saku Aspelin: Typical scenario is an increase of production and its effects on the crane fleet. Given that every crane is only designed for a limited amount of work cycles, an increase in production would also mean decrease in equipment life. This problem can be solved using the results of a CRS that suggest the most cost-efficient modernisations or upgrades needed to ensure continued operations. These can include, for example, a renewal of single machinery, capacity increase, electrical upgrades, etcetera.
section
What are some best maintenance practices to increase the lifetime of a crane? Chris Hills: An active and consistent preventive maintenance programme is crucial to improving safety, productivity and lifetime of a crane. Trained maintenance personnel also play a pivotal role in executing an effective preventative maintenance programme.
How well equipped are contractors for smart use of cranes? Chris Hills: Training is important for proper use of cranes; at Konecranes, we provide our customers with operator training to ensure they get the best performance from their cranes.
What are some steps manufacturers can take to educate end users of cranes? Saku Aspelin: Konecranes runs a programme called Crane Operator Training, needed to ensure safe operation and good performance of cranes. This is even more important when operating cranes equipped with smart features, for example, a positioning system. Konecranes also provides vast amount of consultation services for customers with specific technical problems or concerns.
47
work has been completed.
Can you give details of real-time service by Konecranes? Chris Hills: When you think about service, it generally falls into two categories: reactive and preventative. Reactive is obviously where you react to a problem, normally a breakdown, and preventative is where you try to eliminate problems before they happen. The benefits of real-time service are we are able to analyse real-time data from the crane to identify potential problems before they happen.
What are some challenges in Middle East’s market for cranes? What are some latest trends? Chris Hills: From a service perspective, ambient temperature and dust is a challenge for cranes working outside. The role of preventative maintenance in these conditions cannot be emphasised enough. A positive trend we are seeing is an increase in the number of customers coming to us for inspection and maintenance solutions.
Frequency of crane inspections depends on the type of crane, says Chris Hills, service director Konecranes Middle East FZE. Pictured here is Konecranes CXT Biomass - a fully automated crane. (Image Konecranes).
“As the crane is critical to the customer’s process, a hoisting machinery failure would cause tremendous loss of production.” - Saku Aspelin, product manager, consultation services, Konecranes Finland Oy.
Renting heavy equipment is a common industry practice in the Middle East. Do you think it can lead to overuse? Chris Hills: This is generally not a problem we see as we do not run a rental programme in the Middle East. Our cranes are not normally used during the project phase; they are installed in the facilities for use by the end user once all of the construction
Chris Hills, service director Konecranes Middle East FZE, says, “From a service perspective, ambient temperature and dust is a challenge for cranes working outside in the Middle East.”
QCN | September 2014
Gulf Earth Moving (GEM) has been working on excavation, compaction, soil improvement and revetment works of Doha’s New Port since June 2012. (Image GEM)
Delivery times for heavy equipment can take more than a year
In an interview with QCN, Yves Aertssen, director, Gulf Earth Moving (GEM) WLL, Qatar, and Earth Moving Worldwide Ltd (EMW), Abu Dhabi, speaks about the role of earthmoving service providers and major market trends in Qatar.
What are some major services GEM provides in Qatar? GEM was established in Qatar to serve large-scale earthmoving projects, deep excavation, aggregate crushing and sieving, revetment works, soil improvement and equipment rental. One of our most noteworthy projects is the New Port Project in Doha. The goal is to excavate, process, transport and install 35 million cube metres of soil by the summer of 2015. We have been working continuously on this project since June 2012, with over 200 heavy equipment for excavation, compaction, soil improvement and revetment work.
At the same time we have also been executing the earthworks (soil improvement, cut and fill, and compaction) for Salwa Beach Resort Hotel in Qatar. Together with our sister company Earth Moving Worldwide (EMW), we are taking on several earthmoving projects outside Qatar in the GCC.
What are some key trends you see in Qatar’s heavy equipment market? GEM and EMW are experiencing firsthand the region’s demand for specialist earthmoving equipment such as long reach excavators, heavy-weight excavators, ground improvement equipment, crushers
“The demand for professional, trained and experienced personnel in earthmoving, as well as plant equipment is rising.”
QCN | September 2014
50
special section
Yves Aertssen, director, Gulf Earth Moving (GEM) WLL, Qatar, says that as long as a project involves construction on shore, there is always a need for earthmoving equipment during various stages. (Image GEM)
and screens. The huge demand for these specialist plant items are required to support both current and prospective projects throughout the GCC. While GEM and EMW are encountering more complicated projects and tender enquiries, the demand for professional, trained and experienced personnel in earthmoving, as well as plant equipment is rising. Due to major upcoming events in the GCC, such as the 2022 World Cup and Dubai Expo 2020, and expansions of existing or creation of new refineries in the oil and gas sector, we see that there will be exponential growth in the demand for large and wellmanaged earthmoving equipment.
In terms of technology, how advanced is the earth moving equipment used in Qatar?
“The biggest challenge [in Qatar] is the delivery times of the requested earth moving equipment.�
September 2014 | QCN
The latest technologies on GPS are being used on our equipment. Our GPS systems are used to install rocks, trim slopes and level the site according to the design. Cost has always been and will always be one of the most decisive factors dictating which equipment will be invested in for upcoming projects. Increasingly, due to the rising demand and ample opportunities in the region, availability of both plant and competent resources has become a major challenge. This in turn affects our decision as to which supplier we partner and enter into contracts with. With the increased focus on quality, health, safety and environment requirements on all projects, user convenience such as A/C cabined equipment has altered and shifted the market preferences towards different earthmoving equipment.
200+ Current number of heavy equipment for excavation, compaction, soil improvement and revetment work at New Doha Port project.
www.QatarTenders.com Tender Name
Description
Client
Pumping Station EPC Works
Construction of Pumping Station no.2 at RPS & Associated Pipelines
Qatar General Electricity & Water Corporation (Kahramaa)
1099
10/16/2014
Electrical substations construction
Design & Construction of (5 Nos.) 66/11kv Electrical Substations
Lusail Real Estate Development Company (Qatar)
2747
10/13/2014
Fire Fighting & Detection System
Provision of Fire Fighting and Detection System for Warehouse.
Qatar General Electricity & Water Corporation (Kahramaa)
275
10/9/2014
Chloride Treater
Design, Supply, Install & Commission of Chloride Treater
Seef Limited (Qatar)
55
9/30/2014
Hotel Accommodation Services
Provision of Hotel Accommodation Services
Primary Health Care Corporation (Qatar)
55
9/29/2014
Cleaning Works
Carrying out Cleaning Works of a Building and Tower.
Ministry of Foreign Affairs (Qatar)
41
9/28/2014
Fire Bricks
Supply & Delivery of Fire Bricks
Qatar National Cement Company (QNCC)
412
9/28/2014
Landfarm
EPIC for Creation of a Landfarm.
Qatar Petroleum (QP)
137
9/28/2014
Dye Warehouses Construction
Construction of Dye Warehouses at a Port
Qatar Ports Management Company (Qatar)
55
9/26/2014
4125
9/25/2014
EPC (Engineering, Procurement and Commissioning) contract for Establishment of new Substations on September 2014 | QCN different voltage levels.
Substations Construction Works-2
Qatar General Electricity & Water Corporation (Kahramaa)
Tender FEES (USD)
Closing Date
exclusive interview: Dr. Salah Nezar, QPM sustainability director, ON DIstrict cooling – pg. 36
issue 1.1
September 2014
SPECIAL SECTION Qatar’s Heavy Equipment Sector
FIFA
World Cup
risk factors Can Qatar stand the test ahead of 2022?
Plus: gulf earth moving wll
Terminating construction contracts in Qatar Business Optimism Index for Qatar’s construction sector
INTERVIEW:
Engineer Ali bin Nasser Al Khalifa, CEO, Astad Project Management