SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
Construction An ITP Business Publication
WEEK
CONSTRUCTIONWEEKONLINE.COM
DECEMBER 5–11, 2009 [299]
NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST
INSIDE NEWS Dubai World shakes global markets with deal sought on debts PAGE 9
SITE VISIT CW speaks to CEO Bob Vincent about Bahrain Bay’s future PAGE 18
CONCRETE
ARABTEC
DIARIES
A WALK DOWN MEMORY LANE WITH THE REGION’S LARGEST LISTED CONTRACTOR
Arabtec CEO Thomas Barry
The future of precast concrete in the Middle East PAGE 24
CITY FOCUS The latest news, projects and tenders from Riyadh, KSA PAGE 38
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CONTENTS 2
VALERIANO HANDUMON/ITP IMAGES
DECEMBER 5-11, 2009 | ISSUE 299 10
FEATURES 16 EXCLUSIVE INTERVIEW Arabtec CEO Thomas Barry talks to CW about his experience working in the construction industry.
18 SITE VISIT CW takes a look at what progress has been made on Bahrain Bay.
24 SPECIAL REPORT
RABIH MOGHRABI/AFP/GETTY IMAGES
13
How can the use of precast concrete help you win future work?
9
DIRECTORY 30 SHOWCASE 32 TENDERS 33 PROJECTS 34 SPECIALIST SERVICES 14 18
REGULARS 2 ONLINE 4 MAIL
FRONT 9 DEAL SOUGHT ON DUBAI WORLD DEBTS A look back on last week’s events, which saw Dubai World asking creditors of its two flagship companies for a standstill on debts worth billions of dollars.
13 FACE TO FACE Bathroomware suppliers talk about technologies that are being introduced into new construction projects.
10 BRITS STILL BUOYANT ABOUT GULF BUSINESS
14 COMMENT
British construction companies and suppliers have claimed that they remain confident about business opportunities in the Gulf.
Sudhanshu Kumar talks about a new environmental monitoring and database management system, which will help limit the damage of land reclamation.
11 NEWS IN BRIEF
15 LEGAL
48 DIALOGUE
Highlights of the week.
James Bremen compares the civil law concept of economic hardships in different jurisdictions and how they may apply in those respective areas.
Christoph Hörmann talks about the current most attractive places to do business in the Gulf and how his company is progressing in the region.
12 EVENTS Industry dates for your diary.
BACK 38 CITY UPDATE The latest news and projects from Riyadh, Saudi Arabia.
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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ONLINE
www.ConstructionWEEKonline.com MOST POPULAR BRIGHT FUTURES FOR QATAR AND ABU DHABI ALESSA SIGNS US $200MN JV WITH HUNTAIR DUBAI WORLD RESTRUCTURING: INTERNATIONAL REACTION KEY POINTS WHILE ENTERING INTO A JOINT VENTURE
HAVE YOUR SAY
HOW HAS THE DUBAI WORLD RESTRUCTURING AFFECTED YOUR COMPANY? What is your business doing to reassure clients?
JOBS OF THE WEEK IN PICTURES: BIG 5: IN PICTURES November 23-26 saw The Big 5, the region’s largest construction trade show, descend on Dubai. Construction Week – the show’s official daily – was at Dubai International Exhibition Centre every day to bring you all the news on new products, deals and industry opinion. The packed-out show encompassed all the halls at DIEC, including the three new halls that recently opened. In case you didn’t get a chance to visit, or to see it all, we take a photo tour of the most important event in the Middle East’s construction calendar. For more images visit www.ConstructionWeekOnline.com
FEATURES Design
PUBLIC ART London’s Duggan Morris Architects has won an international contest to design a £250,000 (US $401,700) canalside pavilion to the north of Liverpool in the UK.
WONDERWALLS With today’s designs dictating a preference for bold statements in terms of coverings and artwork, it’s no time to be a wallflower. Facilities Management
HAVE MACHINE BOSSES GOT THE WIND UP THEM? Greg Whitaker wonders what’s going on with all the boardroom shuffling
2
HEAD FOR HEIGHTS The Gulf’s skylines are filled with hard to reach places that require clever solutions to keep them clean and in good order.
CONSTRUCTION WEEK DECEMBER 5–11, 2009
ONLINE POLL WHAT DO YOU THINK ABOUT THE ANNOUNCEMENT THAT DUBAI WORLD WILL ASK FOR A DEBT STANDSTILL UNTIL MAY?
57.1% 28.6% 14.3%
It’s worrying; we’ll have to wait and see what happens next
Design
PMV
Supply Chain Manager Middle East, Damman, Saudi Arabia Senior Quantity Surveyor, Dubai, United Arab Emirates Senior Landscape Architect, Dubai, United Arab Emirates
It’s not great news but Dubai World and Nakheel have a lot of support
It’s just a request; there’s no real cause for concern
TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com
MIDDLE EAST
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THANOS LAZOPOULOS/ITP IMAGES
MAIL paid, but I believe this is a problem that is not limited to the Middle East. I hope the region will continue to be a good place for foreign companies to come over and do business. I urge the authorities to clamp down hard on defaulters. RHIAN
RE: DUBAI WORLD RESTRUCTURING: INTERNATIONAL REACTION The signs have been there for a while. Now all the world knows that Dubai is in a bit of a problem. Global investors were already afraid of moving into Dubai. With Dubai World’s announcement, it has made things even worse. Dubai’s property boom was based on a speculative future whereas in reality the end users were never there. ASIF
The fact that there are big changes being made at the managerial level is good as it means something will get done. Whether or not these changes have been made remains to be seen. ASHOK
We all knew this was coming, but I don’t think anyone has been prepared for the upset this has caused. Asking for an extension on finance agreements is one thing, but this has been a bit of a shock given the reassurances we’ve all heard over the last year. This is Dubai World’s chance to prove it has the ability to take on massive projects and clear its debts. If not…let’s just hope it doesn’t come to that. DOUG
This could have a very big trickle down effect. We already know many contractors are having payment issues in the UAE at the moment (Japanese in particular) and if these bills are not getting paid, the effects will be widespread. My company is having cashflow problems and staff are not being paid, which means people who live in Japan, who have never even heard of Dubai, are suffering as a result. I hope the problem can be fixed to everyone’s satisfaction. KOJI
RE: BRITS BUOYANT ABOUT GULF BIZ OPS There is a lot of talk in Britain at the moment about whether contractors are going to get
RE: RERA TO ‘NAME AND SHAME’ DEVELOPERS My husband and I invested in Vue De Lac in 2005, but the project has not yet been completed. We went to Al Attar office many times, but its personnel told us that the project would start in a month, as well as other lies. We live in Iran, and each time we go to Dubai ,we have to expand our budget. We don’t know who is responsible for responding to us or to whom we complain. SHAHRZAD
RE: BIG 5: MIDDLE EAST NOT KEEPING GREEN PROMISES There is some talk about being green, but it is only so the region appears to be responsible and therefore on some kind of similar level to developed areas of the world, where people need and want to think responsibly. In Dubai, where I live, there needs to be a top-down cultural change where they have a metro that runs off generators, a population of 4x4 drivers, and an attitude of ‘don’t worry about the mess, someone else will clear
up’. This needs to change to make the region a better place in years to come. NICK
RE: DEFAULTERS TO BE PROSECUTED I suggest the Ministry introduces some measures to make sure that the clients are paying their contractors, and sub-contractors their outstanding bills on time, as per the contract or purchase order issued. JIPSON GOMEZ
RE: LEED GOLD FOR SUMMERTOWN HQ It’s great to hear news such as this. I hope other countries in the region do the same. REDDA
RE: DEVELOPER REACTS TO READER COMPLAINTS I bought in the hope of letting the property out and although I have a tenant, he has said he will be moving because of the amount of issues at the Crescent and the extortionate charges for parking. I was assured by Damac’s representative in London, on more than one occasion, that there would be free parking available, but if you wanted an allocated space (that was just yours) you could purchase one at an extortionate rate. I remember Damac having a promotional offer that included a free Mercedes if you purchased a flat. What’s the point if there is nowhere to park it? JATINDER
WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles. The opinions expressed in this section are of particular individuals and are in no way a reflection of the publisher’s views.
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CONSTRUCTION WEEK DECEMBER 5–11, 2009
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ITP BUSINESS PUBLISHING CEO Walid Akawi MANAGING DIRECTOR Neil Davies DEPUTY MANAGING DIRECTOR Matthew Southwell EDITORIAL DIRECTOR David Ingham VP SALES Wayne Lowery PUBLISHING DIRECTOR Jason Bowman EDITORIAL SENIOR GROUP EDITOR Stuart Matthews EDITOR Conrad Egbert TEL +971 4 435 6256, EMAIL conrad.egbert@itp.com ONLINE EDITOR James Boley TEL +971 4 435 6268, EMAIL james.boley@itp.com BAHRAIN & SAUDI ARABIA EDITOR Benjamin Millington TEL +973 1 756 4111, EMAIL ben.millington@itp.com NEWS EDITOR Matthew Warnock TEL +971 435 6179, EMAIL matthew.warnock@itp.com ASSISTANT EDITOR Sarah Blackman TEL +971 4 435 6278, EMAIL sarah.blackman@itp.com MEP EDITOR Gerhard Hope TEL +971 4 435 6252, EMAIL gerhard.hope@itp.com PMV EDITOR Greg Whitaker TEL +971 4 435 6263, EMAIL greg.whitaker@itp.com CONTRIBUTING EDITOR Alison Luke ADVERTISING COMMERCIAL DIRECTOR Raz Islam TEL +971 4 435 6371, EMAIL raz.islam@itp.com BUSINESS DEVELOPMENT MANAGER Alex Bendiouis TEL +971 4 435 6324, EMAIL alex.bendiouis@itp.com KEY ACCOUNT MANAGER Leigh Wright TEL +971 4 435 6473, EMAIL leigh.wright@itp.com ONLINE SALES MANAGER Scott Woodall TEL +971 4 435 6172, EMAIL scott.woodall@itp.com STUDIO GROUP ART EDITOR Daniel Prescott ART EDITOR Nadia Puma DIRECTOR OF PHOTOGRAPHY Sevag Davidian CHIEF PHOTOGRAPHER Khatuna Khutsishvili SENIOR PHOTOGRAPHERS Efraim Evidor, Thanos Lazopoulos STAFF PHOTOGRAPHERS Jovana Obradovic, Isidora Bojovic, Rajesh Raghav, Ruel Pableo, Lyubov Galushko, George Dipin PRODUCTION & DISTRIBUTION GROUP PRODUCTION MANAGER Kyle Smith PRODUCTION MANAGER Eleanor Zwanepoel PRODUCTION COORDINATOR Devaprakash V.A MANAGING PICTURE EDITOR Patrick Littlejohn IMAGE RETOUCHER Emmalyn Robles DISTRIBUTION MANAGER Karima Ashwell DISTRIBUTION EXECUTIVE Nada Al Alami CIRCULATION HEAD OF CIRCULATION & DATABASE Gaurav Gulati MARKETING HEAD OF MARKETING Daniel Fewtrell DEPUTY MARKETING MANAGER Annie Chinoy TEL +971 4 435 6133, EMAIL annie.chinoy@itp.com EVENTS & CONFERENCES DIRECTOR, CONFERENCES, MARKETING & EVENTS Kimon Alexandrou PRODUCER Oscar Wendel ITP GROUP CHAIRMAN Andrew Neil MANAGING DIRECTOR Robert Serafin FINANCE DIRECTOR Toby Jay Spencer-Davies BOARD OF DIRECTORS KM Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin CORPORATE WEBSITE www.itp.com CIRCULATION CUSTOMER SERVICE TEL: +971 4 435 6000 WEB www.ConstructionWeekOnline.com ITPIMAGES Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. SUBSCRIBE online at www.itp.com/subscriptions NOTICE The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. PRINTED BY Atlas Printing Press L.L.C. Dubai CONTROLLED DISTRIBUTION BY Blue Truck
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FOREWORD
WHAT NEXT? LET’S FOCUS ON THE REAL ISSUE
“THERE ARE VARIOUS WAYS OF RAISING CAPITAL AND STILL A FEW COMPANIES, WHICH IF MADE PUBLIC, COULD RAISE THE MONEY”
It’s often difficult to focus on the real issue. But the media-bashing that Dubai got over the past few weeks is a little sad and based on negative speculation. It’s upsetting to see journalists, who have never set foot in Dubai, jump the gun and rip into the emirate’s governments and rulers just to grab front page space. The real reason to complain, if there was one, is the horrid timing of the announcement, which was made only hours before the country shut down for the Eid Al Adha holidays, without any sort of explanation or statement. Obviously, this ‘angle’ went unreported, as it wouldn’t have grabbed as much attention as sensational graphics depicting a collapsed Burj Al Arab being washed away to sea. The world media is so busy bashing Dubai over Dubai World’s request for a freeze on debt payments, that the situation has left a serious void for useful information. There’s no doubt that world markets were temporarily shaken up – bank stocks tumbled, oil prices were hit, the dollar was lifted and gold hit a record high of nearly US $1200. The Abu Dhabi stock market also suffered its biggest ever one-day fall after the Eid holiday. But all of this was based on speculation. When the markets opened last week and the UAE central bank said it would honour Dubai banks’ debts, the crowds seemed to have dispersed pretty quickly. Dubai World was made aware of the repercussions of its request before it made it, but it did anyway. There’s obviously a bigger plan that most of us are unaware of – which calls for transparency, but again, that’s a separate issue. The Dubai government has made it clear that Dubai World is an entity on its own and is not part of the government. It’s not guaranteeing Dubai World’s debt, is another indication of the bigger plan ahead. The next few weeks will paint a clearer picture of the situation and the Dubai government might give us a better insight into how it plans to pay off its debts. There are various ways of raising capital and still a few companies left, which if made public, could raise that money - just a positive, speculative thought.
CONRAD EGBERT EDITOR conrad.egbert@itp.com
WRITE TO THE EDITOR Please address your letters to: Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest articles.
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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>News in brief
11
>Face to Face
13
>Comment
14
>Legal
15
RABIH MOGHRABI/AFP/GETTY IMAGES
FRONT
>Brits still buoyant about Gulf construction
DP WORLD – DUBAI WORLD’S THRIVING PORT MANAGEMENT COMPANY – WILL NOT BE PART OF THE REFINANCING NEGOTIATIONS.
DEAL SOUGHT ON DUBAI WORLD DEBTS By CW Staff
Last week, Dubai World announced that it would be asking creditors of two of its flagship companies for a standstill on billions of dollars of debt as a first step towards restructuring the state-run Dubai World group. In its statement, the government said: “Dubai World intends to ask all providers of financing to Dubai World and Nakheel to ‘standstill’ and extend maturities until at least 30 May 2010.” Nakheel, developer of the iconic palm-shaped residential islands, has a US $3.5 billion (AED12.8 billion) Islamic bond maturing on December 14 and debt worth $980 million due on May 13, 2010. Limitless, another Dubai World developer, has a $1.2 billion bond maturing next March 31. Analysts claimed that financial support from neighbouring Abu Dhabi was expected to continue, but Dubai would likely have to abandon its economic model that focused heavily on real estate investment and the influx of foreign capital. “It’s shocking because for the past few months the news coming out has given investors comfort that Dubai would most probably be able to meet its debt obligations,
and that Nakheel’s commitments would be met,” Sico Investment Bank head of asset management Shakeel Sarwar told Bloomberg. “Abu Dhabi has been supportive of Dubai, but it appears this support is not enough for Dubai to meet its obligations on time.” The cost of insuring Dubai government debt against default with five-year credit default swaps soared, jumping over 100 basis points to 420.6 from a close of 318 a day earlier. Nakheel’s Islamic bond prices fell more than 20 points to 87. The problem was intensified by the Eid public holidays, which meant no explanation or clarification was available from Dubai authorities or Dubai World, leaving international press free to speculate as to the depth of the trouble that Dubai faced. “The market had expected a repayment of the $3.5 billion sukuk and spreads had narrowed,” said Gulf Research Centre economics programme manager Eckhart Woertz, speaking to Bloomberg. “The standstill request comes as a surprise, especially after additional finance from Abu Dhabi has been raised.” Dubai’s economy was hit hard as the global credit crunch over the past year ended a
six-year boom in the region and sent the emirate’s once-flourishing property sector into decline. Last weekend, the ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, reshuffled the board of the Investment Corporation of Dubai, which manages his wealth, and changed the chief of the Dubai International Financial Centre. The reshuffle, which removed boom-era leaders from key positions, was widely seen as a shift towards more conservative stewardship of Dubai’s resources. Following Eid, however, Dubai World clarified that it was in talks to restructure $26 billion of debt, with developers Limitless and Nakheel’s liabilities under discussion, but that Infinity World Holding, Istithmar World and Ports and Free Zone World would be excluded from the negotiations because those companies “are on a stable financial footing.” The statement read: “Initial discussions have commenced with the banks of Dubai World and are proceeding on a constructive basis. It is envisaged the restructuring process will be carried out in an equitable way for the overall benefit of all stakeholders.”
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
9
FRONT BRITS STILL BUOYANT ABOUT GULF BUSINESS By James Boley VALERIANO HANDUMON/ITP IMAGES
British construction companies is still a key market for us,” said and suppliers have claimed that Balmoral group public relations they remain confident about manager Steve Gibb. “Abu Dhabi business opportunities in the and Saudi Arabia are still busy Gulf and are looking forward markets for us.” to working in the region in Gibb added that his company had the future. not suffered any payment issues This follows a report by UK from the region but that, in any trade body the Association for case, unpaid bills were a problem Consultancy and Engineering faced by suppliers wherever they revealing that UK contractors are ABU DHABI IS THE FOCUS OF INCREASING BRIT ATTENTION. were operating. currently owed US $330 million SPE International CEO and group in unpaid bills in the UAE. However, product suppliers chairman Tony Mansfield echoed Gibbs’ sentiments. said that, for the most part, cash is still coming in and that “As a whole, the general Middle East market is okay. Dubai debt is a global problem affecting all markets. is a good centralised point from which to do business,” “The Gulf is still a great opportunity for us. We’re not he commented, adding that his company had just signed worried about payment issues and we’re actively looking deals to supply equipment to firms in Saudi Arabia. to move into the region,” said Aspen Pumps export sales Some contractors, however, reported problems with late payment. “We haven’t had any problems with bad director Bernard Leach. Many UK firms admit they are finding Dubai to be a less debt at the moment, although we have had some slow lucrative market than in previous years but the wider payers. We’re still getting paid though,” said Flowflex GCC remains promising. general manager Peter Burt. “There are fewer business opportunities here than there “We’ve been doing business in the region for ten years, and of course, the recession has had an impact, but this used to, but we’re still confident.”
FRONT HIGHLIGHTS UAE
GROUNDBREAKING DUCAB Sheikh Hamed bin Zayed Al Nahyan last week broke ground on Ducab’s new high voltage factory – the company’s sixth facility – which will manufacture cables in the 66kV to 400kV range. The factory is the first dedicated high-voltage facility in the region and will have a manufacturing capability of 30,000 tonnes of cable per year. UAE/Saudi Arabia
ARAB FORKLIFT EXPANSION The manufacturer of the Arab world’s first forklift, Gulf Automobile Industry Corporation, plans massive regional expansion, as it intends to relocate from its 14,000m2 factory in Abu Dhabi to a 3 million m² facility in KSA. “We are forecasting sales of US $13.6 million for 2010; the move to a larger manufacturing plant is necessary to meet the demand for products, and while it make sense to be in KSA, our biggest market, the UAE
NEWS IN NUMBERS
Rubber World Industries is on course to achieve its goal of 25% production increase by 2010, with the company now producing 1800 containers a year, up from 1200 a year in
2008
continues to offer us strong sales potential”, said chairman Nasser Hamad Al Hajeri. “We will employ a further 800 members of staff to operate from the new factory, and by 2020 we estimate that we will employ 11,000 people.” Saudi Arabia
HVAC CONTRACT TO BE AWARDED KSA’s Jabal Omar Development Company has invited suppliers to bid for the HVAC contract for the northern part of its US $2.7 billion (SR10 billion) flagship development. “The contract is expected to be awarded in 2010 and we are currently going through the design process,” said Mahidine Aït, area sales manager for district cooling company Ciat Middle East, which is hoping to be awarded the contract to supply 15,000 air conditioning units to the project.
Bank of Kuwait HQ as part of a US $1.6 million (KD456,000) security package. “Work has started on site and we will be trained in how to install our doors into the project in January 2010,” said Rhino Door production director Iori Davies. “From then onwards manufacturing of the doors will begin.” Kuwait
FOSTER + PARTNERS GETS TERMINAL DESIGN A US $66.7 million (KD18.9 million) contract to design Kuwait’s new airport passenger terminal has been awarded to Foster + Partners, said the Ministry of Public Works. The new $747 million terminal will have an annual capacity of 13 million passengers, taking the airport’s total capacity to 20 million. The terminal is expected to be completed by November 2010.
RHINO BAGS CONTRACT Rhino Doors has been awarded the contract to supply products to Central
Detac has won the contract to deliver 723 retail units, 454 offices and parking for 3000 cars within 18 months for Damac’s
Egyptian Park Avenue mixed-use project
Bahrain
JCB SIGNS US $100,000 PMV DEAL JCB Power Products has signed a US $100,000 deal with UAE equipment hire
MOTT MACDONALD TO OVERSEE ISLAND INFRASTRUCTURE The developer of Dilmunia Health Island, has appointed Mott MacDonald to design infrastructure for the project. “We’re thrilled to be awarded a role on this exciting project by Ithmaar Development Company. It’s an endorsement of what we hope will be a productive on-going relationship backed by our local knowledge of Bahrain and engineering design and management skills,” said Mott MacDonald’s Bahrain director Alan Worley.
RAK’s Al Hamra Mall will be
Kingspan is
UAE Kuwait
company Al Mutawa General Transport to provide nine JCB LT9 lighting towers – a new product that provides temporary, portable lighting solutions for construction projects. “It’s a good start and we hope this will be a platform leading to significant sales across the region over the next 12 months as the market recovers,” said JCB’s export sales manager for the Middle East, Faizal Hamze.
Irish-based
hoping to achieve a 100% US $20m annual operational by Q1
2010
turnover from the Gulf by 2012. Last year, the company, operational in 56 countries, won a $1.6m contract to supply wall panels to Dubai Metro
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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EVENTS
Event: Building Sustainability Conference, Dubai Overview: This conference places sustainability at the heart of the commercial business case where the efforts and resources engaged offer the highest returns. Date: April, 2010 Location: Dubai Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.itp.net/events Event: FM Awards 2010 Overview: The Facilities Management Middle East Awards ceremony aims to help raise the profile of the industry and recognise and reward those who have made significant contributions to its development. Date: May, 2010 Location: Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.itp.net/events Event: Construction Week KSA Conference 2010 Overview: This one-day exclusive forum will gather top leaders from property developers and contractors alongside leading professionals from financial houses and law firms to discuss vital aspects of construction and real estate. Date: June Location: Riyadh Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.itp.net/events
Event focus
MEP AWARDS 2009 DATE: 9 DECEMBER VENUE: THE WESTIN, DUBAI PHONE: +971 4 435 6133 EMAIL: ANNIE.CHINOY@ITP.COM WEBSITE: WWW.CONSTRUCTIONWEEKONLINE. COM/MEPAWARDS
Event: Middle East Architect Awards 2010 Overview: The Middle East Architect awards are an opportunity for the industry to come together and toast exceptional performance in architecture, engineering and design. Date: September Location: Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.itp.net/events
The MEP Awards 2009 provides a platform for the mechanical, electrical plumbing sector in the UAE to recognise its achievements and to acknowledge the latest innovations, technology and processes that have adhered to best-practice standards. The awards also highlight excellence in MEP design and installation. Award categories include project manager of the year, engineer of the year, MEP contractor of the year, technician of the year, most sustainable design of the year and best overall MEP project of the year, among others.
Event: Building Sustainability Conference, Abu Dhabi 2010 Overview: Delegates from the world of construction are invited to a one day event to discuss the vital aspects of building sustainability. Date: October Location: Abu Dhabi Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.itp.net/events
Event: Saudi PMV Show Overview: At 40,000m², the 3rd annual Saudi PMV Show is the largest exhibition of heavy machinery and vehicles ever assembled in the kingdom.
Event: Construction Week Awards 2010 Overview: In its 6th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East. Date: November Location: Dubai
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Date: March, 2010 Location: King Abdullah Economic City, Saudi Arabia Phone: +971 4 435 6127 Email: michael.mcgill@itp.com Website: www.saudipmvshow.com
CONSTRUCTION WEEK DECEMBER 5–11, 2009
Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.itp.net/events Event: Construction Week Dubai Conference Overview: A one day event with two streams running concurrently covering the vital aspects of construction and real estate. Date: November Location: Dubai Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.itp.net/events Event: CID Awards 2010 Overview: This year’s CID Awards will celebrate the success of the Middle East design industry and demonstrate how the region’s sector can stand alongside its international peers. Date: November Location: Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.itp.net/events Event: Home and Life Style 2010 Date: March Venue: Oman International Exhibition Centre Website: www.eventseye.com Events: DWRW 2010 Overview: A trade show for doors, windows, roofs and walls, as well as cladding products, machinery and accessories. Date: March 8-10 Venue: Expo Centre Sharjah Website: www.eventseye.com Events: Saudi International Windows, Doors, Shutters, and Solar Exhibition 2010. Date: March 11-14 Venue: Riyadh Exhibition Centre Website: www.eventseye.com Event: Saudi Building and Interiors Exhibition and Symposium Date: April 4-7 Venue: Jeddah International Exhibition and Convention Centre Events: Buildex Syria 2010 Date: May 12-16 Venue: Damascus International Fairground Website: www.eventseye.com Event: Libya Build 2010 Date: May 16-20 Venue: Tripoli International Fair Website: www.eventseye.com Event: Index 2010 Overview: Index is the Middle East’s largest contemporary interiors trade show. Date: TBC Venue: TBC Phone: +971 4 438 0355
FACE-TO-FACE INTERIOR TALK
NUNO MORAIS
ABDALLAH SABBAGH
Senda, export manager
Condor, CEO
BATHROOMWARE SUPPLIERS TALK ABOUT TECHNOLOGIES THAT ARE BEING INTRODUCED INTO NEW CONSTRUCTION PROJECTS WHAT ARE THE LATEST TRENDS IN BATHROOM AND SANITARYWARE? We specialise in stainless steel bathrooms, which is a niche market. I think the preference for this material is growing because it is long-lasting and it is resistant to vandalism. The initial investment is higher than other materials but customers do get a return on this investment in the long-run.
We have products that are made to measure and we are able to implement hotel logos or other designs into our sanitary products. Developers and contractors are generally asking for custom-made products at the moment.
WHAT NEW TECHNOLOGIES ARE BEING INTRODUCED IN THIS SECTOR? Stainless steel sanitaryware is generally seen as a commercial product but we don’t see it like this. We believe it can also be used at home. Therefore we are producing a new coating, which will make it look more domestic. We also provide other finishes for stainless steel, such as highly-polished and satin.
We provide a sensor in some of our products, which can be used to turn on water jets rather than the traditional push button. We also offer very small jets so 200 jets can be implemented into one bath tub, for example. The jets have different power options also. This technology is popular in hotels at the moment. Our systems are also quieter than traditional systems and have less vibration.
WHICH PROJECTS ARE YOU CURRENTLY SUPPLYING YOUR PRODUCTS TO? We are involved in a project in Saudi Arabia and are supplying to a distributor. We also hope to be awarded the contract to supply our products to a hospital in Oman.
We make some products especially for the Middle East, but at the moment we are not working on any projects here. In Europe we are supplying to five-star hotels.
DO YOUR PRODUCTS HAVE ENVIRONMENTAL ADVANTAGES? We are working on producing waterless products. We already have a water-free urinal and we are testing a system, which combines a toilet and basin in the same piece. The water you use to wash your hands will then be disposed into the toilet, which is then used to flush the toilet. Also, stainless steel is a material that can be recycled and it is lighter than ceramics so more of our products can be put into one container and transported from place to place, which in-turn saves on energy.
The consumption of water is generally high when it comes to bathroom products but the flow of the pump can be adjusted on our products so that water is saved. For example, 200 litres per minute can be pumped out instead of 250 litres. We also have a product called Aurealis, which is a hot tub with stainless steel jets. These jets come complete with heaters and ozone disinfectors so you can use the tub for a few days without having to refill it.
WHAT DO YOU HOPE TO ACHIEVE NEXT YEAR? Despite what has been said about the so-called crisis, we don’t have a reason to complain because we are still growing. We are not, however, growing at the rate we used to, but hope to see some improvement next year. Schools, airports and hospitals still demand stainless steel sanitarywear.
The financial crisis has given us an opportunity to concentrate on developing new technologies, so we will be supplying these to a lot of projects in 2010.
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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COMMENT > For the latest news and comments log on to www.ConstructionWEEKonline.com/comment
Monitoring suspended solids SUDHANSHU KUMAR OF SCOTT WILSON BAHRAIN TALKS ABOUT A NEW ENVIRONMENTAL MONITORING AND DATABASE MANAGEMENT SYSTEM, WHICH WILL HELP LIMIT THE DAMAGE OF DREDGING AND LAND RECLAMATION
“ONCE MONITORING SCHEDULES ARE CREATED, USERS CAN SEE WHAT DATA HAS BEEN RECEIVED, AS WELL AS WHEN DATA IS DUE TO BE COLLECTED AND WHEN DATA IS OUTSTANDING”
Sudhanshu Kumar is the mastermind and the core programmer of the Diana project. Currently employed with Scott Wilson Bahrain as an environmental specialist, he is an Air Quality expert and has a PhD in air pollution meteorology and dispersion modelling. Besides his expertise in mathematical modelling, he is fond of computer programming and believes that the routine database management should be automated, freeing time for in-depth analysis of data.
The opinions expressed in this column are of the author and not of the publisher.
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The Data Input and Net Access (Diana) system is an online environmental monitoring and database management tool designed specifically for dredging and reclamation projects, fulfilling the reporting requirements of environmental regulators in Bahrain. It is increasing the understanding and control of operation in this field of work, allowing for better monitoring, regulation and decision making. The centralised database of Diana stores all environmental information relating to a project. Keeping this information in electronic format on a centralised database has a great deal of advantages, keeping data organised and making processing both simpler and faster. At present, Diana holds data relating to total suspended solids, marine ecology, meteorology and sea state. All of this data allows for a central, coherent data store with a user friendly function to turn data easily into ‘usable’ information by transforming data into graphs, reporting, maps and tables as well as exports for other software. The compliance verification system on Diana automatically verifies all data against compliance limits when it is entered. The system handles multiple compliance levels including warning and breach and is unique to each variable and location. Email alerts are automatically sent to the appropriate recipient according to the type of breach. A variety of compliance reports can then be produced and alerts sent to the designated recipients. A further advantage is that Diana functions as a totally automated system for data processing, backup, email alerts, scheduled reports, monitoring schedules and management. Once monitoring schedules are created, users can see what data has been received as well as when data is due to be collected and when data is outstanding. The system can also proactively send reminders and warnings to users according to data status and settings.
CONSTRUCTION WEEK DECEMBER 5–11, 2009
The records held on Diana can be accessed remotely on any computer using the internet with data being virtually available in real time. In addition, by eliminating the need for paper, it provides a green solution to the problem of record keeping. Diana is the first system of its kind in the Gulf to provide automated updates and analysis of total suspended solids data and has helped to collect the most detailed set of baseline data that has ever been compiled in Bahrain. The successful implementation of the system on the Diyar Al Muharraq project led to its use on further Scott Wilson projects in the Gulf, including the Darari development and Water Garden City. Saving both time and money, it is setting new environmental standards for construction projects in the Middle East and was short listed in the Innovation Award of the Year category of British Expertise International Awards 2009/10.
SUSPENDED SOLIDS The important compliance set by the authorities for the dredging and reclamation projects in the kingdom of Bahrain is the monitoring of total suspended solids (TSS). Total suspended solids are extremely small solids suspended in water, which do not settle by gravity. TSS are measured on a water sample and are particles, which will not pass through a very fine filter (0.45 micron). The filter is pre-weighed prior to passing of the water and then postweighed. The difference in the two weights is the TSS concentration (in mg/L). A high presence of TSS in the water column can be detrimental to existing marine life and processes such as dredging and reclamation are monitored to prevent high limits being left unchecked.
LEGAL > For more legal advice log on to www.ConstructionWEEKonline.com/comment
Economic Hardship Claims: Contractor’s sword or developer’s shield – Part 1 JAMES BREMEN, IN THE FIRST OF A TWO PART SERIES, COMPARES THE CIVIL LAW CONCEPT OF ECONOMIC HARDSHIPS IN DIFFERENT JURISDICTIONS AND HOW THEY MAY APPLY IN THOSE RESPECTIVE AREAS
The Middle East experienced an unprecedented boom between 2004 and 2007, which resulted in a huge number of construction projects being undertaken in a short space of time. As many of these projects near completion, times have changed. Boom followed by potential bust is a lethal combination resulting in contractors looking to recover, as much as possible, out of their existing and completed projects. Many construction contracts in the Middle East have been drafted on a lump-sum basis, making it difficult for contractors to raise claims for additional money under the terms of the contract. In these circumstances, a number of contracts are instead, seeking to raise extra-contractual claims at law under the civil law concept of economic hardship. A claim for economic hardship may entitle a party, which would not otherwise have a legal/contractual claim, to raise a claim in the courts or arbitration on the basis that unforeseeable events have rendered the contract economically unsustainable. Where the boom in construction led to considerable shortages of key construction materials and a huge rise in the cost of labour over a short period, it is hardly surprising that contractors who agreed lump sum contracts with no escalation provisions are actively looking for other basis, which to recover these additional costs from the developer. These claims are not, however, an easy panacea for contractors in financial difficulty and there are a number of important hurdles to overcome in order to succeed in a claim of this type. This article outlines the doctrine of economic hardship and its application in various civil law jurisdictions, particularly the Middle East, and it considers the extent to which it might apply in conditions where a change in economic circumstances exposes a party
under a fixed price contract to substantial loss. It is important to note that whilst the majority of these claims may be brought by contractors, in certain circumstances the remedy can also be used by developers who suffer increased project costs as a consequence of price escalation. The Doctrine of Economic Hardship The doctrine of economic hardship developed under French civil law and is generally understood to apply, where an extraordinary and unforeseeable event of a general or public nature renders performance of a contract by one of the parties excessively onerous. In those circumstances, a party may be relieved from its contractual obligations. The doctrine is similar to another, better known as, French civil law concept, ‘force majeure’, which allows a party to escape liability for failing to perform the contract as a result of human acts or acts of nature. Whilst common law jurisdictions have adopted the concept of force majeure, English law has not recognised the doctrine of economic hardship. Why? Because the doctrine goes against the principle of the sanctity of the parties bargain on which the law of contract is based, where under English law, in the absence of an express term, a party can only terminate on the grounds of frustration or impossibility. The civil law countries of the Middle East have based their civil codes on the Egyptian civil code, which itself is based on French law. Thus the modern civil codes of many Arab countries are a blend of both Islamic Shari’ah, with its strong emphasis on justice and fairness, and the French law, where relief may be given for unforeseeable events. As a result, rules reflecting the doctrine of economic hardship can be found in many of these countries’ civil codes.
“THE DOCTRINE IS SIMILAR TO ANOTHER, BETTER KNOWN AS, FRENCH CIVIL LAW CONCEPT, WHICH ALLOWS A PARTY TO ESCAPE LIABILITY FOR FAILING TO PERFORM THE CONTRACT AS A RESULT OF HUMAN ACTS OR ACTS OF NATURE”
James Bremen is a partner in King & Spalding’s London office and a member of the Global Transactions Practice Group. Bremen has practised exclusively in construction law for more than a decade. He has significant experience in project development and dispute resolution both in the UK and internationally.
The opinions expressed in this column are of the author and not of the publisher.
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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EXCLUSIVE INTERVIEW THOMAS BARRY
THE WILD WILD M I D D L E E AST BACK IN THE DAY, WHEN DUBAI’S DESERTS WEREN’T A WELL-KEPT SECRET, CAMELS WERE A COMMON SITE AND TALK OF ERECTING SKYSCRAPERS FROM THE SAND WOULD HAVE RISKED YOUR EXPULSION FROM THE ARAB STATE, FOUR PIONEERS FOUND THEMSELVES CHARGED WITH THE TASK OF FORMING, WHAT IS NOW THE REGION’S LARGEST LISTED CONSTRUCTION COMPANY – ARABTEC. COMPANY CEO THOMAS BARRY REVISITS THOSE YEARS. By Conrad Egbert
Ten minutes into our chat and it became Kamal, Arabtec chairman, also worked for quite clear that the Irishman sitting in front the same company. Riad’s idea was to start of me had led quite a full life. Barry, who a construction company locally. He had the looks like he’d be in his mid-50s was one means and the backing to put it together and he asked three of us to join him and of those wild, adventurous sorts. “Yes, 1976 is when I came here,” he said look- that was when Arabtec was formed. It was ing out of his office window in Al Quoz. formed in 1975 and then I came out in ‘76. “Dubai at that time had oil and they were All of us worked for McAlpine; Colin went going to use a lot of their oil money to estab- back to McAlpine shortly after, while Peter lish and build the infrastructure for the city left but stayed on and started up his own and I mean, ports, airports, roads, hospitals, interior design company here.” schools etc. So we knew there was going to With Barry now having been with the be a lot of construction activity here.” company for over 30 years, it’s quite safe Some of the bigto assume that he’s a stayer. gest names in UK He agrees, but with a flash “THERE WAS NO construction were of regret. TAR ROAD THEN. WE already in the Mid“Dubai was different then. WOULD USE FOUR dle East including It was really an adventure for Costain and Taylor WHEEL DRIVES, BUT IT one to come out here then, COULD TAKE YOU AS as you felt like a pioneer in a Woodrow who in a LONG AS A DAY AND A joint venture worked new country – things weren’t HALF TO GET THERE on the Dubai Dry easy. Getting around was even (ABU DHABI)” Docks. difficult. My first car was a Due to the lack of non-air-conditioned one. It any notable local wasn’t funny then. It was very construction companies in the region, hot and there were all sorts of other diffithe thought of not establishing one was culties. The Intercontinental Hotel by the simply mad. creek had only just opened and we used to Four friends including Riad Kamal, Colin go down there to get Western-type food, Weekley, Peter Bruce and Barry himself, because everywhere else you couldn’t get it. all of whom worked at UK-based Sir Rob- Even when our families moved here a few ert McAlpine at that time, decided to get years after us, there were lots of things you couldn’t get here. You’d hear that certain together and start up Arabtec. Barry recounts: “I worked for Sir Robert meats or sugar or something, had come McAlpine in the UK at that time and Riad into a certain supermarket, and we’d all
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CONSTRUCTION WEEK DECEMBER 5–11, 2009
go running down there to buy ourselves some; it’s true,” he exclaimed to counter any disbelieving looks. “We didn’t have IT then, we didn’t have stock markets, banks were pretty rough at that time. All these parts of life that we’re so used to now, didn’t exist here. There were no ATM machines; there were no faxes, no mobile phones; it was a totally different way of life. Entertainment was all home type – home dinner parties, gatherings on the beaches when it was far less developed; roads to Abu Dhabi were tracks – there was no tar road then – we would use four-wheel drives, but it could take you as long as a day and a half to get there,” he continued. From mapping his way along the coast to Abu Dhabi in 1976 to now schmoozing at the Madinat Jumeirah, Barry says he’s come a long way. “The contrast is beyond anyone’s imagination as you can well appreciate,” he says looking out his Al Quoz office window. “Dubai, at that time, stopped where they were building the trade centre. Beyond that in this direction (Abu Dhabi bound) there was nothing – it was just desert; lots of nice beaches, which are all now built up, but there was nothing. The pace of construction overwhelmed even Barry, who is not a local from these parts, so what effect would such changes have on natives in the region? Barry appears to understand this.
FRANCISCO FERNANDEZ/ITP IMAGES
> For more people interviews log on to www.ConstructionWEEKonline.com
“I suppose a lot of it must have happened “You could say that about many parts of too fast for them,” he says. the world, but don’t forget that technology “If they were Bedouins living in the des- develops at a very fast pace these days and ert, who were used to getting around using likewise Dubai grew with that huge pace and camels for that matit absorbed all the technolter, the developments, ogy. It became, because of its when they happened “THERE ARE PROJECTS weather, a tourist destination. ON THE TABLE AND I here, must have been I can’t say that it grew any THINK IN TIME THEY pretty fast for them faster than any other places WILL COMMENCE, and it must have been like China. Dubai was unique BUT IT (REGION) WILL a big culture shock. in the kind of innovations NEVER SEE THE KIND “Just like coming here that prevailed through HH OF CONSTRUCTION was a culture shock ACTIVITY THAT IT SAW Sheikh Rashid bin Saeed Al for me too, because Maktoum and then through IN THE RECENT PAST” at that time I’d never his son Sheikh Mohammed worked out of Irebin Rashid. They were libland and the UK, eral minded, adventurous in and we were used to western civilisation their concept of how the country should be and western ways and when we came out developed and what it should offer to the here, it was totally different. But I think it world. They were unique in many projects took a certain type of person who would they developed, firsts in the world for many actually come out here and work in areas of them. I think, it has stood Dubai in good like this – I mean you had to be a bit of an stead. Everyone knows Dubai now, whether it’s through its sporting achievements, adventurer or a pioneer.” But not anymore. Now you’re coming iconic buildings or innovative approach out to a modern city, with almost every to everything it does. When you look back facility including roads, hotels, schools at what they’ve accomplished and what and hospitals. In fact, construction in the they’ve done, it’s huge.” region reached such a grand scale that it But, just when green shoots of recovery now boasts the tallest skyscraper in the seemed to be sprouting from the sands, world, embroidered man-made islands and Dubai World’s request for an extension on an indoor ski slope. But did it all go too fast? its loan repayment sent tremours throughBarry is divided. out world markets.
So is there still light at the end of the tunnel? Barry thinks so. “I do believe Dubai will recover once they’ve sorted out their present financial issues, whether it be the government or quasi government entities – they have responsibilities to complete and pay for a number of projects and once that’s achieved and they’re on a much stronger footing, I think they will definitely carry on developments, which will be vital for Dubai’s future and it’s reputation in the world. But I think it will be gradual. There will be no big explosion of construction again. But what exactly does “recovery” mean? Barry explains. “I think they’d have a far more structured approach to what they do and why they do it. Projects will, I think be thought out in far more detail – like if they’re needed or there’s a demand for it, do a proper risk analysis of them to see if its viable and I suppose projects will have to be attractive and more innovative. Hopefully, projects like the Jebel Ali Palm and Dubailand will go ahead. If they want to attract tourism here, they’ve got to have the attractions, which are beyond just sunshine and beaches. I think they need more to it. There are projects on the table that have not commenced and I think in time they will be, but it will never see the kind of construction activity that it saw in the recent past.”
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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BA H RA I N BAY LO O K I N G FO RWA R D BAHRAIN BAY’S CEO BOB VINCENT SAYS DESPITE A TOUGH YEAR, THE US $2.5 BILLION MEGA PROJECT HAS DELIVERED ON ITS INFRASTRUCTURE REQUIREMENTS AND GREATER MOMENTUM IS FORECAST FOR 2010 By Benjamin Millington
T
here is no doubt that 2009 has been tough for developers across the region and while some have vanished and others drastically under-delivered on promises, Bahrain Bay is keen to tell the world it has weathered the worst of the storm. Last week, the master developer held a press conference and site tour for the region’s media to deliver three key messages: infrastructure for the project is being delivered on target; all third party developers are still onboard; and several will start construction in 2010. The US $2.5 billion (BD943 million) project is located off the north eastern coast of Manama, occupying prime real estate beside the upcoming Bahrain Financial Harbour and in front of the iconic World Trade Centre.
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With a population of around 13,000 and normal during the peak of the construction more than 40 buildings and towers designed boom. The 430,000m² of land reclamaby leading architecture firms, Bahrain tion had been completed, infrastructure Bay is expected to work had started and not only become an the project’s three “BAHRAIN BAY HAS NOT iconic development, anchor developments FALLEN BEHIND WHAT but will help change had begun construcWOULD BE CONSIDERED A the perception and tion on site. REALISTIC DEVELOPMENT PROGRAMME” function of Manama, By the end of 2009 as well as the counit was expected that these projects, and try itself. In mid-2008 the development was hurtling several others, would be well into construcalong at the breakneck speed considered tion, but only one has remained relatively
THOSE INVOLVED IN BAHRAIN BAY: INVESTORS
Arcapita Bank with a Bahrain investment consortium
MASTER PLAN DESIGN
Skidmore, Owings & Merrill
ADDITIONAL CONSULTANTS
Mace, Atkins
CONTRACTORS
AMA, Dalkia, Nass Murray & Roberts JV, Mandl Construction, Alkomed
RECLAMATION
Boskalis
CONSTRUCTION WEEK DECEMBER 5–11, 2009
BAHRAIN BAY CEO BOB VINCENT IS STILL POSITIVE.
THE MIXED-USE PROJECT HAS MANAGED TO MAINTAIN ITS FULL TEAM OF 16 THIRD PARTY DEVELOPERS.
on track while the remainder went back to the drawing board to redesign according to new market expectations. Two of the anchor developments have both suffered significant delays. Raffles City Bahrain completed its substructure in mid2009 before delaying the tender for main construction, while the Four Seasons Hotel stopped work onsite after piling. The one exception is the $150 million headquarters for the Arcapita Bank, the third anchor development. The headquarters covers 49,000m² and will offer 18,000m² of office space. Construction started in March
2007 and is expected to be finished by the end of 2010. For the public regularly passing by this prominent project, the visual progress of Bahrain Bay in 2009 has been somewhat of a letdown following the hype and momentum of 2008. But CEO Bob Vincent is keen to set the record straight. “Everything we expected to deliver, we have,” he says. “We began 2009 knowing it would be tough, but we have still had a successful year and we believe that has put us in a very good position for 2010.
65% OF BAHRAIN BAY’S LAND HAS BEEN SOLD
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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BAHRAIN BAY DEPUTY CEO ABDULLA AL DOSERI.
THE ECONOMIC DOWNTURN HAS SET THE DEVELOPMENT OF THE BAY BACK BY AROUND SIX TO 12 MONTHS,
“That could be a factor of luck, but it is a normal construction and development cycle; it was the peak of a boom period,” also a factor of good management.” Overall Vincent he says. says the econom“So while there has “WE DO NOT ALLOW LAND ic downturn has been slippage from SPECULATION, LAND probably set Bahthe expectations of FLIPPING AND THERE rain Bay back by 2007, Bahrain Bay has ARE PENALTIES FOR NOT PROCEEDING” between six to 12 not fallen behind what months, but he is would be considered quick to point out a realistic and normal that the expectations set in 2007 were prob- development programme. ably too high. “It’s a very big project and it’s not uncom“The thing you have to keep in mind is mon for a project of this size to be developed that you can’t consider 2007 or 2008 as over two or even three economic cycles.”
Despite the slowdown, Vincent says Bahrain Bay has still delivered all civil infrastructure works as required, a total investment of $250 million. Currently, around 70% of work is finished and all main contracts, including roads, bridges, utilities and services, will be completed by mid next year. He says the second highlight of 2009 is that Bahrain Bay has managed to maintain its full team of 16 third party developers, who are all moving forward with their project programmes in a positive mindset. “Because of the tough economic conditions we have been required to show some
BAHRAIN BAYS MOST ADVANCED PROJECTS THIRD PARTY DEVELOPER
ORIGIN
PROJECT DETAILS
PROJECT STATUS
ARCAPITA BANK
Bahrain
Bank headquarters offering 18,000m² of office space
Under construction, completion expected end of 2010
FOUR SEASONS HOTELS
Hotel tower
In redesign process, piling complete, aiming for construction start in Q2 2010
CAPITALAND – RAFFLES CITY BAHRAIN
Singapore
450,000m² residential project with three towers up to 42 storeys
Substructure complete, in redesign of product mix, aiming to start main tender process in first half 2010
GUIDANCE FINANCIAL GROUP
France
Shariah compliant hotel
Exchanged title, expected to go to building permit stage in Q1 2010, construction start within 2010
DAMAC GROUP
UAE
40-storey residential tower
Exchanged title, detailed design due in Q1 2010, construction start within 2010
COOPERATION INVESTMENT HOUSE
Bahrain
Commercial office, 47-storey spiraling tower
Started piling onsite and considering two stage construction programme
AL BARAKA BANKING GROUP
Bahrain
Nine story duplex, commercial office/headquarters
In advanced design
SALHIA REAL ESTATE
Kuwait
Mixed use office/retail, 33-storey circular tower
In advanced design
KHALEEJ CAPITA
Bahrain/Qatar
Mixed-use 60 storey tower
In advanced design
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
21
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$2.5 BILLION THE ARCAPITA BANK HEADQUARTERS COVERS 49,000M² AND WILL OFFER 18,000M² OF OFFICE SPACE.
BAHRAIN BAY INFRASTRUCTURE IS PROGRESSING ON SCHEDULE, ACCORDING TO THE MASTER DEVELOPER.
flexibility in those economic programmes, allowed Bahrain Bay to maintain its repuwhich we have done,” he says. tation and continue uninhibited.” “We have extended their performance Looking forward, Vincent says he expects schedules in terms three, possibly six, more of submissions for developers to be active on “WE WANT TO ADD documentation and site by the middle of next year AS MUCH VALUE we have shown flexi– two of which have already TO THAT LAND AS bility in their land payexchanged land titles. In addiPOSSIBLE” ment schedules. tion, he says Four Seasons and “This will allow Raffles City will reinvigorate them to adapt to the additional economic their construction efforts. pressures they’ve been placed under. That The Four Seasons, which was significantly has been a cooperative process which has scaled back during its redesign, will start
the final tender process for main construction by the end of Q1 2010 and construction within the first half of the year. Meanwhile, Raffles City is currently redesigning its retail and sky villa components. They are hoping to start the tender process by the end of Q2 2010. The fact that all third party developers are moving forward in a “positive mindset” can be attributed to Bahrain Bay’s cooperative approach, but also its stringent developer criteria, says Vincent. “As a land developer, we have implemented commercial guidelines to protect our interests, as well as third party developers who have committed to the project,” he says. “We do not allow land speculation, land flipping and there are penalties for not proceeding. These factors will help ensure the long-term success of Bahrain Bay.” Up until now 65% of Bahrain Bay’s land has been sold, the remaining 35% is expected to sell by the end of 2011 or early 2012 because of three main factors. “It is high quality land, but the market for that land needs to be reinvigorated and that could take 12 to 24 months,” he says. “Also significant proportion of the land is tied up in two large precincts, not as individual plots. The process of designing, approving and getting that to market takes much longer. “The third factor is value adding. We want to add as much value to that land as possible, which will happen as the development progresses and more projects are built out.” Overall Vincent says it could be anywhere between five to ten years before the entire project is built out.
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
23
PREPARED FOR
ACT I O N HOW CAN THE USE OF PRECAST CONCRETE HELP YOU WIN FUTURE WORK? CONSTRUCTION WEEK INVESTIGATES THE BENEFITS AND CHALLENGES OF THE PRODUCT AND ASKS: WHAT IS THE FUTURE OF PRECAST IN THE MIDDLE EAST? By Alison Luke
A
s 2010 approaches, many firms are reevaluating their working methods in order to maximise their efficiency prior to any potential upturn in the construction sector. Value engineering is thus becoming a common phrase, with off-site prefabrication one of the key factors being considered for this process. Off-site prefabrication can be applied to many elements of a building. And, while a wide variety of materials and products can be used in the process, one of the most successful is concrete. So what is the uptake of precast concrete products in the Middle East and how is the material being used? “Precast concrete was introduced to this part of the world more than ten years ago and has rapidly grown in popularity,” reports Dubai Precast general manager Matti Mikkola. The use of precast concrete products peaked in 2007-08, as did the construction sector in general, however its rise in use was not simply down to a stronger construction market. “Along with a rapid increase in the construction sector, the precast business
24
managed to gain an increasing market share from the conventional structural systems,” reports Mikkola.
PRECAST CONCRETE IN USE There is a vast range of applications for precast concrete within the construction industry, many of which are installed for a project’s operational purposes. “Sanitary and storm sewers, box culverts, catch basins, pump/lift stations, septic tanks, exterior grease interceptors, water storage tanks, wet wells, electrical and communication vaults and many other products all play a pivotal role in maintaining a clean, healthy, productive environment. The main components of these systems typically consist of precast concrete,” explains Xtramix International Precast’s precast operations manager Dr Tomasz Ciesielski. In addition, precast concrete can be used to provide larger structural components
“PRECAST CONCRETE WAS INTRODUCED TO THIS PART OF THE WORLD MORE THAN TEN YEARS AGO AND HAS RAPIDLY GROWN IN POPULARITY”
CONSTRUCTION WEEK DECEMBER 5–11, 2009
such as walls, frames and floors. The basic concept remains the same: at a factory location in advance of being needed on a project, concrete is poured into shaped casts to form individual components. These are then transported to the construction site when required and connected together to form the final structure. One very visible, large-scale use of precast concrete currently underway is the Dubai Metro project; however it is also being used extensively in the region for many other less prominent projects.
DUBAI PRECAST GENERAL MANAGER MATTI MIKKOLA.
> For more special reports visit www.ConstructionWEEKonline.com
“A large majority of projects done with precast are housing projects; these comprise of many types of low-rise buildings, including labour accommodation, hostels and housing projects,” reports Mikkola. “The repetitive nature of these projects makes precasting them a wise decision as it reduces the amount of manpower required; the components are produced in a factory where the efficiency is higher and only a small amount of labour is required for the installation at site,” Mikkola explains. The second largest sector for precast use is commercial buildings, including offices and shopping malls. “Some precast products are very efficient for [providing] long spans such as those required in shopping malls and car parks,” explains Mikkola. “The architect is able to provide large open spaces, which are the requirement in modern malls,” he adds. “Architectural precast concrete provides architects with an exciting medium when designing facades for a wide range of buildings, from healthcare facilities to shopping
tural and decorative design requirements as it is possible to achieve a variety of concrete mixes and finishes under factory conditions. Precast walls are suitable for central cores and lift shafts in addition to internal and external building walls. Mainly used for domestic properties, precast walls can be load-bearing or partition only, depending PRECAST CONCRETE CAN BE USED FOR A VARIETY OF APPLICATIONS. on the client needs. “Precast walls offer the advantages malls, commercial office buildings to sports of speed of construction, smooth surface stadiums,” adds Ahmad E’Wida, quality finishing, acoustic insulation and fire resisassurance/quality control manager and tance,” explains E’Wida. precast operations manager’s assistant, Floors can be totally or partially precast Xtramix International Precast. “Precast according to project requirements. E’Wida concrete frames involve an entire struc- explains: “Partially precast floors are comture being fabricated off-site. In addition, posed of a precast part and a cast in-situ structural components can be supplied for part; both parts work together at the final incorporation into a structure on-site,” adds stage to achieve the composite structural E’Wida. Such precast building frames can be capacity.” With fully precast floors, a series used to simultaneously achieve both struc- of parts are cast at the factory then con-
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“PRECAST CONCRETE FRAMES INVOLVE AN ENTIRE STRUCTURE BEING FABRICATED OFF-SITE”
XTRAMIX INTERNATIONAL PRECAST’S PRECAST OPERATIONS MANAGER TOMASZ CIESIELSKI.
“BECAUSE PRECAST CONCRETE PRODUCTS TYPICALLY ARE PRODUCED IN A CONTROLLED ENVIRONMENT, THEY EXHIBIT HIGH QUALITY” nected on site, with the longitudinal joints grouted; in some cases a further structural topping screed is cast in-situ.
BENEFITS AND CHALLENGES So should you use precast components for your next project? There are a number of advantages and disadvantages to consider when making the decision whether to use precast and if you do so, to what extent. “The advantages [of using precast concrete] are higher [final build] quality due to the factory production environment; higher efficiency; lower manpower requirement on site; and definitely faster construction speed,” states Mikkola. In addition, a number of construction site issues can be addressed. “The potential for accidents is reduced; programmes are not affected by weather or labour availability; and it addresses on-site skill shortages,” explains E’Wida. “Buildability of the structure is improved and a potential early closing of the building envelope means that follow-on trades can begin work earlier, reducing the overall build programme,” he adds. The high quality finish possible in precast concrete products also means that such components can be left exposed in the final building or covered with little or no additional on-site preparation needed. “Because precast concrete products typically
XTRAMIX INTERNATIONAL PRECAST QA/QC MANAGER AHMAD E’WIDA.
XTRAMIX LIGHT TRANSMITTING CONCRETE.
are produced in a controlled environment, they exhibit high quality and uniformity. Variables affecting quality typically found on a job site, such as temperature, humidity, materials quality and craftsmanship, are nearly eliminated in a plant environment,” stresses Ciesielski. The relatively better strength and durability of precast to poured in-situ concrete should also be considered. “The strength of precast concrete gradually increases over time, whereas other materials can deteriorate, experience creep and stress relaxation, lose strength and/or deflect. The load-carrying capacity of precast concrete is derived from its own structural qualities and does not rely on the strength or quality of the surrounding backfill materials,” Ciesielski explains. There are also some less positive points that should be considered when determining the potential benefits of precast concrete for a project. “The system building is less
flexible in its design concept than purposemode structures; plus structural connection between the precast concrete units can present both design and contractual problems,” warns E’Wida. “Each project is different,” reminds Mikkola. “For some types of buildings, precast is always the cheaper solution; for example, with long-span parking buildings the structure will be cheaper, much faster to build and the final quality is very high,” he adds.
SUSTAINABLE CONSTRUCTION One of the primary considerations with any product or material currently being applied to Middle East construction projects is its sustainability or contribution to ‘green’ building. Precast concrete meets these demands in several ways. Firstly, precast concrete products have been shown to have a service life of more
PRECAST CONCRETE: THE BENEFITS • Durability: the final product is produced according to client specifications for durability and products can last more than 100 years. • Assured quality: the concrete is precast in factory-controlled conditions, removing any external conditions on site that may affect its final quality. • Reduced labour is required on site. • Faster on site construction times can be achieved as the products are simply slotted into position after delivery.
• The strength of precast concrete has been proven to gradually increase with time. • The load-carrying capacity of precast concrete is derived from its own structural qualities and does not rely on the strength or quality of surrounding backfill materials. • The precast products can be ordered in advance to ensure availability at the time needed on a project and can be produced at times when materials prices are most competitive.
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
27
than 100 years, with the potential for the precast elements to be dismantled following the lifetime of a building and reused for future applications. “This needs to be considered in the design from day one, however we think that one day that will be a major consideration,” predicts Mikkola. In addition, the product can be used to contribute to reducing operational energy use in a building. E’Wida explains: “Architecturally-finished precast structures can be left exposed to exploit the concrete’s high thermal capacity in a building’s green energy management system.”
THE FUTURE OF PRECAST CONCRETE? What is the future for precast concrete use in the Middle East? Will buildings be designed to enable its use and maximise long-term value engineering or will the economic downturn see a fall in demand for the forseeable future? In order to truly maximise the benefits of the product, traditional design and construction methods may need to be reviewed.
“If the full advantages of precast concrete are to be realised, the structure should be conceived according to its specific design philosophy,” stresses E’Wida. “Often the buildability of a project is not considered in the initial stage; the architect has a free hand. During the last few years especially, the building’s external shape and design has been the main criterion for the architect and the developer,” explains Mikkola. “Buildability, especially using precast components, would require quite a bit more initial consideration than is often locally done,” adds Mikkola. “Designers should from the very outset of the project consider the possibilities, restrictions and advantages of precast concrete, its detailing, manufacturer, transport, erection and serviceability stages before completing a design in precast concrete,” adds E’Wida. “Most design briefs can be fulfilled without too much modification to the original concept,” he stresses.
The current economic climate is acting against the uptake of the product reports Mikkola: “The precast industry is faced with an additional problem in this [current economic] scenario,” reports Mikkola. “All contractors have a large surplus of workers and in order to keep these workers, some are willing to choose less efficient work methods to complete the projects. Time is seldom an issue anymore and won’t be for the near future. Currently there is a huge volume of precast capacity in the market; much beyond what will be needed in the next one to two years,” he adds. However, in the long-term the use of precast concrete is sure to feature more prominently in the market. “Pre-fabrication has a great potential to respond to new market demands,” stresses E’Wida. “The possible solution lies not only within the classical advantages related to working conditions, technology and speed of construction, but also in new developments of materials such as high performances and self-compacting concrete, green concrete buildings systems,” he concludes.
SEALING SURFACES With concrete one of the most popular building materials in the Middle East, ensuring its long life, quality surface finish and suitability for ‘green’ building are important considerations. There are now several products available in the market that aim to ensure these factors, including specialist sealing products. One such product is Ashford Formula. A concrete sealant used worldwide for around 60 years, the product range was soft-launched into the region’s market three years ago and the firm is currently undertaking a continuing expansion programme within the Middle East. “Specific project types were selected as test beds in different industries, these were monitored to ensure regional suitability, given the at times challenging conditions here in the Middle East,” reports Ashford Formula director of Curecrete Distribution Tony Hogg. “The main benefits of Ashford Formula are that your concrete floor is permanently sealed, dust-proofed and hardened for the
28
lifetime of the concrete,” explains Hogg. In addition, the product increases abrasion resistance and curing; plus, it meets the current international sustainable building standards, being accredited to both Leed and TUV. Ashford Formula is used primarily for floors, but can also be applied to walls used in the tilt-up building method, where the product is applied to the walls in a horizontal position prior to being hoisted into place. A high percentage of installed applications to date has been in low-level warehouse buildings where longevity, dust-free environments and a clean appearance are
CONSTRUCTION WEEK DECEMBER 5–11, 2009
vital. “In this region we have seen an increase in the use of Ashford from an architectural perspective in offices, villas and hotels,” reports Hogg. The product can be used on all types of concrete structure, whether precast, selflevelling or traditional forms. “The important thing is that [the concrete] must contain OPC as the Ashford Formula reacts with cement particles within the concrete to create a chemical reaction, which in turn leads to an initial gel stage,” explains Hogg. “Tetrahedral shaped crystals are formed [during this stage] locking themselves permanently to the matrix of the concrete, thus creating a lifelong seal, hardening the surface of the concrete by on average 40% and turning a naturally dusting surface into a dust free finish,” adds Hogg. Ashford currently serves the GCC from its UAE base a wider network of distributors. Its strategy for 2010 is to develop and expand its list of distributors and approved applicators within the region.
www.ConstructionWEEKonline.com/directory
§ § § § § DIRECTORY
DIRECTORY SHOWCASE | TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE
38 SHOWCASE 40 TENDERS 41 PROJECTS SPECIALIST SERVICES 42 Building materials 43 Construction chemicals/concrete 44 Education & training/flooring 45 Recruitment/steel CITY UPDATE 46 Riyadh, Saudi Arabia
To advertise please call Shishir Desai +971 4 435 6375, or email shishir.desai@itp.com
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
29
¦SHOWCASE
For images within these pages please email editor@constructionweekonline.com
ITP IMAGES FOR IMAGES WITHIN THESE PAGES PLEASE EMAIL EDITOR@CONSTRUCTIONWEEKONLINE.COM
TOP LEFT: A construction labourer for Taisei works on the DJA development. Taisei was the main building contractor for The Galleries – the first completed project at Downtown Jebel Ali – where contractors such as Habtoor (landscaping), ARC and Kier Dubai (infrastructure) and Shimizu (Sheikh Zayed Road and Interchange 8) also operated. RIGHT TOP AND BOTTOM: Work takes place in the first phase of Downtown Jebel Ali. Work commenced in mid-2006 and the first buildings in The Galleries were completed by the beginning of 2009. The whole DJA footprint covers 2 million m² and sprawls back 11km from Sheikh Zayed Road.
30
CONSTRUCTION WEEK DECEMBER 5–11, 2009
DOWNTOWN JEBEL ALI Photos by Khaled Termanini/ITP Images Downtown Jebel Ali is a huge mixed-use master development from Dubai World developer Limitless, which is being built to add office space, residential, commercial and leisure facilities to Dubai’s industrial Jebel Ali area. Work on the first project, Limitless’ own The Galleries, is reaching completion, with several buildings already delivered.
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
31
For images within these pages please email editor@constructionweekonline.com
LEFT: Chinese firm Zoomlion provided seven giant TC6517A cranes for the construction of The Galleries – the cranes boast features such as modern PCL control and 10-tonne SWL. Taisei bought the cranes – which are modular and can be taken down and moved easily – brand new specifically for the DJA project. BELOW: Beneath the buildings, you can see the 300m-long plaza and garden area that is a main feature of The Galleries and will have trees, benches, water features, picnic areas and a giant permanent screen built into an amphitheatre area. The 20,000m² area accounts for US $32.6m of the $544m that The Galleries project cost.
TENDERS §
¦TENDERS FREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRY TO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM
Tender focus
BAHRAIN ELECTRICITY AND WATER AUTHORITY
To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com
The Electricity and of the Muharraq wastewater Water Authority is plant, which will have a the agency responsible 100,000m³ to 150,000m³ per for the production day capacity. and supply of power A spokesperson for the and water in Bahrain, Ministry of Works said in working as an June that the tender for the independent arm of Muharraq plant would close the state. According to by October 28 this year. Bahrain’s latest water The contract is expected report, the kingdom to be awarded by March or has drafted a national April, 2010. The government BAHRAIN HAS PUSHED FOR THE DEVELOPMENT OF IWPPS. policy for wastewater, arm is looking to award the including reuse of consultancy contract for a treated sewage effluent. A major boost to wastewater water transmission development scheme before endtreatment capacity will come with the development 2010, which will add 165km of new pipelines.
BAHRAIN Issuer: Electricity and Water Authority Tender No: 325/2009/5310 Description: The supply of an 11KV VCB switch board panel for Sheikh Khalid Al Ali Mall. Closes: December 23 Fees: BD15 Contact: Tender Submission Office, 7th floor, Tender Board Office at Al Moayyed Tower, Manama. EGYPT Issuer: Egyptian Railways Integrated Services Company Description: Engineering, design, installation and commissioning of four stationary trains washing systems in Cairo. Closes: January 24 Fees: EP5000 Bond: EP200,000 Contact: The Railways Workshops, Al Farz, El Sharabiya, Cairo OMAN Issuer: Ministry of Housing Tender No: 301/2009 Description: Construction of 32 housing units and a mosque in the Al Sharqiya region. Fees: OR500 Closes: December 7 Contact: www.tenderboard.gov.om Issuer: Ministry of Health Tender No: 307/2009 Description: Construction of health centre at Musanah. Closes: December 7 Fees: OR375 Contact: www.tenderboard.gov.om Issuer: Oman Tourism Development Tender No: 308/2009 Description: Provision of consultancy services for the development of Fort Hotel.
Closes: December 7 Fees: OR375 Contact: www.tenderboard.gov.om Issuer: The Public Authority for Stores and Food Reserve Tender No: 302/2009 Description: Consultancy services for the design and construction supervision of new warehouses at various regions in Oman. Closes: December 7 Fees: OR100 Contact: www.tenderboard.gov.om Issuer: Ministry of Health Tender No: 304/2009 Description: Construction of a health centre in Saham. Closes: December 14 Fees: OR400 Contact: www.tenderboard.gov QATAR Issuer Public Works Authority Tender No: PWA/ITC/040/09-10 Description: Construction of sewer manholes. Closes: December 6 Fees: QR1000 Contact: Contract Department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/045/09-10 Description: Reconstruction of the Najma Road extension. Closes: December 8 Fees: QR7000 Contact: Contract Department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/042/09-10 Description: Construction of main roads, as well as internal roads for packages one to five. The project is located around 3km north of Doha. Closes: December 8 Fees: QR5000 Contact: Contract Department, Public Works Authority
Issuer: Public Works Authority Tender No: PWA/GTC/049/09-10 Description: Modifications and additions with associated services to exiting 36 schools around Doha. Closes: December 8 Fees: QR2000 Contact: Contract Department, Public Works Authority SAUDI ARABIA Issuer: Royal Commission for Jubail and Yanbu Tender No: PIC G-1679E Description: All work necessary for a complete operational facility of Juma Mosques. Closes: December 5 Contact: Director, Purchasing and Contracting Department, PO Box 30031, Madinat Yanbu Al Sinaiyah Issuer: Saudi Railway Organisation Tender No: 218 Description: Specification for the design of new bridges for the rail line with the assessment of the existing railway bridges and concrete sleepers on the rail line in various locations between Dammam and Riyadh. Closes: December 7 Contact: www.saudirailways.org UAE Issuer: Dubai Electricity and Water Authority Tender No: CE/0423/2009 Description: Supply, installation, testing and commissioning of 132/11KV substations. Closes: December 6 Fees: AED5000 Contact: www.dewa.gov.ae Issuer: Ministry of Public Works Tender No: 2009/167/10-341104-7091-7048 Description: Construction of a maternity and children’s hospital in Sharjah, UAE. Closes: December 22 Fees: AED8000 Contact: www.mopw.gov.ae > For more tenders check online at www.ConstructionWEEKonline.com/tenders
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CONSTRUCTION WEEK DECEMBER 5–11, 2009
¦PROJECTS
> For the latest projects information visit www.ConstructionWEEKonline.com/projects
§ PROJECTS
A UAE DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM
Project focus
THE REGENT EMIRATES PEARL HOTEL The US $237 million (AED870 million) Regent Emirates Pearl Hotel, set to be completed by Q4 of 2012, will sit on a 10,000m² plot comprising four podium levels, 45 floors, 377 rooms and suites and 60 furnished apartments. The development will be located on the Abu Dhabi Corniche. Arabian Construction Company (ACC) and Tourism Development Investment
PROJECT TITLE
Company (TDIC) will form a joint venture to build the hotel, which will be 240m-high once completed. ACC has worked on projects such as the Sheikh Zayed Grand Mosque and Capital Plaza. TDIC is a master developer of tourism real estate assets within Abu Dhabi. The company is charged with assisting the provision of infrastructure.
REGENT EMIRATES PEARL HOTEL IS SET TO BE COMPLETED BY 2012.
CLIENT
CONSULTANT
MAIN CONTRACTOR
VALUE (US$MN)
STATUS
CITY OF LIGHTS - C10, C10A AND C11
Tamouh Investments
Palm & Turner Architects
China State Construction & Engineering Corporation
101 - 250
project under construction
ROYAL CITY SEASONS HOTEL IN ABU DHABI
City Seasons Group
James Cubitt & Partners
Tae Young Contracting
101 - 250
project under construction
RITAJ MIXED-USE COMPLEX IN DIP
Dubai Investments Real Estate Company
Al Jabal Consultants
Robust Contracting
155
project under construction
LAYIA HOSPITALITY IN DUBAI
Gulf General Investment Company
National Engineering Bureau
Not Appointed
31 - 100
project under design
AL FALAH DEVELOPMENT IN ABU DHABI - 2000 VILLAS
Aldar Properties
Al Torath Engineering Consultants
El Seif Engineering & Contracting Company
251 - 500
project under construction
FISHERMAN’S QUAY IN RAS AL KHAIMAH
RAK Properties
EDAW
Not Appointed
101 - 250
project under design
UNION CO-OPERATIVE HYPERMARKET IN AL BARSHA
Union Co-operative
Archdome Consulting Engineers
Bu Haleeba Contracting
33
project under construction
EXTENSION TO THE RULER’S COURT IN SOUK AL KABIR
Dubai Municipality
Arif & Bintoak Consulting
Not Appointed
22
project under design
ARJAAN HOTEL APARTMENTS IN ADNEC
Bin Hamoodah Properties
GA Architects & Engineers
Not Appointed
31 - 100
award awaited for the construction contract
ALPS HOTEL IN RAS AL KHAIMAH
Union Group of Companies
UniEstate
Not Appointed
101 - 250
project under design
FRANKFURT SPORTS TOWER 1 IN DSC
Memon Investments
Al Hatmy Design & Engineering Consultants
OST Constructional Projects
THE VILLA IN DUBAILAND - PHASE 3
Dubai Properties
Shadeed Engineering
LILIES TOWER IN EMIRATES CITY
R Holdings
Adnan Saffarini
CHAMPIONS TOWER II IN DUBAI SPORTS CITY
Memon Investments
Adnan Saffarini
CHAMPIONS TOWER III IN DUBAI SPORTS CITY
Memon Investments
Adnan Saffarini
REFURBISHMENT OF OASIS HOSPITAL IN AL AIN
Oasis Hospital
Peddle Thorp Architects
Not Appointed
31 - 100
project under design
SAMI BUSINESS TOWER IN BUSINESS BAY
ACI Real Estate
Dimensions Engineering Consultants
Saquer Engineering & Contracting Enterprises
31 - 100
project under construction
SANDOVAL TOWNHOUSES & RESIDENCES IN JUMEIRAH VILLAGE
Bavaria Gulf
Diar Consult
Al Sayegh Contracting
31 - 100
project under construction
UAE
project under construction
Al Shafar General Contracting
91
project under construction
Abou Seif Building Contracting Company
87
project under construction
Al Sarh Contracting
30
project under construction
Al Sarh Contracting
40
project under construction
To list your projects in this section email details to editor@ConstructionWeekOnline.com
92
SPECIALIST SERVICES §
¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL SHISHIR.DESAI@ITP.COM
Supplier focus
KOHLER MANUFACTURER OF POWER GENERATORS, PLUMBING PRODUCTS AND HOME INTERIORS
RALF BECKER, PRESIDENT FOR KOHLER COMPANY’S KITCHEN AND BATH DIVISION, EMEA.
To advertise please call +971 4 435 6375 or email shishir.desai@itp.com
Founded in 1873 and headquartered in Wisconsin, US, Kohler is a manufacturer of kitchen and bath products, engines and power generation systems, cabinetry, tile and home interiors, and owns a range of hospitality and golf destinations. Kohler employs more than 31,000 associates on six continents, operates plants in 49 worldwide locations, and has dozens of sales offices around the globe. The company entered the power generation market in the early 1920s and today manufactures generator sets up to 2800KW, transfer switches, switchgear and accessories. Kohler Engines is a manufacturer of air- and liquid-cooled, four-cycle gasoline engines ranging from fourto 38-horsepower, serving the, construction and industrial markets. The third business, Kohler Rental, provides emergency generators,
BUILDING MATERIALS
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CONSTRUCTION WEEK DECEMBER 5–11, 2009
mobile lighting, temperature control and on-site and technical support for the industrial and event markets. Kohler Interiors Group began in 1986 when Baker Furniture joined the Kohler family of businesses. Over the years, the Kohler Interiors Group has grown to include Milling Road casual furniture, a division of Baker Furniture; Dapha, a custom upholsterer; McGuire high design furniture of rattan, woven peel, teak, bamboo and Oriental hardwoods; Ann Sacks, a supplier of tile, stone and plumbing; and Kallista luxury plumbing products and collections. The Kohler Kitchen and Bath Group supplies plumbing products and cabinetry to the residential, commercial and industrial markets.
BUILDING MATERIALS
HARD LANDSCAPING SUPPLIER
CEILINGS/PARTITIONS
§ SPECIALIST SERVICES
> For directory information visit www.ConstructionWEEKonline.com/directory
Calcium silicate and cement bre boards of thickness 6mm, 9mm and 12mm. Tiles vinyl fabricated and painted. CONSTRUCTION/MANUFACTURERS
CONSTRUCTION CHEMICALS
Painting and finishing tools
Monoblock
ThermoBound
DEWATERING
Engineering Works Foundation Infrastructure (L.L.C.) P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E. Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: brian@ewfi.ae
SPECIALIZED DEWATERING SERVICES: • Specialized in Deepwell, Wellpoint, Open pumping techniques • Professional Service
www.pinceisatlas.com.br
OTAL (LLC) Dubai, U.A.E Phone: (+971-4) 267 9646 e-mail: otal@eim.ae website: www.otal.ae
• Round the clock backup • Effective Groundwater control DECEMBER 5–11, 2009 CONSTRUCTION WEEK
35
To advertise please call +971 4 4 435 6375 or email shishir.desai@itp.com
CONSTRUCTION/MANUFACTURERS
SPECIALIST SERVICES §
¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL SHISHIR.DESAI@ITP.COM
CONTRACTORS/MANUFACTURERS
LANDSCAPING
POST TENSIONING
FLOORING
LOOK!! ½P PRICE
LESS THAN
EUROPEAN STYLE CHERRY SOLID WOOD 2
ORIGINAL PRICE $34m CLEARANCE PRICE 2
2
$15m
2,000m AVAILABLE IN DUBAI
To advertise please call +971 4 435 6375 or email shishir.desai@itp.com
A
L
O M
I
+971 50 854 5629 Alomi Albert Simon +971 50 854 5327 REAL WOOD FLOORS LLC
www.alomirealwoodflooringllc.com
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CONSTRUCTION WEEK DECEMBER 5–11, 2009
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DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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CITY UPDATE RIYADH, SAUDI ARABIA HOUSING IN RIYADH REMAINS A GROWTH MARKET.
Colossal contracts THE LAST FEW MONTHS HAVE SEEN SOME MASSIVE CONTRACTS AWARDED IN RIYADH, WITH MORE TO COME NEXT YEAR By James Boley
RAJESH RAGHAV/ITP IMAGES
T
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CONSTRUCTION WEEK DECEMBER 5–11, 2009
he last two months have seen major steps taken forward in Riyadh, the Saudi Arabia capital. The start of October proved very bright for the Saudi Binladin Group (SBG), as the firm picked up a massive construction contract for 30 parcels of land within the King Abdullah Financial District (KAFD) from developer Rayadah Investment Company. The deal is worth US $3.73 billion (SR13.98 billion) and will see SBG construct the lion’s share of the development. Rayadah’s KAFD project manager Waleed Aleisa said the fast-tracked contract requires SBG to complete 27 of the 30 parcels by March 2012 and the remaining three parcels by November 2012. “It’s an enormous challenge and Binladin might be the only contractor in Saudi Arabia capable of producing 30 parcels in 38 months,” he said. “We didn’t want to hire more than one contractor for the job because we wanted to reduce the complexity of the logistics and basically Binladin is the most qualified.” The contract includes construction of two of the tallest towers in KAFD – the 303m World Trade Centre and the 240m GCC Bank Tower – which will be among the last three parcels to be delivered. When the contract is completed, around 70% of KAFD will be finished, with the remaining 30% to be developed according to market need. Other firms are also getting involved in the work ongoing at KAFD. Gulf Technical Construction Company (GTCC), the civil contracting subsidiary of Drake and Scull International, is forming a joint venture with Saudi Oger to bid for construction of
EFRAIM EVIDOR/ITP IMAGES
SIMILAR TO THE DUBAI METRO, CONSTRUCTION WORK ON THE RIYADH METRO IS STEADILY PROGRESSING.
TOP PROJECTS
SALEH MURADWEIJ EXECUTIVE DIRECTOR OF GTCC.
US$
Princess Noura Bint AbdulRahman University for Women 11.5 bn King Abdullah Financial District 10 bn Riyadh - Al Zour Water Pipeline 2.5 bn Nasmat Al Riyadh 1.6 bn Olaya Towers 250 mn
the 400m tall Capital Market Authority (CMA) tower in Riyadh. “We were approached by Saudi Oger to form a joint venture and bring our technical expertise in high rise construction to the table,” said GTCC executive director Saleh Muradweji. The tower is being developed by CMA and will be the tallest in the KAFD project. Housing, as ever, remains an important lynchpin in the Saudi Arabia construction market, with a report from Naseba suggesting that across KSA as a whole, the real estate construction market is worth around $586 billion. As a result, the 3 million m² Nasmat Al Riyadh development, which will contain educational facilities, commercial outlets, and 4200 housing units, took a step closer to completion with the awarding of the supervision consultancy contract. November saw Fayez Zuhair Architectural and
KING ABDULLAH FINANCIAL DISTRICT WILL CREATE A NEW CENTRAL POINT FOR THE CITY OF RIYADH.
Engineering pick up the honours on the $1.6 billion project, with a construction contract to be awarded in 2010.
“IT’S AN ENORMOUS CHALLENGE AND BINLADIN MIGHT BE THE ONLY CONTRACTOR IN SAUDI ARABIA CAPABLE OF PRODUCING 30 PARCELS IN 38 MONTHS”
Meanwhile, development on the Riyadh Metro is now progressing. Work began at the start of November, according to the Arriyadh Development Authority, which is developing the project. Phase one of the project will see the construction of a 25km route from the northern side of the ring road to the southern side, while the 14km phase two will stretch from east to west. Thirty districts are expected to be covered by the project.
DECEMBER 5–11, 2009 CONSTRUCTION WEEK
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DIALOGUE CHRISTOPH HÖRMANN Opportunity knocks Christoph Hörmann, general partner of his family-owned door manufacturing company in Germany talks about the current most attractive places to do business in the Gulf and how his company is progressing in the region
By Sarah Blackman
What products and services do you offer?
Hörmann has been our family for four generations. We are specialised in building products made from steel. These products are mainly used for the outer shell of a building. We produce garage doors, sectional and industrial doors, fast-acting doors, docking and loading equipment, rolling shutters, folding and sliding doors, fire-resistant doors, frames and operators. It is a three way division – we offer every door you can imagine for commercial projects, then we have the garage doors, and the third division is heavy duty doors and entry doors. What attracted your company to come to Dubai?
places in the Middle East force you to have sponsors. If implemented, new ownership laws will be very good for business in general, because it gives companies more freedom and will make the emirate even more attractive to international investors. How is your business faring in other areas of the Gulf?
Generally Dubai was always our best market, but things have changed over the last year. Everything we are losing in Dubai we are gaining in Abu Dhabi and now, of course, we are trying to generate more markets to increase our turnover. We are currently doing very well in Qatar and Saudi Arabia and these are now our most attractive markets next to the UAE. Most of our demand is coming from Saudi Arabia because a lot of new projects are being constructed there. We went to Qatar and Saudi Arabia to supply our products and survive the crisis. It is a little bit more difficult for people to do business in Dubai now.
We have been in the Middle East for more than 20 years with a distributor and opened our own subsidiary last year. We have branches in Jebel Ali Free Zone and Jebel Ali Industrial Zone. We stock all our goods and distribute them in these locations and we also have offices there. We actually moved into the Jebel Ali Free Zone last week. The Which Middle Eastern projects have you most recently numerous expansion prospects available throughout the supplied your products to? Middle East’s resilient property and construction markets The newest project for us is the Rolex Tower on Sheikh influenced our decision to set up a permanent base in the Zayed Road, Dubai. We supplied the inside doors for this region. This follows the establishment of other subsidiaries project. We have also supplied doors for the entrance of in key markets such as India and Greece. The global crisis the Dubai World Trade Centre and has not deterred us from pushing the folding and sectional doors for forward with our long-term growth Chistoph Hörmann is a general partner the car parking areas. Currently, we plans, and we feel that the Middle for the Hörmann Group and is responsible are supplying fire-proof doors for East in particular, offers exceptional for the growth and development of the substations in Dubai. Hörmann provides potential within the coming months. product lines for doors and loading doors that comply with requirements technology. He is also responsible for the Do you think construction suppliers for operation and risk for all areas. will now be deterred from coming European market, the Middle East and the Smoke-tight sliding doors for safe escape to Dubai because of the drop in new US. An industrial engineer by profession, and rescue routes are well suited for he graduated from the University of projects going online? areas with high personnel frequency, In general, it is important to attract Applied Sciences in Karlsruhe, Germany. where, in the case of fire, people must Together with his father and brother, he more companies to come to Dubai be protected from the spread of life runs the company from its headquarters because companies, especially threatening fumes. For obvious reasons, in Steinhagen. family companies, need to have full electrical substations need to be ownership of their businesses. Other protected with fire-proof doors.
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CONSTRUCTION WEEK DECEMBER 5–11, 2009
w w w. r e e m a l u m . c o m
“Next Generation Curtain Wall Designers and Builders”
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Tel.: +971 2 599 4200
Fax: +971 2 550 1812
P.O.Box 36863 Abu Dhabi, UAE