Construction Week - Issue 320 by ITP Business Publishing

SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

Construction An ITP Business Publication | Licensed by Dubai Media City

WEEK

CONSTRUCTIONWEEKONLINE.COM

MAY 8-14, 2010 [320]

NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST

INSIDE NEWS

IX M Y D A E R FOaCgeU24S p

New HSE rules put pressure on Abu Dhabi contractors PAGE 9

LEGAL Leonora Riesenburg on the importance of the right advice PAGE 12

SITE VISIT

SPECIAL REPORT

HIGH RISK

Sharjah’s Al Wahda street project passes importa important milestone PAGE 21

EXPERTS EXPLAIN HOW TO WORK AT HEIGHT SAFELY CITY FOCUS Analysis of the latest news and updates from Amman, Jordan PAGE 28

• That processing of non-conforming steel may result in damage to personnel or the structure

• That the steel will not consistently meet the requirements of the British Standards

Sevenoaks, Kent TN13 1XR

Pembroke House, 21 Pembroke Road,

UK Certiﬁcation Authority for Reinforcing Steels,

Alternatively, contact the ofﬁce:-

Telephone - 01732 450000 Fax - 01732 455917 E-mail - general@ukcares.com

For further information about CARES and an up-to-date list of manufacturers and suppliers holding CARES certiﬁcation please consult the CARES website: www.ukcares.com

Why take the RISK?

• Full backing of CARES in cases of complaints to suppliers

• Full traceability of steel from steel mill to site

• Avoid unnecessary site delays

• No need for certiﬁcates

• No need for further testing

• That traceability of steel from source to site is non existent

• That non-CARES approved steel will not have been fully assessed to the British Standards

• Veriﬁed compliancewith British Standards

• Assurance of on-going compliance of every delivery

or High Risk

CARES Product Certiﬁcation

Confidence in Steel for Concrete Construction

Why take the RISK?

CARES regularly updates a list of approved firms which is maintained on the CARES website (www.ukcares.com ). Each firm’s entry gives the scope of the CARES certification as well as other key details of the firm. Occasionally firms make spurious claims regarding CARES approval. This may relate to approval of the firm itself or of the products and services for which they might hold approval. If there are any doubts concerning the approval status of a firm, then the CARES list of approved firms should be consulted or alternatively the CARES office should be contacted for verification.

CARES list of approved firms

The CARES certification schemes require that records of complaints relating to compliance of the product made against approved firms are properly addressed and that details of these complaints are returned to CARES at regular intervals. Further action may be taken by CARES against the approved firm if required. CARES acts as a point of reference when the performance of one of its approved firms casts doubts on the effectiveness of the relevant certification scheme.

Monitoring of Scheme performance

Contactors receiving material from a CARES approved processor or stockist can use the materials or products with confidence and therefore do not need to carry out further tests in order to ensure compliance. Alternatively, failure to specify CARES approval places the onus of compliance fully on the shoulders of the purchaser which in turn may result in further testing resulting in the addition of significant cost and often site delays. Material that does not comply with the standard or specification in all respects increases the risk that the structures in which they are used will not perform as specified.

Avoidance of site delays

require additional testing of material or products or for copies of test certificates to be sent with products to site.

Sevenoaks, Kent TN13 1XR

Pembroke House, 21 Pembroke Road,

UK Certiﬁcation Authority for Reinforcing Steels,

Alternatively, contact the ofﬁce:-

Telephone - 01732 450000 Fax - 01732 455917 E-mail - general@ukcares.com

For further information about CARES and an up-to-date list of manufacturers and suppliers holding CARES certiﬁcation please consult the CARES website: www.ukcares.com

A key element of the CARES certification schemes is traceability of the manufacturer and of the product and processing details. CARES approved manufacturers and processors must keep records of material and products used and when required these can be produced. As a result it is not necessary for contractors to

Traceability

• Processing or installation are performed by suitably trained and qualified personnel.

• Traceability has been maintained and all steel and products used are from a CARES approved supplier or those acceptable to CARES.

• The steel and associated products are not damaged during processing or installation.

• The steel or the construction product satisfies the customers requirements and therefore of the product standard or specification.

The CARES approved processor or installer is the vital link between the steel producer and the construction site and ensures that:

The importance of the CARES approved processor or installer

All products covered by the CARES schemes are tested against product standards or specifications both by the manufacturer and at intervals for verification by CARES. The efficient use of constructional steels is dependent on these having the specified product properties and also being properly processed and installed.

Compliance with product standards

CARES is a UK based, internationally recognised certification body fully accredited and operating independently for the benefit of all key sectors of the supply chain for construction materials and products. The key products covered by CARES are reinforcing steels, prestressing steels and associated products, for their manufacture, processing and stocking and distribution including installation against defined product standards and design codes. The CARES certification schemes ensure that products supplied to the construction industry consistently satisfy the customer’s requirements.

Confidence in Steel for Concrete Construction

CONTENTS MAY 8-14, 2010 | ISSUE 320 09

14 WORKING AT HEIGHT Why working at height safely is one of the toughest things to achieve in construction.

20 SITE VISIT An update on the progress of central Sharjah’s ongoing road renovation project.

24 PRODUCT FOCUS A look at the pros and cons of using ready mix concrete and why the price is set to increase 10% later this month.

12 21

26 28

REGULARS 2 ONLINE 4 MAIL

FRONT 9 HSE COMPLIANCE New regulations mean that 190 construction ﬁrms in Abu Dhabi need to implement health and safety management systems.

MOST POPULAR

Analysis

BOARD MEETING How formwork technology is being developed to cater for modern construction: CW investigates.

Burj Khalifa good will

An economic recovery

Stringent ﬁnancial management

TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com

MAIL RE: STILL NO BANG FOR BIM BUCK IN MEP BIM MEP is great software, and it is sure to dominate the market in the future by saving companies a significant amount of money. 3D service layouts provide support documents for material orders, and the 3D software generally allows companies to ensure effective coordination with suppliers before they start work on a site. The problem at the moment is that no one in the Middle East is prepared to invest in training, and some companies are reluctant to use new systems. Time for change in company attitudes perhaps? SRIDHAR SHETTY Software does not achieve results, people do – and computers never do what you want them to do – they do what you tell them to. So in the end, it is up to us. The term BIM is too often thrown around as an acronym without people really understanding what it means. Most importantly, it does not just mean 3D modeling but the synergy of the digital model and the data. Companies cannot expect the software to vendor to create a database specific to their firm. It is up to the companies themselves to do this if they want to get the most out of the BIM tools. What software a company uses is also significant. A lot of vendors claim that their software does everything, but it is not the case. No one vendor, no matter how big, provides solutions for all facets of the correct and full BIM implementation. DJORDJE GRUJIC

RE: SAUDI BANS INEFFICIENT ELECTRICAL APPLIANCES The move by SASO to allow only appliances and electrical mechanical equipment with an energy star rating is a good and necessary move towards a sustainable future. Other countries will also need to move in this direction if as a region, we are to help reduce the effects of global warming. THOM BOHLEN RE: 1800 JOBS TO BE CREATED AT BAHRAIN STEEL PLANT Bahrain is a very small country and one of the worst 10 places in the world when it comes to pollution, so I hope that they have conducted an environmental assessment as well as having taken all the appropriate measures to cut air pollution speciﬁcally. Alba alone creates an awful lot of this, and a lack of consideration as to the amount being created could lead to real problems. HASSAN RE: SHORTAGE OF QUALITY CONTRACTORS IN MEP SECTOR I agree that the MEP sector requires more skilled labourers and technicians. Unfortunately the clients, particularly the PMCs, stop the MEP companies from outsourcing their work to specialists, who are in a good position to assist them on a project to project basis. Let the PMCs give the main contractors and MEP contractors more freedom when it comes to outsourcing and we’ll soon see the quality of work increase. NARENDRA SINGH VERMA

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.

CONSTRUCTION WEEK MAY 8–14, 2010

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FOREWORD HIGH RISK

“WORKING AT HEIGHT SAFELY IS, APPARENTLY, ONE OF THE HARDEST THINGS TO ACHIEVE IN CONSTRUCTION.”

I have an odd relationship with height. Flying in a light aircraft? No problem. Standing on the edge of a tall building? No problem. But get me four steps up a ladder and the cold sweats start. For me, it’s something to do with the insecurity. The hint of instability, narrow treads and the ever rising centre of gravity all conspire to make more nervous the higher I go. I simply do not feel safe. Transfer this feeling to a construction site, already one of the more dangerous places you can work, and it is easy to imagine how falls from height are the industry’s biggest killer. Working at height safely is, apparently, one of the hardest things to achieve in construction. Figures from BuildSafe UAE show that of the 10 workers who died on the job during 2009, four were due to a fall from height, the single biggest killer. Of the 530 lost time injuries recorded by BuildSafe members, 58 came from falls from height and 58 from falling objects or materials. Eliminating the opportunity for error and accident is what safe working is all about. Whether it’s having toe boards on a scaffold, personal equipment on lanyards, or operating an effective exclusion zone, each and every precaution taken reduces risk. Let’s not forget that risk costs money. Add up the lost time, the medical bills, health insurance and even the cost of subsequent reputation management and the number gets large quickly. Alternatively, you can choose to invest in safety and collect a good return, both in reputation and on the bottom line.

STUART MATTHEWS SENIOR GROUP EDITOR stuart.matthews@itp.com 6

CONSTRUCTION WEEK MAY 8–14, 2010

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THE UAE MINISTRY OF LABOUR IS CRACKING DOWN ON CONSTRUCTION COMPANIES WHO ARE ABANDONING INJURED WORKERS AT HOSPITALS.

MOL CRACKS DOWN ON RAK FIRMS OVER INJURED WORKERS By Ben Roberts

The Ministry of Labour in the UAE has ﬁred a warning shot to construction companies in Ras Al Khaimah, to improve their attention to hospitalised workers, following complaints from the hospitals of negligence. Following a general notice on the Ministry of Labour’s website, a spokesperson for the department conﬁrmed to CW that some hospitals had contacted the ministry to report that companies would leave employees, who suffered falls and other injuries, in care without follow-up enquiries as to their recuperation. “These companies would admit workers and not then come and get feedback, and hospitals have been making complaints,” said the spokesperson. “There are so many cases, so many accidents, particularly in the summer. That’s why the Ministry of Labour is conducting investigations.” The spokesperson added that although Ras Al Khaimah has been the chief source of complaints, all of the Emirates will be subject to further scrutiny coming up to the

summer months. The inspection department in the Ministry will decide on the penalties to continued negligence on a case-bycase basis. The Ras Al Khamiah office was unavailable for comment. This action follows a recent demand by the ministry to a foreign construction company to pay workers’ wages that have been delayed from between three and seven months. The ministry has given the company a week to pay the salaries or will refer the officials in the company for investigation. Employer accountability and documentation may be set for upheaval following a pledge by India’s new ambassador to UAE to target the plight of workers from his homeland working in the country. In his first month after replacing Tamiz Ahmed, MK Lokesh identified the transparency of contracts for immigrant workers and their aversion from petty crime as a ‘major issue’ for his tenure. Indians make up the majority of the UAE construction workforce and the subcon-

tinent is frequently cited as the country’s most important trade partner and a vital source of labour for construction. In an interview with The National, Mr Lokesh highlighted the importance of ensuring that working conditions in the Emirates correspond with the contract they signed at home, and announced a new database of labour contracts by the end of 2010. Preliminary plans suggest employers would have to submit contracts when seeking work permits for immigrants to a centralised system, allowing transparency between what workers signed for and how they end up. Ellan Goram, consulate in the India embassy, Abu Dhabi, conﬁrmed to CW that there would be an electronic database for all employers. “The contract [system] is being revised – there are a lot of schemes, a new set of measures,” he said. The Ministry of Labour spokesperson said they had not been made aware of such a scheme as yet. MAY 8-14, 2010 CONSTRUCTION WEEK

FRONT BEHROUZ MEHRI/AFP/GETTY IMAGES

CEMENT SALES HAVE DROPPED FOR UAE COMPANIES ACCORDING TO MANY FIRST QUARTER FIGURES.

FIGURES SHOW MIXED BAG FOR CEMENT SALES By Ben Roberts Sharjah Cement & Industrial Development is the latest company to experience the relative drought in cement demand by seeing more than AED100 million wiped off its sales figures in 12 months. The company saw a sales turnover of AED173 million for the first quarter of this year, a sharp decline from sales of AED297.5 million for the first quarter in 2009. The fall reflects the three-fold pressures of a decrease in demand, a decrease in price, and an increase in the costs of production. Indeed, the cost of sales as a percentage of the sales figures themselves increased from 74% to 86%. Overall the company halved its net profits over the last year, down to AED23.89 million from AED51.37 million, though shareholders equity improved, up to AED1,393 million from a Q1 2009 level of AED1,337 million. Cash and cash equivalents holdings decreased

by more than 75% to AED32.2 million from AED126.2 million. Arkan Materials also saw sales slump by a similar figure. First quarter revenues stood at AED66.5 million down from AED166 million for the first three months of 2009, with net profits declining from AED91 million down to AED19 million. It is the latest set of meager results for cement producers that have to spend more to produce less. Last week, Muscat-based Oman Cement Company and rival Raysut Cement also saw steep sales declines, the latter by almost a third. Better news came from more specialized Ras Al Khaimah Co. for White Cement & Construction Materials. The Abu Dhabi-listed company – whose products include white cement, used in precast facade finishes, and calcium silicate bricks – saw sales leap 20% to AED79.6 million compared to AED66.5 million.

TENDER DUE FOR CANCER CENTER By Orlando Crowcroft Preliminary work on the Middle East’s biggest cancer research centre in Amman, Jordan, is due to begin this month. Designed by HKS architects, the 440,000 ft2 King Hussein Cancer Centre is due to go out for construction tender shortly, with an eye on a 2012 completion date. Emanuel Mikho, Middle East director of health care for HKS, said that the centre will not only cater to cancer sufferers in Jordan, but in the wider Middle East region. “It will be a major facility, we think the biggest in the Middle East,” he said. The KHCC will include 152 adult and child in-patient rooms and a signiﬁcant out-patient facility inside a modern glass and stone building in Amman. The centre will be based around a 14-story glass tower, designed to mimic the hills that surround Jordan’s capital, while glass will also be used as facades for the complex’s communal areas. HKS have designed cancer centers in the US, Taiwan and most recently Dubai.

THE CANCER CENTER WILL BE BUILT IN AMMAN.

EXACT CHANGE ONLY: CONTROVERSIAL SHARJAH TRUCK TOLL GOES LIVE By Greg Whitaker Sharjah’s controversial toll for heavy trucks has been causing complications after its ﬁrst full days of operations. Inevitably, queues were long at certain times of the day, as drivers who reached the front discovered that the payment could only be made with the exact money as change would not be given. On the ﬁrst day of operations, the Sharjah Directorate of Public Works reported that the operations had gone smoothly, and there was excess capacity in the system: “We have

CONSTRUCTION WEEK MAY 8–14, 2010

estimated for the passage of 4,750 to 5,250 trucks per day and we have already distributed informative booklets to heavy truck drivers informing them about the toll gate operation,” said Omran Al Kumairi, director of the trafﬁc toll gate project. However, some truck drivers found the process slow, and were frustrated by the system which charges AED100 per truck, with an additional AED10 levied for each ton that the vehicle is overweight by. Exact money has to be used, as toll operators cannot give change.

Other operators didn’t find any significant problems. Al Ghurair Foods, based in Dubai said that its driver experienced ‘neither delay nor problems encountered yesterday’ and that the gate would need to be in operation for some months before it would draw any ‘reliable conclusions’. For the time being at least there will be the option of turning around for drivers who do not have the correct sum. Later, a system of fines are to be introduced for those without money.

FRONT HIGHLIGHTS Project

Project

HYUNDAI/HBK TO BUILD DOHALAND FIRST PHASE Hyundai Engineering & Construction Co Ltd and HBK Contracting Co have won the QR1.56 billion contract for the first phase of Dohaland. The joint venture is to build four government buildings in the upcoming Diwan Amiri Quarter, which includes the Diwan Annex, Amiri Guard and the National Archive. The award concludes the QR2.2 billion for Phase 1A, the first of five for the Musheireb that is scheduled for full completion in 2016. The win boosts the value of Hyundai’s portfolio in the region to US $4.4 billion, which includes a power plant. The enabling works was awarded to Bauer International Qatar LLC last year, and the infrastructure works awarded to CAT International, which includes a district cooling plant and 66KV substation. Time Qatar was recruited for project management consulting, Arup will serve as master development consultant and infrastructure consultant, Allies and Morrison and Burns McDonnell are the design architect and executive architect respectively for Phase 1A of the project.

AL FUTTAIM CARILLION WINS ABU DHABI UNIVERSITY JOB Mubadala Infrastructure, a business unit of Mubadala Development Company, has appointed Al Futtaim Carillion as the design and build contractor for New York University Abu Dhabi’s (NYUAD) main campus on Saadiyat Island. Mubadala is the developer of NYUAD’s main campus on a build, own, operate and transfer (BOOT) basis. NYUAD will consist of a ‘highly-selective’ liberal arts and sciences college (including engineering) and a centre for advanced research and scholarship, all fully integrated with and connected to NYU in New York. Site mobilisation work is scheduled to commence in Q3 2010. The expected completion date for the Saadiyat Island campus is Q1 2014. Project

FIRST ECO-VILLA IN THE UAE HERALDS NEW GREEN ERA The ﬁrst ever eco-villa to be built in the UAE was awarded to an Emirati this week, marking a new era

of green building in the region. The property, built by German-Emarati Company BENA, was made out of the eenvironmentally s sustainable product Precast Aerated Concrete (PAC), which has a carbon footprint of only 138kg CO2e/m3 - 67% lower than conventional concrete. Complying with the Abu Dhabi 2030 Urban Structure Framework Plan, BENA has already attracted interest from the Abu Dhabi Government on its environmentally sustainable building system in a bid to minimise power he supplies in the emirate. Business

UAE R DEVELOPER TO INVEST US $3.5BN IN MALLS Developer Majid Al Futtaim Properties has announced plans to invest US $3.5 billion (AED 12.85 billion) into four new shopping malls in the UAE, Egypt, Syria and Lebanon. With 10 shopping malls already in the MENA region attracting over 120 million visitors a year, the four extra malls will extend its Gross Leasable Area to 1.3 million m2. With completion

set for 2014, the developer hopes the malls will add strong economic value to the region by boosting real estate prices, increasing employment and creating a healthy trading environment for small businesses. FM

MYSTERY SURROUNDS GREEN COMMUNITY FM CONTRACT Union Properties has taken over the facilities management services of the Green Community project because of apparent complaints made against the former FM provider, BCS Strata Management Services. The developer has said that it has been providing FM services for the project, located in Dubai Investment Park, for the last two months, since BCS left the project. “BCS left because the service was not very good and there were a lot of complaints,” said Union Properties facilities engineer Abdul Whahab. A BCS spokesperson conﬁrmed the company had walked off the job on February 21st after 20 months of work but would not comment on whether BCS had been paid by the client.

APRIL 10–16, 2010 CONSTRUCTION WEEK

LEGAL > For more legal advice log on to www.ConstructionWEEKonline.com/comment

Front end advice LEONORA RIESENBURG ON LEARNING FROM MISTAKES AND MAKING THE MOST OF THE FEDERAL LAWS

“GETTING THE RIGHT ADVICE PRE-SIGNATURE CANNOT BE UNDERSTATED: PARTIES WILL RARELY BE IN BETTER POSITION TO AGREE A VARIATION OF THE CONTRACT TERMS AT A LATER JUNCTURE.”

Leonora Riesenburg is senior legal consultant for the Projects & Construction Group of Galadari & Associates advocates and legal consultants in Abu Dhabi. Leonora is a dual qualified lawyer from the UK with more than three years of regional experience in the Gulf and operates in a number of highly technical niche sub sectors including construction, infrastructure projects, LNG, ONG, power, telecommunications, water and wastewater. The opinions expressed in this column are of the author and not of the publisher.

CONSTRUCTION WEEK MAY 8–14, 2010

Despite the harsh lessons learnt over the latter part of 2009 and first quarter of 2010 it is still patently obvious that parties to contracts are falling into a number of age old pitfalls, many of whom are convinced that they have no other viable choice but to accept top-down back-to-back arrangements and in some cases a scramble of documents that barely resemble a contract at all. There is still an overwhelming market tendency to order mobilisation and commence work on the back of a very brief Letter of Intent (LOI), particularly if the commissioned works are minor works or low value. This is a particularly high risk practice. LOIs do not provide sufficient contract certainty or indeed any firm degree of security to the committed parties. Comparable to Memorandums of Understanding or Heads of Agreement in providing a record of intention only, it is of no surprise that LOIs are commonly known as ‘discussion sheets’. By and large LOIs are not legally binding. In other words they carry no force of law. Given that LOIs are signed by one party only, questions of fact as to acceptance are left unanswered. Its weight in contract will therefore depend largely on the paper trail that follows. LOIs are not, therefore, interchangeable with the formal contract. Commercial reality however does not always follow best form. In situations where LOIs and Letters of Acceptance (LOAs) are the only de facto contractual documents issued between the contracting parties, the following terms should be mandatory by way of minimum: a clear scope of works, a defined and approved programme of works, provisions dealing with delay and extension of time to the approved programme, comprehensive price and payment terms, retention provisions, insurance provisions, a record of the contracting parties’ contractual responsibilities, heads of liability, dispute resolution provisions, enforceability and jurisdiction provisions.

As per Article 874 of Federal Law 5 (1985) (the ‘Civil Code’), minimum requirements for a Muqawala contract include (i) a description of the subject matter, (ii) particulars of the type and amount thereof, (iii) the manner of performance, (iv) the period for performance, and (v) the consideration. The concept of a void, voidable or defective contract is inherent in the Civil Code (see Articles 210-212) and hence form cannot be ignored. In practice Federal laws such as the above provide the ideal motive to revisit noncompliant contractual documentation. Signing of any and all agreements In a hungered market, where bargaining power is heavily weighed in favour of the employer, the obsession with getting ‘the account’ on the books rapidly dwarfs the exercise of care, caution or due diligence. This practice is particularly unsound in an immature market where more often than not the usual round-the-mill model contract is issued against any scope of work. Getting the right advice pre-signature cannot be understated: parties will rarely be in better position to agree a variation of the contract terms at a later juncture. Muqawala provisions entertain variation in a restricted sense in the case of a change to the basis of an agreed plan. The continued observance of the existing agreement in connection with any variation and/or addition is however mandatory (see Article 887). Hence an obvious difﬁculty arises where the existing agreement proves deﬁcient in enumerating agreed procedure. As per Article 262 of the Civil Code stating: “an unconditional provision shall be so construed unless there is evidence… restricting it” serves as a powerful reminder of the profound commercial implications a poorly drafted contract can result in. The commercial implication of this, in context of an open-ended liability or indemnity provision for example, can be staggering. Yet

LEGAL ADVICE UP FRONT CAN PAY HUGE DIVIDENDS IN THE LONG-TERM, REDUCING RISK EXPOSURE AND THE DISPUTES WHICH MAY ARISE FROM CONFUSION.

caveats containing total aggregate monetary caps are not been routinely negotiated into such provisions. Comfort in the local laws The local federal laws provide limited respite. Like many western jurisdictions, federal laws place primary importance on parties’ consensus ad idemor mutual intention. Hence the integral importance to get the contract right ab initio, ie from the start. Some limited comfort can be found in various federal provisions, such as Article 884 of the Civil Code requiring an employer to

accept delivery of work done when placed at Sufﬁce to let Article 259 of the Civil Code his disposal, or Article speak for itself: 888 of the Civil Code “There shall be no entitling the contrac“THE COMMERCIAL scope for implicaIMPLICATION OF THIS IN tor to fair remunerations in the face of CONTEXT OF AN OPENtion plus value of the clear words”. ENDED LIABILITY OR materials provided in Carefully considINDEMNITY PROVISION CAN situations where price ered front-end legal BE STAGGERING. ” and payment proviadvice has never been sions are deﬁcient. so key at a time when Relief is however short, and no doubt due entities are both heavily under-capitalised to the fact that the laws were not drafted and over-exposed in a market couched with with the intention to substitute the con- uncertainty, and at the mercy of a heavily tract agreement. over-subscribed dispute system.

APRIL 10–16, 2010 CONSTRUCTION WEEK

WORKING AT HEIGHT

STAY SAFE WORKING AT HEIGHT SAFELY IS ONE OF THE TOUGHEST THINGS TO ACHIEVE IN CONSTRUCTION By Sarah Blackman, Stuart Matthews & Greg Whitaker

Making swift construction progress at height is a tough job. Managing to do it safely is even harder. This difﬁculty is inﬂuenced by many factors, including the varied origins and experience of many labourers in the Gulf construction market. Figures from BuildSafe UAE show that of the 10 workers who died on the job during 2009, four were due to a fall from height, the single biggest killer. Of the 530 lost time injuries recorded by BuildSafe members, 58 came from falls from height and 58 from falling objects or materials.

“FIGURES FROM BUILDSAFE UAE SHOW THAT FOUR DEATHS ON THE JOB DURING 2009 WERE DUE TO A FALL FROM HEIGHT, THE SINGLE BIGGEST KILLER.” Eliminating the opportunity for error and accident is what safe working is all about. Whether it’s having toe boards on a scaffold, personal equipment on lanyards, or operating an effective exclusion zone, each and every precaution taken reduces risk. CW spoke to a selection of experienced practitioners to get their views on how to stay safe.

AED

100,000

A LOST TIME INJURY COSTS AED50,000 TO 100,000 IN DUBAI AND A FATALITY COST FROM AED250,000 TO AED500,000 DEPENDING ON WHERE YOU ARE

CONSTRUCTION WEEK MAY 8–14, 2010

WORKING AT HEIGHT LIFE ON THE EDGE Combisafe sales manager Niklas Gustafsson talks about the on site accidents that are waiting to happen due to negligence and the lack of trained labourers in the region

n the 38th ﬂoor of an Abu Dhabi superstructure, a labourer steps out onto formwork, which hasn’t been propped up properly. He is 175m up in the air and is not wearing a harness. In fact, he is using his friend’s hand as his life-line as he steps across onto the unsupported slab. That was just one nerve-wrecking moment that Combisafe’s Niklas Gustafsson witnessed during a recent site visit. “These are things you see every day on site,” he says. “Last week, I saw that a piece of defective personal protective equipment was cut, for some reason, and someone had mended it by tying it together in a knot.” One might say that these ‘dare-devil’ labourers were asking for trouble by taking such risks, but, according to Gustafsson, these workers, and many others like them in the GCC, aren’t aware that they are doing anything wrong. “People do these things because they don’t know better and they are afraid to speak up and voice their concerns. Workers must be trained to know what’s safe and what’s not.” “It’s about making labourers sense fear, so they realise when they are in danger.” So untrained staff can be a danger to themselves, but the key message Gustafsson wants to put across to delegates at the Construction

Week Building at Height seminar is that bad planning by contractors and developers could endanger an entire workforce. “Planning needs to be in place for labourers working on the edge, whether they are doing block work or if they are implementing glazing because falls from height and fall of objects onto labourers are the main cause of accidents on site,” he explains. “If you are going to send someone out to work on an open edge with the risk of losing a spanner, bolts and brackets and then multiply that by how many brackets and bolts are used and how many times the worker goes out to the edge, you can calculate how many near-misses you will have, how many LTIs [lost time injuries] you have and how many fatalities you have – it’s all predictable by numbers.”

“I SAW THAT A PIECE OF DEFECTIVE PERSONAL PROTECTIVE EQUIPMENT WAS CUT AND SOMEONE HAD MENDED IT BY TYING IT TOGETHER IN A KNOT” An unsafe construction site can also be a costly construction site; an LTI will cost a developer from US $13,600 to $27,200 (AED50,000 to AED100,000) in Dubai and a fatality can come with a hefty price tag of up to $136,000. “It is much cheaper for contractors to prevent accidents from happening by giv-

FALL PROTECTION SAVES LIVES.

ing labourers the security and the safety that they need.” But, with no federal regulations in place in the GCC, how can construction companies know which set of safety rules to follow? “The climate is different here,” reports Gustafsson. “In Europe, the ladder has been abandoned because workers can easily fall from them. So, they have come with ﬁxed solutions with double hand rails, but they don’t work here because the metal gets hot.” There is hope for future on site safety, however, as Gustafsson explains. “Build Safe UAE is forming a work group with the aim of coming up with a proposal for a federal regulation and then it will be easier to train all the zoning authorities and governing bodies and inspectors using one set of regulations. Hopefully after that everyone will be playing by the same rules.” 

APRIL 10–16, 2010 CONSTRUCTION WEEK

AWARENESS AND RESPONSIBILITY Doka’s manager of high-rise engineering, Martin Hoerlesberger, talks about the factors improving the safety of working at height

he ﬁrst fatal fall Martin Hoerlesberger, manager of Doka’s high-rise engineering team, saw in the UAE occurred in 2005. A worker, wearing an improperly secured lifeline, leant against an unsecured beam and fell six metres to his death. The accident could have happened at any site and one easy way to prevent it would have been securely tying off the lifeline. This ﬁ rst impression of the UAE contrasted with Hoerlesberger’s experience elsewhere. “Before I came to the Gulf, I was working in the US for seven years, mostly on high rise. Of course, when you work with the guys there you notice a big difference,” said Hoerlesberger. “First of all if they wear a harness and the way they hook on means they have real fall protection. In the UAE to some extent,

SELF CLIMBING FORMWORK WITH SCREENS HAS IMPROVED SAFETY.

CONSTRUCTION WEEK MAY 8–14, 2010

guys just wear a harness, without really knowing how to hook it on to something, or how to work with the harness.” Awareness is clearly important and needs constant attention. Making construction teams aware of the fact that what they hook on to must be able to carry the load of a falling person is just the start. More information and constant reminders need to be a regular feature on sites. “What is not happening at all sites is the tool box talk,” said Hoerlesberger. “Giving every shift a 10 minute safety brieﬁng, doing the tool box talk for every shift, every day, that would be a very good message to the guys working at height.” “For supervisors of these people, it is very important to give training, so guys know where to hook on and how to do it safely.” Combinations of protection screens at exposed edges, platforms and railings can all reduce risk, as can a sensible assessment of whether or not the work needs to be done at height at all. Improved working practices, which eliminate some of this need and the number of exposed edges, will also contribute to improved site safety. Doka’s increasing use of its self-climbing formwork is one example of how it is contributing to site safety. “By using hydraulic systems, you get a completely enclosed formwork system, which is of course the safest way of working [with formwork] at height. The use of those has grown dramatically in the last ﬁve years, in the Gulf,” said Hoerlesberger. “We have to make people aware that it is not a waste of time to set up a safe working environment.” Improvements have come over time and as a company Doka has had to increase the amount of supervisors it has available for sites, as well as the amount of time they spend on them. “Our trained supervisors have much more time to pass on knowledge on how to install and lift the form system in a safe manner,” said Hoerlesberger.

“IN THE UAE TO SOME EXTENT, GUYS JUST WEAR A HARNESS, WITHOUT REALLY KNOWING HOW TO HOOK IT ON TO SOMETHING, OR HOW TO WORK WITH THE HARNESS.” Hoerlesberger also believes further improvement will come through a focus on responsibility and liability. This liability may need to be pushed down as far as individual construction managers in an effort to improve the levels of personal responsibility taken. “If such a system is in place, a construction manager has to prove that everything has been done to prevent any incident,” said Hoerlesberger. “Then awareness from the top down is completely different.”

MARTIN HOERLESBERGER OF DOKA.

TOP SAFETY TIPS Plan your job – do a risk assessment outlining what the work is going to consist of, where the risks are and how you would prevent accidents from happening. Have tool box talks with the workers and make sure they are physically healthy and are trained for working at height Good management supervision is a must

TIME AND EDUCATION David Gratteau, a senior engineer with VSL, tackles the issues of pressure and competence on the job site

orking safely at height comes down to a number points for David Gratteau, a senior engineer for post tension and heavy lift specialist VSL – and they all boil down to training your staff to think about what they are doing, and to take the time to make sure they are working safely. “It’s about education,” he clariﬁes. “Some workers are OK with safety, but if you don’t teach them, they don’t think about it.” “From 200m, a small nut or piece of concrete can do serious damage. We had one worker who was struck on the head by a small screw, but because it had fallen off a scaffold on a skyscraper, it went straight through his hard hat – we had to take him to hospital. So, education about the risks,

DAVID GRATTEAU A SENIOR ENGINEER WITH VSL.

and the importance of being tidy and not leaving objects to be knocked off, is important. It seems obvious – but apparently it isn’t always,” Gratteau emphasises. It is neither hard, complicated, nor particularly time consuming to take basic safety measures. As Gratteau explains: “It is very easy to put one cable wire through a site, so that we can clip ourselves to it.” “However, it becomes hard when you are working under pressure, because somebody is saying ‘you must do this quick’. The danger is then that the guys on site will rush around and forget to clip themselves on. I have done it myself in the past - but it is a bad example to others.” The competency of staff, or indeed the suitability of people for what after all is a difficult and complex job needs to be called into question. Just because on guy is a wizard engineer on the ground does not mean that he will be any use when he is sent 200m in the air, armed with nothing more than a torque wrench. Unfortunately, this is surprisingly common. “At a site recently, we had two men who needed to be at the very top of a beam,” said Gratteau. “One guy was fine, but the other as it turned out, was absolutely terrified of heights! So I said to him, ‘stop, don’t do it apart from anything else, you are a danger to yourself’. Practice helps, of course, but if you can’t handle heights, then you really shouldn’t be up there in the first place.” Another thing, particularly when perform-

WEATHER IS AN ISSUE FOR HEAVY LIFTS AT HEIGHT.

ing heavy lift, is the weather, especially if wind that the operator can’t perceive is turning the load on a crane into a giant pendulum. “When working on a very tall structure, the air might be calm at the top, but it is typical to get a lot of turbulence near the ground, particularly in the wind channel between two buildings below 30-40m,” said Gratteau. “For example, when working on some of the Metro bridges, we found the wind to be very strong up to 20m, but on the top it was calm. For the Burj Khalifa, it might have been 40 degrees and calm on the ground, but for the guy 700m up it could have been completely different, so you had to think of that as you tied your load up.” 

8–14, 2010 APRIL 10–16, 2010 CONSTRUCTION CONSTRUCTIONWEEK WEEK

17 29

SEMINAR PROGRAMME

BUILDING AT HEIGHT...SAFELY 12 MAY THE WESTIN HOTEL, DUBAI WELCOME ADDRESS BY CONFERENCE CHAIRMAN: Andrew Broderick, Head of Safety, ALDAR OPENING KEYNOTE ADDRESS BY ABU DHABI MUNICIPALITY Abdulaziz Hussni Zurub, HSE Manager, Abu Dhabi Municipality PRESENTATIONS: ADOPTING A SAFETY CULTURE Rolling out programmes for developing a culture of safety with a joint understanding and mindset of awareness, values and procedures. How can common grounds for motivating staff from diverse ethnic backgrounds be established, in both theory and in practice? Andrew Bottomley, Health & Safety Manager, ACC

POST TENSIONING LIFTING SOLUTIONS What are the best practices for safe and efﬁcient vertical lifting? This session will feature insights on access and safety when working in limited spaces to carry out large-scale civil works when under time pressure. Learn how jobs can best be planned and executed without compromising safety.

MANAGING HSE PROGRAMS FROM PAPUA NEW GUINEA TO LIBYA Bashar Abu Saleem, Lead HSE Engineer, CCC

GLOBAL PERSPECTIVE ON SAFETY This session will cover what is really happening in the industry. Are we ready for the next step in the evolution of construction safety, or are we just repeating what’s been done over the last 5-10 years? What are the global challenges facing the HSE profession? How will approaches to safety impact the future of construction? Wayne Harris, HSE Director, Qatar Project Management & Board Director, World Safety Organization (UN-NGO)

PANEL DISCUSSION Among the topics to be included will be how dealing with the consequences negligent safety procedures can be improved by developing communication and collaboration between workers, contractors and governments of sending countries. How can educational programs be further developed? How can incentives for safety vigilance among construction workers be further improved? This discussion will be open to the whole audience to voice their opinions and experiences. Moderated by: Wayne Harris

David Gratteau, Project Manager, VSL

FOCUS: LEGISLATION & SAFETY CULTURE Panelists:

FALL PROTECTION AND PREVENTION What are the systems available on the market and what are the most effective and cost-efﬁcient approaches for fall protection at height? This session will compare solutions and clarify how safety requirements and systems should not only meet minimum legal requirements but also offer the least risk of fatalities.

Saeed Semaihi, Head of HSE, Abu Dhabi Motorsport Management (ADMM) Ziad Qweitin, Head of HSE, EC Harris Stephen Storey, Head of Health & Safety, MASDAR Mark Warrington, Project Manager for Drafting Safety Legislation of Al Ain Municipality Barney Green, Expert working with Combisafe

Barney Green, expert working with Combisafe

FOCUS: PRACTICAL MEASURES AND BEST PRACTICE FOCUS Panelists:

FORMWORK AT HEIGHT This session will show examples of self-climbing formwork systems overcoming challenges for bespoke structures. It will cover methods using both crane-lifted and crane-independent solutions.

Philip Smith, Regional Head of HSE Bovis Lend Lease David Gratteau, Project Manager, VSL John Mills, Project Director, Project Director (Health & Safety -Burj Khalifa), Hyder Consulting

Martin Hoerlesberger, Manager, High-Rise Engineering Team, Doka (Middle East)

THE BUSINESS CASE FOR INVESTING IN HEALTH AND SAFETY A look at setting realistic benchmarks for health and safety in a multi-cultural and multi-contractor development without compromising on productivity. Garry Crighton, VP, Emirates Safety Group

CONSTRUCTION WEEK MAY 8–14, 2010

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SITE VISIT

A NIMBLE OPERATION THE LATEST MILESTONE FOR THE AL WAHDA STREET SECTION OF THE KING ABDUL AZIZ ROAD RENOVATION HAD LITTLE MARGIN FOR ERROR SURROUNDED BY BUILDINGS AND VITAL CABLES By Ben Roberts; Photos by Efraim Evidor

entral Sharjah is moving closer to a transformed road system to meet today’s traffic volume, following the latest milestone in Package 5 of the redevelopment of King Abdul Aziz Road. The main artery through the city heading east and curving south has been the subject of the most significant upheaval in the emirate for a generation or two – splaying vehicles through the centre into a spaghetti dish of alternative routes and makeshift lanes. In truth, the whole project has not seen the completion of the previous four packages. The first is completed, the second is still teeming with workers and materials, and the third and fourth have only just left the drawing board. The latest completion of note, officially announced on 30th April, is the opening of the much needed viaduct on the west side of Al Wahda Street, a road last analysed by CW last September (issue 288). The viaduct crosses King Abdul Aziz Road at a 90 degree angle, itself a major project and a vital link between the port in the north and the south of the city. For 30 years this route has been tracked by oil-cooled 132kV power cables flowing south and gas coming the other way. The three sets of cables will remain but have been marginalised at the foundation stage to the sides of the new road, a transfer that has required the upmost delicacy – one of the many challenges when

keeping running as close to normal as possible. The underpass was secured at excavation by reaction piles to stop the underpass essentially floating, using cables to anchor them to the sides, and the entire road is set for completion in August. The viaduct will be the longest bridge in Sharjah, at 1,505m, and Halcrow, the project developer, had the nimble task of building it within a matter of metres from the shops and business offices at each side. To avoid having to buy the buildings to have enough room, the developer doubled the length of the bridge, taking it far past the buildings in question so that cranes and all other machinery would not collide with the inhabited structures. “The bridge was only supposed to be 750 m initially,” explains Johnston. “We extended the bridge to where the land-take was not so important.” The last of the pre-cast beams for the viaduct were laid on 19th March, explains Mike Johnston, senior resident engineer at the company. “The road corridor was very narrow, fitting a viaduct has not been easy, and getting the beams erected was a problem in itself, though by the time we finished we were laying girders in about 20 minutes. “The big problem was transporting them from the yard to the site, as the police would give a short window of time and we could move three beams at once.” The extensive detours snaking either side of Al Wahda Street are almost their own project. Travelling past the Flying Saucer MARCH 20-26, 2010 CONSTRUCTION WEEK

WORK IS STILL ONGOING FOR SOME PHASES.

THE PROJECT HAD JUST TWO DRAWINGS AT TENDER STAGE, SO PLANS HAVE BEEN FLEXIBLE.

building at one of four junctions between Cultural Square and King Faisal Square, Johnston explains that it is only occasionally that the creation of detours and the main work of the viaduct and underpass can be simultaneous. “Halcrow had staff of 30 at peak for the bridges,” he adds, nearing the viaduct. “The contractor’s workforce peaked at 700, including those of various sub-contractors. In the last two weeks we’ve had 230 painters for the viaduct. Overall we’re very proud that there have been no major accidents.” The viaduct gains ﬂexibility through 14 elastomeric joints, placed strategically

CONTRACT DETAILS Tender date: July 2006 Constructions start date: 25 November 2006 Contract period: 1401 days Completion date: September 2010 (likely completion: August) Construction cost: AED 841,461,142

CONSTRUCTION WEEK MAY 8–14, 2010

to move with the twin pressures of heat changes and vehicle weight. Doubling the bridge’s length was perhaps surprisingly not too straining on the budget, explains Hodgkins. The impetus for the developer and contractor to think on their feet and tweaking plans is perhaps inevitable for a project that only had two drawings by the tender stage. “The designers were then trying to catch up,” he adds. Such changes have occasionally improved the project’s time and cost efﬁciency. “We introduced micro-piling,” explains Hodgkins. “This was partly on account of space restrictions, but it did present savings.” The road will eventually lead towards the port and run over a layer bridge, over the creek, to Port Khalid. “The tender for the layer bridge occurred last year but was never awarded,” says Hodgkins. “The section between that and this [King Abdul Aziz Road] is a hole, but maybe when this [the viaduct] is ﬁnished the pressure will increase for the work to progress.” Over the last few years the prices and procurement have been a concern,

though the company has seen an upturn in recent months. “Two years ago there were major problems with suppliers. Demand outstripped supply and it was a suppliers’ market. Now, they might be offering discounts, it’s been a complete turnaround.” This was particularly the case with piling contractors, he says, adding that Dubaibased contractors have put in more calls to Halcrow seeking work in Sharjah where perhaps before they may have restricted themselves to their home emirate. Underneath the viaduct, Johnston points out the eight pre-cast girders on one side,

“TWO YEARS AGO DEMAND OUTSTRIPPED SUPPLY AND IT WAS A SUPPLIERS’ MARKET. NOW, THEY MIGHT BE OFFERING DISCOUNTS” which has edges that are slightly curved. These could not be produced longer than 60 metres, he explains, meaning that the girders on the other side the girders are cast in-situ. Though numerous milestones for the other packages in the overall project are

VITAL STATISTICS Project: King Abdul Aziz Road: Package 5 – Al Wahda Road Improvements Client: Government of Sharjah, Department of Public Works Consultant: Halcrow International Partnership Project manager/management contractor: NA Main contractor: Sharjah General Contracting Co. LLC Sub contractors: China Harbour Engineering Co (structural works), NAFFCO (ﬁre ﬁghting works) Materials Supplier: Various M&E consulting engineer: Halcrow International Partnership Electrical contractor: Metito LLC Lighting designer: Sharjah Electricity and Water Department

THE VIADUCT IS THE LONGEST AND HIGHEST BRIDGE IN THE CITY OF SHARJAH.

230 NUMBER OF PAINTERS WORKING ON THE VIADUCT

still ahead, the opening of the viaduct can be seen as a particular stage. As the longest and highest bridge in the city – running over the underpass that is closing in on completion – its immediate success for reducing traffic flows, and the care with which it has had to closely nestle up to buildings without disturbance, is a feat of ingenuity. “When the viaduct is open we can take away the temporary traffic lights under-

neath,” adds chief resident engineer Steve Hodgkins. “Then the trafﬁc can be ﬂowing easily in both directions.” 

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S E R U C E T E R C N O C G N I K E SE

f all construction materials used for large scale projects, ready mix concrete is a volatile market indicator of just how healthy the industry is. Construction relies on the steady ﬂow of its lifeblood: a constant stream of laden cement trucks plying the highways to job sites. When the industry is quiet, so are the roads. And right now, in the UAE at least, there’s a need for a transfusion. Nigel Bush, General Manager of Sharjahbased company Conmix Ltd, one of the UAE’s largest suppliers of ready mix cement, said the past year had been exceptionally testing for the company.

“WE’RE NOT, AS SOME OF OUR COMPETITORS ARE DOING, ADJUSTING OUR COSTS TO SECURE CONTRACTS. THAT’S A RECIPE FOR DISASTER, AND I’M LOOKING FORWARD TO SEEING HOW IT PANS OUT FOR SOME OF THEM.” 24

CONSTRUCTION WEEK MAY 8–14, 2010

“There are no words really, well, no printable ones anyway. The best way to describe the past 12 months is horrendous. Where we were delivering about 150,000m3 a month, we’re currently doing about half that.” And Conmix is not alone. Smaller operators like Essam Mansour, plant and branch manager of National Ready Mix in Abu Dhabi, said that demand for product had been ‘unstable’ for the past three months. Where the company was supplying around 30,000m3 of ready mix cement per month up until late 2009 for several villa development projects, production was now down by around 35%. With 30 cement trucks and 100 staff to keep busy, Mansour said decisions on tenders he’d placed with projects in the capital couldn’t come soon enough. “We are awaiting decisions on tenders we have placed for the Capital 2030 project in Abu Dhabi. I hope the market picks up soon,” he said. Conmix has about 500 people throughout its bases in Dubai, Sharjah, and Ajman, with two thirds of them working for the ready mix side of the business. Bush said that, “We’re not, as some of our competitors are doing, adjusting our costs to

10% EXPECTED INCREASE IN PRICE OF CEMENT THIS MONTH

secure contracts. That’s a recipe for disaster, and I’m looking forward to seeing how it pans out for some of them. I refuse to do so: it doesn’t make good business sense to reduce your bottom line.” But the drop in demand within the UAE for ready mix concrete had prompted the company to explore its options. “It’s meant a lot of adjustments. We’re currently setting up operations in three different countries (Oman, Saudi and India), and have been through a period of restructuring where we’ve let a lot of people go. The workforce is demoralised – and now we’re faced with having to let some of our more valued staff go now too.” He said the company’s expansion in to Saudi Arabia had been fuelled by the fact that the country’s reliance on foreign investment isn’t

as pronounced as in some of the company’s current markets, meaning it was easier to establish and maintain business there. “This new toll road in Sharjah, for example, doesn’t do much to enhance confidence in the current economy. At AED 100 per truck, and not AED 4 per vehicle, it’s a huge cost that we simply can’t cover. It means we’re not delivering to the other side of Dhaid.” Earlier this week, Sharjah Cement and Industrial Development – the only producer of cement in the Emirate – announced that its net profits for 2009 had more than halved from AED 51.37 million to AED 23.87million, while first quarter year-on-year sales turnover had taken a sharp dive this year, plummeting from almost AED 300million in 2009 to AED 173million in 2010. That should have been good news for the ready mix industry but a 10% jump in the price of cement, expected on May 10, meant suppliers were bracing themselves for more bad news. “All we can do is keep the silos fully stocked prior to the increase,” said Bush. Ready mix concrete suppliers claim advantages over onsite mixing because their product is generally cheaper, cleaner and more

CURRENT TENDERS

BUSY PLANTS MEAN A HEALTHY BUILDING INDUSTRY.

environmentally friendly to produce. Site dust and noise is cut, while offsite batching plants are able to store more raw material than can be held on building sites. However, batching and transporting ready mix also creates issues. Transporting it to project sites places pressure on road networks, not only by adding trafﬁc to the roads but by the sheer weight of the product. At 2.5 tons per cubic metre, concrete places a great deal of stress on roads. Ready mix also needs to be prepared precisely, batched no more than 90 minutes before pouring, while curing temperature, controlled by chemical additives and ﬂaked ice in the summer months, is critical. 

Country: Saudi Arabia Project: Construction of Ras Az Zawr Power and Desalination Plant, Phase 1, Power and Water Issuer: Saline Water Conversion Corporation Tender no: RZP-D Description: The scope of work covers Phase 1 construction of the power and desalination plant. The contract covers two packages, P for power plant and D for desalination plant. Tender fee: 200,000.00 SAR Closes: May 9, 2010 Contact: http://www.swcc.gov.sa Country: UAE Construction of Hospital in Masfout Issuer: Ministry of Public Works Tender no: B/7046-341104-10/47/2010 Description: The scope of work includes construction of hospital in Masfout Area, Ajman. Tender fee: 6000 AED Closes: June 2, 2010 Contact: www.mopw.gov.ae For more tenders, visit constructionweekonline.com/tenders

SECTOR FOCUS HOSPITALS

RETURNING TO HEALTH INVESTMENT AND BUILDING OF HOSPITALS ACROSS THE GULF LARGELY SURVIVED THE DOWNTURN

ospitals and medical facilities have seen strong development in the last two years, especially in areas of the GCC that are playing catch-up to provide for their communities. Many projects are coming to completion this month or in twelve months’ time – timely, some might say, to welcome in a more stable economic environment and higher population growth. For some developers and contractors they are proving a long-term source of returns, compared to the relative quick bucks of property. A key challenge is being able to understand the changing dynamics of healthcare that will inevitably ﬁlter through into the speciﬁcations of new medical facilities, or upgrades to existing structures. Both globally and locally there has been an increasing shift from general care to a more customer-tailored service. At the ‘InnovHealth – Middle East Innovations Summit’ in Abu Dhabi earlier this month, Dr Salem Al Darmaki, acting direc26

CONSTRUCTION WEEK MAY 8–14, 2010

tor general in the UAE Ministry of Health, said the summit allowed “close interaction between healthcare decision makers, planners and professional providers to plan new models and approaches for care delivery and financial systems” to overcome today’s challenges, the biggest of which is to “provide health services based on customers’ focused care”. This echoed a detailed study by PricewaterhouseCoopers, the financial services and research firm. According to the latest of its HealthCast series of reports issued by the company’s Health Research Institute, the move to tailored service is similar to that in other service sectors. At the same time, study respondents agreed that individuals

$24 MILLION PROJECT VALUE OF A 100-BED HOSPITAL IN AL-MOKOWAH, SAUDI ARABIA

need to take a greater responsibility for their own health – prompting the need for prior research from the medical providers. “To engage consumers and compete for them in the global healthcare marketplace, health systems are trying to understand consumers’ needs and individual preferences and tailor care to fit them, not unlike other industries that have been transformed by consumerism,” the report notes. This lean towards the individual, consumerism and franchise has been partially reflected in the expansion of the Saudi German Hospitals Group. The company has five hospitals – four in Saudi Arabia and one in Yemen – that attempt to offer ‘onestop shop’ for all healthcare needs: medical and surgical specialties and subspecialties including cardiac surgery, neurosurgery, and oncology, and state-of-the-art diagnosis and treatment facilities. It constructs its own hospitals – employing 1,000 construction workers – and finances its developments with the support of local government and development banks Though it may seem contradictory to be both specialist and tailored by service and wide in the total number of services, the

company seems to have hit a proﬁtable formula. It now has identical hospitals in different stages of construction in Hail in Saudi Arabia, Dubai, Cairo and Addis-Ababa in Ethiopia. But specialist institutions are nevertheless moving from the drawing board to the construction site. Last year in KSA, Al Mashrik Company began work on the Arar Hospital for Women & Delivery, a US $50 million project due for completion in a year’s time. It is just one of a ﬂurry of projects launched by the Ministry of Health to allow the Kingdom to lead the region for health–related infrastructure spending. These projects include a $24 million 100-Bed Hospital in Al-Mokowah and Saud Bin Jalwaei Hospital, and 100-Bed Hospital in Bisha.

“HEALTH SYSTEMS ARE TRYING TO UNDERSTAND CONSUMERS’ NEEDS AND INDIVIDUAL PREFERENCES AND TAILOR CARE TO FIT THEM, NOT UNLIKE OTHER INDUSTRIES THAT HAVE BEEN TRANSFORMED BY CONSUMERISM.”

DRIVERS OF CHANGE IN HEALTHCARE EXPENDITURE RESPIRATORY 2002/3 to 2032/33 Volume per case: 84% Price: 9% Ageing: 3% Disease rate: 4% Population: -0.2% NEUROLOGICAL Volume per case: 25% Price: 5% Ageing: 48% Disease rate: 4% Population: 18% (source: PwC, ﬁgures are global)

Two projects, a $23 million 100-bed hospital in Al-Laith, and a $55 million Al Khobar Hospital are both expected to be completed this month. The development of specialist institutions has also been bolstered by investment companies. In the last few years, Abu Dhabibased Mudabala Development Company, the state-owned investment ﬁrm, has bolstered its portfolio in the healthcare sector – most recently in a joint venture with Aldar Properties for the $1.9 billion Cleveland Clinic Hospital. The Tawam Molecular Imaging Centre, operating in partnership with Johns Hopkins Medicine International, was launched last month and features the latest innovative molecular imaging diagnostic technology provided by Siemens, including advanced systems essential to the early detection and tracking of cancer, cardiovascular and neurological diseases. Other specialist facilities – which have in turn encouraged international partnerships include the Imperial College London Diabetes Centre in Abu Dhabi and, as part of the 2030 plan for the Emirate, is the Wooridul Spine Centre, the region’s ﬁrst facility dedicated to minimally invasive spinal care. 

CITY FOCUS AMMAN

ON THE RIGHT TRACK JORDAN’S CAPITAL HAS BEEN BOOSTED BY A CLEVER APPROACH TO INVESTMENT LAW, AND PROJECTS ARE NEARING REALITY By Ben Roberts

he list of foreign companies entering Amman to take advantage of the broad spectrum of projects in development grows ever longer, intensifying competition in the capital. Two pieces of news gave the ongoing and prospective construction projects in Amman a shot in the arm last month. Firstly, the Jordan Investment Board revealed that investments that benefited from incentives offered by financial laws in the country had leaped from JOD 250 million to JOD 686 million from the first quarter of last year to the first quarter of 2010. This represented an increase of 174.4% and was welcome news for a capital looking to stabilise funding for projects. Foreign investments benefiting from the Investment Promotion Law totalled JOD 160 million over the quarter, double that of last year, according to official figures. JIB CEO Nasser Sunnaa told The Jordan Times in a statement last week that local developments reached JOD 525 million.

CONSTRUCTION WEEK MAY 8–14, 2010

“It’s a much more investor friendly market,” said one investment analyst in Amman to CW, comparing the city to other capitals. “You’ll find that there’s a lot of money flowing here, and I believe most of the money will go to privatisation.” Chief recipients of these investments are the amusement parks sector, which gained JOD 249.4 million, followed by the industrial sector (JOD 222 million), hotels (JOD 161 million), hospitals (JOD 28 million), followed by marine and land transport (JOD 16 million). The figures will be a fillip for the capital compared with other cities that have seen a shortfall in outside investments. The country is growing again following a steep correction amid the financial crisis. “The influx of foreign investments to the Kingdom is going through a stage of fluctuations affected by the consequences of the global financial crisis,” Sunnaa said.

“YOU’LL FIND THAT THERE’S A LOT OF MONEY FLOWING HERE, AND I BELIEVE MOST OF THE MONEY WILL GO TO PRIVATISATION.”

He added, however, that Jordan attracted a variety of ‘added value’ investments since the beginning of this year. Secondly, passenger flow and aircraft movements both increased in the first quarter of this year to underline the need for speedy development of Amman’s Queen Alia International Terminal. Customers increased to 1,097,400 between January and the end of March compared to the same period in 2009, a 20.9% growth, according to the Airport International Group (AIG). Aircraft movement increased by 13.9% to reach 13,989 over the three months. “QAIA is continuing its trend of impressive yearon-year growth and is steadily emerging as the airport of choice in the Levant region,” said Curtis Grad, chief executive officer of AIG. AIG is both owner and contractor in the expansion of the airport that will happen in two phases. A new 85,000m² terminal, based on a Foster & Partners design, will make up the first phase and will boost capacity to nine million passengers. The second phase will increase the airport’s passenger-handling capacity again to around 12 million.

85,000M2 SIZE OF THE NEW QAIA TERMINAL, BOOSTING CAPACITY TO NINE MILLION PASSENGERS The airport gained several new routes last year, while continued construction work will see the opening of new piers, according to the ﬁrst annual report issued by AIG. Pteris Global Limited, a Singapore-based specialist in airport features, was awarded a contract worth $12.3 million last July 2009 to design and build the baggage-handling

system, which is due next year – another foreign company seeking the benefits of tendering in Amman. Construction of the Amman Metro has also, fittingly, sped ahead. The central purpose of the Metro is to reduce congestion in the centre, where the combination of nonstop highways through the city and narrow streets create a dire need for a Metro, along with a commuter rail line. The first phase is two lines, red and green, connecting East, Central, and West Amman with one transit station at Amman Plaza. The second phase consists of a yellow line connecting North and South Amman with transit to the red and green lines at Abdali and City Hall. The project would cost between JOD 500-600 million. These projects are slated for 2016 with the entire capital transportation system completed by 2025. Accommodating more visitors is a pleasant headache to have compared with the ongoing challenge of addressing a chronic water supply. The country has one of the most significant imbalances of supply and demand for fresh water in the world, and aid to address the shortfall has come from The World Bank, the US and Japan among

others. It is now more than six years since it signed a €2 million support agreement with the European Union. Government statistics show that this year’s total water demand will reach 1,518 million m3, although only 880 million m3 supplied – a shortfall of 637.4 million m3. The Water Authority in the Ministry of Water and Irrigation launched two projects last year. The most eye-catching for those making utilities tender bids is the Disi water conveyance project, which seeks to significantly increase the amount delivered to the capital. Currently, Amman residents drink from two aquifers south of the city. The Disi project aims to alleviate the over-use of these existing sources and improve water quality. Smaller projects, too, give an indication of the growing openness of the country. Last year Indian construction firm Navayuga Engineering Company won the US $3.5 million contract for a 5-star hotel in Amman. Executives at the infrastructure and construction contractor – which has an office in Abu Dhabi – have revealed that the deal will take the company’s annual turnover to more than $200 million in the region alone by 2011. 

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CONSTRUCTION WEEK MAY 8–14, 2010

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DIALOGUE NIGEL HAWLEY Trane man CW speaks to Nigel Hawley from Trane, its new GM for the Middle East, Africa and India region, on the outlook for growth By Gerhard Hope

What does your current role encompass?

I have overall responsibility for Trane’s operations in the Middle East, India and Africa. This includes strategy, sales and operational performance and key customer relations. Our growth initiatives are focused on market expansion (Abu Dhabi, Qatar, Saudi Arabia and India) and new product introductions. With regard to the latter, we are especially excited by our new AquaStream range of air-cooled chiller systems, which are equipped with high-efﬁciency scroll compressors.

give clients the opportunity to source quality Trane products from locations closer to their markets, thus saving on freight costs. Are you expanding regionally?

We have our own ofﬁces here in Dubai, plus Abu Dhabi, Kuwait, Egypt, Lebanon and across India. All other countries are covered by distributors, which are also serviced from an experienced team in Dubai. This year we are expanding in the Gulf, and expect to have our own direct ofﬁce opened in Qatar in the next few months.

What strategy are you adopting?

How important is MENA to Trane?

Despite the current market we remain ﬁxed on a strategy of proﬁtable growth, based on aggressive new product introductions, market expansion and, of course, providing even better levels of customer service. Growing our services, controls and comprehensive solutions business is a key part of this strategy.

Very important. We are the global leader in direct-drive, lowpressure, high-efﬁciency centrifugal chillers, which is the industry’s preferred choice for large district cooling projects, and therefore the Middle East is a key market for us. Trane has a deﬁned strategy to maximise growth across all emerging markets, and MENA is clearly a key part of this strategy.

Will business stabilise this year?

Yes, in terms of our core business, excluding district cooling and unitary, which are two segments badly affected by the market downturn, especially in Dubai. I do not expect to see this changing dramatically in 2010. Are customers struggling in terms of payment?

We are generally involved at the early stages of projects, so where the credit crisis has affected us most is that projects have been delayed or cancelled. However, it is clear that some customers, especially contractors, are suffering with delayed payments from their customers (developers). Overall we have not suffered particularly from payment delays, and have no signiﬁcant exposure. What are your biggest growth areas at the moment?

Were last year’s economic difﬁculties compounded by the refrigerant phase-out?

That is not exactly how I would put it. Trane’s philosophy is to produce and sell the most energy-efficient and environmentallyresponsible HVAC systems and solutions possible. Refrigerant change is a constant in our industry. Last year was particularly exciting and challenging due to the US decision to stop producing equipment with R22 from 31 December 2009. This was the catalyst for a massive redesign project that resulted in Trane introducing more new models in 2009 than we had in the previous 20 years. But I want to be clear that this redesign process went much further than simply regulatory compliance. We used this opportunity to further raise the performance of our range in areas where we already lead the field – that is, energy efficiency, reliability, durability and serviceability.

Services – maintenance, repairs, parts – and then traditional applied equipment. With such a vast portfolio, it can be difficult selecting just BIO one or two specific products. However, I would say that we are expecting good Nigel Hawley joined Trane as finance growth prospects from our airside range as leader for the Middle East in October 2006. He was promoted to GM of the a result of new product introductions and Middle East, Africa and India region in refinements. In addition, we detect greater March 2009. Prior to this he spent four emphasis on indoor air quality (IAQ) from years in a corporate finance role with owners and developers, which is also Trane in its European HQ in Brussels driving demand to more sophisticated and efficient selections. We are also enhancing and 13 years with KPMG. our manufacturing footprint, which will 32

CONSTRUCTION WEEK MAY 8–14, 2010

What is your outlook for the future?

I believe 2010 will be just as difﬁcult as 2009 – and, in some respects, more difﬁcult this time around, as we all know what to expect now. I believe we will continue to see growth in Qatar and Abu Dhabi, but at levels lower than experienced previously. Last but not least, even in this tough economic climate, Dubai seems to have more new projects than anywhere else in the world.

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