SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
Construction An ITP Business Publication | Licensed by Dubai Media City
WEEK
CONSTRUCTIONWEEKONLINE.COM
APR 10-16, 2010 [316]
NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST
INSIDE NEWS
UTILITY RE INFRASTRUCTU SECTOR FO2 CUS page 3
Sixco picks up US $490mn Adnoc HQ job in Abu Dhabi PAGE 11
ANALYSIS Have you taken your share of the pie called Qatar? PAGE 14
PILING & FOUNDATIONS Is the sector starting to look up? PAGE 27
SPECIAL REPORT
IN THE LEED MIRDIF CITY CENTRE COULD BE THE FIRST MALL IN THE REGION TO WIN LEED GOLD STATUS
CITY UPDATE Analysis of the latest news and updates from Baghdad, Iraq PAGE 34
CONTENTS APRIL 10-16, 2010 | ISSUE 316 8
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FEATURES 16 MIRDIF CITY CENTRE CW talks to Majid Al Futtaim and its team of consultants and contractors to discuss how the newly built mall was completed on time and what steps were taken to create an ‘eco-friendly’ development.
24 SPECIAL REPORT A look at how piling and foundation contractors are fairing the downturn.
11 20
DIRECTORY 32 SECTOR FOCUS 34 CITY UPDATE The latest news and projects from Baghdad, Iraq.
34
24
REGULARS 2 ONLINE 4 MAIL
FRONT 8 STEEL SUPPLIERS FEAR REPEAT OF PRICE HIKE Price increases of up to US $272 per tonne on the back of changes in pricing have disrupted building projects and created an imbalance in supply and demand for local steel companies.
36 SPECIALIST SERVICES
BACK 38 CONSTRUCT SAFE 12 NEWS IN BRIEF Highlights of the week.
Insight into health and safety best practices from Build Safe UAE.
11 SIXCO BAGS US $490MN ADNOC HQS
15 ANALYSIS
40 DIALOGUE
Belgium’s Six Construct has picked up a US $490 million contract to build Abu Dhabi National Oil Company’s headquarters in Abu Dhabi.
Are you new to the Qatari market? Are you looking for work? CW finds out why networking events and exhibitions can take you that extra mile.
Doka group executive manager Johann Strunz speaks to CW about the company’s plans for Germany-base tradeshow Bauma 2010.
APRIL 10–16, 2010 CONSTRUCTION WEEK
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ONLINE
www.ConstructionWEEKonline.com MOST POPULAR SIX CONSTRUCT TO BUILD ABU DHABI’S TALLEST TOWER NAKHEEL CONTRACTORS TO GET PAID NEXT WEEK NAKHEEL SHAKES UP ITS MANAGEMENT BURJ’S OBSERVATION DECK COULD DROP TO 4TH HIGHEST
HAVE YOUR SAY
BURJ OBSERVATION DECK TICKET PRICES Is it fair for ‘At The Top’ to charge as much as it does for a viewing?
JOBS OF THE WEEK IN PICTURES: SHAKE UP AT NAKHEEL It was the week when Nakheel dominated the news headlines. A fortnight ago, it was confirmed that Sultan bin Sulayem (pictured) will step down as the developer’s chairman, though he will remain as chair of parent Dubai World, and a new board will be appointed. The new Nakheel chairman is Ali Rashid Ahmed Lootah, vice chairman of Mashreqbank and a trained engineer. Chris O’Donnell remains as chief executive officer, but will leave the board of directors. To read more visit www.ConstructionWeekOnline.com
Mechanical engineer, Abu Dhabi, UAE Procurement officer, Dhaka, Bangladesh Quality Assurance manager, Riyadh, KSA
ONLINE POLL WHICH PROJECTS SHOULD NAKHEEL FINISH FIRST
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Access road for Discovery Gardens
Trump Tower
FEATURES City Update
How to
ABU DHABI A look at the latest project progress and the new developments
AUCTIONS How to buy and sell construction equipment at an auction
Sector Focus
Comment
BUILDING TRACKS The GCC expects to have a fullyoperational railway system within the next seven years
HOW DANGEROUS IS UNMANAGED TEMPORARY STAFF? John Salisbury talks about the increased health and safety dangers
Jumeirah Village and Al Furjan
The World
Palm Deira
TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com
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CONSTRUCTION WEEK APRIL 10-16, 2010
MAIL RE: AED 3 BILLION MIRDIF CITY CENTRE I would honestly say that Mirdif City Centre is not worthy of being LEED certified because there is so much unnecessary lighting installed in the huge car park, which will lead to an enormous waste of power. Come on LEED consultants, wake up and suggest some concrete measures, so such instances can be avoided in new real estate developments. CLARENCE LEWIS
RE: NAKHEEL SHAKES UP ITS MANAGEMENT I hope this will help the market of Dubai grow again – my question is: how will Nakheel gain back the trust of the end users? WALID
RE: RENEGOTIATION BECOMES THE ORDER OF THE DAY Then why don’t they include a fluctuations clause in their contracts? Simple: because they want to have their cake and eat it and are blatantly exploiting contractors’ cash flow problems to renege on agreements entered into in good faith (on one side at least). STEVE COWELL
RE: DUBAI CONSTRUCTION CLAIMS TOTAL US$4.9 BILLION Why so many claims in Dubai? Are there any alternative resources? The recent economic downturn has left many in the construction industry wondering whether a
number of factors are going into the decision. Some are quantifiable and tangible, some are personal and economical. The investment is worthwhile if it is more than the likely losses. Unfortunately, calculating the likely gains and losses is as much an art as it is a science. JALEEL NAZIRUDEEN
RE: US$1.2 BILLION STEEL PLANT CONTRACTS AWARDED IN BAHRAIN
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It seems they are actually doing what they are proposing. KHALILI
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Do we have some clue how to feed the steel plant with power? Are they going for a captive power plant? What is the power requirement? ANWAR
STUDIO GROUP ART EDITOR Daniel Prescott DESIGNERS Simon Cobon, Lucy McMurray, Nadia Puma, Angela Ravi DIRECTOR OF PHOTOGRAPHY Sevag Davidian CHIEF PHOTOGRAPHER Khatuna Khutsishvili SENIOR PHOTOGRAPHERS G-nie Arambulo, Efraim Evidor, Thanos Lazopoulos STAFF PHOTOGRAPHERS Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav
RE: MEYDAN TO BUILD US$1 BILLION HORSE CITY IN CHINA Does this project also have endurance competitions? WILLY LOCKHART
RE: NAKHEEL’S UNFINISHED PROJECTS What so the people of Dubai think Nakheel would be best investing this windfall into? I would be interested in seeing a poll on that. TH
RE: STEEL TRADERS FEAR REPEAT OF 2008 STEEL PRICE HIKE I hope the unjustified steel price hike does not get repeated again. CLARENCE LEWIS
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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 APRIL 10–16, 2010
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FOREWORD BE RESPONSIBLE – A LIFE DEPENDS ON IT
LESSONS LEARNED 1. Every swimming pool must have a life-guard when open 2. Take responsibility for your own life 3. Learn First Aid… you never know when you may have to save a life 4. Never assume. We all know whose mother assumption is!
The Friday before last, was probably one of the worst days in my life. A close friend had a near-drowning experience at an apartment swimming pool in Dubai... while I watched. Here’s the story: four of us friends including Sam (the victim) jumped into the deep end of the pool late Friday afternoon. Sam was last in. As three of us lazily made our way to the shallow end of the pool engrossed in idle afternoon chit chat, Sam began to drown… quietly. As we hung around the shallow end, we saw Sam flailing his hands, in what seemed at the time as a rather poor joke. I couldn’t decide whether to go along with the joke or actually say something. We got back to our conversation. A minute later when the waters at the deep end were eerily calm, I asked his sister, who was reading a book, where he was. “Haven’t seen him,” she said. I could feel my heart begin to pound furiously against my ribs. My other friend Chris dived under and a few seconds later surfaced carrying an unconscious Sam. We hurriedly yanked him out of the pool and Chris began pumping his chest. “Blow into his lungs,” he shouted still pumping frantically. I had never taken those ‘lame’ First Aid classes in school, always bunking-off instead, so what was I supposed to do I thought, let alone having to perform CPR? Luckily, I learn quickly. After thirty seconds of a shockingly haphazard CPR performance, Sam began to show signs of coming around. Needless to say, everyone was in shock. Many people think it’s a wonderful feeling to have somebody’s life depend on you. I tell you, it’s not. And heaven forbid, if on one sunny afternoon you fail to perform what you chose not to learn; If the shame of ignorance doesn’t kill you, guilt most definitely will! The incident only reiterated the importance of self-regulation – something that this magazine has stressed on numerous occasions. Successfully training workers in health and safety is more than half the battle won; getting them to implement and self-regulate is the remaining challenge. Health and safety seeps into every aspect of our lives, leave alone on a construction site. So train and instill self-regulation and responsibility… the rest will work itself out.
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.
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CONSTRUCTION WEEK APRIL 10–16, 2010
LIMITED VIP INVITES AVAILABLE FOR MAJOR CONTRACTORS AND DEVELOPERS ACTIVE IN THE KINGDOM Featuring Case Study Presentations on:
King Abdullah Finacial District (KAFD) • King Abdullah University of Science and Technology (KAUST) • Al Wasl Development • Princess Noura University • North Haram development Presentations from senior representatives the industry players on the Saudi market leading the sustainability drive in Saudi Arabia and the Middle East, including:
Saudi Oger • Bin Ladin Group • Saudi Tabreed • WSP • Buro Happold • FXFOWLE • LIMITLESS • Al-Shamiyah Urban Dev. Co Special Features at the conference include: • Market Forecast by Jones Lang La Salle • Panel & Q&A session with leading lawyers in the GCC •A legal perspective on doing business in Saudi Arabia
To attend the conference please contact: oscar.wendel@itp.com For sponsorship opportunities please contact: Jason Bowman, tel +971 4 210 8351, email jason.bowman@itp.com SILVER SPONSORS
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>Highlights
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FRONT
>News
COMPANIES ARE NO LONGER LOOKING TO STOCKPILE, SAY SUPPLIERS, AFTER A SPIKE IN STEEL PRICES IN THE UAE.
STEEL SUPPLIERS FEAR REPEAT OF 2008 PRICE HIKE By Ben Roberts
The spike in steel prices following renegotiated contracts by the world’s largest iron ore miners has spooked UAE suppliers and traders into fearing a repeat of the 2008 price hike scenario. Increases of up to US $272 (AED1000) per tonne on the back of changes in pricing have disrupted building projects and created an imbalance in supply and demand for local steel companies. Dinesh Nainani, general manager of Shaker Trading, a mid-sized supplier of steel products such as pipes sheets and tubes, told ConstructionWeekOnline.com that although no customers had yet backed out of a contract with the firm, they were only buying what they needed, rather than stockpiling as before. This follows a rise in steel prices in Dubai and Abu Dhabi a fortnight ago to $898.4 8
CONSTRUCTION WEEK APRIL 10-16, 2010
and $816.7 respectively, up from an average of $517 across both emirates, according to newswire Reuters. “What has happened is that people were not ready,” said Nainani. “Some are scared, as they fear the same thing will happen to the prices between March and June 2008 – just before the recession hit.” M J Jacob, manager of Age Intrade, a Dubaibased trader, said projects that had negotiated costs of steel two or three months ago and would have been starting work, are now being delayed ‘automatically’. “Market prices will affect the supply chain as the price is based on last year’s quotations,” he said. “Given the high price we are not taking any more bookings [for importing to sell domestically] now. We are more cautious.”
He added that the company - which supplies to building, mechanical and some fabrication companies – would review the situation over the next two months. He was broadly optimistic of a price levelling after that time. “There will definitely be a stabilisation of prices, though we will know better in two-to-three months’ time.”
TENDER WATCH UAE Issuer: Federal Electricity and Water Authority Tender No: 4EW/2010 Description: Construction of a desalination plant in Al Zawrah, Ajman. Closes: April 22 Fees: AED5000 Contact: www.fewa.gov.ae
MOST INFLUENTIAL SUPPLIERS IN CONSTRUCTION From the Burj Khalifa to Meydan, and Yas Marina to the Atlantis, they are the companies that have changed the construction industry forever. Supplying the very best of ceramics, tiles etc… these are the companies that have put the GCC on the world stage. On 24th April 2010, Construction Week will publish the definite construction suppliers list – their
incredible work, the projects they have contributed and their impact on the industry. You have a chance to be involved in this list by contributing to a half page editorial box out for your company. The editorial copy deadline is the 18th April for the box out and the advertising copy deadline is the 20th April.
Please contact me immediately to grow your business across the region Jason Bowman, Publishing Director
T: +971 4 210 8351
E: jason.bowman@itp.com
ConstructionWEEK
FEATURES APRIL/MAY 2010
ISSUE 317 PRODUCT FEATURE
ALUMINIUM SECTOR FOCUS
TRANSPORT LIST FEATURE
RECORD BREAKING CRANES ISSUE PUBLISHED: APRIL 17, 2010 ADVERTISEMENT COPY DEADLINE: APRIL 13, 2010
ISSUE 318 PRODUCT FEATURE
FORMWORK PROJECT FOCUS
BAHRAIN FINANCIAL HARBOUR SECTOR FOCUS
PIPELINES ISSUE PUBLISHED: APRIL 24, 2010 ADVERTISEMENT COPY DEADLINE: APRIL 20, 2010
ISSUE 319 PRODUCT FEATURE
10 TOOL SUPPLIERS SECTOR FOCUS
ROADS ISSUE PUBLISHED: MAY 1, 2010 ADVERTISEMENT COPY DEADLINE: APRIL 27, 2010
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FRONT SIXCO BAGS US $490 MN ADNOC HQ CONTRACT By Conrad Egbert
PILING FIRMS IN DEEP SOIL
Belgium’s Six Construct has picked up a US $490 million (AED1.8 billion) contract to build Abu Dhabi National Oil Company’s headquarters (Adnoc) in Abu Dhabi. The first package worth $163 million for the core and shell was awarded to Belgian construction giant last week, with four more packages to follow. The project is being managed by Six Construct internally and the consultant on the job is Halcrow. Adnoc is the client. Work on the project is expected to begin end May and is scheduled to be completed in around 36 months. Speaking to ConstructionWeekOnline.com Six Construct general manager, Philippe Dessoy said it was one of the biggest jobs to have been won by the company in Abu Dhabi this year. “We are very happy to have won this project as it is going to become Abu Dhabi’s most famous, landmark building in the years to come.” The Abu Dhabi National Oil Company Headquarters has been designed to become a landmark in the UAE capital. In addition to office space, the 342 m tower will
Piling and foundation firms continue to find the market flat, as contractors involved in the later stages of construction are getting some relief. “The market for piling and foundations has not improved at all since the middle of 2008,” said Ras Al Khaimah-based Al Nuaimi Foundations & Concrete division manager Kochummini Mukundan. “And that is why we’re waiting in hope for the time when the market gets better.” Shad Asif Khan, general manager for piling contractor Keller Grundbau, agrees with Mukundan over the current market situation. “The number of piling rigs available in the market is still much more than the demand for them, because construction activity is still not as much as it was back in 2008,” he says. A surplus of machinery came at the end of the construction boom, as demand dissipated.
THE ADNOC HQ WILL BE 342M TALL.
include a corniche club, a museum and other supporting facilities. The tower is also expected to work towards attaining a gold or platinum Leed status.
OPPORTUNITIES ABOUND IN IRAQ, SAYS FIAFI CHIEF By Ben Roberts The CEO and founder of Baghdad-based infrastructure services firm Ragdan El-Akabi told ConstructionWeekOnline. com that the 1 million homes planned by the Iraqi government will ‘keep a lot of companies busy’ for the next few years, despite the ongoing political uncertainty surrounding the election. The ballot crisis “will affect matters for a couple of months until the new government is formed. However, there are positive messages coming out of the political parties - which are encouraging.” For a company comprised of 97% Iraqi nationals it is a patriotic push to serve both state-sponsored schemes – which has also recently announced a joint rail project by the electricity and transport ministries to deliver fuel to the Dora power station in the capital – as well as the next phase of the oil companies’ development. These firms “will need the support of local Iraqi companies like Fiafi Group to help establish their camps” in remote locations. The international hunger and haste to capture the opportunities in Iraq has kept the company on its toes – though also allows it to demonstrate one of its logistical strengths
with importing mandates. “The international clients are always pressed for time,” said El Akabi. “Things have to be done yesterday. Logistics plays a big part for the international companies and specialised equipment needs to be imported into the country. “This is where our logistics arm plays a pivotal role in getting the equipment to the right locations on time and intact,” he added. His belief that ‘security always comes top of the list’ will chime with a number of materials suppliers in the UAE still hedging their bets on the country.
TENDER WATCH BAHRAIN Issuer: Ministry of Works Tender No: SPdh/097/10 Description: Construction of a theatre comprising a 1000seat auditorium. Closes: April 21 Fees: BD50 Contact: www.tenderboard.gov.bh
APRIL 10–16, 2010 CONSTRUCTION WEEK
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FRONT HIGHLIGHTS Business
INDUSTRY NEEDS STRATA REGS TO BE RELEASED Dubai’s 2007 strata law could change the emirate’s property market when released. Stephen Kelly, a senior property lawyer with Clyde & Co’s Dubai office predicts that it is the market that will drive compliance with the regulations. “Elsewhere in the world a strata compliant title has been worth up to 20% more and the bank finance level was higher and that will happen here in five to ten years,” he said. However, Kelly points out that there will be much work to be done once the regulations do emerge. “A lot of people have underestimated the process of making buildings strata compliant: they want a tick in a box equivalent to a title, but the cost of the tick may have caused them to back off a bit,” he said.
new board of directors. The new chair is Ali Rashid Ahmed Lootah, vice chairman of Mashreqbank. The other new board members include Khalid Mohamed Salem Bakheet, Khalil Issa Ahmed Awad, Adel Khalifa AlShair, and Ibrahim Hussein Al-Fardan. Chris O’Donnell remains as chief executive officer of Nakheel, but will leave the board of directors. Projects
NAKHEEL SHAKES UP MANAGEMENT Nakheel has replaced its chairman, Sultan Ahmed bin Sulayem, and appointed a
BURJ’S DECK COULD BE 4TH HIGHEST The Burj Khalifa observation deck could soon drop to the position of world’s fourth highest, according to statistics received by ConstructionWeekOnline.com from Chicago-based world skyscraper authority, the Council on Tall Buildings and Urban Habitat (CTBUH). A fortnight ago, it was revealed that the Burj Khalifa has only the second highest observation deck in the world, losing out by a mere 22m to the Shanghai World Financial Centre in China. “There are two buildings currently under construction which may have higher
NEWS IN NUMBERS
Steel prices have risen to
Business
observation decks [than the Burj Khalifa including] Shanghai Tower (565m) and Makkah Royal Clock Tower Hotel (559m),” said CTBUH database head Marshall Gerometta. But he also said the heights weren’t confirmed as he was still to view the towers’ elevation drawings. Contracts
US $1.2BN STEEL PLANT CONTRACTS AWARDED United Steel Company (Sulb) has awarded engineering procurement and construction contracts for its US $1.2 billion Bahrain steel plant to two consortiums, according to newswire Reuters. The first consortium consists of Japan’s Kobe Steel and the US-based Midrex, while the second group comprises Germany’s SMS Concast and SMS Meer of the SMS Group and South Korea’s Samsung Engineering. Sulb is a joint venture between Bahrain’s Gulf United Steel Holding Co (Foulath) and Japan’s Yamato Kogyo Company. The value of the individual contracts has not been released. Work on the projects is expected to
begin immediately and Sulb expects to begin commercial operations and the production of medium and heavy beams and structural sections by the second half of 2012. Contracts
ARABTEC IN LINE FOR US $143 MILLION DOHA JOB Arabtec Construction has received a letter of intent awarding it a US $143 million (AED524 million) contract to build The World Trade Center at West Bay. The development includes a 50-floor office tower, four basement levels and a 6-storey ‘sphere structure’. The contract includes structural, civil, electromechanical and external works. The project duration is 26 months. Arabtec Construction Co. is a partnership between Dubaibased Arabtec Holding and Nasser Bin Khaled Al Thani & Sons Holding Company. Arabtec Construction Co. is currently working on the Al Waab City Project in Doha and recently won a $189 million contract to Bridge Twin Towers at West Bay.
$898.4 in Dubai and The year since which piling contractors have been waiting for the market to look up
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$816.7 3 million in Abu Dhabi
CONSTRUCTION WEEK APRIL 10–16, 2010
Shortage of residential units in Egypt
million Value of the contract Sixco has won to build the Adnoc headquarters in Abu Dhabi
ANALYSIS Have you got a slice of Qatar? WITH THE PROJECT QATAR 2010 EXHIBITION STARTING THIS WEEK, WOULD YOUR ABSENCE COST YOU? CW FINDS OUT WHY THE GULF STATE IS AMONG THE TOP THREE BUSINESS PROSPECTS IN THE CONSSTRUCTION INDUSTY
W
ith Qatar being of sustainable size and not ridden with debts of mammoth proportions, it has been one of the few GCC countries to stand its ground amid the tumultuous economic downturn. Finding work in the Middle East construction sector has been the “biggest challenge” for most contractors according to a ConstructionWeekOnline.com survey, with Qatar emerging as one of the top three places contractors look for work, along with Saudi Arabia and Abu Dhabi. Speaking to CW, Philippe Dessoy, general manager of Belgian construction major Six Construct, which also has an office in Qatar, confirmed that the country was second on the company’s list for job prospects. “Its definitely one of the places where most contractors are looking for work,” he said. “We have won several jobs here in the past year or so and if one was to add up the value of contracts we have in Qatar, it comes up to about US $824 million (QR3 billion). We also set up our own ready mix company three years ago – United Ready Mix – which is doing quite well.” Clearly Qatar is a “positive” market to be in currently, but on the flip side, would one be missing out on possible opportunities if they weren’t present at, let’s say, property exhibitions, in some shape or
“FOR NEW COMERS LOOKING TO BREAK INTO THE MARKET, CONSTRUCTION AND PROPERTY EXHIBITIONS ARE A GOOD PLACE TO BE AS THIS IS WHERE ONE GATHERS ALL THE INFORMATION”
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CONSTRUCTION WEEK APRIL 10–16, 2010
form? Dessoy seems to be in two minds and says it depends on the current status of the company in the region. “For established contractors like us, it isn’t that important to be present at these exhibitions because we already know everyone in the industry or at least 80% of them. But for new comers looking to break into the market, construction and property exhibitions are a good place to be as this is where one gathers all the information about what’s going on, who to meet and what needs to be done to get into the system,” he explains. And exhibitions like these are what give us an insight into projects that are being planned for the country. For a start a large chunk of the capital city Doha, is currently being rebuilt to reduce urban sprawl. Ground breaking on the Musheireb project, previously known as the Heart of Doha, took place in January and the completion of the development is expected to mark the return of Qatar’s old link between the communities and their environment.
US $824MN THE VALUE OF CONTRACTS SIXCO HAS PICKED UP IN QATAR
“Skyscrapers and isolated living compounds are not the communities we aspire to in Doha. We therefore decided to revive our past, rediscover our traditions, and regenerate the communities we have lost in this world,” said Dohaland CEO Issa Al Mohannadi. “We will do this by combining the spirit and aesthetic of yesterday with environmentally friendly and sustainable know-how of tomorrow.” The mixed-use development will contain 226 buildings and will
SIXCO GENERAL MANAGER PHILIPPE DESSOY SAYS EXHIBITIONS ARE A GOOD PLACE FOR NEW COMERS.
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PROJECT QATAR 2010 Date April 12 – 15, 2010 Venue Doha Exhibition Centre, Qatar Phone +974 432 9900 Email info@ifpqatar.com Website www.ifpqatar.com Over the next few years, Qatar expects tourist arrivals to increase by a powerful 150%. The driving force behind this strong tourism sector expansion is a government plan to develop tourism in Qatar as an essential component of an ambitious economic diversification drive. Qatar’s hotel industry expects the number of hotel rooms in the country to grow by 300% as a result of the tourism industry push. Qatar’s own population is also growing fast. Together, Qatar’s expanding tourism sector and growing housing unit demands are fuelling an unprecedented construction sector expansion which is attracting top international investors and a steady flow of high-power investment. The country is full of internationally-acclaimed multi-billion-dollar development projects. International real estate companies are billing Qatar as a top location and can barely keep up with client demand. In the next few years, Qatar’s hotel industry is going to require dozens of new luxury hotels, to keep up with the increase in tourist arrivals. This in turn is creating growing demand for a complete range of building materials, equipment, technology, systems and machinery.
be home to 27,637 residents. It will also have a dedicated tramway, with a combination of commercial and residential properties, retail, cultural and entertainment areas. The project, which will spread across 350,000 m², will be completed in five phases, with the first phased due for completion by 2012 and the entire project is due to be complete by 2016. A new mixed-use development in Lusail
– Qatar’s newest city and an extension of Doha – is also set to begin this year, following KEO International Consultants’ design contract win last month. The waterfront project, valued at around $800 million will offer 160,000m² of commercial space, 130,000m² of office space and 30,000m² for retail. A residential area covers a further 87,000m² and comprises 640 apartments as well as 27, four-bedroom townhouses.
Diyar Al Kuwait’s planned schedule for the project is ‘aggressive but do-able’ according to Dherar Al Nisf, project manager at the developer, with work set to begin on site in late 2010. The conceptual architectural design has been approved and the development is now going into the detailed design phase. KEO is also providing project management services to the development, which is yet to be named. The project is located in the southeastern corner of the Lusail’s Marina District, roughly 20km north of the planned Doha International Airport. On that note, phase one of the US $7 billion New Doha International Airport (NDIA) is currently set to be completed by 2011. It is set to fulfil three critical roles once complete: to make Qatar a global gateway; serve as the hub for Qatar Airways and other airlines; and provide a cargo and aircraft maintenance centre. It will be one of the first airports in the world to accommodate unrestricted operations by all commercial aircraft, including the new A380 airliner that will soon be added to Qatar Airways’ fleet. When the 22km² airport opens in 2011, it will have two runways (4850m and 4250m) in addition to a giant passenger terminal and concourse measuring 600,000m² and providing 41 contact gates. Other facilities include the Emiri Terminal, air traffic control tower and cargo complex.
SIX CONSTRUCT JOBS IN QATAR US $467 million Exhibition Centre US $220 million Qatari Diar Convention centre US $274 million quay walls at Las Raffan
BIG BUDGET DOHA PROJECTS: New Doha International Airport - $11 billion Lusail - $5.5 billion Doha Metro - $3 billion Barwa City - $1.35 billion Doha Convention Centre and Tower $1.5 billion THE PROJECT WHICH IS NOW CALLED MUSHEIREB, WAS EARLIER KNOWN AS ‘THE HEART OF DOHA’.
APRIL 10–16, 2010 CONSTRUCTION WEEK
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INTERVIEW JONATHAN EMERY
POWERING THROUGH MAJID AL FUTTAIM’S JONATHAN EMERY TOOK ON THE ROLE OF MANAGING THE DELIVERY MIRDIF CITY CENTRE WHEN CONSTRUCTION HAD ALREADY STARTED AND THE BUILDING BOOM WAS WELL AND TRULY OVER. HE TELLS CW ABOUT THE CHALLENGES HE FACED FROM HIS FIRST DAY AT WORK UP TO THE SUCCESSFUL ON-TIME COMPLETION OF THE PROJECT By Sarah Blackman
Some packages acquired for Mirdif City It was October 2008 when Jonathan Emery joined the Majid Al Futtaim Properties Centre, for example, were subject to price team to re-establish an internal project escalation and, due to the high demand of management department, which was set construction supplies; subcontractors were up in response to an increased work load for able to negotiate prices for their own benefit. the company in the UAE But the pressures of a and MENA region. new job and a case of bad The financial crisis “IT IS ALWAYS timing were overruled CHALLENGING WHEN had also started to take by ambition, both from TAKING OVER A its toll on the construcEmery and his team. PROJECT THAT HAS tion industry at that time “My philosophy when ALREADY COMMENCED. and it was Emery’s job, as approaching this situation MIRDIF, WAS THE SAME senior vice president for is to take full ownership JUST BIGGER” project management, to and responsibility as early pull developments, such as as possible. This required Mirdif City Centre, through to delivery. a huge amount of work understanding the “It is always challenging when taking over a history of decision making, getting to know project that has already commenced. Mirdif the product and its agreed criteria for sucwas the same, just bigger,” he explains. “This cess,” insists Emery. task was made more difficult by the fact the “Completion in March was something we same exercise was being done on five other wanted to achieve so we didn’t have the live projects at the same time. It was, and luxury of slowing everything down.” remains an exciting and testing role.” And it wasn’t slowed down. Mirdif City CenJust like many construction companies, tre, a shopping mall spread over 196,000 m2, Majid Al Futtaim had neither anticipated was unveiled on March 16, after 31 months that there would be construction boom in of development. the region, nor expected the pitfalls that Three hundred and fifty shops out of 430 came with it. were opened – more shops than any mall has MIRDIF CITY CENTRE FAST FACTS INVESTMENT
US $816.8 million
PROJECT MANAGER
Mace
COST CONSULTANT
EC Harris
ARCHITECT
RTKL
ARCHITECT OF RECORD
Hyder Holfords
STRUCTURAL ENGINEER
Mott MacDonald
MEP CONSULTANT
WSP
MAIN CONTRACTOR
Alec
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CONSTRUCTION WEEK APRIL 10–16, 2010
ever opened on launch day. This equates to 167,225 m2 of retail space, which has been unveiled to the public. The US $816.8 million AED 3 billion development also consists of a 10-screen cinema, a car park complete with 7000 spaces and a 12,000 m2 entertainment zone for children and adults, which includes an indoor skydiving centre and a ten pin bowling facility. So how was a project of such scale opened on time during this difficult climate? “Through a lot of hard work, is the standard answer,” Emery recalls. “Having built malls before we sort of knew some of the risks associated with a project this size anywhere in the world, but also some of the particular local issues. Essentially, we worked hard at mitigating those risks so we identified them at a very early stage and put in place the mitigation measures.” Such mitigations centred on talking to consultants and ensuring that resources and the quality of those resources reflected the size of the development. There was also a lot of planning involved and communicating with such internal partners as Alec, which was awarded the main construction contract. “We worked very hard with the retailers and our leasing team, as well as our construction team to explain to them our ambition to open on March 16 and we put in extra resources so that we can turn around their designs and supporting technical documentation early,” says Emery. Towards the middle and the end of the project, the market dropped and Majid Al Futtaim had to give comfort to suppliers that cash flows would come through. But, according to Emery, the slowdown gave the client a unique opportunity.
THANOS LAZOPOULOS/ITP IMAGES
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“We were able to renegotiate prices, progress with the request any further. If so the pressure balanced between the he did, it was valued and then ratified by market going up, along with the price infla- the builder before it was signed off. tion we were subjected “It is an automated to, and the market movsystem, but it’s simple,” insists Emery. ing down.” “IT IS OF A LARGE SCALE AND IT IS Cost control measures In terms of revenue, ACCESSIBLE, IT IS were also put in place Emery is also pleased with LIGHT, IT IS VERY during the development his company’s achieveSIMPLE TO NAVIGATE of the project, but conments. “There is a conYOUR WAY AROUND” struction cost and there struction software prois an income side of the grammes were seen as more of a hindrance than equation and we had a a help to Emery. plan for a certain amount of income and “I personally don’t believe in heavy-weight through all those fantastic, exciting days of project management software systems. I boom and the more cautious days we have believe in the quality of individuals and managed to maintain the income targets their experience to make key decisions,” that we set out.” he explains. But, apart from being a profitable devel“Some of them, in my view, take decision opment for the client, what is it about this making away from individuals. So, rather mall that makes it special? Majid Al Futthan expecting the systems to do all the taim was, after all, the brains behind the work I like to reinforce individual deci- Mall of the Emirates and its famous indoor sions that determine outcomes.” ski resort. How does Mirdif City Centre During the construction of Mirdif City compare? Centre, if a cost variation request was made “I think it is quite fresh. It is certainly by the contractor or architect, which could different to other malls in the region and potentially save money, those requests go to globally. It is of a large scale and it is accesa central party and are assigned a specific sible, it is light, it is very simple to navigate your way around,” says Emery. number in a sequential system. The number would then go to the cli“It ticks all the boxes it needs to tick to ent who determined whether he wants to be a good mall. The scale is big but it is
JONATHAN EMERY FACT FILE • Educated in the UK with academic and professional qualifications from Trent University and the University of South London • After commencing his working career with national builder John Mowlem in London, he joined the Footsie 100 propety development and investment company Hammerson PLC as a project manager • During his 19 years at Hammerson, Emery managed and directed all of the company’s major office and retail developments throughout the UK • Appointed as managing director of Hammerson’s UK business in 2008 • Joined Maijid Al Futtaim Properties as senior vice president for project management in 2008 and has been responsible for the construction of nine major projects since he was hired • Chairs MAF Properties’ corporate social responsibility committee and is a member of the Senior Executive Group
not daunting and it feels like you are passing through smaller spaces rather than being in one big warehouse, I think that’s comforting.”
APRIL 10–16, 2010 CONSTRUCTION WEEK
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IN PICTURES MIRDIF CITY CENTRE RIGHT: Majid Al Futtaim Properties, along with its consultants and contractors worked on site together to complete the construction of the 196,000 Mirdif City Centre on time. Over 16,000 jobs were created in the design and build stage of the project. BELOW LEFT AND RIGHT: Three hundred and fifty shops out of 430 were opened on March 16 – more shops than any mall has ever opened on launch day. This equates to 167,225 m2 of retail space, which has been unveiled to the public. More shops and other amenities will be opened within the next few weeks.
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LEFT: Natural light flows into the mall at horizontal angles so that contact with direct sunlight is avoided and the building is kept cool. Other sustainable designs were incorporated into the project, which the client hopes will contribute to a LEED Gold certificate. BELOW: The mall consists of 75 restaurants and cafes, as well as a 10 screen multiplex cinema totaling 6000 m2, a new water-based ‘edutainment’ recreation facility, an indoor skydiving centre and a ten pin bowling alley. The building also includes a 7000-space car park.
MIRDIF CITY CENTRE UAE-based Alec was awarded the main contract to build the US $816.8 million (AED3 billion) Mirdif City Centre in September 2007 and construction began almost immediately. The contractor had 31 months to complete the project.
APRIL 10–16, 2010 CONSTRUCTION WEEK
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ANALYSIS
GOING FOR
GOLD EXPERTS EXPLAIN WHAT MAKES MIRDIF CITY CENTRE A SUSTAINABLE DEVELOPMENT By Sarah Blackman
M
irdif City Centre may have opened last month, but the pressure is still on for Majid Al Futtaim Properties and its team of contractors, as they wait to hear if their flagship retail development will become the first mall in the MENA region to
all team members to LEED. And, as time went on, a number of employees became LEED certified professionals. “Frequent workshops were held throughout the project design and execution phases. These workshops comprised representatives from every discipline to help drive LEED credits through,” Cummings adds. During the construction of the project, 20% of energy consumpachieve a LEED Gold rating. tion was saved through various initiatives, such as the selection After submitting the required documentation, the developer of sustainable building materials and the reduction of construcis quite sure that it will reach its goal, but it will be a couple of tion waste. months before the news – good or bad – is announced. The client looked at reducing the amount of waste physically “We have done a lot of pre-calculations and we are fairly confi- generated by construction and therefore invested in tools that dent that we will get the certificate,” says Majid Al Futtaim senior could be used time and time again, such as shuttering – a type of vice president for project management Jonathan Emery. formwork equipment. As a result of such schemes, 50% of construction waste was diverted Under LEED v3, launched in April last year, between 60 and 79 points need to be achieved for a new construction project to be from landfill sites during the 31 months of development. It is also important to all those involved in the project, that the rated as LEED Gold, while the ultimate Platinum rating requires mall has a sustainable future, and to ensure this would happen, 80 points or above. energy needs to be saved during the building’s life time and not So why didn’t the client aim for the highest green accreditation? “We set ourselves the target of LEED Gold, which was the high- just during the construction of the development. Luckily, consultants were onsite to meet these requirements. est standard we felt, was in our push,” Emery explains. Adopting the green system, however, created a lot of challenges Architect RTKL was charged with designing the mall, as well as for both the client and the contractors during the construction delivering a scheme that was environmentally responsible. of the mall, says Peter Cummings techniThe company’s director Ken Christian says that cal director for WSP, the MEP consultant the entire project team was keen to follow the on the project. GREEN PROJECT LEED protocols. “At the time of inception of the project, “A lot of a LEED Gold rating has to do with the SUPPLIERS the LEED rating system was very new to Jotun – eco friendly paints team’s level of commitment from design to construcRaktherm – long-life plastics the region and was also new for the majortion to operations. The other has to do with getting Rubberworld – insulation ity of the team.” the planning done correctly and understanding the Johnson Controls – HVAC To help overcome this challenge an edurelationship between building configuration and cation programme was run, introducing energy modeling.”
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CONSTRUCTION WEEK APRIL 10–16, 2010
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DURING THE CONSTRUCTION OF THE PROJECT, 20% OF ENERGY CONSUMPTION WAS SAVED.
Indeed, planning is important. Sustainable building can be complicated and it is made doubly difficult when it comes to malls, due to the knocks and bangs it receives from thousands of people walking through it each day. In addition, retail architecture goes out of date because it is centralised around fashion, but it also needs maintaining more regularly than say, an office building because of the need to dazzle and attract a wide customer base. Halford Associates, which has now been acquired by Hyder Consulting, acted as the lead consultant on the Mirdif City Centre project and advised which robust solutions should be implemented in order to prolong the building’s life.
RTKL DIRECTOR KEN CHRISTIAN.
“We chose marble for the floors, which spreads across 42,000m2 of the mall. It is an extremely durable type of marble, which will last a long time,” says Halford Associates project director Ian Baker. The company’s contribution to creating an eco-friendly development also included the selection of natural lighting and energysaving systems, such as waterless urinals. “We have worked with MAF on several occasions and Mirdif City Centre is actually a product of lessons learned on previous projects,” adds Baker. WSP also designed systems for the project, which aim to minimise energy consumption.
LEED REQUIREMENTS WSP lists some of the green strategies and engineering technologies adopted by Mirdif City Centre
• Adopting erosion and sediment control measures to protect environment
• Development on an urban site thereby minimising environmental impact due to land development and leverage existing urban infrastructure
• Using daylight control and occupancy sensors
• Use of non-toxic eco-friendly materials
• Use of chilled water using compliant refrigerant
• Use of materials with high recycled content
• Measurement and verification – installation of BMS and having plan for the base building and submetering for energy conservation
• Use of materials with high regional material content
irrigation
• Elimination of chlorofluorocarbon(s) for the project refrigerant plant
• Use of water efficient flush and
• Use of energy efficient and eco-
flow fixtures
friendly equipment
• Compliance with ASHRAE 90.1
• Improved façade design
Appendix G – Ashrae’s building energy standard
• Using energy efficient light
• Ease of access to public transit systems
• Use of non-potable water for
• Storage and collection of recyclables for the project • Diverting 50% construction waste from landfill
• Quality indoor air for human safety and comfort • Declaring buildings as ‘nonsmoking building’ • Green education policy
APRIL 10–16, 2010 CONSTRUCTION WEEK
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Lead Consultant – Delivery Architect – Architect of Record
Mirdif City Centre is the latest addition to Holford Associates’ portfolio of successfully delivered retail projects for Majid Al Futtaim Properties. • Ajman City Centre • Sharjah City Centre • Muscat City Centre
• Deira City Centre refurbishment • Mall of the Emirates • Ski Dubai
Contact Colin Wood – Managing Partner PO Box 28166, Dubai, UAE Tel: ++971 (0)4 3970958 Fax: ++971 (0)4 3971745 Email: holfords@holfords.com www.holfords.com Holford Associates is part of the Hyder organisation www.hyderconsulting.com
ANALYSIS “Sustainability was always on the agenda and pursuing LEED meant efficient HVAC systems were a must. Essentially the brief required the designer to provide a central cooling plant with a high degree of efficiency and flexibility,” says Cummings. “The total cooling capacity at the moment is 53.4MW. The safe refrigerant that has no ozone-depletion potential and no phase-out schedule and the chillers have very high efficiencies.” Variable volume supply air handling units are being used to cool the main areas of the mall and the building utilises low flow fixtures to minimise the consumption of water. The project also has a metering strategy with remotely monitored energy and electrical meters integrated with a building
MIRDIF CITY SAFETY Combisafe Gulf director of operations Bruce Shahabi explains what safety systems were implemented during the construction of Mirdif City Centre Which specific products and solutions did you supply to the project? Combisafe supplied a steel mesh barrier to perimeter edge of the cast slab floors and some formwork systems. We also supplied a safety net fan system (fall protection system) to the perimeter edge of cast slabs with special focus of access ways and large floor openings.
management system (BMS) to ensure the LEED measurement and verification credit is attained. “The chilled water systems are also extensively metered to enable the operator to determine when and where energy is being consumed,” adds Cummings. So, the systems are in place and the client’s main goal is clear. What’s important is the company doesn’t lose sight of how the mall can continue to save energy for years to come. For now, experts believe that Mirdif City Centre will set standards for future development. “The commitment the team had to the LEED certification will set Mirdif City Centre apart and likely build momentum for others to follow suit,” says Christian.
right equipment for fall prevention and protection systems before facing the problem on site are key factors on such projects. Consideration must be given when selecting a fall safety system for the level of supervision, maintenance and ease of use on large scale projects as such. Alec also employed a rapid reaction unit within their safety team on their projects, which enabled them to react in a systemised and organised manner should something had gone wrong.
How does the development differ to other projects you have been involved in? The shear size and footprint of the site made supervision a challenge. The tight project duration put a lot of strain on the field service and the material supply side. However, the contractor, Alec, was quick to recognise the problems and risks to falls early and plan well ahead to design out the risks. What type of safety measures have to be considered on this type of project? Recognising the risks during planning stage and sourcing the
APRIL 10–16, 2010 CONSTRUCTION WEEK
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PILING PRESSURE PILING AND FOUNDATION CONTRACTORS IN THE REGION ARE WAITING FOR THE MARKET TO START LOOKING UP. CW CHATS TO A COUPLE OF PILING EXPERTS TO GET THEIR THOUGHTS ON THE MATTER By Conrad Egbert and Sarah Blackman
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PILING & FOUNDATION
T
alk to anyone in the construction industry and they’ll tell you that ground works, including piling and foundation, is probably the most important task in building the average tower. And as various sectors within the construction industry struggle to climb out of one of the worst economic downturns in recent history, piling and foundation contractors too, have not been spared and are hoping for a change to come along. But with numerous contracts having recently been awarded in Abu Dhabi and Saudi Arabia, it appears that the situation could be improving gradually. One piling contractor thinks not. “The market for piling and foundations has not improved at all since the middle of 2008,” complains Ras Al Khaimah-based Al Nuaimi Foundations & Concrete division
FOUNDATIONS: CONCRETE VS STEEL 1. Steel foundations good for marine construction like harbours and jetties 2. Concrete foundations are more economic for land-based construction 3. Concrete foundations last longer when additives are used 4. Steel foundations have a high production rate 5. Steel foundations head treatment significantly reduced 6. Both options are sustainable options 7. Carbon footprint of steel will be much higher than concrete 8. Steel piles can be easily recycled than concrete piles
PILING CONTRACTORS REPORT A MARKET THAT HAS NOT IMPROVED SINCE THE DOWNTURN BEGAN.
manager Kochummini Mukundan. “And that is why we’re waiting in hope for the time when the market gets better.” Shad Asif Khan, general manager for piling contractor Keller Grundbau, agrees with Mukundan over the current market situation and backs up his opinion with a simple fact. “The number of piling rigs available in the market is still much more than the demand for them, because construction activity is still not as much as it was back in 2008,” he says. So what can bring about this change? With the region now focusing heavily on sustainable construction and cheaper costs, could a change in techniques bring down the overheads? An independent sustainability expert suggested a shift from concrete foundations to steel foundations could result
in better Leed ratings, but it is still being researched. “Concrete pile foundations are quite popular here in the market and we have enough additives to extend the life of the concrete,” says Mukundan.
“THE MARKET FOR PILING AND FOUNDATIONS HAS NOT IMPROVED AT ALL SINCE THE MIDDLE OF 2008, AND THAT IS WHY WE’RE WAITING IN HOPE FOR THE TIME WHEN THE MARKET GETS BETTER.” He adds that in his 47 years of experience in construction, he has never known steel piles to be ‘that popular’ in the region. Khan, however, weighs the pros and cons of steel and concrete in a little more detail. He says steel foundation installation can
APRIL 10–16, 2010 CONSTRUCTION WEEK
25
HEIGHT
WHAT ARE THE BEST METHODS A COMPANY CAN USE TO CREATE FIRM FOUNDATIONS? AL NUAIMI GROUP To use large diameter bore piles to have a strong foundations for any structure. KELLER GRUNDBAU No method can be labelled as best. A variety of foundation techniques are available, and it is an art to apply in one project a combination of products, and devise a solution that is economical and at the same time fulfils the structural requirements. An over design in these times should be avoided. The quality of the product depends on control and monitoring procedures while the product is being installed.
THE PILING USED SHOULD BE BASED ON SITE NEEDS.
have a high production rate, but adds that when compared to concrete foundations the head treatment would be significantly reduced. “Some additional measures such as cathodic protection or epoxy coating may be necessary to prevent corrosion but both options can fulfill sustainability requirements. The carbon footprint for steel would be much higher than concrete, but it can be more easily recycled then concrete piles,” he adds. So when exactly are steel piles used since concrete seems to be the preferred option in the Middle East? And will steel piles ever fit into the scheme of things to come? “Our company has worked successfully with both systems,” confirms Mukundan but says they’ve got their own uses. “In general, steel foundations are mostly used for harbours and jetties. For marine construction, steel foundations have more advantages than concrete ones, but on land-based high rise buildings, it is more economical to build with concrete foundations,” he explains. Finding work at the moment is not the easiest task, but has the piling and foundation sector improved over the last five years in terms of technology and has the equipment being used been upgraded? While Mukundan reminisces about starting out in 1963, when everything was mostly mechanical and manual, Khan compares the more recent systems on the ground. “The crane hung piling units are hardly used by any professional piling company; custom built pile drilling rigs are definitely more popular,” says Khan. He feels that the practise of using bentonite to stabilise the collapsible part of a borehole is also slowly diminishing. “Many incidents are being heard of, where well known names have had problems with piles settling more than expected,
PILING RIG SUPPLY CURRENTLY EXCEEDS DEMAND.
due to either reduced skin friction of pile walls or reduced end-bearing due to un-cleaned bentonite from the pile base,” he says. “Previously for construction of secant pile walls also, companies were avoiding the use of full-cased holes for reinforced piles, but this practice is also reducing as the quality of a fully-cased pile is distinctly better than cutting unreinforced piles without casing,” he adds.
BASIC TESTS TO CHECK FOUNDATION STRENGTH LOAD TESTING – statically or dynamically SONIC ECHO TESTING – determines any discontinuities in the pile section and concrete quality.
APRIL 10–16, 2010 CONSTRUCTION WEEK
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PILING & FOUNDATION COMPANIES KELLER GRUNDBAU Around the world, ground engineering is crucial to the success of major civil engineering schemes such as urban regeneration, infrastructure renewal and energy production. It is also an important factor in whether a project is delivered on time and to budget. Whatever the size of the project, and wherever it is, according to Keller it has the experience and technology to provide an innovative, robust and costeffective solution. Keller services are used across the entire construction spectrum from industrial, commercial and housing projects to infrastructure construction for dams, tunnels, transportation and water treatment. Keller also meets the specialised geotechnical requirements relating to the renovation of existing buildings and the increasingly important environmental contracting market. The company claims to have the financial strength, the know-how and the global reach to tackle some of the largest and most demanding projects around the world. DUTCO BALFOUR BEATTY – Piling & Ground Engineering division The Piling and Ground Engineering Division was formed in late 2003 when the division decided to re-establish their bored piling capability. The division focuses on three key business areas: foundation works; lateral support works (excavation retaining structures); and through an association with Landpac of South Africa, ground treatment and improvement, and aims to offer various engineering products to international standards. The main group, Dutco Balfour Beatty, is a major participant in the Middle East construction industries. The company, which employs around 13,500 people, is one of the largest civil engineering, building and marine contractors in the UAE and also offers clients the focus and expertise of specialist scaffolding, formwork , interiors and plant. DBB, as it is commonly known, was formally incorporated in 1984, following the successful, early completion of the US $4 billion Mina Jebel Ali Port project for the Government of Dubai. Over the years, Dutco Balfour Beatty has evolved
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CONSTRUCTION WEEK APRIL 10–16, 2010
into one of the leading civil, building and marine contractors in the UAE with a well established record for timely delivery and customer satisfaction. Dutco’s list of clients includes the Roads & Transport Authority, Dubai Municipality, Emaar Properties, Dubai Civil Aviation, Dubai Port Authority and Nakheel Properties. EDRAFOR The company designs and builds special foundations and shoring projects that span the entire construction industry. The company offers a vast array of techniques optimally tailored to each individual project. Solutions include large diameter cast-in-situ or driven piles, pressure grouted micropiles,
PLAYERS IN THE SECTOR FACE STIFF COMPETITION.
temporary and permanent anchors, diaphragm walls, high pressure grouting, chemical grouting, sheet piles, root piles, and jet grouting. Today, Edrafor is backed by a work force of over 200 highly experienced and skilled personnel for design, construction, operation, testing, maintenance, manufacturing, and repairs, all to insure a high quality, safe, and efficient service that guarantees on time and on budget completion. Recognised as one of the major geotechnical companies in the Middle East, Edrafor has expanded its field of operations to Syria, the UAE and Qatar.
ZUBLIN Züblin has gained a wealth of experience in over 50 countries during more than 50 years, carrying out design, management, construction and turnkey projects. As for all of Züblin’s activities, the reservoir of knowledge and experience of Züblin’s in-house specialist departments, such as tunneling, ground engineering and turnkey technical department, and tunnelling department amongst others, continue to provide innovative and efficient solutions to every engineering challenge confronted. Züblin also maintains a strong position in the German as well as in the international construction markets through its innovative and technical capabilities, supported by a solid financial basis. Projects are planned and managed by qualified and highly motivated engineers and designers, backed by experienced administrative and management personnel. Modern plant and equipment, as well as highly trained site-personnel guarantee on-time performance and a high standard of quality. DUTCH FOUNDATIONS Dutch Foundation specialises in deep foundation piling. For close to two decades it has had a big share of the enormous building boom in the GCC countries which saw a rapid growth of the company. According to the company, its strength comes from the safe and efficient utilisation of the latest technology machinery and workforce of highly trained and experienced professionals. The company excels in Cast in Situ bored piles (vertical/raked), Continuous Flight Auger CFA Piles, Driven Cast in Situ Piles, Driven precast piles, Sheet piling, Secant pile wall, Diaphragm wall, Concrete Rehabilitation, Trench Sheeting, Marine Jetties, Complete foundation design & construction. AL NUAIMI GROUP Al Nuaimi Group is a multi-activity firm established in the UAE in 1974. Since then, by adopting a dynamic quantitative approach to business, Al Nuaimi Group has become one of the leading groups in the areas of Construction, Laboratory and Foundations, Road Work Builders, General Transporters, Electrical works.
REGIONAL EXPANSION HAS BEEN NECESSARY FOR PILING CONTRACTORS LOOKING TO TAKE ADVANTAGE OF CONTRACTS AVAILABLE IN ABU DHABI AND SAUDI ARABIA.
The reason why piling and foundations work is regarded as one of the most vital steps in the construction process, especially in the region, is due to the many different soil types, each country or city have. This variety leads to many technical challenges which have to be paid careful attention to. But Mukundan thinks the biggest challenge he has to face at the moment is on the commercial side. A very serious challenge in these times indeed! But Khan focuses on the technical aspects instead. “The cavities in certain areas of Abu Dhabi pose a challenge to the piling contractors,” he says. “[We have] to tackle them in a manner where the integrity of the pile remains
479 AVERAGE NUMBER OF ACTIVE PROJECTS IN THE UAE IN 2009, ACCORDING TO BUILDSAFE
intact. This challenge is overcome by shear experience and knowledge of the piling contractor,” he explains. With Abu Dhabi announcing projects and awarding contracts every week, it has clearly become the preferred playground
for the construction industry in the UAE. Similarly, Saudi Arabia is a counterpart on a regional scale. Keller has a strong presence in Saudi Arabia and Abu Dhabi according to Khan and so do most other leading piling contractors. “Our company has already registered in Saudi Arabia for our division as foundations and for all other activities in our group,” says Mukundan. “We also have a presence in Oman as well as our home country, the UAE.” Mukundan adds that Al Nuaimi Group is also currently looking for possible joint ventures and partnerships in various foundation projects across the Middle East.
APRIL 10–16, 2010 CONSTRUCTION WEEK
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MAKE BIM WORK FOR YOUR PROJECT TEAM
Aqel Alarid
Munir Saleh Abu Qube
Steve Pennell
Ron Brinkman
Arabian International Co.
Al Abniah Precast Concrete Buildings Factory
Arup
Murray and Roberts
Steel Fabricator
Precaster
Engineer
General Contractor
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§ § § DIRECTORY
DIRECTORY RAILWAY UPDATE | CITY UPDATE | SUPPLIERS
SECTOR FOCUS 32 Utility infrastructure CITY UPDATE 34 Baghdad SPECIALIST SERVICES 36 Design software 37 Construction manufacturers/steel
To advertise please call Shishir Desai +971 4 435 6375, or email shishir.desai@itp.com
APRIL 10–16, 2010 CONSTRUCTION WEEK
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COMING
GETTY IMAGES
SECTOR FOCUS UTILITIES INFRASTRUCTURE
INTO POWER A CLUTCH OF BIG PROJECTS SEES THE SECTOR RESURGENCE CONTINUE By Ben Roberts
T
he first quarter of 2010 Japanese company. It is expected to meet Halfway through the $8 million EPC conheralded a number the target for phase one. struction of its substation, contracted to Haif of major projects as But Saudi Arabia – the world’s third larg- Bin Mohammed Bin Abboud Al Qahtani industry continues to est water consumer per capita has arguably & Associates for Trading and Contracting turn a corner across the most momentum in its utilities devel- Company and due for a 2011 completion, opments with a string of big projects. The in January it launched the expansion of the region. In January, Kuwait’s Saudi Electricity Company (SEC) approved electrical distribution system at Camp 3 Ministry of Electricity and Water gave the the conversion of the Al Quarayyah power of the Yanbu Industrial City. The scope go-ahead for the US $29 million three-year plant from a simple cycle into a combined of work includes upgrading the existing construction of overhead transmission lines cycle plant by adding five steam turbines, feeders from Sub-station 2B to two conducin several areas in the country. The lines boosting efficiency and leading to an expected tors per phase, providing new loops for a range from 32kv to 300kV, with the proposed Bachelor Housing, “ONE OF THE MOTIVATING FACTORS FOR United Gulf Construction Cominstallation of 15KV transUS… WAS THE SURETY THAT WE WOULD formers and associated civil pany as the sole contractor. CONTINUOUSLY HAVE A DEMAND IN THE It follows the Ministry’s approval works – a $1.5 million project MARKET TO CATER TO” of a 2000MW gas-fired power contracted to Mustowra Trade plant in Subiya in October. It is and Contracting. Still to come from Saudi Arabia this year is to be completed in two parts: firstly to add capacity of the plant to nearly 3000MW per a capacity of 1300MW to the electricity year. It followed the start of the expansion the construction of the Ras Al Zour IWPP grid in Q3 2011 and then to increase the of a substation in Riyadh, a wide ranging power and desalination plant, a $5.5 billion capacity by 700MW in 2012. The project power transmission project valued at $109 project that the government had to relieve has a value of $ 2.65 billion and has three million, which includes design, material from private hands as a result of the ecomain contractors: Al Rashad Group for supply and construction of four turbines. nomic crisis. Business Monitor InternaProjects Holdings, General Electric and Arabian Bemco was appointed as contractor tional recently revised down its forecasts Hyundai Heavy Industries. The latter two while Saudi Consultant as consultant. The for further water desalination capacity. companies signed the EPC contract in Sep- project aims to be completed in June. In its ‘Q110 Saudi Arabia Water Report’, tember and the deal continues a mercurial In Yanbu the Royal Commission for Jubail desalinated water is expected to be 1.127 relationship between the ministry and the and Yanbu is in the middle of a busy period. billion m3 in 2010, down from 1.167 billion m3 32
CONSTRUCTION WEEK APRIL 10–16, 2010
Four nuclear reactors in UAE Expected: Q1 2012 for 2020 completion. Estimated value: US $40 billion. Current contractors: Korea Electric Power Corp (KEPCO), Hyundai Engineering & Construction Co., Samsung C&T Corp, Doosan Heavy Industries & Construction, Westinghouse Electric
Rabigh Power Plant Extension (phase 6) in Saudi Arabia Expected: Q2 2010 for Q3 2014 completion (estimation) Estimated value: US $4 billion Current contractors: tender still out
01/2010 en
previously. It cites its revised forecast as a result of slower than expected project progress. Despite delays it is scheduled to commence in the third quarter of this year. Fichner & Co is the contractor. In Bahrain the Electricity and Water Authority closed 2009 by launching a number of utilities projects. The authority awarded Cebarco the contract for the civil works of the independent water and power projects in Al Dur and Alei – a $15 million contract. It was almost in parallel with the 132/11- kV GIS substation in Dubai, awarded by the emirate’s Electricity & Water Authority to Larson Electromechanical, a $24 million
thermal storage tanks, was snapped up by Drake & Skull International in January with completion planned within a year. This was followed last month by DSI’s Water & Power subsidiary winning the entire utilities development work for the residential compound in the city. Tawfiq Abu Soud, DSWP executive director, said: “One of the motivating factors for us in deciding to form a business stream dedicated to managing and controlling IWP works was the surety that we would continuously have a demand in the market to cater to.”
WATER AND DESALINATION STATS Biggest water consumer per capita – Abu Dhabi (525-600 gallons a day) Biggest water producer – Saudi Arabia (third biggest consumer) Estimated forecast for desalination in 2010 (Saudi Arabia) - 1.127 billion m3
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UPCOMING PROJECTS
deal that commenced before the end of the year. The Bahrain authority also launched the building of its water distribution substation. Contracting Al Mansoor Al A’Ali BSC, the $29 million project includes construction of the substation, upper water storage tank and underground water storage tank. Commencing at the end of last year, it has a two-year target for completion. But few projects seem as ambitious timewise as the chiller plant in Khalifa City, Abu Dhabi. The $33 million contract for the 2000-tonne structure, which includes development of two 12,500 TRH-capacity
PROJECTS TO EXPAND THE REGION’S POWER PRODUCTION CAPACITY INCLUDE THE UAE’S NUCLEAR EFFORTS.
Twice the load capacity instead of twice as much equipment Innovation for formwork components! From 19.04.10 at bauma Open-Air Area North F8, Stand N811
www.doka.com APRIL 10–16, 2010 CONSTRUCTION WEEK
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CITY UPDATE BAGHDAD
GREAT EXPECTATIONS HOUSING AND A LINK-UP OF MINISTRIES TYPIFY THE CURRENT AMBITIONS IN IRAQ’S CAPITAL By Ben Roberts
“THE GENERAL SECRETARIAT APPROVED THE REFERRAL OF THE AL RAHEED RESIDENTIAL COMPLEX LAST WEEK TO AN UNNAMED UAE COMPANY AT A COST OF MORE THAN US $20 BILLION (AED 73.4 BILLION).”
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CONSTRUCTION WEEK APRIL 10–16, 2010
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ith Iraq’s government in even greater upheaval than normal, amid the legal wrangles of the election, it would have taken a lot for construction and development in the capital to retain the headlines. But three major announcements and sizeable numbers clawed back both domestic and international attention. Firstly, the General Secretariat approved the referral of the Al Raheed residential complex last week to an unnamed UAE company at a cost of more than US $20 billion (AED 73.4 billion) – heralding one of the largest investment projects in its history. The decision was reached following protracted meetings of the Council of Ministers, according to Ali Al Alaak, UN SecretaryGeneral of the Cabinet, with the Emirates company the pick of three shortlisted. The infrastructure project is to be presented to the next cabinet, he added, with the final signings expected within the next few weeks after modifications and resubmission by the Investment Authority. This came soon after an announcement by the Investment Commission that it had awarded eight investment permits to projects in the capital. In a statement to Aswat Al-Iraq news agency, the Commission said it had prioritised housing, of which it aims to build over 1 million in the next three
CONSTRUCTION FUNDING NEEDS STABILITY.
BIGGEST PROJECTS US $20 billion Al Raheed: residential complex
US $50 billion combined eight projects awarded by Investment Commission
years in the country as a whole, a total investment of $50 billion (AED183.4 billion. Among the eight permits is a $238 million (AED 874 million) housing project that includes 1824 units at the Muthanna Airport. It continues the momentum spurred by the laying of a cornerstone in the ThiQar capital Nassiriya, 380km south of Baghdad in mid-March. The announcements tempered concerns following the views of Baghdad governor Salah Abdul two weeks ago that construction funding might be stunted if the country did not grapple efficiently with its financial budget. In between these two events, the electricity and transport ministries announced last week a joint railroad project to deliver fuel to the Dora Power Station, in southern Baghdad. The last few weeks also saw upheavals for US contractors. Following the establishment of the general Status of Forces Agreement in January between the US and Iraq – which attempted to implement a legal backbone to the accountability of the US military’s occupation – the Ministry of Interior has aimed to simplify the process for US contractors to enter and exit the country and make their legal presence a statutory requirement. The new scheme involves an approval memo, an entry-exit spreadsheet of travellers to airports in Baghdad, Erbil and Basrah as well as, for the US Embassy, a copy of the government contract and that contractor’s Certificate of Registration from the Ministry of Trade. APRIL 10–16, 2010 CONSTRUCTION WEEK
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SPECIALIST SERVICES §
¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 210 8351, OR EMAIL JASON.BOWMAN@ITP.COM
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GULF METAL CRAFT MANUFACTURER OF SHEET METAL PRODUCTS
To advertise please call +971 4 210 8351 or email jason.bowman@itp.com
Gulf Metal Craft (GMC), a subsidiary of M’Sharie, is a manufacturer of sheet metal products. Established in 1989, the company is located in Jebel Ali, Dubai and is primarily engaged in producing a range of products made from electro galvanised steel, aluminium and stainless steel. In response to market demand, GMC has developed manufacturing facilities and has recruited a team of specialist engineers who can offer a custom designed service, from initial design stage through to installation. The company has supplied electrical enclosures for DEWA substations, Dubai Internet and Media City, Dubai Marina Towers and Al Raha Beach resorts. It has also produced stainless steel architectural products for projects such as the Burj Al Arab, Abu Dhabi’s Marina Mall and Sharjah Exhibition Centre. All sheet steel enclosures are manufactured from electrogalvanized sheet steel and all aluminium enclosures are manufactured from high grade aluminium alloys. “Since its inception GMC has set standards in developing the enclosure and distribution boards market in the UAE,” GMC general manager Basim Abu Shamleh.
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CONSTRUCTION WEEK APRIL 10–16, 2010
GMC PRODUCTS ARE MADE FROM STEEL AND ALUMINIUM.
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APRIL 10โ 16, 2010 CONSTRUCTION WEEK
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ConstructSAFE Reporting Near Misses
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CONSTRUCTION WEEK APRIL 10–16, 2010
> For the ConstructSafe comic strip log on to www.ConstructionWEEKonline.com
Introducing the Construct Safe lead characters (from Left to Right)
experience. Poor health, safety & welfare knowledge
Raoul: Senior Supervisor with 30 years experience and good health, safety & welfare knowledge
Farik: Apprentice labourer new to the industry with no experience. Poor health, safety & welfare knowledge
Achmat: Construction labourer with little
Illustrations by Jincom Publishing
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APRIL 10–16, 2010 CONSTRUCTION WEEK
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DIALOGUE JOHANN STRUNZ Doka ‘path breaking’ at Bauma 2010 The once-in-three-years construction trade show, Bauma 2010, starting April 19 will see Doka redefining formwork technology, from its very own pavilion. Doka group executive manager Johann Strunz speaks to Construction Week about the company’s plans at the show.
By Conrad Egbert
How important is Bauma for Doka? Our presence at Bauma is more important for the Doka Group this time than ever before. Due to the tough economic situation throughout the world, construction firms increasingly have to rationalise and economise. This is a great opportunity for Doka. Because nowadays, the sense and ‘bottom-line’ cost effectiveness of every investment are being scrutinised and weighed up more critically than ever before. Innovative companies like Doka, which exploit every scope for rationalisation, no matter how small, are benefiting from this trend.
we were among the first to note the increased trend towards infrastructure construction. With innovations like the Forming wagon TU, which runs on the underside of bridges, the Cantilever forming traveller with integrated formwork, the super-strong timber-beam formworks FF100 tec and Top 100 tec, as well as with our own wind-turbine formwork, Doka anticipated the trend triggered by government stimulus packages and developed a whole bundle of dependable and highly efficient formwork solutions. In the building-construction segment, too, where the trends are currently very different from one geographical region to the next, the construction downturn has further ratcheted up the pressure to perform. Construction firms are being expected to be more effective and more efficient. Just the demands, then, that innovations of ours like Dokadek, Staxo 40 and Monotec help to solve. They show how with Doka formwork technology, construction companies can rise to today’s heightened demands.
What message are you sending out to local construction firms? Our aim is to ‘bring alive’ the values that Doka stands for. First and foremost, this means reliability and high capability – and filling our customers with enthusiasm for the Doka brand. We work alongside our customers throughout the world, supporting them with the full Doka service and product range wherever they happen to be. Doka customers profit from new What are your personal expectations of Bauma? technologies that make it easier for them to form cast-in-place With our new and very distinct expo concept, based on Doka’s concrete. There is no challenge that we will shun, no matter ‘theme worlds’, we are going to differentiate ourselves very how great, as we are continually proving on highly demanding clearly from our competitors and bring our brand values very projects, such as the Burj Khalifa, where our recent pioneering much alive at Bauma 2010. achievement set a new formwork-engineering world record. Our explicit and overriding objective is to get and keep ‘top Never before had a climbing formwork been in action for such of mind awareness’. a long time and worked its way up to such dizzying heights. Put very simply, what this means is that after our visitors go The standard we set home from the fair, the ourselves is to surpass our name they will remember BIO customers’ expectations as the number one in Johann Strunz currently holds the position of group executive day in, day out, and to be formwork technology will manager at Doka. He is also a member of Doka’s executive path breakers – in be ours – Doka. For our management committee in marketing and product management for every way! many regular customers, Latin America, Southern Europe, Middle and the Far East. we want to prove to He is based in Amstetten, Austria. He has been with Doka since What sector of them yet again that their February 1995. construction is Doka decision to work with Since then, Strunz has held several positions with the company targeting with its Doka continues to be including the post of regional manager for Doka’s office in Amstetten innovations? the right one. And for all in Austria, Managing member of Doka’s administrative board and Doka’s roots lie in civil potential new customers, later, the Chairman of the administrative board in Milan, Italy. His engineering, so it’s not our aim is to give them a first position at Doka was that in export sales when he was based in surprising that we are clear signal that without Munich, Germany. such path breakers in Doka, they’re missing out this segment and that on the very best! 40
CONSTRUCTION WEEK APRIL 10–16, 2010
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