ANALYSIS IS ‘SUSTAINABLE’ A DIRTY WORD IN SAUDI CONSTRUCTION? N E W S • A N A LY S I S • I N T E L L I G E N C E • P R OJ E CT S • C O N T R ACT S • T E N D E R S
JUNE 12–18, 2010 • ISSUE 325
AN ITP BUSINESS PUBLICATION LICENSED BY DUBAI MEDIA CITY
CONSTRUCTIONWEEKONLINE.COM
NET GAINS
Exclusive guide to the World Cup stadiums South Africa spent $2 billion building
Skeleton skyline Risks involved in restarting a build Page 26
Numbers man Arabtec’s CFO on size and diversity Page 30
New money KAFD is Riyadh’s emerging market Page 36
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COMMENT
CONTENTS JUNE 12-18, 2010 • ISSUE 325
42
As the 2012 FIFA World Cup kicks off in South Africa, CW takes a look at the major construction projects that have made it possible
REGULARS
10 16 18 56
ONLINE EDITOR'S LETTER GUEST COLUMN FOREMAN
ANALYSIS
24
WAITING ON THE SIDELINES Sustainability has entered discussions in the Saudi Arabian construction market. But will it catch on? Ben Roberts investigates.
ON SITE
36
FINANCIAL DETAILS KAFD is a clear highlight of the many projects in Saudi Arabia. Ben Roberts has been to the Kingdom to chart its progress so far.
INTELLIGENCE ANALYSIS
4
AL GHARBIA CITY Proposals for the brand new city west of Abu Dhabi will be called in Q4.
26
FINANCE
8
ARABTEC SEES 25% FALL IN VALUE IN 2010 A year of tumult for the contracting giant still has backing from analysts.
12
ABU DHABI'S CAPITAL GATE BEATS LEANING TOWER OF PISA Guinness World Record for Abu Dhabi's Capital Gate as it's named World's Furthest Leaning Tower.
42
UP FOR THE CUP South Africa has sunk billions in to the 2010 World Cup. We take a look at the stadiums they've constructed.
FACE TO FACE
30 ROUND UP
HAUNTED BY GHOST BUILDINGS As the rest of the GCC looks towards new projects, Dubai considers the pros and cons of resurrecting its skeleton structures.
STADIUMS
RISING FROM THE ASHES oumi Arabtec's CFO Ziad Makhzoumi ut talks exclusively to CW about a difficult 2009-2010 and thee on. company's plans for expansion.
JUL JULY UL LY 5-11, 5--11 -1 1 11, 2 2010 01 CON 010 CONSTRUCTION O STR ON ST TRUCT UCT CTION CTION ON W WE WEEK EK 1 EK
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Small companies need big company attitudes to issues of safety PAGE 9
COMMENT
SPECIAL PROGRESS REPORT
ECONOMY OF SCALE SAUDI ARABIA’S ECONOMIC CITIES COULD CHANGE THE FACE OF THE INDUSTRY. CAN THEY SUCCEED?
Saeed Alabbar on the benefits of concurrent engineering in engineer sustainable sustainab ble design PAGE 18 8
ANALYSIS
What Abu Dhabi’s new HSE regulations mean for contractors PAGE 24
SITE VISIT
Pre-cast and post tensioning works the Saudi Binladin way PAGE 35
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COMMENT
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INTELLIGENCE
Al Gharbia city, west of Abu Dhabi, will be five times larger than present and have a pedestrian friendly city centre, marina and superior transport links.
Tenders of note Proposals for new Al Gharbia city will be called for at the end of summer
D
evelopers and designers will be invited to submit proposals at the end of the summer, for individual plots in a brand new city west of Abu Dhabi. The 27km2 project, plans for which were unveiled by design firm RNL, will include a new harbour, marina and hundreds of units of housing in the Al Gharbia desert. RNL's architects and engineers have drawn up the framework for the Abu Dhabi Urban Planning Council (UPC), which plans to boost the population of Al Gharbia by four or five times its present number. Patrick McKelvey, senior principal at RNL, said Al Gharbia was set to become a new industrial hub in the Western Region. 4 CONSTRUCTION WEEK JUNE 12-18, 2010
“It has become a focal point for planned expansion, and this is one of the first steps of the 2030 plan, to put together these framework plans which will guide future developments,” he said. “There is a lot going on out there.” Al Gharbia is already home to some 16,000 workers and their families employed at the nearby ADNOC oil company headquarters. The centre of the city and the waterfront is designed to be pedestrian friendly, in line with the Abu Dhabi and Al Gharbia 2030 plans, while transport links to residential areas are paramount for the expansion plans. The waterfront will include a marina and ferry facilities to the nearby tourist islands of Delma and Si Bani Yas. — Story by Orlando Crowcroft
INTELLIGENCE For upto the minute tenders log in to constructionweekonline.com
Jubail link road Oman IWPP wants tender to close July 7 consultancy services The Oman Power & Water Procurement Company has put out a call for proposals covering supervision consultancy services for its independent water and power project (IWPP) in Salalah. Located at Wilayat Mirbat, in Dhofar, southern Oman, the IWPP consists of a power and water desalination plant with a power generation and water desalination capacities of 445 MW and 15 million gallons a day respectively. The privately financed project is expected to be operational in 2012. A consortium made up of SembCorp Utilities and Oman Investment Corporation SAOC was awarded the project in October 2009. The tender for supervision consultancy services closes on July 19 and a tender fee of 100 Omani riyals ($259) applies.
NICOLAS ASFOURI/AFP/Getty Images
The tender for road works linking Ras Al Zawr Minerals Industrial City and Jubail Industrial City in Saudi Arabia closes on July 7. The scope of work for the project starts with the provision of detailed engineering design, and also covers the procurement and provision of all plant, equipment, materials, labour, supervision and tools. All commissioning, supporting documentation, plus technical and professional services for the complete delivery of the roads will also need to be provided. The roads will link Jubail Industrial City with the Khursaniya area, the Al-Fureai area and finally to the Ras Al Zawr Minerals Industrial City. The scope of work also includes the construction of several bridges along the way. A tender fee of 33,500 SAR ($8,932) applies.
Target Engineering lands three contracts in Abu Dhabi Arabtec Holding’s subsidiary Target Engineering Construction has won three contracts in Abu Dhabi. The company announced that it signed deals with GS Engineering & Construction and Abu Dhabi Refinery worth AED747 million ($203.5 million). It is the
latest round of contracts to come from Abu Dhabi state firms as the expenditure on infrastructure. The two contracts with GS are for work at the expansion of a refinery at the industrial site of Ruwais, while the Abu Dhabi Oil Refinery, also known as
Takreer, aims to more than double capacity to transform 400,000 barrels of crude daily into products such as gasoline. At the beginning of March it was reported that Takreer, had signed contracts valued at US $9.6bn for work to expand the Ruwais plant. It is a welcome win for Arabtec, which for the last month has fielded market speculation of a possible $1.74 billion takeover from investment group Aaber Investments. The biggest construction company in the UAE reported a 17% drop in net profits for the first quarter of 2010 compared to the same period in the previous year. — Ben Roberts.
TOP TENDERS Housing complex, Phase 2 Buildings Country: Saudi Arabia Closes: Jul 31, 2010 Category: Residential Building Issuer: Saline Water Conversion Corporation Housing Complex in Different Areas of Saudi Arabia - Phase 2 Country: Saudi Arabia Closes: Jul 31, 2010 Category: Buildings Issuer: Saline Water Conversion Corporation Construction of New Ahmadi Hospital & Residential Building Country: Kuwait Closes: Jul 27, 2010 Category: Industry Issuer: Kuwait Oil Company Refurbishment of Several Pumping Stations - Phase 8 Country: Qatar Closes: Jul 27, 2010 Category: Power & Water Issuer: Public Works Authority Construction of Royal Commission Public Housing Phase 4 Buildings Country: Saudi Arabia Closes: Jul 25, 2010 Category: Residential development Issuer: Royal Commission for Jubail & Yanbu Supervision Consultancy Services for an IWPP in Salalah Country: Oman Closes: Jul 19, 2010 Category: Power & Water Issuer: Oman Power &Water Procurement Company Upgrading of Khuwair South Substation Country: Oman Closes: Jul 19, 2010 Category: Power & Water Issuer: Muscat Electricity Distribution Co. (SAOC) EPC for Upgrading Water Supply System at Kumzar Plant Country: Oman Closes: Jul 19, 2010 Category: Power & Water Issuer: Rural Areas Eletricity Company S.A.O.C Bridge and Intersections in Yanbu Industrial City Country: Saudi Arabia Closes: Jul 13, 2010 Category: Infrastructure Issuer: RCJY JUNE 12-18, 2010 CONSTRUCTION WEEK 5
INTELLIGENCE For upto the minute tenders log in to constructionweekonline.com
TOP TENDERS Installation of Package Sewage Treatment Plant at Daqum Country: Oman Closes: Jul 12, 2010 Category: Infrastructure Issuer: Ministry of Regional Municipalities & Water Resource Construction of 24 Classrooms Al Ahnaf Bin Qais Country: Oman Closes: Jul 12, 2010 Category: Educational facilities Issuer: Ministry of Education Dev of General Cargo and Liquid Terminal at Port of Salalah Country: Oman Closes: Jul 12, 2010 Category: Marine Issuer: Ministry of Transport and Communication
Tenders for the construction of the ambitious King Abdullah International Gardens are expected this summer.
Tender about to bloom in Saudi gardens project
Jotun wins key Saudi economic city contract
King Abdullah International Gardens (KAIG), the impressive SAR750.1 million botanical project set in Saudi Arabia’s Central Region, is to tender for main contractors this summer. A spokesperson for Omrania & Associates (O&A), the Riyadh-based architecture and engineering consultants reviewing the design, said the process would start in the next few months. O&A is providing site management and construction supervision for the project. KAIG is a joint venture between leading British consultancies Barton Willmore and Buro Happold. It was commissioned by the City of Riyadh as a gift to King Abdullah of Saudi Arabia to celebrate his accession to the throne. Earlier this year the project won the 2010 Cityscape Award for Real Estate in the Middle East & North Africa region in the ‘Best Sustainable Development’ category.
Jotun Paints has won a contract to supply paint to Saudi Arabia’s King Abdullah Financial District, in Riyadh. Jotun Saudia’s managing director Kjell Gündersen said: “The King Abdullah Financial District project stands to be one of our biggest achievements in terms of decorative projects we have undertaken in Riyadh till date, and we are very excited to complete this enormous task using our specially-formulated paints and coatings.” Alongside main contractor Hill International and project consultants Omrania & Associates and Gensler & Associates, Jotun will be working on a total built-up area of 1.6 million m2. The project requires Jotun to paint the new three million square metre financial centre, and is scheduled for completion in 2013 as part of the Kingdom’s overall economic diversification program. It's also one of Jotun's biggest contracts to date.
Sabah Al Salem Campus Country: Kuwait Closes: Jul 11, 2010 Category: Educational facilities Issuer: Kuwait University Construction of 6 Kindergartens Country: Kuwait Closes: Jul 6, 2010 Category: Educational facilities Issuer: Ministry of Social Affairs Duqm Hotel Country: Oman Closes: Jul 5, 2010 Category: Recreational facilities Issuer: Oman Tourism Development Construction of Telephone Exchange Buildings Country: Oman Closes: Jul 5, 2010 Category: Buildings Issuer: Oman Telecommunications Company Operation and maintenance of Yanbu medical centre Country: Saudi Arabia Closes: Jun 27, 2010 Category: Industry Issuer: RCJY
MATERIALS PRICE CHECK
$820
$3.81
$721.45
$98
$4.36
$32.67
$748.67
$3.27
$10.88
$14.97
Aluminium
Cement
Red Meranti
Ready Mix
Glass
FF plywood
BeechWood
Al Profiles
Steel Props
Scfld Planks
MDF
per sheet
per CBM
per kg
per piece
per piece
per CBM
per metric tonne
per bag (50kg)
per tonne
6 CONSTRUCTION WEEK JUNE 12-18, 2010
3
per m
2
per m
$72.15
FINANCE STOCK MARKETS
Arabtec sees 25% fall in value in 2010 Construction giant Arabtec has seen its shares crash 25% in the first half of this year, following the collapse of takeover negotiations with Aabar Investments. Last Monday’s share price of AED1.97 is not far from the 52-week low of AED1.56. But analysts still have faith, with eight ‘buys’ and five ‘holds’ among 16 top regional analysts. Eight appears to be its lucky number this year – the number of projects it has won in the region that, combined, have been valued at AED3.55 billion. Last week its subsidiary Target Engineering Construction Company won three contracts in Abu Dhabi worth AED747 million: two with GS Engineering & Construction Co for work at the expansion of a refinery at the industrial site of Ruwais; one with the Abu Dhabi Oil Refinery Co.
Arabtec's Target Engineering won three contracts in Abu Dhabi this month.
Two year price analysis Tough half for the construction giant's shares Share price in USD 2009
Share price in USD 2010
4.00 3.50
2.80
3.00
2.60 2.40
2.50
2.20 2.00
2.00
Jun
Jul
Aug
Sep
Oct
Nov
Sep
Jan31
Feb23
Mar31
Apr29
May31
Expert Views Union Cement Company PSC Union Cement Company was one of the biggest risers this week, but is it a stock worth holding onto?
8 CONSTRUCTION WEEK JUNE 12-18, 5-11, 2010 2010
Analysts this week have been torn by the Ras Al Khaimah-based cement firm, with the majority deciding it is a stock worth selling. It’s been a tough market for materials suppliers in the UAE and Oman, and particular for cement firms, which have seen production costs rise just as order sizes and prices have gone the other way. With its share price down just over a fifth since the start of the year – currently at AED1.34 – it saw a rise of 3.50% this week, but still some market –watchers downgraded their forecast. Hans Zayed at Credit Suisse believed the stock would underper-
form and gave a target of AED1.23 per share and a one-year return of 34.31%. Al Mal Securities came to a similar conclusion, though gave a higher target of AED1.83. But Hassan Anan, analyst at National Investor believed the stock was undervalued, and the team at Abu Dhabi-based Prime Securities went further, calling it a strong buy and giving a bullish target of AED3.97. Union Cement Company's profit in 2009 was AED56.5 million.All financial obligations have been duly met as per the contractual terms and conditions, according to the company.
THE VERDICT SELL: A glimmer of resurgence this week is not enough for stock watchdogs, and the steep decline this year will be tough to shake off
FINANCE
Galfar shares
TOP RISERS
Yamamah Cement shares
Fujairah Building Saudi Vitrified Southern Provincial Specialities Gro Gulf Cement Company Combined Group Union Cement Company Yamaha Cement Company Ras Al Khaimah Cement Co Qatar National
0.540 54.00
0.500
50.00
0.460
46.00
0.420
42.00
0.380
38.00
6/5
12/5
18/5
24/5
30/5
J
J A S O N D J 2009
F M A M 2010
Galfar ventures into Four up, four down Indian roads via SPVs for Saudi cement Omani firm Galfar last week secured three road projects in India through the use of special purpose vehicles (SPV) with a consortium of Indian investors. Galfar will take a 26% stake in the SPVs – limited liability entities. The Indore-Ujjain Road Project was awarded to the consortium of Galfar, SREI and Varaha by Madhya Pradesh Road Transport Corporation. The SPV Mahakaleswar Tollways Pvt Ltd - sees Galfar Engineering & Contracting (India) Pvt Ltd, a Galfar subsidiary, contracted for INR.1380 million (OR11.26 million) for half the project. Other deals are for the Ghaziabad-Aligarh Expressway and the 6-Laning of ChandikoleJagatpur-Bhubaneshwar Road project.
+5.98 +5.51 +4.25 +4.24 +4.21 +3.61 +3.5 +2.65 +2.11 +1.98
Saudi Arabian cement companies have shown an even split in stock market gains and losses for the last 12 months. Of the eight listed companies, four have recorded overall gains in share price, with Yamamah Cement Company leading the pack, up just over a fifth in value since June 2009. But just as many companies saw notable losses in their stock value. Tabuk Cement Company saw a similar size loss to Yamamah’s gain, down 20.96% since last summer, following by Yanbu Cement Company at almost 18%. But the biggest loser was Arabian Cement Company, which suffered a stock market value decline of 28.66%.
TOP FALLERS Construction Materials Arabtec Holdings Al Anwar Ceramic Hilal Cement Co Kuwait Company For P Arkan Building Materials Abu Dhabi National Co Sharjah Cement Co Galfar Engineering Co National Industries Co National Marine Dredging Co
-6.67 -6.73 -7.09 -7.27 -8.82 -9.37 -10.34 -11.22 -12.95 -13.58 -13.92
SECTOR INDICES Banking Insurance Fin & Inv Real Est & Constr Transportation Utilities Materials Consumer Staples Telecoms
-0.82 0.09% -10.88 .36% -19.91 -1.08 +30.59 1.12% +2.11 0.47% +7.21 +1.14% 0.00 0.00% 0.00 0.00% 0.00 0.00%
(Data accurate as of close 6 June 2010)
Update 10 latest project updates PROJECT TITLE
STATUS
VALUE / VALUE RANGE (US$)
REHABILITATION OF PAVEMENT AND TILES FOR COMMUNITY HAIIS ENTRANCES
Under construction
1,500,000
ALGERIAN EMBASSY
Under construction
4,000,000
CONSTRUCTION OF SUBSTATION (42) IN YANBU
Under construction
8,000,000
COMMUNITY SANITARY SEWER MAINS EXPANSION AT YANBU
Under construction
15,000,000
CONSTRUCTION OF EDUCATIONAL FACILITIES AT JALMUDAH DISTRICT
Under construction
21,000,000
CONSTRUCTION OF AL-ANDALOS SUBSTATION & BANI AL-NAJAR SUBSTATION IN JEDDAH
Under construction
31,000,000
DEVELOPMENT OF AL BUJIRI QUARTERS AT ARRIYADH
Under construction
33,000,000
CONSTRUCTION OF FOUR NEW 115/13.8-KV SUBSTATIONS
Under construction
72,000,000
EXPANSION OF PRINCE MOHAMMED BIN ABDULAZIZ AIRPORT IN MADINA
Tender
1,500,000,000
EXPANSION OF GRAND MOSQUE
Under construction
11,000,000,000
JUNE JUNE12-18, 5-11, 2010 CONSTRUCTION WEEK 9
ONLINE
For breaking news, analysis, interviews, tenders and projects, log on to constructionweekonline.com
MOST POPULAR
1 2 3 4 5
Enormous sinkhole swallows building in Guatemala In Pictures: Guatemala hit by volcano and floods World Record: Capital Gate beats Leaning Tower The Middle East's five best green buildings In Pictures: The Seven Wonders of the Modern World
IN PICTURES
SHAKY GROUND: Tvhe 200ft sinkhole took down a clothing factory and forced 3000 Guatemala residents from their homes.
Sinkhole swallows building An enormous sinkhole swallowed a three-storey clothing factory and left one man missing last week after tropical storm Agatha lashed Guatemala's capital city. Packing sustained winds of 65 kph (40 mph), the storm threatened the Pacific coasts of southern Mexico, Guatemala and El Salvador, killing at least 180 people and leaving enough rain (36cm/14inch) to cause major landslides and flash floods. Though geologists said that the circular shape of the sinkhole suggested a subterranean cave collapse, the exact cause of the gaping crater remains a mystery. Three years ago, another sinkhole killed three people and consumed several homes just three kilometres away. Only days before last weekend's storm, a powerful eruption at the southern Pacaya volcano killed one person and forced Guatemala's international airport to close. A state of emergency was called by the nation's leaders.
SPOT POLL Which of the following do you think is the best example of green design in the Middle East?
75.2% 9.9%
6.9%
4.0% 7.1%
ESAB Middle East Office and Warehouse, UAE
King Hussein Mosque, Jordan
Waagner Biro Labour Camp, UAE
King Abdullah Univ. of Science and Tech. (KAUST) Saudi Arabia
10 CONSTRUCTION WEEK JUNE 12-18, 2010
Charles Hostler Student Centre, Lebanon
Mall of the Emirates extension work With 10,000m2 of extra floor space and 40 more stores, the MoE extension opens on September 1.
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Interview Emaar's Mohammed Alabbar on delivering the two world’s most eagerly awaited projects Projects On the road again - Abu Dhabi crushing plant is set for a recycling revolution Analysis Facilitating sustainability what's holding the UAE back?
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ROUND UP
PMV MARKET
Market divided over shortterm future of machinery Top level experts and suppliers are divided over to the future health of the machinery industry, despite an increase in the number of projects going ahead. Signs of stability, including finished projects and a regular flow of payments, will drive ongoing need for vehicles and other motorised equipment, a highly competitive market area, some say. Humaid Salem, general manager of the UAE Contractor’s Association said: “As major developers start to repay contractors, they will be able to repay their sub-contractors and suppliers, giving a major boost to the industry as a whole. This will lead to more growth in the sector, and create a renewed demand for construction machinery as new projects get underway.” Several million-dirham projects began last month, including the Water Garden City in Bahrain (AED24.24billion), Musheireb in Doha, Qatar (AED1,579 million), and the Al Ain Convention
Centre District (AED3.5b). Government sponsored infrastructure projects have also bolstered the supply chain, with AED44 billion from the UAE government earmarked for infrastructure, and AED11.7 billion allocated by the Saudi Arabia for 6,400 km of roads alone. But some machinery providers are yet to see the upturn. Ninan George, general manager of heavy machinery merchant Al Wasit, said: “This year is actually less than expected. 2008 was a bad year along with 2009 and 2010 has not met expectation.” He added that this changes the forecast for the company for the rest of the year. A source at the high technical committee – an association for engineers that help resolve construction industry issues – also doubted the optimism. “Major developers may be paying contracts but not yet that I can see yet, especially as now we are entering the current period and the market is not so good.”
In Quotes “Capital Gate is a landmark for Abu Dhabi and with this recognition the tower takes its place among the world's great buildings,” SHEIKH SULTAN BIN TAHNOON AL NAHYAN, ADNEC's chairman on news that Capital Gate had earned Guinness World Records honours, pipping Pisa.
12 CONSTRUCTION WEEK JUNE 12-18, 2010
“Only 20% of the project's costs are directly related to Olympic venues and related infrastructure, while 80% is for infrastructure tructure of the region,”
“LEED and other certifications are fine but they must have a grassroots s understanding ing of what will work here.” ”
VLADIMIR PUTIN, on claims that outlays forr the 2014 Olympics have jumped.
KHALED AWAD, founder nder of Grenea and one of the he minds behind the zero-carbon bon Masdar city.
ROUND UP
Around the GCC
1 2
OSAMA SALEH,, chairman of the e General Authority for Investment vestment (GAFI) on where e the Egyptian government nment intends directing funds over the coming years.
3
5
1. BAHRAIN
4. QATAR
House prices “still too high”
Promat lands Lulu contract
Locals in Bahrain are still unable to get on the housing ladder due to 'unrealistically high' prices, a mortgage summit in Manama was told. Speakers at the GCC Mortgage Summit 2010 in Bahrain also said that prices on the island would have to fall further before banks could afford to start issuing mortgages to local buyers. Khalid Hamad, executive director of banking supervision at the Central Bank of Bahrain, said that while the economic situation in the region was good, since 2005 real estate prices have become inflated and bubbles have formed.
“In Egypt, we sincerely believe that infrastructure is a crucial component of a successful modern economy,” y,”
4
Promat has supplied 20,000m2 of Promatect250 mineral-bound fire-protection board to a new hypermarket project being built in Qatar. The hypermarket is located in the new Mall of Al Khor, which is owned by the heir of Sheikh Ahmed Jassim Al Thani.
2. SAUDI ARABIA
3. ABU DHABI
5. SHARJAH
Saudi power to triple crude use
Air-con units for labour camp
Manlift keeps kids cool
Saudi Arabia dedicates a tenth of its oil production capacity (877,000 barrels per day) to the production of electricity and plans to almost triple that amount by 2032, a senior official has said. Abdullah al Shehri, governor of the Electricity and Cogeneration Regulatory Authority, said 320 million barrels of crude are used to generate power every year and that plans to raise power capacity to 121,000 megawatts by 2032, would triple the amount of oil used annually.
Workers living in Abu Dhabi will soon feel the benefit of 14,000 Sanyo air-conditioners that Al-Futtaim Engineering will supply to Al Razeen Labour City in Al Wathba, Abu Dhabi General Services Company (Musanada). Abu Dhabi is a key regional focus for the company, according to Al-Futtaim Engineering MD Dawood Bin Ozair. “It is growing in a big way. We have not been as adversely affected as other companies have been, and are still growing,” he said.
Manlift Power has donated a generator to the Al Manzil Centre for Challenged Individuals in Sharjah to help it cope with power outages in the emirate as summer approaches. The Al Manzil Centre provides a professional care-giving and learning environment for individuals with special needs. When Manlift employees heard how the children’s schedules had been disrupted by regular power cuts, they swiftly deployed a 200 kVA Ingersoll-Rand generator to the school.
JUNE 12–18, 2010 CONSTRUCTION WEEK 13
ROUND UP
FOR THE RECORD: The Capital Gate leans further than the 837 year-old Pisa tower, at 18 degrees, and is the brainchild of RMJM.
WORLD RECORD
Capital Gate beats Leaning Tower apital Gate, the Abu Dhabi office and hotel development set for completion by the end of 2010, has been certified as the World's Furthest Leaning Manmade Tower by Guinness World Records. The project, owned and developed in the UAE capital by Abu Dhabi National Exhibitions Company (ADNEC), has been built to lean 18 degrees westwards – more than four times that of the world famous Leaning Tower of Pisa. It has earned the Guinness recognition after rigorous evaluation by the Awards committee since January
C
2010, when the exterior of the 160 m, 35-storey tower was completed. The project's floor plates are stacked vertically up to the 12th storey after which, they are staggered over each other by between 300mm to 1,400mm giving rise to the tower's dramatic lean. The lean, of course, puts immense pressure on the core of the building, which uses vertical post-tensioning to resist the stress. The core has been built with vertical pre-cambering and contains more than 15,000 m3 of concrete reinforced with 10,000 tons of steel.
Capital Gate’s shell is comprised of a super-strong exo-skeleton called a ‘diagrid’ that provides a clear, unobstructed floor plate, using far less steel than a conventional structural frame. The external diagrid has more than 720 members with some of the heaviest weighing 16.5 tons. Capital Gate was designed by international architecture firm RMJM and the Mace Group is project managing the construction. Enabling work began in September 2007 and completion is expected at the end of this year. — By Carlin Gerbich
In Numbers
662
The height in metres of the Mecca Royal Clock Building when it is completed.
14 CONSTRUCTION WEEK JUNE 12-18, 2010
20.2
Percentage rise in net profits for RAK Ceramics last year compared to 2008.
3.2
Percentage growth of the UAE economy this year, according to ministry.
ROUND UP
Renitherm and Intumex for fire protection! ®
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Abu Dhabi hits Target with three contracts rabtec Holding’s subsidiary Target Engineering Construction Co this week won three contracts in Abu Dhabi to continue the flow of projects and tenders coming from the biggest emirate. The company announced that it signed deals with GS Engineering & Construction Co and Abu Dhabi Refinery Co worth AED 747 million. It is the latest round of contracts to come from Abu Dhabi state firms, as the extensive expenditure on infrastructure continues. The two contracts with GS are for work at the expansion of a refinery at the industrial site of Ruwais, while the Abu Dhabi Oil Refinery Co., also known as Takreer, aims to more than double capacity to transform 400,000 barrels of crude daily into gasoline and other products. At the beginning of March it was reported that Takreer, had signed contracts valued at US $9.6 billion for work to expand the Ruwais plant.
A
RAK Ceramics to tile Dubai airport expansion AK Ceramics, the world's largest ceramics manufacturer, is to supply tiles to the new facilities at Dubai International Airport as part of Phase Two of the venue’s expansion. The ceramics conglomerate, which posted net profits of AED261.9m in 2009, up 20.2% on the previous year, is to supply 100,000m2 of tiles in various dimensions to be used in tunnels, bathrooms and floors throughout the terminal. The Phase II Expansion Project, which will include a terminal for the expanding Emirates Airlines Airbus A380 fleet and a new airfield, aims to accommodate the growing airport traffic, which is expected to cater for over 70 million passengers and 3.5 million tonnes of cargo annually.
R
4.4
Total value, in billions of Saudi riyals, of the King Abdullah Financial District.
RENITHERM® intumescent coatings for steel, wood and cables. INTUMEX® sealants, seal, collars, mortar and more. AUDAX-Keck GmbH Germany Phone +49 70 51/16 25-0 fire@audax.de www.renitherm.com JULY 12-18, 2010 CONSTRUCTION WEEK 15
COMMENT
STUART MATTHEWS
Is Egypt the next big thing? A large population and a competitive market may make Egypt a prime target for construction contractors
I
S EGYPT THE NEW PLACE TO BE? CONTRACTORS
and developers with interests in the country are trying to convince us that the answer is yes. They might be right. Let’s start with some numbers. According to the World Bank there are some 81,527,172 people living in the country, that’s 40 odd million more than in all of the GCC countries put together, which combine to reach 36.7 million. With organic population growth of more than a million people each year, there’s a natural rise in demand for completed builds. Development is occurring on the outskirts of the crowded capital. Cairo Festival City, being developed by Al Futtaim Real Estate, is due for completion in 2015. A school and some commercial space already exists and the first phase of residential work got under way last year. Al Futtaim is also behind a Mall of the Emirates clone, to be built in the country. Although not a replica of the mall in Dubai, current plans for the Egyptian version include a ski slope. Contractors are going through pre-qualification now. Emaar is also after a slice of the action, with Emaar Misr working on three ongoing projects: Uptown Cairo, Marassi and Mivida. The first homes in Marassi and Uptown Cairo are expected to be handed over this year, and in Mivida in 2012. According to Hazem Ashry, general manager for Emaar Misr the ‘dynamism’ in the property sector has attracted several GCC contractors to tender aggressively. Egypt is clearly seen as less of a ‘closed shop’ than the lucrative Saudi Arabian and Kuwaiti markets, and is a country with some genuinely tough competition in the sector.
16 CONSTRUCTION WEEK JUNE 12-18, 2010
The Egyptian government is backing private enterprise with infrastructure development. It is keen to attract foreign investment to these endeavours, with Osama Saleh, chairman of the Government Authority for Investment (GAFI) stating the scale of the issue very simply. “In total, there are 47 projects in the public utilities and infrastructure sectors in Egypt worth $25 billion, which provide ample scope for foreign investors to come and share their expertise and knowledge,” he said. With the government behind development and looking for foreign investment, a relatively competitive construction market, and steady demand, the outlook would appear rosy. However, there are challenges. Egypt’s per capita GDP lags way behind the world average and even further behind that of Gulf countries. That said, it has been going in the right direction. It rose sharply from a miserable $1041 in 2004 to $1990 in 2008 – the latest available figures from the World Bank. The country is battling to boost this figure, diversifying its commercial interests into areas such as outsourcing, where it is gaining ground on the world’s outsourcing giant, India. That giant population figure also translates into a massive natural resource. Egypt is a graduate factory, producing enough university-qualified human resources to completely repopulate Bahrain every two years. Plenty of construction professionals in the Gulf originate from Egypt. If construction opportunities in Egypt continue to improve, they may soon find themselves heading home.
Egypt’s per capita GDP was a modest $1990 in 2008 – according to the World Bank.
Egypt is a graduate factory, producing enough universityqualified human resources to completely repopulate Bahrain every two years.
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COMMENT
ORLANDO CROWCROFT
Is Leed ‘bogus’? Orlando Crowcroft asks if famous architect Frank Gehry is right to turn his ire on Leed rankings
F
RANK GEHRY IS NOT THE FIRST
person to criticise the Leed ranking system, and he is unlikely to be the last. But the Pritzker prize-winning architect’s comments have caused quite a stir on the internet, with some leaping to the defense of the 81-year-old, who has penned designs for some of the world's most famous and recognisable buildings. However, plenty more are criticising him for undermining the grand mission of green design at a crucial time. Both views, of course, rely on a misunderstanding of what Gehry said, a state of affairs not unusual in online debates. Yes, he did say that a lot of Leed rankings “are given for bogus stuff” and he did sarcastically dismiss the idea of designing a LEED-rated building – but, ask yourself, did he come out against sustainable design in the same way that all those wackos dismiss global warming? Of course not. This was clarified later in an interview with Business Week which, naturally, got far less attention than his initial comments in Chicago. Gehry told the magazine that what he objected to was the “fetishization” of green design, and the fact that very little of what gets done serves any purpose other than to create a good vibe for publicity hungry companies. 18 CONSTRUCTION WEEK JUNE 12-18, 2010
Gehry is arguably right on both accounts. It has been well publicised that Leed affords credit to buildings for dubious environmental ‘initiatives’ such as bicycle racks, and Leed rankings often allow developers to get bigger and bolder projects passed by planning councils. Architecture critic Frank Bernstein, writing in defense of Gehry this month, cited Las Vegas City Center casino as one such example. The 18-million ft2 complex – which includes 5,000 hotel rooms, casinos, restaurants and retail outlets – achieved a Leed gold rating. “Is City Center a net gain to the environment?” Bernstein asked. “No, it represents a huge net loss to the environment. And yet Leed gave it the cover of sustainability.” This cover, Bernstein argues, is preventing a debate about the real environmental costs of buildings in the modern age. This debate should focus on whether buildings like City Center should have been built at all, not how many solar panels or bike racks it uses. Leed cannot stop wasteful projects from being built, nor does it attempt to. It also remains true that for all the talk about saving the world, sustainability sells, and canny developers know how much a Leed rating is worth to the new generation of conscientious property investors. You cannot blame the skeptics out there for thinking public relations departments and
the bottom line are the real winners when a Leed project is rolled out. But what is crucial here is the recognition that green design, and its recent boom, is still young, and green ranking systems are not perfect. At this early stage green washing and off-the-peg ways to boost Leed ratings are inevitable, but as those who buy properties – as well as the governments that approve developments – learn more, these immediate and sometimes bogus benefits will fade. You only have to look as far as Abu Dhabi for evidence of this. The emirate’s Estidama guidelines go far further than Leed ever has, and a few bike racks and token PV solar panels are unlikely to wash with the Urban Planning Council (UPC). Meanwhile, projects such as the King Abdullah Science and Technology (KAUST) in Jeddah show that Saudi Arabia too is raising the bar of sustainability in the region. As for Gehry, far from criticising him for his challenges to Leed, the proponents of green design should be welcoming them. Constructive criticism from architects of his stature will only serve to hone the guidelines, and draw attention to their flaws. Blind acceptance, after all, has rarely been a positive way to move forward. Orlando Crowcroft is the editor of Middle East Architect.
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COMMENT
ILHAM KADRI
Sustainable by design Ilham Kadri believes sustainability needs to become part of the construction industry’s DNA
W
HEN THE BURJ KHALIFA
opened with a dazzling fireworks display earlier this year, the tower was hailed as a marvel of modern engineering, which it certainly is. However, it is also an excellent example of sustainability at work. From the facilities management system that increases efficiencies and the practices and technology to extend the tower’s lifespan, to the use of condensation to irrigate its 11-hectare garden and solar panels to heat water, the Burj Khalifa comes with a ‘sustainability inside’ tag. ‘Sustainability’ and ‘sustainable development’ are not new concepts that have just become fashionable. In 1987 a document called ‘Our Common Future’ or the Brundtland Report was published by the United Nations World Commission on Environment and Development (WCED) and defined ‘sustainable development’ as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” How does this apply to construction? Simply put, it means a greater emphasis on designing and constructing structures that are environmentally and economically efficient, while serving a social purpose. The early view of sustainability in the building industry was about ensuring that the construction process paid credence to 20 CONSTRUCTION WEEK JUNE 12-18, 2010
the three pillars of conservation – renew, re-use and recycle. Today, effective sustainable construction has evolved well beyond making more with less. Now, the focus is shifting towards buildings that incorporate sustainable elements in their design. This means that in addition to housing people, businesses, serving as landmarks and enhancing the landscape aesthetically, new buildings are becoming conduits for long-term energy conservation, with lower carbon footprints. Through specialised construction technology, the ability to maximise renewable energy sources is being built into the hardware and construction of new properties. One example is the Dow Powerhouse Solar Shingle, which integrates photovoltaic cells into roofing materials. New building designs now incorporate solutions that aim to boost efficiency, such as increased natural lighting and specialised insulation. Increased legislation for sustainable practices shows how governments are taking the subject very seriously. Countries in the West and the US already have extensive regulations in place. In the UAE, the Emirates Green Building Council has launched sustainability assessment criteria based on the US Green Building Council's Leadership in Energy and Environmental Design (Leed) rating system.
The volume of energy consumption in the Middle East certainly is a cause for concern. For instance, it is estimated that the UAE ranks fifth in the world for per capita energy consumption, making it particularly important for energy saving measures to be built into all new construction projects. And regional governments are developing new local standards. Under the directives of High Highness Sheikh Mohammed, Dubai Municipality is already working towards ensuring that all new buildings fulfill a set of green standards, which are under definition and will certainly make an impact on the emirate’s carbon footprint. Another sign of how important the region is taking energy conservation is the increase in demand for Exterior Insulation Finishing Systems (EIFS), which can reduce energy consumption by almost 40%. Sustainability is no longer simply about installing solar panels on a roof. It is about integrating a sustainable approach and acknowledging that there are economic, energy and environmental advantages to adopting a sustainable design model. Sustainability needs to be ‘inside’ everything we do and should become a part of our DNA. Dr. Ilham Kadri is general manager for the Middle East and Africa of the Dow Advanced Materials Division.
LETTERS
RE: Leed rankings ’bogus’: Frank Gehry Please stop this nonsense. Are we still saying Leed is useless/ arbitrary/bogus because of the bike rack credit? That argument is so 1996. Leed started from a few people in a room with an idea and grew into a global standard that has transformed the construction market. Even with the room for improvement, what else can you say has done that? The whole point was to change the market. It has done that and now GBCI has gone through an in-depth internal LCA, refocusing the credits in the 2009 versions. After working on dozens of Leed projects, I can say it does save money, it does improve the profession of design, which was once riddled with extravagant formalistic indulgences. (abridged) JOURDAN YOUNIS, OGER INTERNATIONAL
Re: Leed buildings are 'unhealthy', says report
Re: World Record: Capital Gate beats Leaning Tower
Re: Sharjah: where rubber meets the road
Re: Manlift donates generator to Sharjah centre
It is unique, but as opposed to Pisa, it has a vertical shaft and horizontal slabs. To my eyes it looks more leaning in the computer-generated perspective than in reality. With a vertical shaft that is almost touching the leaning envelope from the inside, I would be interested to see how functional the plans are and how efficiently the spaces are utilised. AHMAD, VIA EMAIL
Used tires have been underused for decades. This project is commendable and I hope using this material will become the norm rather than the exception as it is simply superior to the one used in America, for example. California has hills of tires burning away, wasting a great resource because they're stuck in construction practices of the 50s. Congratulations on the great work in the UAE. SONIA, VIA EMAIL
Great thing done by Manlift. Some other companies also need to come forward like this to help. It’s not financially sound to keep a genset on hire during the summer for when the power gets disturbed. SASIMENON, VIA EMAIL
22 CONSTRUCTION WEEK JUNE 12-18, 2010
rating without scoring any for Indoor Air Quality, I would strongly suggest that before condemning the system as whole on the basis of a single "factoid", readers take the trouble to download the Leed requirements from the USGBC website. Indoor Environmental Quality is not only taken very seriously but has its own section, in which control of hazardous chemicals (eg VOCs) from finishes and furnishings, and building air purging on completion to remove accumulated contaminants all score points. There are also Leed points to be gained for increased and monitoring delivery of outdoor air - that is: making sure there is sufficient ventilation. I have reservations about aspects of Leed – particularly those that encourage pointschasing rather than actual benefit. However, while it is acknowledged that Leed is not perfect - that as currently constituted it does not address some specific needs of the Middle East so that local states are developing their own rating systems, and that non-Leed buildings may in some instances be "greener" - it is still a pretty good starting point for building better buildings. TONY MARSHALLSAY, VIA EMAIL
Re: Leed buildings are 'unhealthy', says report While it may theoretically be possible to achieve the number of Leed points for a platinum
Thanks to Dr Peter and team for giving this important and utmost useful information. This is really an eye opener and will help many to take care of indoor living. JOSE, VIA EMAIL
To submit a letter, write to editor@ constructionweekonline.com or by post: Construction Week, PO Box 500024, Dubai, UAE. Please provide your full name and address. Letters may be edited for space and style. Submission constitutes permission to use. You can also log in to www. ConstructionWeekOnline.com to join the conversation.
ANALYSIS
The site for King Abdullah University of Science and Technology, on the shore of the Red Sea at Thuwal, at an early stage. It is just one of the Kingdom's forward-looking recent projects.
Waiting on the sidelines Sustainability has entered discussions in the Saudi Arabian construction market. But will it catch on? Ben Roberts reports HE KINGDOM OF SAUDI ARABIA, the biggest and most influential economy and construction market in the Middle East, is new to the sustainable agenda. Its insular market has seen little of the recent discussion in the Gulf and it is yet to become a competitive edge for the major developers, contractors and suppliers. For the country, which possesses around a fifth of the world’s known oil reserves, tradition-
T
24 CONSTRUCTION WEEK JUNE 12–18, 2010
al forms of power must seem a reasonable sustainable option. A globally political discussion point – witness the targets for reducing CO2 emissions earlier this decade and world forums such in Davos, Switzerland – sustainability has had at least a theoretical presence in project-based building initiatives in other parts of the Gulf for the last few years. Reusable building materials and tools that are locally sourced, and
harnessing solar and wind power, are just two areas for development. Developers that have offices across the Middle East say the idea has now entered the Saudi vocabulary – but only very recently. “I think that the sustainability idea is new and I don’t see many building projects that are being built in this way,” says Diyaa Ayoub, market intelligence analyst at Jones Lang LaSalle in Riyadh, Saudi Arabia’s capital. “In general, if you
ANALYSIS
OMAR SALEM / AFP / Getty Images
For upto the minute analysis log in to constructionweekonline.com
Leed in brief Leed is a complete framework for assessing building performance and meeting sustainability goals. It offers project certification, professional accreditation, training and practical resources, as well as workshops. Projects applying for Leed status must show achievement of all the prerequisites and a minimum number of points to attain the Leed ratings: Certified (26 to 32 points); silver (33 to 38 points) gold (39 to 51 points); and platinum (52+ points).
were to see each individual building on King Fahad Road [in Riyadh], I don’t think they have it in their minds to be sustainable.” The factors that will influence whether or not the ecologically-minded methods and end-products in construction will catch on in the Kingdom are numerous. The first is definition. There is little clear legislation regarding the adoption or monitoring of sustainable practices. Certification systems have been met with greatly varied levels of understanding. Where Abu Dhabi’s Urban Planning Council is pushing for the Estidama system to be mandatory as it supervises the regeneration of its capital district, others have little idea of what it might entail, or of its older cousin, Leed. Often such measures need to be spelled out by the developers. Assad Jaber, project executive at Turner Construction International, who attended the Construction Week: Building Sustainability conference in Riyadh earlier this month, says: “There is no commitment if it is not regulated by the government and specified by the owners.” The second factor is cost. Industry consultants have told CW that switching to creating ‘green’ buildings and methods – reducing energy consumption, for example – can be as high as three-times that of traditional methods. “Owners have to look at the feasibility of producing a different product than what they are producing now and if it is worthwhile. [If there is] an added value to their investment they will specify green without regulation from the government,” adds Jaber. A question of perception, particularly around procurement, is also an issue. “The problem in Saudi market is that most of projects finishing materials are imported from outside, not from the local material,” comments Hany Khalifa, a senior architect at Saudconsult. “This is due to the fact that the client believes that imported goods have higher quality and lower maintenance costs. Moreover, suppliers and manufacturers in Saudi Arabia still believe that it’s cheaper to import the materials, than for them to be extracted and manufactured.” The third issue, linked to cost, is the lack of clear incentives for companies. Khaled
Awad, founder of Grenea and one of the minds behind the zero-carbon Masdar City, is adamant that there is no clear business case for sustainability, meaning that few companies will see beyond the cost issue. At this month's Construction Week: Building Sustainability conference, he said: “You must show how all stakeholders can benefit and come onto one platform. How can we monetise this – if you can’t make money, how will it happen?” Samer Arafa, group executive vice president at Al Arrab Contracting, says that he has seen “increased awareness” to be friendly to the environment, but the subject is far from routine when planning projects. In particular, he highlighted the current cheap energy prices as a further disincentive to switch to other sources of power. “Unless there is a real benefit in terms of tax subsidy or some tax credit scheme, then there won’t be a business case.
“There is no commitment if it is not regulated by the government and specified by the owners.” “You have to keep in mind that compared to Europe – which has between 500 and 600 million people – Saudi Arabia has a similar size but far fewer people, so there is a lot of land space. So there is no pressure on resources yet… it is still safe, there is no need to be extra good to the environment.” He added that government legislation would be key to driving the agenda, a view Hany Khalifa agrees with. “Legislation is necessary to make sustainability an integral part of the Saudi market. Let’s take value engineering as an example: it is widely used by consultants in Saudi Arabia as it is a must for any government project.” As ever, the rest of the Middle East will keep a close eye on the changes in the Saudi market. It is a country of potentially great influence on the ethos of sustainability in the Gulf and is yet to make up its mind. JUNE 12–18, 2010 CONSTRUCTION WEEK 25
ANALYSIS
Developers and contractors from across the GCC are turning to ghost structures to increase profits.
Haunted by ghost buildings As the GCC looks to push forward with new developments, contractors working in Dubai need to consider the pros and cons of reviving skeleton structures. Elizabeth Broomhall reports
NTERING INTO A NEW ERA OF
economic stabilisation, the GCC construction sector is optimistic about a wave of developments set to move its regional markets forward. From Abu Dhabi to Saudi Arabia, developers, contractors and consultants are preparing for a successful, albeit gradual upturn. On the contrary, in Dubai, attention is turning to those projects that were cancelled or delayed during the downturn. Seeking new revenue streams and more work, developers and contractors from across the GCC are looking to the skeleton 26 CONSTRUCTION WEEK JUNE 12–18, 2010
structures or 'ghost buildings' that populate the Dubai skyline with a view to resurrecting old projects and improving their profits. However, it is yet to be seen whether these ghost sites, with their degrading structures and rusty scaffolding, will yield any commercial value for contractors when balanced against a high number of risks. Indeed, without any realistic analysis of the possibilities, companies could be stepping into a financial and legal danger zone as the economic viability and regulatory risks of these projects remains difficult to quantify. Structurally speaking, ghost buildings present a variety of difficulties that could
later transpire into significant legal and financial problems, whether they jeopardise the adequate provision and observance of health and safety policies, or the overall commercial success of a project. “The main problem with stalled buildings is structural deterioration,” says Meinhardt MENA principal structural engineer, Tanmay Biswas. In his view, the level of degradation of a ghost building depends on the stage at which construction was stalled, the quality of early building work, the duration of exposure to degradation triggers and the extent to which the building is protected from external forces.
ANALYSIS For upto the minute analysis log in to constructionweekonline.com
But perhaps the biggest problem for a new contractor resurrecting a degraded, partially constructed building, is associated with its partial or total collapse. In this case, the new contractor and architect will be held strictly liable, with no burden on the previous contractor. According to Mark Fraser, a partner at Taylor Wessing UAE, not only are there limited obligations on original contractors to ensure structures are fit for purpose and of satisfactory quality, but in the case of ghost buildings, the original contractor and architect are unlikely to be held liable for its collapse because an incomplete building has never in fact, been handed over. “Under local laws,” he explains, “[the original] contractor is obliged only to complete his work in accordance with the conditions of his contract. Local law does not recognise ‘fitness for purpose’ and ‘satisfactory quality’. Likewise, a designer is obliged to exercise ‘care that a reasonable man would exercise’, however, that standard of care is independent of the achievement of the original objective.” Meanwhile, article 880 of the civil code holds the new contractor solely responsible for the structure. “Article 880 states that a contractor and architect are jointly liable for ten years from the date of hand-over for
How many cancelled or delayed projects were there? By September 2008, industry experts announced that 150 projects across the GCC had been cancelled or put on hold, valued at a massive $48.4bn. These included at least 88 projects in the UAE, 54 in Saudi Arabia and 15 in Kuwait.
22% Saudi Arabia 14% Qatar
CGG Countries
“As we live in an aggressive environment,” he adds, “the deterioration is fast and deep-rooted. As an example, an incomplete structure will have lots of exposed and unprotected rebar or structural steel work which is likely to have started rusting. Depending on the duration of exposure, airborne salts may also have caused deterioration of the concrete, or ‘concrete cancer’.” And, as is often the case with ghost buildings, if the developers and contractors decide to change the use of the building, this is only likely to exacerbate risks, the old design structure being unable to support the new use. As regards the knock-on effects of a high level of degradation, the first problem arising for contractors will be the high repair costs. Should the de-watering have been turned off at a site during the ‘silent’ period for example, the costs of reviving the flooded structure could easily be prohibitively expensive. A second concern revolves around health and safety. According to Biswas, where a site has been deserted for a long period, shoring failure or falling cladding is likely to compromise contractors’ health and safety policies and leave them liable for workplace injuries or deaths.
14% Kuwait 13% Oman 12% Bahrain 25% United Arab Emirates 0
5
10
15
20
25
Percentage of projects on hold Source: Research conducted by ProLeads.
JUNE 12–18, 2010 CONSTRUCTION WEEK 27
ANALYSIS
Article 880 of the civil code makes the new contractor liable for the partial or total collapse of a ghost structure.
the total or partial collapse of a building. In the context of ghost buildings, the original contractor and designer may not be liable if the building is not complete because it has not been handed over. Instead, the new contractor and architect will have decennial liability because it is they who will see the project through to completion.” Similarly, where the structure does not collapse but reveals some sort of structural defect, new contractors face the risk of being held jointly liable alongside original contractors. “In a situation where the original team working on the ghost structure has achieved sectional completion, (i.e. delivered part of the works) and the structural integrity of the building is defective,” says Fraser, “depending on the nature of the defect, the old and new teams have strict liability, and could both be sued.” Faced with this prospect, contractors and design professionals are put in an extremely precarious situation when it comes to resurrecting ghost buildings, and their only chance of walking free in these cases arises from professional indemnity insurance cover, though even this, has its loopholes. “Professional indemnity insurance will not cover a professional who is held strictly liable for a structural defect under 28 CONSTRUCTION WEEK JUNE 12–18, 2010
Skeleton structures: Dos and Don’ts • DO thoroughly assess the current condition of the structure before restarting construction. • DO employ a competent consultant who has extensive experience dealing with latent defects, to carry out a site investigation. • DO take an interest in what insurance policies are in place and the amount of cover to protect your balance sheet and avoid unnecessary costs. • DO take a practical approach to completing projects, by working with developers and allocating risk to the party best placed to deal with it. • DON’T rule out the possibility of taking an equity stake in the project to ensure payment on completion. • DON’T forget to think about the long term viability of a project, and the value of its location and use in the future. • DON’T assume a property has to retain its original intent and purpose, but ensure the design structure can support its new use. • DON’T rush into a resurrection project without looking into ownership – work with the bank and get hold of the title deeds to discover any previous claim.
article 880 of the civil code, unless the defect occurred because they breached the standard of care,” explains Wayne Snow Senior Vice President of Marsh Insco. “In this sense, PI insurance may mitigate the strict liability, provided the professional is found to have been negligent and held legally liable [i.e. directly responsible] for the defect.” Further amplifying the problem is the fact that often, even if they commission a full site investigation, contractors and designers may be unable to prepare for latent defects, otherwise known as 'inbuilt defects' that go undetected by site inspectors, revealing themselves at a later date. With these risks in mind, industry experts are asking developers and contractors to remain cautious when deciding to resurrect ghost or skeleton buildings in the first place. “Should the contract not be commercially viable, both developer and contractor may end up incurring losses,” says Fergal Harris, Director of Commercial Real Estate at Standard Chartered Bank in the region. Not only does he stress the need to consider the costs of restarting a project, including total costs to complete construction, financial, legal and due diligence costs, but in addition, he emphasises the importance of looking at
ANALYSIS
timeframes for construction, and how this may further increase the costs and affect the financial viability of the project. “If you are re-engaging in a project, then it is critical to consider time to acquire and complete, time to identify an opportunity and get it to a point where it’s good to go," he said. “It is important to note that what may be a good location today may not be a good location when you’ve finished constructing, bearing in mind it could take up to two years to re-engage and a further two years to get the project to a stage where it’s fit for purpose. It is very important to think about what the building is going to be when it grows up and where it is going to be.” Other considerations, he says, include ownership of the building – which can be determined from the title deeds – as well as how the project is going to be marketed.
“It is very important to think about what the building is going to be when it grows up and where it is going to be.” “Before engaging in a new project, it is important to consider getting paid for the highest and best use, a focus that is often missed,” he says. Specifically, he suggests that a building need not always be resurrected for its original intent and purpose, but instead what might have been originally designed as a residential building could be more valuable as a school, hospital or office block.
“It is also crucial to pitch the property to the market at the level at which it actually is. So a Grade B building needs to be pitched as a Grade B building. Tarting it up and selling it as a Grade A building isn’t going to work and certainly it is not going to fly in terms of rents or sales prices.” But above all he encourages contractors to be realistic, and potentially consider taking a stake in the property should they find it to be a good investment, as this will ensure they get paid. “When engaging in the resurrection of projects, ask yourself: Are they really ever going to be finished? Is there any commercial sense in finishing these projects? It is very important in this market because there is so much oversupply, of residential buildings in particular, and not every ghost building has the highest and best use purpose beyond what it is at the moment.”
JUNE 12–18, 2010 CONSTRUCTION WEEK 29
FACE TO FACE
RISING FROM THE ASHES
He is the CFO of the biggest construction firm in the UAE, and he has an answer for everything. Ziad Makhzoumi, CFO of Arabtec, talks to Construction Week about Nakheel payments, the Aabar deal, the BBC Panorama scandal and the company’s plans for expansion By Elizabeth Broomhall
30 CONSTRUCTION WEEK JUNE 12–18, 2010
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JUNE JUN NE 12–1 1 12–18, 2– 8, 2–1 8 201 2010 01 10 CON CO CONSTRUCTION O STR S UCT ST UCTION ION WE WEEK EK K 31 3
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2009-2010 was a tough year for Arabtec. Dubai’s construction industry bore the brunt of the worldwide recession and contractors across the board were left to grapple with a dramatic decline in new business and cancelled projects. But this was just the beginning for Arabtec. Dragged into a scandal about the state of its labour camps and forced to make provisions due to nonpayments from struggling developer Nakheel, the firm faced a number of additional and unexpected hurdles. “Towards the end of 2008 was when the whole market started changing,” Ziad Makhzoumi, Arabtec’s Chief Financial Officer explains. “There was a lot of uncertainty about what was going to happen to lots of projects that were technically awarded to the contractors in general, but were either suspended, cancelled or re-tendered in some cases. “And you know, in construction, you’re not taking on a four-week project, you’re taking on a three or four-year project, and there is usually a lag time of about two quarters between signing a contract and seeing the revenue on your balance sheet.” That said, Ziad Makhzoumi remains extremely confident and positive about the future. In fact, with his sights set on a number of new markets and ventures, there is no room for pessimism, and his Q1 figures are the ideal starting point. “If you compare our first quarter [financial results] of 2009 with the first quarter of 2010,” he says, “the net profits in 2010 were down 17%, but the net margin went up from 8.634% to 8.675%. That’s because we are operating in new markets. If you compare the last quarter of 2009 with the first quarter of 2010, the results improved from a loss of AED 16.8 million to a profit of AED 134.5 million for the two consecutive quarters.” So how did Q4 2009 compare with Q1 of 2010? “We did not make a loss in Q1 of 2010, but we showed a loss in Q4 2009. When we finalised our accounts we thought it was very important and prudent that we take provisions when it came to certain projects, due to rumors we were hearing in the market that certain developers were expecting a discount on receivables, or to re-schedule a 32 CONSTRUCTION WEEK JUNE 12–18, 2010
Makhzoumi explains how late payments from developers are more likely to affect a company's liquidity than its profitability.
payment. From an accounting point of view, you have to assume that you are going to receive less.” Preparing for the worst, incidentally, is one of the things that Makhzoumi is good at. While remaining optimistic, he is openminded about the market turning at any time, and thus, he was only slightly surprised to be awarded two new projects in Dubai worth a massive combined total of AED 1.3 billion in the first quarter of 2010 alone. “The problem,” he explains, “is that the market is continually changing, and
1.3billion 17%
AED value of Dubai projects awarded to Arabtec in the first quarter of 2010.
The company’s net profits were down 17% in Q1 of 2010, but the net margin increased from 8.634% to 8.675%.
there are so many shocks to the system that you cannot predict it. We’re still going through a phase of adjustment now. It is difficult to predict on a quarterly basis what else can go wrong, what new projects will come up and start.” Indeed, one thing that Arabtec could not have prepared for was the scandal broken by the BBC’s Panorama programme last April, about the poor living conditions at one of its labour camps. Having secretly filmed workers at their accommodation, the BBC claimed the camps were filthy and overcrowded. Though Arabtec officials hit back at the documentary’s accusations, the question remains: has it affected the firm’s reputation? “I don’t think it has to be honest. The BBC, in my view, raised an issue that should have been addressed in a different way. It was presented from a very biased point of view, in Hollywood style, it was not necessarily factual, but circumstantial. And after the BBC programme we did bring in other media who saw for themselves that most of the claims were exaggerated.”
FACE TO FACE
“The BBC in my view raised an issue that should have been addressed in a different way.”
The Infinity Tower in Dubai (left) and the Okhta Social Business Centre in Russia (right) are two of Arabtec's ongoing projects.
The camp in question has since been closed down, and according to Makhzoumi, his company continues to do its best to ensure that any issues within labour camps are dealt with as quickly as possible. ON TRACK Evidently, he is not one to dwell on the past, and is more eager to discuss Arabtec’s plans to get back on track with old projects and collect outstanding payments. Collection is a key focus for the year ahead, and follows a particularly challenging year in which the company witnessed a cycle of slow down on collections, as developers struggled to keep up with regular payments. Particularly newsworthy has been the ongoing quest for payment between Arabtec and Nakheel. After months of speculation over how the cash-strapped property developer was going to pay back its AED 91 billion debt, followed by proposals to pay its trade creditors 60% in Islamic bonds and 40% in cash, the developer has only recently announced plans to pay Arabtec before the end of June.
“We have signed an agreement with Nakheel that confirms it will pay us before the end of June and I have no reason to doubt that that will happen,” says Makhzoumi. Evidently, the impact of late payments on cashflow has caused the most problems for Arabtec during the recession. As well as threatening its plans for expansion, a lack of liquidity has increased the need for the company, along with most other contractors, to borrow money. “Profitability is not necessarily influenced by collection, it’s more likely to affect your liquidity,” Makhzoumi explains. “A year and a half ago, we had much more money in the bank. Sometimes we need to borrow money and sometimes we don’t, it depends on the projects. Then there’s the cost of finance – if you’re not borrowing, you don’t have to pay interest charges.” But liquidity issues are not going to stop Arabtec from growing, and the CFO is adamant that late payments have not affected Arabtec’s relationships with its developers. On the contrary, he believes it is essential to work together during rocky economic times and that Arabtec’s relationship with Nakheel
particularly is a good one. “We have a good relationship with Nakheel, we haven’t had a bad relationship with anybody.” It is with this forward thinking approach that Arabtec hopes to resume work on Nakheel's Al Furjan project in the near future, the company never having actually left the site, and payment prospects looking up. “With Al Furjan you have to be aware that there are different stages. We have been paid for some of the work we have done. There were delays in payments, but it was never a major issue per se, as everybody was going through a cycle of slow down on collections. In the future we hope to do some more work for them.” Unfortunately, the Meydan project, is according to Makhzoumi, "a different issue." Arabtec worked on the project as part of a 50/50 JV with Malaysia’s WCT before the contract was cancelled, reportedly due to WCT's failure to abide by the time schedule for the completion. Makhzoumi declined to comment on the issue, except to say that Arabtec was “going through the proper channels” to resolve the dispute. Of course, restarting stalled projects is just one of the firm’s objectives for the year ahead, the other, perhaps a more important one, is to expand into new markets. Initially a UAE-based firm, Arabtec is currently growing its portfolio of projects in Jordan, Russia, Saudi Arabia, Qatar, Syria and Palestine, and has bid for work in Algeria, Angola, Egypt, Libya, Lebanon, Turkmenistan and Azerbaijan, where executives believe they can expand and add value. It was with a view to such expansion that Arabtec tried for a merger with Aabar. Then, out of the blue, Arabtec’s plans to sell a massive 70% stake to the Abu Dhabi-based investment firm were suddenly called off. Everybody wants to know why. JUNE 12–18, 2010 CONSTRUCTION WEEK 33
FACE TO FACE
“We have a good relationship with Nakheel, we haven’t had a bad relationship with anybody.” “I do not want to talk about Aabar,” Makhzoumi replies, “except to say that both parties have reviewed the situation and have agreed that the deal proposed is not the right solution at the moment.” But in turn, this only begs the question: how does Arabtec intend to finance its expansion? “Money wasn’t the only reason for wanting to join up with Aabar,” he explains. “The relationship would have been strategic, with a financial element. It would’ve opened up new market and partnership opportunities, and besides,” he goes on, “if you get your cycle right and you get your suppliers to give you some credit time, in theory, you need very little cash to start major projects.” Or at least, this is the case when it comes to government-backed, infrastructure projects in developing areas, which have attracted the attention of developers and contractors. “There is a misconception that construction is purely high rise buildings and hotels. It is not,” says Makhzoumi. “There are lots of projects coming up that are not just residential or building a tower.” Saudi Arabia in particular, requires a massive US $ 2.4 trillion-worth of infrastructure work according to reports. From roads, airports and desalination plants, to hospitals, schools and universities, the country is investing in a huge quantity of projects to cater for its fast-growing population. Undeniably, for Arabtec, it is this huge demand for infrastructure projects which makes the oil and gas producing countries so attractive. This, alongside the fact that projects are characterised by a shorter life cycle, strong government backing and plenty of available funding. “Governments have to spend on building infrastructure,” says Makhzoumi, “so in theory, the bigger chunk of development is
Arabtec was asked to build 46 towers in 30 months for The Princess Noura University for women in KSA, worth AED1.5 bn.
infrastructure projects coming from the government. This will continue to be the case in these oil and gas producing countries where the government is the owner of that revenue and the spender of that money.” He adds: “And, as long as the funding is there and the project is important and not cancelled or suspended, there is no reason why the client will not pay.” In summary, he states that each of these markets has two attractive features: “One is that they need a lot of work to be done, and possibly more [than anticipated] if they want to open up for tourism, but most of all, they have the revenue to fund those projects.” Having already won a number of contracts in such areas, including part of the Princess Noura University in KSA, worth AED 1.5 bil-
lion, plus a further two projects in Qatar in the first quarter, it would seem that Arabtec is progressing well with its growth strategy. However, in areas where it has only recently bid for work, such as Libya, Algeria and Turkmenistan, competition with equallyambitious contractors from America, France and the UK will be tough. “Our subsidiary company Target Engineering is well known for its capabilities in oil and gas and infrastructure work, and we also have Arabtec Engineering Services which does a lot of preparation work. So while we’re publicly known for developing iconic buildings, the range of services we provide is beyond building big towers.” Also important, he adds, is the ability to understand these new markets, each of
12 ASSOCIATED COMPANIES OFFERING DIFFERENT SKILLS AND EXPERTISE • 1975 ARABTEC 34 CONSTRUCTION WEEK JUNE 12–18, 2010
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FACE TO FACE For upto the minute indepth analysis log in to constructionweekonline.com
MAKHZOUMI: Engineering Arabtec’s growth strategy
which has different requirements, be it culture, language, the nationality of workers or the things you are not permitted to do. “There are lots of good companies in Europe and America,” Makhzoumi says, “the question is: who can go over there and deliver and be patient enough to understand the system. There are lots of logistic considerations when you enter a new market. Staff need to be capable, they need to speak the language. We employ over 60,000 people who among them speak 20-25 different languages.” And of course, he says, there is also the possibility that a government throwing tens of billions of dollars worth of work at contractors will not want to give it all to one company. Proof that Ziad Makhzoumi never misses a trick.
Market watch Arabtec share price performance
AED
2.90 2.68 2.46 2.24 2.02
22 Mar 5 Apr 19 Apr
3 May 17 May 31 May
Following the announcement of a raft of new orders, Arabtec shares rose slightly last week, up by 1% to AED1.97. But there’s some way to go before reaching the one year peak on AED 3.78, seen last October. So far this year the shares are trading at 27% down, pretty much in line with similar falls across the sector. That said, most analysts are positive on the future price. Source: DFM
Recently listed by the Wall Street Journal as among the top 20 influential, non-royal decision-makers in the UAE, Ziad Makhzoumi is now a key driving force in Arabtec’s ambitious growth strategy, helping to inspire a progressive yet realistic vision for its expansion. On top of being a finance expert, he has a track record of holding a variety senior executive positions in Europe, North America and the Middle East. His first role in the UAE was in fact in 1981 with Booz & Co, followed by assignments in Saudi Arabia and Europe. He later became the chief financial officer of a private holding company with operations in North America, Europe and the MENA region, and before joining Arabtec in just 2008 was involved in strategic consultancy, private equity buyouts and restructuring in similar regions. As a strategist and restructuring specialist, with expertise in the real estate, technology, financial services, engineering, manufacturing and the consultancy sectors, Ziad Makhzoumi was also the founder and chairman of the City of London Investment Group - a UK-based billion dollar fund, that invested in a large number of high-profile emerging markets. As a well-known public speaker on various business subjects, just last year, Ziad Makhzoumi was voted by his peers as The Revolutionary CFO of the Year. He was additionally awarded the Investor Relations Personality of the Year by over 200 Fund Managers and Investment Advisors, an event sponsored by the Middle East Investor Relations Society. He holds a Bachelor of Science (BA Honours) in Electronics and Electrical Engineering, and a Master of Business Arts (MBA) in Banking and International Finance, from Manchester Business School in the UK.
FOUNDED • 60,000 STAFF • 25 LANGUAGES SPOKEN ACROSS THE WORKFORCE JUNE 12–18, 2010 CONSTRUCTION WEEK 35
ON SITE
Financial details KAFD is a clear highlight of the many projects in Saudi Arabia, with LEED and market-leading excavation vehicles just the beginning By Ben Roberts
I
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IS
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GLOBALLY
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Kingdom of Saudi Arabia is in the process of transforming itself, with plans for its infrastructure, services and residential sectors about to keep the big players busy for the next decade. Of all the voluminous projects spearheaded by the royal family, Riyadh’s King Abdullah Financial District (KAFD) may be the most intricate. Situated just a short drive up from the centre of the city, the district will house the large community of professionals working within the financial sector and related industries, to rival the best and most attractive business venues in the world – including the Capital Market Authority and the Tadawul, Saudi Arabia’s stock exchange. The finished project will be split 42% to private use and 58% to public use. The intricacy derives from the challenge of constructing 77 buildings on the site over six zones, occasionally with just a few metres of space between them. Despite a focus on housing corporations, there will also be residential and retail outlets, a 152,511 m2 hotel, a centre for conventions and exhibitions, as well as buildings earmarked for the government. Today, the most developed buildings have passed phase one; their basic structure in place ready for arterial partitions. But the entire site overall, blinding white in the sun, is still filled with deep holes as the excavation continues. 36 CONSTRUCTION WEEK JUNE 12–18, 2010
ll The SR 4.4 billion ($1.1 billion) project will hbuild 10 towers first (PP10) and then anotheer 30 (PP30), explains Whysal Haddad, mechanical engineer and LEED-In-Charge at the Saudi Bin Laden Group, which is building four of the first 10 towers. The project is built over four distinct areas, each with its own workers and timescales. Standing between two enormous excavated holes in the ground, with JCBs and trenchers little more than beetles at the bottom, he points out that there is not enough room for two lanes of vehicles to come in and out, between what will be skyscrapers. “The spaces between the buildings on these pathways, as you can see, are very narrow. It means we’ve had to be very coordinated when delivering materials as there is only one lane for the vehicles. It’s a challenge for the construction, though Saudi Bin Laden (SBG) can deal with it.” He adds that the soft earth of the narrow paths on which we are standing has been reinforced by concrete to prevent a crumbling landslide into the excavated holes, which can be around 60 feet deep. Along with the regulatory safety netting, the firm footing inspires full confidence as a visitor. “Each of the four areas has its own teams, management and designs. Sometimes the coordination is a big challenge, and of course there are restrictions in a safety sense, which is a good thing,” says Haddad, who gained
Full speed ahead (top to bottom): excavation vehicles toil beside a pool of potable water, which is pumped out; the building landscape; a design of two buildings.
ON SITE
“The “ The spaces between on these tthe he buildings b pathways are very pathw narrow. It means narro we’ve had to be very coordinated when coord delivering materials. deliv It’s a challenge for the construction though const Saudi Bin Laden can Saud with it.” deal w
JUNE 12–18, 2010 CONSTRUCTION WEEK 37
ON SITE APPETITE FOR CONSTRUCTION Saudi Bin Laden Group is constructing four of the ďŹ rst 10 towers (PP10), with the remaining six spread across its rivals, including Saudi Oger. The whole project will contain 77 buildings and will eventually include a monorail. SBG goes to great lengths to recycle as much of the materials as possible, including wood, cables and plastic. Though for some materials, such as concrete, this is not always possible, says Whysal Haddad. However, he is able to keep in close contact with his onsite LEED coordinators, as well as the developers, to maintain the site's environmental credentials.
38 CONSTRUCTION WEEK JUNE 12-18, 12â&#x20AC;&#x201C;18, 2010 2010
ON SITE
JUNE 12–18, 2010 CONSTRUCTION WEEK 39
ON SITE
Measure for measure Gross site area
1.6 million metres2 Total floor space provision
3.081 million metres2 Parking spaces
61,970 Office space
1,65 million metres2 Residential space
626,811 metres2 Hotel space
152,511 metres2 Business space
52,838 metres2 Convention and exhibition
52,550 metres2 Retail space
310,912 metres2 Government and Community
67,558 metres2 Attractors
159,878 metres2 both education and work from Jordan, his home country, and the US. “However, you can see that we have no restrictions moving between zones.” SBG excavates holes at the bottom of these cavernous foundations for 10 metres and then injects the correct amount of concrete to fill them. Haddad says if the ten metres encounters a cave or other underground opening, the company sends down a combination of concrete and special chemicals to fill the space. He explains that some of the excavated areas contain a lot of potable water. Despite the company’s drive to reuse and recycle, this water does not have a further use, and is pumped out by tubes. But for the materials discarded from the skeletons of towers down chutes – such as steel, wood, cables and plastic – they can be separated and sent off-site to be recycled. Facilities for recycling concrete in this part of the country, however, still need to be provided. “This is a big dilemma for us as Ri40 CONSTRUCTION WEEK JUNE 12–18, 2010
Two towers by Saudi Bin Laden which will share the same first floor; the slant on the right will be a distinctive element.
yadh has not yet got the facilities to recycle. The credit system for recycling is based on weight – seeing as concrete is our big material it would be good to recycle it, but we can’t, and so the waste management for this is one of the challenges for the project.” Despite the fact that a few different contractors are working on site, Haddad points out that each building – or ‘parcel’ – is clearly identified with a sign that lists the project, the designer, the parcel number, the building’s end use, and how many floors. Nearby is one that will be 24 floors. Next we see on the horizon over the excavated hole that the
"Building 209 will generate renewable energy, with solar heaters and a photovoltaic system."
sign is standing beside, building 209, one of the most advanced of the towers in development. “The first phase was completed a few months ago in terms of the casting, and now it is onto the finishing and arterial partitions,” he says. “This building will generate renewable energy, with solar heaters on the roof and a photovoltaic system.” In fact, there are clear signs that each building is slightly different and notable for certain design aspects. Adjacent to building 209 are two buildings that share the same first floor and so appear as non-identical twins. The front section of the building on the right is slanted. “What’s unique for the building on the right is the slope. All the towers will have something different.” Zone six is the centre of the district’s utilities. In a single strip, ‘U-Tunnel’, currently excavated, the whole district’s hot and cold water supplies, electricity cables, chiller systems and generators are situated. Also in zone six is SBG’s batching plant, producing all concrete and ready mix.
ON SITE
The trenchers, procured from the US and Italy (above); the U-Tunnel, containing all utilities.
Though all tools and equipment on site needed for general construction of SBG’s towers are owned by the company, there are a few specialist additions. In particular are the 10 muscular trenchers, which carry out some of the excavation. Haddad explains that these machines were procured from the US and Italy, and come with their own driver. “The trenchers are the equivalent of 50 jackhammers,” he says. “I believe we were the first company to bring them to Saudi Arabia, and they are operated by the company itself; certainly the machines are not that common here.” The tour reaches the Financial Plaza, the heart of the district and home to what will be the tallest building (number 1.16), at approximately 385 m. It will hold five towers with a maximum depth of excavation of 22 m from ground level. In the biggest excavation plot the tallest building is very much clear from the added depth of its hole. Sustainable building – with the LEED certification at its heart – is central to SBG's
task on KAFD, and Haddad explained to delegates at the Construction Week: Building Sustainability conference in Riyadh what this has entailed for the project so far. Building PP10 is registered under LEED V2.2, for which there are a possible 69 points. Building PP30 is registered under LEED V3, for which there are a possible 110 points. Haddad explains that some elements of sustainability – based mainly around the use and reuse of utilities – will be more feasible than others for this project, and that the company is in constant dialogue with the developers. The project aims to use a minimum of 10% recycled content based on actual total material cost, according to Haddad’s presentation. Information flows from the designers to the LEED executive, then on to the LEED coordinators working across the four zones. “I was in California just a month ago, in meetings with the developers regarding the design and the direction for the LEED requirements. We look at which would be
more of a challenge to achieve and which we can do; they send the amendments back to me for review.” If it all goes ahead as planned, the KAFD will be a defining point in the Kingdom’s renaissance. There is evidence that it is the most stable economy in the Gulf, even if this does depend on the price of oil. Some indicate that there is a direct correlation between oil price and construction, with the peak prices per barrel seen in the last few years producing many new projects. Perhaps it is fitting that this project is centre around finance, with the aim of providing a Gulf-leading venue for business, matching the country's domination of the world's hydrocarbon markets. “You can tell by looking at the project overall that each spot is used wisely and there is a good use of space,” says Haddad, coming back to the proximity of the buildings. “When you have a lot of business buildings in a small space, it’s going to be a nice view.” JUNE 12–18, 2010 CONSTRUCTION WEEK 41
WORLD CUP STADIUMS
UP FOR THE CUP
42 CONSTRUCTION WEEK JUNE 12–18, 2010
WORLD CUP STADIUMS
South Africa has sunk billions into hosting the 2010 FIFA World Cup, with five new stadiums and significant upgrades to five more. CW takes a closer look at what contractors made happen
T
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FIFA WORLD CUP
us and, as you follow the action over the coming weeks, thousands of spectators will flood through the gates of South Africa’s best and newest sports stadiums to witness the action and drama unfold. South Africa has pulled out all the stops to host the World Cup. It’s poured more than ZAR 17.4 billion (AED 8.1 billion) into the event, including ZAR 8.4 billion (AED 3.9 billion) for the construction of five brand new stadiums and the substantial upgrade of five others, and ZAR 9 billion (AED 4.2 billion) into transport and supporting infrastructure works, solely for World Cup venues. On a far wider scale, the South African government has also spent ZAR 400 billion (AED 188 billion) on the country's infrastructure – from rail freight services and energy production, to communications, airports and ports of entry – to gear itself for the event. The funding has enabled architects, contractors and suppliers to have each stadium completed well ahead of schedule. With the eyes of the football world now focused keenly on South Africa, Construction Week takes a look at each of the venues that will be used over the coming month. IS UPON
THE FIVE NEW STADIUMS Green Point Stadium, Cape Town Cape Town’s Green Point Stadium is one of the largest of the five new stadia completed in time for the 2010 FIFA World Cup. JUNE 12–18, 2010 CONSTRUCTION WEEK 43
WORLD CUP STADIUMS
Stadium: Green Point Stadium City: Cape Town Scope of work: complete construction Architect: GMP Architects Contractor: Murray & Roberts / WBHO joint venture Started: March 2007 Completed: December 2009 Cost: ZAR3.25bn/AED1.51bn Capacity: 68,000 FAST FACTS 96,000m3 - Concrete used on project 4,700 tons - The weight of the roof 9,000 - Glass panels in the roof 5,234,000 - Total bricks used
Built at a cost of ZAR 3.25 billion (AED 1.5 billion), the stadium was designed by project GMP Architects of Germany and two local firms, Louis Karol and Associates and Point Architects. It was built by Murray & Roberts (the company contracted for the fit-out, finishes and MEP of Terminal 3, Concourse 2 and the car park of the Dubai International Airport, along with local partner Al Habtoor Engineering 44 CONSTRUCTION WEEK JUNE 12–18, 2010
and Takenaka of Japan) and WBHO who completed the work in just 32 months. The stadium seats 68,000, is 55m high and has a fabric façade and a steel cable tensioned glazed roof. The project employed approximately 10,500 people, with 13.5 million hours worked. The superstructure was completed in October 2008 and project handed over in December 2009.
Moses Mabhida Stadium, Durban Of all new stadiums built for in time for the 2010 FIFA World Cup, Durban’s Moses Mabhida Stadium is easily the most impressive. It replaces the Kings Park Stadium which was demolished in 2006 to make way for the new sporting complex, and includes an adjoining indoor arena, sports museum, sport institute and a new transportation station.
WORLD CUP STADIUMS
STADIUM CONSTRUCTION: The bottom line
Stadium: Moses Mabhida Stadium City: Durban Scope of work: complete construction Architect: iBhola Lethu Contractor: Group 5 / WBHO / Pandev joint venture Work started: July 2006 Completed: November 2009 Cost: ZAR3.4bn/AED1.6bn Capacity: 54,000 permanent, 84,000 maximum FAST FACTS 1780 - Pre-cast seating panels 2,600 tons - Steel centre arch weight 46,000m2 - Size of Teflon-coated roof
The stadium seats 70,000 and will host first and second round matches of the World Cup, as well as quarter and semi-finals. Seating can be increased to accommodate 84,000 for larger events, like the Olympics. The 106m high, 350m long steel archway is more than decorative too: a funicular cable car takes visitors up to the highest point where they can get out and enjoy the panoramic views of the city and ocean.
Mbombela Stadium, Nelspruit Of the five new stadiums built for the 2010 FIFA World Cup, the Mbombela venue is the only one designed by South African architects. R&L Architects, based in Cape Town, involved international consultants in the project to design a stadium that was not only the least expensive of the five new stadia, but also one of the most distinctly African venues.
Requirements for large-scale stadium construction can easily attack and escalate original cost estimates. More often than not, stadium projects are open to public input and debate because they’re usually funded by using public money – either through direct government grants, local taxes or lottery funding. The overall budget can be affected in hundreds of ways: an unexpected increase in the cost of raw materials; land procurement and legal issues surrounding that; ecological and environmental plans and execution; rising transport costs; unforeseen infrastructure works – the costs soon mount up. Take London's 2012 Olympics bid for example. Having secured the deal ahead of Paris, the original budget of GBP2bn (AED10.6bn) has since been revised to GBP9.3bn – almost five times the original cost. That has brought the project under close scrutiny by the government and tax-payers who are still struggling to shake off the effects of the credit crunch that gripped the nation and hit those in financially strapped areas of the country - like East London, where the Games are to be hosted - hard. As well as unforeseen problems during the initial construction phases, incremental cost increases in materials, labour and other services have added to the overall budget demand. The original £282m budget for the Olympic stadium has almost doubled to £525m, with an additional £22m requested to complete structural changes to the roof. Similar issues at other Olympic sites have also added to the overall bill. Since grasping the nettle and looking at the project closely, the British government has been able to make significant savings over recent months, managing to claw back £600m since the budget was revised in 2007, and say that despite initial budget overruns, the 2012 Olympics project remains on target, with 65% of the venues completed. JUNE 12–18, 2010 CONSTRUCTION WEEK 45
WORLD CUP STADIUMS
Stadium: Mbombela Stadium Region: Nelspruit Scope of work: complete construction Architect: RL Architects Contractor: Basil Read / Bouygues joint venture Work started: February 2007 Completed: October 2009 Cost: ZAR1.05bn/AED490m Capacity: 43,589 FAST FACTS 5.5m - Man-hours that went in to the construction 70% - Amount of workforce involved who were local to the area
The black-and-white zebra seats were inspired by the nearby Kruger Park game reserve, as are the 18-giraffe roof supports that jut skywards on the building’s exterior. Designers kept things simple to keep costs down: the stadium is rectangular, so does away with the complex design and construction required for rounded corners of more elaborate stadiums; while local material supply also kept transport costs and carbon footprint at bay. Most of the labour for the project was also provided by local workers. Mbombela stadium, fittingly, takes its name from the local municipality, which translated means ‘many people together in a small space’.
Doha fit for 2022 World Cup Qatar has outlined plans for massive investment in transport and sporting facilities as part of its audacious bid for the 2022 World Cup. Sheikh Mohammed bin Hamad bin Khalifa Al-Thani, the chairman of the Qatar 2022 Bid Committee, handed over a 750-page dossier to FIFA in May, that revealed detailed plans to build or redevelop a total of 12 football stadiums. The solar-powered, air-conditioned facilities will be developed if the country is successful in its World Cup bid. All of them will be designed to maintain a temperature of 28 degrees even during Qatar’s scorching summer months. Doha’s Asian Games in 2006 not only highlighted the region’s ability to host a successful international sporting event, but also left a legacy of world class sporting venues for its residents to enjoy, long after the games ended. Qatar Khalifa International Stadium, which had undergone a major renovation to increase capacity to 50,000 (from 20,000) and add international class facilities for the event – and was part of the wider 250-hectare Sports City development.
INSIGHT
The Renovations New projects have taken the lion's share of the cash set aside for the World Cup, but major work was also required on existing stadia to increase capacity, update facilities and bring them up to FIFA's standards in time for the month-long event 46 CONSTRUCTION WEEK JUNE 12–18, 2010
Soccer City, Johannesburg Soweto is soccer mad, so Johannesburg’s Soccer City is going to be a hot-bed of excitement as it hosts first and final matches of the 2010 FIFA World Cup this month. Originally built in 1987, the venue has undergone a ZAR1.2b major rebuild that has added 10,000 more seats, 99 more corporate boxes and an encircling roof to keep sun and rain off spectators. The renovation work included the partial demolition of the old stadium to make way for extensions to the
main grandstand, offices and brand new changing rooms. The lighting and PA systems were also upgraded. The stadium design represents a calabash, or African cooking pot which, in turn, is supposed to reflect the region’s ‘melting pot of African cultures’. Ellis Park, Johannesburg Ellis Park is one of the most historic sporting grounds in South Africa and is better known by rugby fans as the place where the Springbox beat New Zealand’s
All Blacks to lift the 1995 Rugby World Cup. The stadium is right in the heart of Johannesburg and was originally built in 1927. It underwent a major rebuild in 1982 to extend capacity to 62,000 and, in 2008, Coca-Cola handed over ZAR480m (AED226m) for naming rights to the stadium. The cheque almost covered renovations required to bring the stadium up to FIFA World Cup standards: adding state-of-the-art media facilities, team whirlpools, top-class VIP areas for dignitaries, accessibility for disabled fans,
WORLD CUP STADIUMS
Stadium: Nelson Mandela Bay Stadium City: Port Elizabeth Work started: January 2007 Completed: June 2009 Scope of work: complete construction Cost: ZAR2.1bn/AED1.6bn Capacity: 45,000 permanent, 49,000 maximum
Stadium: Peter Mokaba Stadium City: Polokwane Scope of work: complete construction Architect: Prism Architects Contractor: WBHO / Paul JV Work began: March 2007 Completed: June 2010 Cost: ZAR1.24bn/AED580m Capacity: 45,000
FAST FACTS 138,000m3 - Total excavated material 49,000 - Total seat capacity 21,000m - Total length of piling 6,800 -Jobs created during construction
FAST FACTS 23km - Electrical cabling installed 2,990,000 - Bricks used 60,000m3 - Plaster used in fit-out 228 tons - Weight of trusses in the steel roof
Nelson Mandela Stadium, Port Elizabeth The first international class football stadium to be built in the Eastern Cape province, the Nelson Mandela Bay stadium is built on the shores of Port Elizabeth’s North End Lake and cost ZAR2.1bn (AED1bn) – more than eight times its original estimate. Part of that additional cost included unforeseen excavation works and construction of a channel to divert the lake’s water table away from the stadium’s foundations. The stadium's construction was handled by a consortium made up of Grinaker-LTA, Interbeton and Ibhayi JV. It was built on
a new pitch and a top-notch audio-visual setup, including new scoreboard, to keep the fans informed during the game. Loftus Versfeld, Pretoria One of the oldest stadiums in South Africa, Loftus Versfeld has hosted major sporting events since 1903. Situated in the Tshwane/Pretoria region, Loftus Versfeld has undergone perennial upgrades to keep it at the forefront of national and international sports – and the latest includes a new
the site of the old Parks Rugby Club, and the Prince Alfred Park. The stadium is designed to withstand the region’s notorious high winds and has been nick-named the Sunflower, with each of the “petals” constructed from a combination of aluminium and a glass-fibre coated material (polytetrafluethylene) over a steel superstructure. Peter Mokaba Stadium, Polokwane Leading South African firm WBHO has been involved in the construction of three of the five new World Cup stadia, and the Peter
media centre that was constructed in the lower level of the west stand. Venue management was also required to fit new floodlights, scoreboard and a sound system to fit in with FIFA requirements, while a roof was also fitted to keep sun and rain off spectators. Royal Bafokeng, Rustenburg Constructed in 1999, the Royal Bafokeng stadium in Phokeng, near the platinum-rich city of Rustenburg, has been extended to cater for 42,000 fans
Mokaba venue in Polokwane, the northern most of the 10 host cities, is right in the heart of the soccer crazy Limpopo region. Like the Mbombela stadium, it leans heavily on the local region for its design inspiration: the Baobab tree-inspired structural elements in each corner of the stadium support the main roof truss over its 172m span, while the undulating roof surface blends in with the local surroundings. Construction required 20,000m3 of excavation work and 52,000m3 of concrete (excluding formwork), while 9,000 tons of rebar was also used. The stadium seats 45,000 fans and cost ZAR1.24bn/AED580m to build.
and to bring it up to the requirements of FIFA, the sport’s governing body. The only privately owned stadium used for this year’s World Cup, Royal Bafokeng's committee appointed South African firm BSP Architects to design the larger western grandstand and its cantilever roof. The lighting, PA system and scoreboard were also upgraded, as were all of the facilities, including the media centre, operations centre and parking areas. The upgrade work cost AED 216m, almost four times the original build cost.
Free State Stadium, Bloemfontein New turnstiles, a second tier of seating, better lighting and a new sound system should make the Free State Stadium a perfect venue for first and second round matches. Originally built for the 1995 Rugby World Cup, the stadium has undergone a ZAR 287.4m (AED134.8m) upgrade that includes a major structural change to the main grandstand to house 7,000 more fans, while a new roof, better facilities and new entrance have helped rejuvenate the venue. JUNE 12–18, 2010 CONSTRUCTION WEEK 47
CONTRACT REVIEW
El Seif’s top 10 projects As one of the top contractors in Saudi Arabia, as well as one of the oldest, El Seif Engineering Contracting Company has a strong portfolio of active and complete projects. CW reviews its top ten so far
E
L
SEIF
ENGINEERING
CONTRACTING
Company is one of the top construction companies in Saudi Arabia. Operating since the 1950s, when it started out in the commerce and transport sectors, the company expanded into general contracting in the 1970s. With more than 15,000 employees, El Seif is continuing to grow, securing high-profile project work like packages on the Princess Noura Bint Abdulrahman University for Women. Growing resources, expanding activities and increasing involvement in regional property development, mean the company’s role as an instrument in the region’s progress is becoming increasingly significant. Here CW looks at the ten biggest projects that continue to build the company's reputation for delivery. Princess Noura Bint Abdulrahman University for Women – Package 3 Value: 8 billion SR ($2.1 billion) Status: Under construction El Seif is preparing all infrastructure works in an 8 million m2 area for Package 3 of the massive university complex. The work on one of the biggest and most noteworthy projects in the region includes civil, structural, mechanical and electrical works for utility buildings, infrastructure, landscaping, site grading, utility tunnels, fly over bridges, road works, solid waste management, a sewerage treatment plant and the laying of 750,000 metres of pipes. 48 CONSTRUCTION WEEK JUNE 12-18, 2010
The Green Community Motor City was a US $220 million job completed by El Seif.
Al Falah Community Development Value: 2.6 billion SR ($693 million) Status: Under construction Al Falah is a development from Aldar that will provide around 5,000 homes for middle-income UAE families, as part of the Abu Dhabi government's housing initiative. The town centre will include a mix of civic buildings, a 65,000m2 mall, hospital, commercial office space, a hotel and a sports and leisure complex. El Seif is constructing 2,022 housing units, using a pre-cast concrete superstructure and pre-cast boundary walls. The contract includes all civil, architectural and electro-mechanical works. King Abdullah Financial District – Parcels 3.04 & 3.05 Value: 1.4 billion SR ($373 million) Status: Under construction
Among the extensive work being carried out on developing the King Abdullah Financial District, El Seif is involved in the design and construction of four offices and residential high-rise buildings, with a total built-up area of 179,000m2. Parcel 3.04 is a multi-use complex with offices, residential apartments and retail. The buildings are a mixed occupancy complex, which includes four basement floors as car parking, an office tower block (31 floors), an apartment tower block (23 floors) and a police station (two floors). Parcel 3.05 is another multi-use building with offices, residential apartments and retail outlets. This parcel's buildings are to be composed of an 18-storey tower rising from a two storey podium block. This in turn will be built upon a four-storey underground parking basement.
CONTRACT REVIEW
included meeting the strict and very final deadlines that would allow the structures to be used as the residential zones of the Asian Games Village. The buildings also had to be capable of being repurposed to suit the enduser Hamad Medical Corporation.
Kingdom Tower Value: 1.03 billion SR ($274 million) Status: Complete El Seif was the main contractor for the construction of a building that has become an instantly recognisable landmark in Riyadh, the Kingdom Tower. The tower, which rises over 300 metres, combining a 180m concrete structure and 120m steel structure, is a mixed –use development and was constructed in the early part of this decade. Designed by Ellerbe Becket, the development features two podiums with the tower as a centrepiece.
Information Technology & Communication Complex – Infrastructure Package Value: 243 million SR ($64.8 million) Status: Complete In two and a half years Saudi Arabia’s capital Riyadh will complete its Information Technology and Communications Complex (ITCC), the Kingdom’s first “smart city”. In order to attract the world’s leading information technology and communications companies to a place like Saudi Arabia, you need to offer the world’s best ITC services and infrastructure - this is the concept behind the Kingdom’s new US $1.65 billion (SR6.5 billion) ITCC development. El Seif was involved in the construction and maintenance of all the vital infrastructure works, including ancillary buildings and site development on an area of 490,000m2. The work comprised civil works, architectural and electro-mechanical works and other external works, including a sewage treatment plant and concrete-encased fibre optic cable network.
Green Community – Dubai Motor City Value: 827 million SR ($220.5 million) Status: Complete The community was built to provide working and living space, in a relatively traffic-free environment. Covering 67ha of residential, leisure, retail, and commercial properties, the project includes villas, townhouses, terraced apartments and garden apartments, recreation centres, hotel, commercial areas, and site infrastructure works. Design and construction of weapons facilities at PSAB – Kharj, KFdAB – Taif and KAAB – Dhahran Value: Classified Status: Under construction El Seif has taken on a collection of works for the Kingdom’s defence forces, all being carried out on strategic air bases. The scope of work includes 30 buildings, open and covered parking, power sub-stations, security fencing, roads, infrastructure and other utilities. The project includes an added logistical challenge of being spread over three different and distant sites; Prince Sultan Airbase in Kharj, King Fahad Airbase in Taif, and King Abdulaziz Airbase in Dhahran. Hamad Medical City – Doha Asian Games Village Value: 661 million SR ($176 million) Status: Complete The Hamad Medical City was another large project, spread over multiple buildings. El Seif had to construct 31 buildings ranging between three and nine floors in height and comprising 871 accommodation units, with a total built-up area of 275,000m2. Challenges
Project: Kingdom Hospital Value: 220 million SR ($58.6 million) Status: Complete Kingdom Hospital was built by El Seif and had to be developed to the highest international standards and specifications to meet the hospital’s stringent requirements. The scope included all construction works including medical and IT systems, furniture and fittings. The total floor area of the main hospital, accommodation and administration block is 45,000m2.
Kingdom Tower (top), packages in the King Abdullah Financial District (middle) and a five star hotel (above) are part of El Seif's project portfolio.
Five star hotel in Hail Value: 189 million SR ($50.4 million) Status: Under construction El Seif is working on a five star hotel, located in Hail, which will include eight floors, with a total built-up area of 38,411m2. The 118 room hotel will contain 22 standard suites, 20 duplex villas, five living rooms, and two diplomatic suites. JUNE 12-18, 2010 CONSTRUCTION WEEK 49
PROJECT UPDATE ON SITE CW reviews a collection of its most recent site and plant visits to keep you up to date with project progress
WANT TO UPDATE YOUR PROJECT'S PROGRESS, OR HAVE IT INCLUDED HERE? Email: stuart.matthews@itp.com
7000t Daily production capacity
CONSTRUCTION AND DEMOLITION WASTE RECYCLING PLANT IN AL DHAFRA Location Abu Dhabi Visited May 2010
SAUDI BINLADIN GROUP FOR INDUSTRIAL PRECAST Location Jeddah Visited May 2010
AL WAHDA STREET Location Sharjah Visited May 2010
50 CONSTRUCTION WEEK JUNE 12-18, 2010
Concrete waste, from construction and demolition projects, now has an alternative place to go, other than straight to landfill. The recently opened recycling facility in Al Dhafra, on the outskirts of Abu Dhabi, is crushing waste concrete into aggregate for use in road building. The plant will be able to produce up to 7000 tonnes a day, using crushers, conveyors, screens and magnets to break the raw material down to size.
The Saudi Binladin Group for Industrial Precast operates out of Jeddah, a city with a whole street full of offices for the company and on the outskirts there are enormous factories and holding yards. The plant is supplying a number of projects across the country, including the Princess Noura Bint AbdulRahman University for Women in Riyadh and the King Abdullah University for Science and Technology.
Central Sharjah is moving closer to a transformed road system to meet todayâ&#x20AC;&#x2122;s traffic volume, following the latest milestone in Package 5 of the redevelopment of King Abdul Aziz Road. The latest completion of note, officially announced on 30th April, is the opening of the viaduct on the west side of Al Wahda Street. The viaduct crosses King Abdul Aziz Road at a 90 degree angle, itself a major project.
PROJECTS
SANDOVAL GARDENS Location Dubai Visited April 2010
MIRDIF CITY CENTRE Location Dubai Visited April 2010
24
2
Million m of desert is what DIP started with
DUBAI INVESTMENTS PARK Location Dubai Visited March 2010
MEYDAN Location Dubai Visited March 2010
Bavaria Gulf’s flagship Sandoval Gardens project has been an interesting mix of German and Arab expertise, and its townhouses are near to completion. The 36 townhouses are the first part of an AED260 million twin-development of the overall Sandoval Gardens. All townhouses conform to TUeV, a standard of quality that is a common benchmark, which means all construction and finishing is assessed by a third-party.
UAE-based Alec was awarded the main contract to build the US $816 million Mirdif City Centre in September 2007, with construction getting under way almost immediately. Developed by Majid Al Futtaim Properties, more than 16000 jobs were created at the peak of the design and build stage. The team behind the mall are hoping for a Leed Gold rating, to reflect the work they did to make the building sustainable.
In 1997, way before the construction boom really took off, Dubai Investments’ management took it upon themselves to lay foundations across 24 million m2 of desert and start building a mixed-use city from scratch. In March, the developer announced the launch of the final phase of development, which is set to become a hub for logistics services spread across 500,000m2. Construction was due to start in May.
Dubai was thrown back into the limelight when the US $10 million Dubai World Cup kicked off at the new Meydan Racecourse in Nad El Sheba. The enormous 18.6 million m² project consists of four separate areas including the development’s central feature, the Racecourse with Meydan Hotel. Meydan City Corporation has announced plans to build an equestrian city in China’s Tianjin province.
CONSTRUCTION WEEK JUNE 12–18, 2010 51
PROJECTS
OCEAN HEIGHTS Location Dubai Visited March 2010
4 Levels of difference in U-Bora towers
U-BORA TOWERS Location Dubai Visited March 2010
INFINITY TOWER Location Dubai Visited February 2010
6000 Number of men on site at any one time
CENTRAL MARKET Location Abu Dhabi Visited January 2010
52 CONSTRUCTION WEEK JUNE 12-18, 2010
Construction of Ocean heights tower began in August 2007. The US $175.6 million (AED645 million) main contract was awarded to Arabtec. As it rises, the tower’s floor plates reduce in size, allowing the rotation to become even more pronounced. At the peak of construction, there were 30 contractors and 2000 people on site. On December 23, 2009 – 23 days ahead of schedule – the building was topped off at 310m.
Business Bay's U-Bora towers is being built by Korean firm Bando, the project features a podium with a curved residence building, which has a roofline that sweeps from 12 levels at one end, up to 16 at the other. The build was started back in 2007, initially with Simplex acting as subcontractor. The subcontractor left site in September 2008, leaving Bando both as developer and lead contractor.
Infinity Tower, located in the Dubai Marina, is set apart from its neighbours by its rotating structure and is spiraling into the sky at a fast pace. Each slab plate rotates 1.08 degrees around a fixed cylinder core. Once the tower is complete, the 73 floors will add up to a cumulative 90 degree angle. There are no pillars in the building; instead it is supported via a complex concrete column structure.
Central Market was named Abu Dhabi’s safest construction site just prior to Construction Week’s visit. The project combines three super-tall towers with an Arabian Souk and covers 5.2 million m2. With more than 6000 men on site at any time, the contractor, Arabian Construction Company is proud of its safety record and the measures it takes to keep all of its workforce safe on the massive site.
PROJECTS
BURJ KHALIFA Location Dubai Visited January 2010
SAHARA LIVINGS Location Dubai Visited December 2009
2O12 Date for finishing The Avenues
THE AVENUES Location Kuwait Visited December 2009
SOUTH OF SHAMKA Location Abu Dhabi Visited January 2010
Possibly the most famous building in the world and certainly the tallest, the Burj Khalifa got its official opening in the early days of 2010. Big name contractors such as Arabtec and Besix were involved in the record-breaking build, which also played on the skills of Hyder Consulting and Depa. Developer Emaar made claim to eight world records, all based around the tower’s height and accompanying features.
Sahara Livings is a residential development consisting of 84 villas spread across an area of 18,116m² in Dubai Industrial City. Reem Dubai Contracting was given 548 days to complete the project after being awarded the main construction contract in February 2009 and, in December 15% of the development had been completed, with a total of 78 villas currently under construction.
The construction of Phase III of The Avenues, Kuwait’s largest shopping mall, is steadily progressing in the Al Rai district of Kuwait City. The mall has been designed by the London and Los Angeles offices of global architectural practice Gensler. Kuwait’s Mabanee is developing the project. Phase III of The Avenues will consist of more than 86,000m2 of retail space and is scheduled for completion in early 2012.
South of Shamka will comprise of 10,000 new villas, taking up no less than 17 million m2. In January it was at the ground works stage, operations have been split between Tristar Contracting and Bin Nawi Contracting. The site was using a GPS package from Topcon. This comprised a system fitted to two bulldozers, with a base station and a ‘rover’ – another device which clamps to the side of a car for readings on the move.
CONSTRUCTION WEEK JUNE 12–18, 2010 53
APPOINTMENTS TIPS FOR JOB SEEKERS
Research the organisation and the role Taking time to learn as much as possible about the company’s services and products, as well as its customers and competitors, will give you an edge during the interview. This knowledge is the foundation on which you will construct answers that demonstrate your ability to perform in the role. Being able to demonstrate this information also highlights your diligent and conscientious approach – fine attributes in any prospective employee. Look the part Make sure you look the part – even if the working environment is casual you should be “suited and booted”. This will not only ensure you make a good first impression, but if you know you look good you will feel more confident and comfortable during the interview. Know your CV Often an interview will be based around the experience you have outlined in your CV. Ensure that you are familiar with the contents of your CV, including any gaps in employment. You will come across badly if you are unable to refer accurately to the CV you submitted for the role, and you could give the impression that you have not provided an honest summary of your background, experience and skills. 54 CONSTRUCTION WEEK JUNE 12-18 , 2010
Shuffle In an unsurprising move Abdulrahman Al Zamil has been re-elected as chairman of the board of Zamil Industrial Investment Company (Zamil Industrial). The news came in a note issued to the Tadawul Stock Exchange, in Saudi Arabia. The Dammam-based manufacturing and fabrication giant also appointed members of muneration its executive, audit, nomination and remuneration committees. Consultancy Buro Happold has appointed Oliver unkett Plunkett as its new country director for Saudi Arabia. Plunkett n moved is replacing Phil Dalglish (pictured above), who has been e East reto a role as business development director for the Middle lude gion. Other new appontments made by the company include ne the naming of Robert Okpala as its new regional discipline en leader for Building Environment. Martin Tillman has been m appointed to lead the consultancy's transportation team in the region. Charles Collet (right) will head up Aedas’ new office in Riyadh, Saudi Arabia. Aedas reports that it ext plans to open further offices in Saudi Arabia, with the next one planned for Jeddah. It anticipates relocating senior staff to Riyadh and Jeddah to work on its projects in KSA.
3 TOP JOBS For more jobs visit constructionweekonline.com/jobs. Please apply directly to the listed consultants. Role: Mechanical engineer Agency: Clarendon Parker ME
Role: Director of Projects Agency: GTS Consultants
Role: Procurement officer Agency: First Select
An engineering company based in Abu Dhabi is currently seeking a mechanical engineer to assist the projects manager with the management of new projects The role requires strong experience in mechanical engineering, eight-plus years of experience in industrial construction, such as the erection of steel structure factories, as well as strong planning skills. The ideal applicant will have experience in reviewing and supervising contractors work, including evaluating and verifying industrial drawings. They will also be experienced working with design consultants, reviewing challenging production line design, and assessing quality and accuracy.
The director of projects is the most senior of seven appointments looking to be made for the direction and delivery of a diverse and expansive portfolio of projects in realty and hospitality. The roles are based in India and the right candidates will be delivery focused construction professionals from main contractors, consultants, PMC or developers, with experience of delivering multiple projects simultaneously, with individual project values in excess of $100 million. Successful applicants will be construction graduates or equivalent, have more than 15 years of experience in highquality hospitality, residential or commercial developments.
A multinational company based is looking for a procurement manager for its office in Bangladesh. The ideal candidate must have bachelor's degree in business or public administration, or certification as a certified public purchasing officer, certified purchasing manager. The job responsibility includes; involved in a variety of procurement activities including preparation of specifications, bidding process, contracts, renewal and monitoring of contracts. A minimum of eight years experience is required in the same field, which involved supervising the procurement activities of a high volume section including experience in contract administration and writing.
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FOREMAN
FOREMAN
Email: foreman@itp.com
Born in the KSA
T
his is my tenth year working in Dubai. I’ve had a ball, no two ways about it. But yep, let’s not kid ourselves, work is drying up big time. So where next? I am seriously considering Saudi Arabia. Each day more work seems to be appearing in the Kingdom. All the talk this week on our site has been about a $200 million-plus contract for the new headquarters of Samba (formerly Saudi American Bank) about to be announced. I hear it will be built in Riyadh’s King Abdullah Financial District, to house the company’s banking operations, as well as all the usual retail, offices, leisure and VIP areas. Sounds good to me – and better still, I see that Saudi Arabia has issued a midday summer ban for work outdoors starting next year, finally bringing the kingdom in line with other GCC countries. From the beginning of July to the end of August, from 2011, companies will be prevented from making employees work outside between the hours of 12 noon, until 3pm. All anyone has to say on the subject is that it's about time.
56 CONSTRUCTION WEEK JUNE 12–18, 2010
Snow joke My favourite time in Dubai was a four years ago when I worked on the Mall of the Emirates development. My own gang were stationed on the massive indoor ski slope project, which was no easy task – the plus side was we didn’t have to worry too much about the heat once the ice machines were switched on. It was a great experience, and one I thought could never be repeated. Until now. Word reaches me that developers in Egypt have been so impressed not just by the Ski Dubai design and construction, but the huge financial success it has had. So guess what – they are planning to do precisely the same. Details are still sketchy and I will keep you posted, but so far it appears final talks are underway with a couple of big name local contractors. I wish them well, but they will have some job replicating what we put together: Ski Dubai is a massive 85 metres wide and 80 metres high, it has five slopes and 6,000 metric tones of snow – that’s the equivalent of three football pitches. One slope is 400 metres, making it the Gulf’s
Slippery slope: a replica of Ski Dubai could soon be under construction in Egypt. Meanwhile, the worker above is fully protected in case of a fall, just the way things should be done.
first indoor ski “mountain.” And we did all this for just $272 million. Beat that Egypt!
neither was wearing a scrap of PPE, let alone anything as useful as a harness.
Safety rant
The S-word
Personally, I don't go anywhere without a hard hat, but I was staring out the window of a cab, on one of those long drives down Sheikh Zayed Road, when I gagged at the sight of awful site safety. A low rise building under construction in Al Barsha had a brace of men on top of the building's scaffold. I hope they had excellent balance, because they were sharing either end of a single, unsecured, plank and
I had a couple of pals attend last week’s Construction Week conference in Riyadh. They tell me that while it was generally positive stuff, when it comes to ‘sustainability’ in Saudi Arabia there will always be a few who, shall we say, register some mild doubt. “Let me make it clear that I prefer not to use the ‘S’ word, as I believe that it has become severely devalued,” one delegate explained.
MIDDLE EAST
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Tailored Solutions â&#x20AC;˘ Global Expertise
For expert solutions contact our specialists now on
+971 6 553 4173 rmd.me@rmdkwikform.com
www.rmdkwikform.com/ae