Construction Week Issue 300

SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

Construction An ITP Business Publication

CONSTRUCTIONWEEKONLINE.COM

WEEK

DECEMBER 12–18, 2009 [300]

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

INSIDE NEWS ‘No recovery in 2010’, says CEO of Drake & Scull International PAGE 9

PROJECT UPDATE Aramco to build centre for knowledge and culture in Dhahran PAGE 26

FORMWORK Formwork companies look for some upsides in the downturn PAGE 30

EXCLUSIVE

“WE’RE IN THIS

TOGETHER”

DUBAI RULER’S NEPHEW ON RESTRUCTURING, SPECULATION AND TRANSPARENCY

Al Fajer Properties CEO HH Sheikh Maktoum Hasher Maktoum Al Maktoum

CITY FOCUS The latest news, projects and tenders from Abu D Dhabi, UAE PAGE 46

CONTENTS DECEMBER 12-18, 2009 | ISSUE 300 11

17

FEATURES 26 PROJECT OVERVIEW A look at the King Abdulaziz Centre for Knowledge and Culture – a project of destined to become Saudi Arabia’s preeminent cultural institution.

30 SPECIAL REPORT CW discovers how the formwork sector is using the economic downturn to its advantage.

26 15

DIRECTORY 38 SHOWCASE 40 TENDERS 41 PROJECTS 42 SPECIALIST SERVICES

30

48

REGULARS 2 ONLINE 4 MAIL

FRONT 9 CONTRACTORS FACE BANKRUPTCY THREAT The construction industry in Dubai has no chance of recovery in 2010 the CEO of Drake & Scull International, has said.

11 BAHRAIN AIRPORT TO TENDER DESIGN IN Q1 The design contract for two new terminals at Bahrain International Airport will go to tender within the first quarter of 2010.

17 FACE TO FACE CW talks to two people responsible for boosting their company’s business in the Middle East.

19 EVENTS Industry dates for your diary.

22 EXCLUSIVE INTERVIEW CW sits down with HH Sheikh Maktoum Hasher Maktoum Al Maktoum to chat about Dubai World’s restructuring and other pressing issue.

25 LEGAL 12 NEWS IN BRIEF Highlights of the week.

15 NEWS IN PICS Topical images with the latest news.

In the second of a two part series, James Bremen compares the civil law concept of economic hardships in different jurisdictions and how they may apply in those respective areas.

BACK 46 CITY UPDATE The latest news and projects from Abu Dhabi, UAE.

48 DIALOGUE Sukad CEO Mounir Ajam talks about the importance of training professionals in project management.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

1

ONLINE

www.ConstructionWEEKonline.com MOST POPULAR DUBAI WORLD TO RESTRUCTURE US $26 BILLION OF DEBT FILIPINO CONSTRUCTION PROS EARN LESS THAN AVERAGE SUPPLIERS REACT TO NEW OWNERSHIP LAWS AECOM TO MANAGE CAPITAL DISTRICT INFRASTRUCTURE

HAVE YOUR SAY WHAT DO YOU THINK 2010 WILL HOLD FOR THE INDUSTRY?

What are you looking forward to in terms of projects – and what are you worried about?

IN PICTURES: TOP 10 COUNTRIES WITH EXTERNAL DEBTS Dubai isn’t the only part of the world that is managing debt payments, despite the recent coverage about debt restructuring at Dubai World. We look at the top 10 countries (including Spain, France and the Netherlands) with external debts - the total public and private debt owed to non-residents, repayable in foreign currency, goods, or services. Find out where the UAE sits in relation to some of the largest debts in the world, such as that run up by the United Kingdom. The list might just surprise you…

For more images visit www.ConstructionWeekOnline.com

MEP

PMV

LEVERAGING CHANGE MEP meets Drake and Scull International’s Charles Lever, and finds out more about how the company has grown and what the future holds

DEALER ‘BEST KSA FIRM TO WORK FOR’ Personel Zahid Tractor, Saudi Arabia’s Caterpillar dealer has won a ‘best company to work for’ award, after a poll in a national newspaper.

Design

2

Supply Chain Manager Middle East, Damman, Saudi Arabia Senior Quantity Surveyor, Dubai, United Arab Emirates Senior Landscape Architect, Dubai, United Arab Emirates

ONLINE POLL ARE YOU CONCERNED BY RISING MATERIALS PRICES?

62.3% 30.7% 7%

No, we’ve budgeted for them and it’s a sign of increasing numbers of projects

FEATURES

THE CASE FOR PROCUREMENT Geoff van Wijk makes the case for hospitality procurement, and the special role it plays for hotel owners, designers and operators.

JOBS OF THE WEEK

Not sure - we need to wait and see what happens over the next few months

MEP

Yes - it’s making it very expensive for us to complete projects

QATAR SHINES LIGHT ON ENERGY EFFICIENCY Plans to test solar panels and energy-efficient lighting in Qatar will soon be put into action.

TO VOTE IN THIS WEEK’S SPOT POLL GO TO

CONSTRUCTION WEEK DECEMBER 12–18, 2009

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MAIL

RE: FILIPINO CONSTRUCTION PROFESSIONALS EARN LESS THAN THE GCC AVERAGE This is very true and it has been happening. It’s a matter of skin colour and not a matter of competence in doing the job. A lot of Filipinos are coming here, backed up with experience, yet young Brits who are ‘fresh out of the box’, who are only backed up with UK certificates and do not know what to do with the tasks laid on their desks, are paid more.

JESSICA

I know - if you don’t like it, go home and see what you earn there. The simple fact is that for every Indian or Filipino who knocks a job back, there are 100 more who will accept it at the lower wage. Make complaints to your own government, because let’s face it, you wouldn’t be in the GCC if there was work in your own country.

We have a lot of skilled workers who are earning thrice as much as Filipino and Indian engineers, just because the colour of their skin is different, but we all know that in terms of ability, capacity and qualification we could go head-to-head with them. Such a pity we live in this unfair world, and nobody is doing anything [about it].

DAVID

JUAN DELA CRUZ

Is it really a question of skin colour? As an HR manager for a leading construction firm, I do need to point out that often we find the certificates we get from applicants outside of ‘the West’ are not worth the paper they’re printed on. The sad fact is that qualifications from the West are regarded (with good reason) as being worth more than other qualifications – regardless of the skin colour of the person who has them.

generally chose not to include the provision for the election of Dispute Adjudication Boards to whom disputes may be referred for a speedy and economical decision. Is this because they consider the board’s fees (usually a fraction of one percent of the contract value) to be an unnecessary expense, or is it because they have no intention of settling disputes amicably?

JULIE

RE: BIG 5 2009 ‘BEYOND ALL EXPECTATIONS’

It isn’t skin, accent, or language. It’s all about country of origin and the resulting pay expectations. If you don’t like the pay offer, don’t take it.

MARLOW

RE: SUPPLIERS REACT TO NEW COMPANY OWNERSHIP LAWS I welcome the new plans to allow ownership without having a local sponsor. But we cannot compare this with a free zone. Visa and labour card expenses (new and renewal) are a big hurdle for small companies to overcome.

Also, to boost the economy we must ensure the skilled and low-income people stay here to contribute more to the nation.

JIPSON GOMEZ

RE: MEDIATION LETS PARTIES SOLVE THEIR OWN DISPUTES One has to question why employers, when using the 1999 edition of FIDIC,

ANDY HEWITT

Two major deals do not make an event a huge success. I think you would find that if a broader number of exhibitors were surveyed, most visitors were there simply to gauge the feeling in the industry under such trying times. I applaud this year’s exhibitors for continuing to support the exhibition, but you could not help but feel a sense of unease among many of them, regarding the state of the current environment.

SHANE

RE: JORDANIAN GOVERNMENT DENIES PAYMENT PROBLEMS $165 million? Is that it? These Jordanian contractors don’t know how lucky they are.

They should try working in the GCC if they want to see what a real delayed bill looks like. Although I would also say that probably a Gulfgenerated bill is more likely to be paid in the long run.

TARQUIN

WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com.

Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles.

The opinions expressed in this section are of particular individuals and are in no way a reflection of the publisher’s views.

4

CONSTRUCTION WEEK DECEMBER 12–18, 2009

Registered at Dubai Media City ITP Business Publishing PO Box 500024, Dubai, United Arab Emirates TEL +971 4 435 6000 FAX +971 4 435 6080 Offices in Dubai & London

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Highlights

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News in pictures

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Economic hardship claims

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NEMANJA SESLIJA/ITP IMAGES

FRONT

Bahrain Airport to tender design in Q1 2010

DRAKE & SCULL INTERNATIONAL CEO SAYS NO CHANCE OF DUBAI CONSTRUCTION INDUSTRY RECOVERY IN 2010.

DUBAI CONTRACTORS FACE BANKRUPTCY THREAT

By Andrew White

The construction industry in Dubai has no chance of recovery in 2010, Khaldoun Tabari, vice chairman and CEO of Dubaibased engineering contractor Drake & Scull International, has said.

Speaking at the Arabian Business Conference 2009, he added that for construction companies solely operating in the emirate, there were big problems.

“If you are 100% in Dubai with nothing outside you are dead,” he said. “What does it mean if you are dead? If you are a construction company and you pay 10,000 or 20,000 people, and you do not get any work because there’s an abundant supply of buildings, you are going to be bankrupt.”

The UAE’s real estate and construction sectors have been badly hit by the down-

turn. A recent report suggests they have seen the biggest declines in the Middle East region. Some 566 projects have been shelved or cancelled in the country – the majority of which are in Dubai – according to the research house Proleads.

Tabari added that Dubai real estate operators were likely to face further difficulties over the coming months.

“We had hundreds of real estate developers, but these are not going to exist anymore, that’s a simple fact,” he said.

“There’s going to be consolidation or they’re going to go out of business, because they’re not going to make their payments. We’re going to see less and less developers in this business; it will be an orderly exit.”

Listed on the Dubai Financial Market, DSI operates in engineering, procurement and construction (EPC), and civil contracting in addition to the development of design and build engineering expertise in infrastructure, water and power (IWP).

Tabari also revealed that the company was looking to buy two companies in Saudi Arabia, at a combined value of up to $400m, during the first quarter 2010. He has already said that two planned acquisitions in Kuwait and Qatar will cost $40m to $55m.

In November, DSI bought 82% of a water treatment company from Bilfinger Berger AG, Germany’s second-biggest builder, to tap growing regional demand. DSI acquired the majority stake in Passavant-Roediger for $39m.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

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FRONT BAHRAIN AIRPORT TO TENDER DESIGN IN Q1

BUILD SAFE UAE CUTS MEMBERS

By Benjamin Millington

By James Boley The design contract for two new terminals at Bahrain International Airport will go to tender within the first quarter of 2010 according to Bahrain Airport Company (BAC) CEO Dr Osama Al Ali. “It should be within the first few weeks of the new year, but certainly within the first quarter,” he told CW today.

He added that they plan to invite contractors to bid for the first construction contract within the first half of 2010.

The new terminals are part of a $4.7 billion (BD 1.8 million) expansion of DR OSAMA AL ALI, CEO OF THE BAHRAIN AIRPORT COMPANY. the airport, which also includes new aprons, separate piers, a ger capacity from seven million people people mover system, car parking, road to 12 million when it is commissioned in 2012. works and infrastructure.

The long-term plan for Bahrain airport There will also be an adjacent ‘airport city’ with hotels, conference centres, retail will see capacity rise to 28 million by 2030, and recreational facilities. a vision which will be completed over five Al Ali said BAC is currently evaluating phases. Phase two is to start in 2012 with bids from around 10 companies, including completion set for 2015.

WS Atkins and Naco, for the contract for In 2008 the airport had a volume of 9.2 utilities and land utilisation planning – a million passengers. ‘significant contract’, which should be In May consultancy firm Hill Internaawarded early next year. tional was awarded a $36.5 million conThe first phase of the expansion will tract to manage the project over an eight increase the airport’s annual passen- year term.

NEWS IN NUMBERS

Construction professionals from the Philippines who work in the GCC typically earn

48%

less than industry average

$2.45

Dubai Metro has picked up an award for Transport Project of the Year at the

to help it meet its obligations

Gulf Traffic Awards

A Dubai fund designed to help state-linked firms has given Nakheel

billion

2009

Eight construction firms have been cut from the membership list at Build Safe UAE. Speaking to CW, BSU group administrator Elias McGrath said two of the members had been removed as a result of restructuring at their companies, while six had their memberships axed for failing to comply with BSU key performance indicators.

“It has been extremely tough and challenging this year to keep health, safety and welfare a topic of the highest importance across all corporate agendas,” said McGrath.

The six non-compliant firms are: Al Masaood Bergum, ALCAN International Network (Gulf), China State Construction Engineering Corp, Hyder Consulting, TAS Middle East and Al Ryum.

Hyder Consulting construction manager Paul Callear said that his firm’s non-compliance had been caused by an administrative error and that he anticipated Hyder would return to the BSU member list within the next week.

Post-tensioning company VSL has received

three ISO certificates including an ISO9001:2008 for quality

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

11

FRONT HIGHLIGHTS GCC

TRANSPORT SPEND TOPS US $147 BILLION Regional investment in developing road, rail and public transport systems now tops US $147 billion (AED340 billion), according to IIR, organisers of the Gulf Traffic Exhibition. Completion of the Dubai Metro in September this year has sparked interest in a pan-Gulf railway, and metro systems in other cities.

Saudi Arabia has already begun work on four different railway projects, including the Landbridge.

reached the podium level.

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UAE

TUSCAN STRUCTURE COMPLETED BY DAMAC Developer Damac has announced it has completed the structure of its Tuscan Residences project at Jumeirah Village South. It is the sixth project completed structurally this year by Damac – and the third of its projects at the development.

Bahrain

UAE

TOWER AT PODIUM LEVEL Tashyeed Properties has announced that construction on its Sukoon Tower project in Manama, Bahrain, has

PMG DELIVERS TOWERS Project Management Group (PMG) has handed over phase one of the US $300 million (AED1.1 billion)

Jumeirah Business Centre Towers to developer Al Fajer. PMG claims that its management of the project has saved the client around $16 million. PMG efforts included retendering the project’s nominated subcontracts, which trimmed the final cost for each tower.

Jordan

JORDAN DENIES PAYMENT PROBLEMS Contractors in Jordan are accusing the country’s government of failing to pay outstanding bills, according to a local newspaper. Jordan Construction Contractors Association president, Dirar Sarayreh, said the government’s outstanding bill was around US $165 million (JOD117 million). Economic

adviser to the prime minister Mohammad Rawashdeh, said the government owed the construction contracting sector only $38 million, of which $28 million was paid before Eid Al Adha.

Egypt

OCI JV WINS US $393M PIPELINE CONTRACT Egypt’s biggest listed builder Orascom Construction Industries (OCI) has won a US $393 million (AED2 billion) contract to build piping and other infrastructure, for a water treatment plant near Cairo.

Under the contract, OCI and its JV partner Hassan Allam Sons will build an intake, booster station and pipelines for the 6th October City Water Treatment Plant.

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FRONT NEWS IN PICS LEFT: Memon Investments has awarded four contracts for the development of Champions Towers II and III. The company announced that Anwar Al Aqsa, a MEP contractor, will manage the electrical, fire alarm, plumbing and fire fighting installments for the two towers. The installation of elevators for CT II and III has been awarded to ETA Melco, whilst shoring, initial excavation and foundation work has been undertaken

by Stromek Emirates Foundation. In addition, Hi Tech Electro Mechanical Contracting Establishment has also been awarded the contract to install York air conditioning units for the CT II project. Construction of the two towers is running on schedule. Six out of 14 floors and five out of 16 floors have been completed for CT II and CT II respectively.

LEFT MIDDLE : Dubai Municipality will form a team to improve building licensing procedures. The body’s director general Hussain Nasser Lootah issued an administrative decision, which aims to provide quality services to its customers and reduce some of the steps required to issue a building permit. The team is entrusted to make recommendations on appropriate standardisation of procedures and the date of implementation.

BELOW LEFT: Dar for Trading and Construction (DETAC) has picked up the contract for Park Avenue, Cairo-Alex Desert Road from developer Damac. The mixed-use project will see DETAC deliver 723 retail units, 454 offices and parking for 3,000 cars, within 18 months.

The development is situated in Sheikh Zayed City near to downtown Cairo (pictured).

BELOW RIGHT: Dubai’s recent US $26 billion (AED95.5 million) debt restructuring announcement will not affect the emirate’s real estate market, a leading property developer said. “It will have no significance because restructuring is a normal word,” Abdul Majeed Ismail Al Fahim, chairman of Dubai Pearl, told Arabian Business. Al Fahim said he had restructured payments for the project’s end-users amid the downturn.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

15

FACE-TO-FACE EXPORT MARKET

NICK HERON

COLIN SHAW

Nolte Küchen, export director

Balmoral, exports sales director

CW TALKS TO TWO PEOPLE RESPONSIBLE FOR BOOSTING THEIR COMPANY’S BUSINESS IN THE MIDDLE EAST HOW IMPORTANT IS BUSINESS IN THE MIDDLE EAST TO YOUR COMPANY? The Middle East, which for Nolte, now includes all the GCC countries, is extremely important. When I consider where Nolte was five years ago, in terms of both coverage and turnover, to where we are today, I can only be excited about our success. The Middle East also gives us brand awareness in the Asian markets.

The Middle East market is very important to Balmoral’s future plans. When other areas of the world are affected by a downturn, the Middle East, in general terms, remains relatively unaffected.

Over the past 10 years Balmoral has become a respected provider of water storage tanks in the region.

WHAT ARE THE CURRENT CHALLENGES YOU ARE FACING IN THE MARKET? Business. We have the best collection of partners in all our markets. All contribute to creating and servicing the business in their specific markets. We simply need now for the markets to recover where Nolte is now in prime position to be awarded many contracts to supply projects with our products.

Our main challenge is competing with low-end Far Eastern imports.

These products cannot compete with ours in terms of quality, as they are not manufactured to recognised international standards.

In the current financially-driven market, clients should recognise the long-term value of installing top quality products.

WHAT NEW TECHNOLOGIES ARE YOU INTRODUCING TO THE MARKET? In 2008 we launched a revolutionary new kitchen design concept ‘Matrix 150’, which is based on a very simple and easy to understand logic: all widths, heights and even depths are multiples of 150 mm. The result is a variety of attractive, functional kitchens with harmonious proportions in all dimensions.

Balmoral has invested heavily in a new electronic estimating system for its GRP sectional water tanks. This means that quotes are on clients’ desks in less than 24 hours. This is a much welcomed development in a market, where the design and capacity of a tank can change many times during the project lifecycle.

HAS THE DOWNTURN RESULTED IN ANY POSITIVE OUTCOMES? Nolte is performing very well in our home territory of Germany, where today we still have the second largest [market] share.

However, the downturn in global markets has put a new emphasis on our brand and today, while many other manufacturers at best keep their hands in their pockets (and who can blame them), we continue to invest in product innovation and market support.

Service has always been the top priority at Balmoral. A good example of this is the recent collaboration between our client and our technical team whereby we made three trips to Dubai to assist in the final design and tank layout in a major project. One of the key advantages of dealing with Balmoral is that clients receive highly personalised service direct from the manufacturer.

WHAT ARE YOUR GOALS FOR 2010?

Our company as a whole would like to increase its market share in all our invested markets. This would give the company a real boost.

Our main goal for 2010 is to establish local representation in the Gulf, to carry out day-to-day business on our behalf. These representatives will not simply be agents, but companies with technical knowledge and the ability to install our products. We are looking to increase our market share as a result of these appointments.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

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EVENTS

Event: FM Awards 2010 Overview: The Facilities Management Middle East Awards ceremony aims to help raise the profile of the industry and recognise and reward those who have made significant contributions to its development.

Date: May, 2010 Location: Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.itp.net/events Event: Construction Week KSA Conference 2010 Overview: This one-day exclusive forum will gather top leaders from property developers and contractors alongside leading professionals from financial houses and law firms to discuss vital aspects of construction and real estate.

Date: June Location: Riyadh Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.itp.net/events Event: Middle East Architect Awards 2010 Overview: The Middle East Architect awards are an opportunity for the industry to come together and toast exceptional performance in architecture, engineering and design.

Date: September Location: Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.itp.net/events

Event focus

SAUDI PMV SHOW DATE: MARCH, 2010 LOCATION: KING ABDULLAH ECONOMIC CITY, SAUDI ARABIA PHONE: +971 4 435 6127 EMAIL: MICHAEL.MCGILL@ITP.COM WEBSITE: WWW.SAUDIPMVSHOW.COM At 40,000m², the 3rd annual Saudi PMV Show is the largest exhibition of heavy machinery and vehicles ever assembled in the kingdom. 

Event: Building Sustainability Conference, Dubai Overview: This conference places sustainability at the heart of the commercial business case where the efforts and resources engaged offer

the highest returns.

Date: April, 2010 Location: Dubai Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.itp.net/events

Event: Building Sustainability Conference, Abu Dhabi 2010 Overview: Delegates from the world of construction are invited to a one day event to discuss the vital aspects of building sustainability.

Date: October Location: Abu Dhabi Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.itp.net/events Event: Construction Week Awards 2010 Overview: In its 6th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East.

Date: November Location: Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.itp.net/events Event: Construction Week Dubai Conference Overview: A one day event with two streams running concurrently covering the vital aspects of construction and real estate.

Date: November Location: Dubai Phone: +971 4 435 6127

Email: oscar.wendel@itp.com Website: www.itp.net/events Event: CID Awards 2010 Overview: This year’s CID Awards will celebrate the success of the Middle East design industry and demonstrate how the region’s sector can stand alongside its international peers.

Date: November Location: Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.itp.net/events Event: Home and Life Style 2010 Date: March Venue: Oman International Exhibition Centre Website: www.eventseye.com Events: DWRW 2010 Overview: A trade show for doors, windows, roofs and walls, as well as cladding products, machinery and accessories.

Date: March 8-10 Venue: Expo Centre Sharjah Website: www.eventseye.com Events: Saudi International Windows, Doors, Shutters, and Solar Exhibition 2010.

Date: March 11-14 Venue: Riyadh Exhibition Centre Website: www.eventseye.com Event: Saudi Building and Interiors Exhibition and Symposium Date: April 4-7 Venue: Jeddah International Exhibition and Convention Centre Events: Buildex Syria 2010 Date: May 12-16 Venue: Damascus International Fairground Website: www.eventseye.com Event: Libya Build 2010 Date: May 16-20 Venue: Tripoli International Fair Website: www.eventseye.com Event: Index 2010 Overview: Index is the Middle East’s largest contemporary interiors trade show.

Date: TBC Venue: TBC Phone: +971 4 438 0355 Events: FM Expo 2010 Date: May 18-20, 2010 Venue: Dubai International Exhibition Centre Website: www.eventseye.com Events: Saudi Aircon 2010 Date: May 23-26, 2010 Venue: Riyadh Exhibition Centre Phone: +966 1 454 1448 Website: www.eventseye.com

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

19

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

Economic Hardship Claims: Contractor’s sword or developer’s shield – Part 2 JAMES BREMEN, IN THE SECOND OF A TWO PART SERIES, COMPARES THE CIVIL LAW CONCEPT OF ECONOMIC HARDSHIPS IN DIFFERENT JURISDICTIONS AND HOW THEY MAY APPLY IN THOSE RESPECTIVE AREAS Set out below are examples of the doctrine of economic hardship as it applies under the civil codes of some Middle Eastern jurisdictions.

Egypt, UAE and Qatar In the civil law jurisdictions of the Middle East, given their common origin, the articles embodying the doctrine have similar wording. Article 147 of the Egyptian Civil Code, states: “The contract makes the law of the parties. It can be revoked or altered only by mutual consent of the parties or for reasons provided for by the law.

“When, however, as a result of exceptional and unpredictable events of a general character, the performance of the contractual obligation, without becoming impossible, becomes excessively onerous in such a way as to threaten the debtor with exorbitant loss, the judge may, according to the circumstances, and after taking into consideration the interests of both parties, reduce to reasonable limits, the obligation that has become excessive.”

This article, and its equivalents in the UAE (article 249 of the UAE Civil Code) and Qatar (article 171 of the Qatar Civil Code), cannot be excluded under the contract.

Previous cases suggest Egyptian court practice is to apportion the ‘abnormal’ loss equally between the parties, although there is no prescribed formula. It is likely this approach will be reflected in other Middle East jurisdictions.

Key elements of economic hardship With respect to the civil law jurisdictions of the Middle East, a number of key elements can be identified. These include: the event in question be exceptional and unforeseeable; the event be of a general or public character; the contract be long term, which makes the performance of the obligation exhausting; the event has occurred after signature of

the contract (and during its performance); the event makes continued performance of the contract unduly onerous for one of the contracting parties, so as to threaten that party with a grave loss.

How does economic hardship apply?

In the context of construction projects, the doctrine can apply in a number of scenarios.

Infrastructure and energy projects usually take years to complete and carry substantial risks, which make them particularly vulnerable to changing conditions.

While the legal framework for claims due to economic hardship is clearly in place, a contractor may have difficulty in succeeding with such a claim.

Firstly, it must be remembered that the contract is the law of the parties. A party will not be granted relief simply for entering into a bad bargain.

Secondly, although the economic circumstances over the period 2004 - 2007 were exceptional, they may not have been unforeseeable. Contractors were well aware of the inflating costs of construction, or the potential for costs to inflate, during and before the economic boom and this may prove fatal to many claims. Where these claims succeed, developers may argue that the doctrine ought to also apply to them, with the result that a contractor’s claim could be reduced immediately by 50%.

But, where a decision or act of government distorts the market in favour of a particular sector, thereby exacerbating the loss for the contractor, that public event may be regarded as unforeseeable. Where the developer is a government entity this may also deprive the government entity of the opportunity to raise the defence of economic hardship.

A clearer picture will develop over the coming year as more claims for economic hardship are likely to be tested.

“WHILE THE LEGAL FRAMEWORK FOR CLAIMS DUE TO ECONOMIC HARDSHIP IS CLEARLY IN PLACE, A CONTRACTOR MAY HAVE DIFFICULTY IN SUCCEEDING WITH SUCH A CLAIM”

James Bremen is a partner in King & Spalding’s London office and a member of the Global Transactions Practice Group. Bremen has practised exclusively in construction law for more than a decade.

He has significant experience in project development and dispute resolution both in the UK and internationally.

The opinions expressed in this column are of the author and not of the publisher.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

21

EXCLUSIVE INTERVIEW HH SHEIKH MAKTOUM HASHER MAKTOUM AL MAKTOUM

EFRAIM EVIDOR/ITP IMAGES

“IN SITUATIONS WHERE THERE IS A DISLOCATION IN THE MARKET, THAT’S WHERE PEOPLE MAKE AND LOSE A LOT OF MONEY”

22

CONSTRUCTION WEEK DECEMBER 12–18, 2009

> For more people interviews log on to www.ConstructionWEEKonline.com

ROYA L I N S I G H T HH SHEIKH MAKTOUM HASHER MAKTOUM AL MAKTOUM EARNED A STRONG REPUTATION LAST YEAR FOR HIS RESTRUCTURING STRATEGY THAT RESULTED IN STRENGTHENING THE BALANCE SHEET OF HIS COMPANY, AL FAJER PROPERTIES. SO LAST MONDAY, CW SAT DOWN WITH HIM TO CHAT ABOUT DUBAI WORLD’S RESTRUCTURING AND OTHER PRESSING ISSUES

By Conrad Egbert

HH Sheikh Maktoum Hasher Maktoum Al Maktoum comes across as a very unassuming man. Especially, considering he is the nephew of UAE vice president, and prime minister and ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum. He is also the CEO of Al Fajer Properties, which is based in Dubai.

Even his closing comments at the Arabian Business conference last week prompted a resounding ovation from delegates. “The reality is we’re in this together, if we all benefit from it, we all benefit; if we all lose, we all lose; we come from the desert and we’ll go back to the desert,” he said, reflecting the thoughts of a man who has not forgotten his roots, despite having been educated in the US and is able to speak seven languages.

Since his appointment in early 2008 as CEO of Al Fajer Properties, Sheikh Maktoum charted out an aggressive managerial and financial restructuring strategy, which resulted in strengthening the balance sheet of the company by US $871 million (AED3.2 billion).

The restructuring made it possible for Al Fajer Properties to operate as a solvent successful company, weathering one of the worst financial crises in the last 100 years.

After restructuring, the company was able to focus on delivering its existing projects and operations successfully.

Sheikh Maktoum is also among those who feel that the world has overreacted

to the Dubai World request for delayed if so, isn’t transparency the best tool to payments. But the announcement has cer- achieve that? tainly dented confidence levels in Dubai “Information is not always available,” of local and world says Sheikh Maktoum. markets.

“In the US, you just had “[The impact someone arrested for “YOU DON’T KNOW HOW insider trading. So on construcTHE SITUATION UNFOLDED, speculation always haption] depends WHO KNEW WHAT WHEN; on whether those pens – people always YOU CAN ONLY LOOK AT companies had try to get as much inforIT IN TWENTY-TWENTY to get paid by mation as possible to HINDSIGHT” Dubai World or reduce speculation and not,” he explains. that’s when the market “The results speak for themselves, from adjusts. You had Dow Jones drop recently. construction companies listed and the That’s also based on speculation. It’s also market impact on them. the free hand of the market. That’s how “As far as the restructuring is concerned, the world goes round. Investment specuit could have affected the market tempo- lation is normal. rarily. No one knows what the outcome “Also, I think people keep forgetting that of the restructuring will be or what the we’ve [UAE] only been in existence for 38 plan is. I’m sure people are looking over years. We’ve achieved a lot in this time the balance sheets of Dubai World now and I’m sure we’ll achieve more. Things and are deciding how to restructure the will improve going forward.” best way possible and all stakeholders When Dubai World publicly requested are being talked to, but you can’t pre- a delay in payments last month, many dict a situation until it unfolds. You can analysts and media suggested that the speculate, but it’s purely speculation. In move could bring about another global situations where there is a dislocation in financial catastrophe, comparing it to the market, that’s where people make and the likes of the first signs of the financial lose a lot of money. You could be right, crisis in the US last year. Some thought this was a little ridiculous, given how old you could be wrong.”

And Sheikh Maktoum couldn’t be more Dubai is. But Sheikh Maktoum sees it as correct. Speculation was, for most part, a positive sign. the basis on which the world markets “It’s good we’re being compared to New reacted. But should governments try and York and to the highest levels out there. As keep speculation to the minimum? And a nation we are trying to reach that level

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

23

EFRAIM EVIDOR/ITP IMAGES

EXCLUSIVE INTERVIEW

and if we’re being compared to such, it were all speculation that didn’t serve a means people club us in the same category. purpose. If you’re going to speculate on I think it’s great. Who would you like something, speculate on the future. to be compared to – that’s the question.

“For example, if they restructured the We are being compared with the highest debt in a certain way, what would haplevels of transparency,” he says. pen, if they did it another way, what then A strong, and even harsh comparison would happen? As I said, the announcement maybe, but Sheikh Maktoum says it drives was not handled in the best way; every the country to be even better. It’s harsh one agrees on it and acknowledges it, but sometimes but he the truth is that even says he appreciif they announced ates “constructive “ENTITIES NOW ARE it after Eid, they’d LOOKING AT THE PLAN criticism” as it still get the same AND HOW TO HANDLE “always leads to an reaction. And also IT, BECAUSE THE PANIC improvement.” historically, Dubai SUBSIDED AND PEOPLE SAID Speaking in con‘LETS OPEN THE BOOKS AND has never made very structive terms, when complex statements, SEE WHAT’S HAPPENING” Dubai World made but you learn and its announcement you improve.” ahead of the Eid Al Adha holidays, it was According to Sheikh Maktoum, transconsidered a folly and an irresponsible parency will come into the market as time unfolds. He sees many of the recent move. Sheikh Maktoum agrees.

“That bit is correct, but if you have to occurrences in the country as firsts for restructure, you have to restructure. You Dubai, so some credit must be given to can never judge a man until you walk a companies like Dubai World.

“To restructure a company, a regular mile in his shoes. You don’t know how the situation unfolded, who knew what company, it takes about 18 months. So when; you can only look at it in twenty- before someone restructures something, twenty hindsight. There’s the possibility you have to have the full knowledge of that people didn’t think it would have everything that has happened. I’m not such a big impact, then there’s the pos- saying, it will take 18 months from now sibility that they knew it, but got their as Dubai World has been restructuring dates wrong; most of the media reports for a while, but implementing a restruc-

24

CONSTRUCTION WEEK DECEMBER 12–18, 2009

ture on that magnitude takes time and the restructuring doesn’t stop until you actually stop.”

So, looking forward, is a merger between Nakheel and Limitless a possibility? He says he doesn’t know, but offers a good insight into what could happen.

“In reality, how things consolidate and how things unfold, really depends on the balance sheets of the different entities.

You look at the balance sheets individually and judge if it is a good idea to merge, or not, or if there’s the possibility of a consolidation in some way. To make a call like that is extremely hard. It might even be a good idea to just let one company go.

Put all the bad assets in it and let it go.

The US did with Lehman.”

There has also been talk within some circles about Dubai raising capital through an initial public offering. But Sheikh Maktoum didn’t appear too convinced.

“The IPO market is still very challenging and when you go on a road show to do an IPO, you open your books. You have a plan, you have a strategy. Entities now are looking at the plan and how to handle it, because the panic subsided and people said ‘lets open the books and see what’s happening.’”  For complete Q&A with Sheikh Maktoum log onto www.ConstructionWEEKonline.com

Living on the Edge

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INSPIRING

CULTURE

THE KING ABDULAZIZ CENTRE FOR KNOWLEDGE AND CULTURE IS A PROJECT OF INSPIRING ARCHITECTURE DESTINED TO BECOME SAUDI ARABIA’S PREEMINENT CULTURAL INSTITUTION

LUXIGON

By Benjamin Millington

MIR

museum, a learning centre, a children’s discovery zone, a 4,000m2 multifunctional plaza and supporting administration areas.

The main construction tender for the project was opened at the beginning of the year with four firms prequalified; Saudi Binladin Group, Saudi Oger, Athens-based Consolidated Contractors Company (CCC) and Turkey’s Baytur Construction & Contracting Company.

By the middle of the year Aramco retendered the contract and included more contractors in the bidding process such as Dubai’s Gulf Technical Construction Company (GTCC).

The bids are currently being evaluated and main construction is due to start in Q2 2010 and finish in 2013.

2010 shapes, which were designed by Norwegian architects Snohetta with engineering by Buro Happold.

Snohetta’s project manager Astrid Renata Van Veen says they wanted to come up with a one-off piece of architecture to reflect the centre’s cultural purpose.

“It’s important that a cultural building has its own expression and doesn’t lend images

DESIGN One of the most striking features of the centre is without doubt its unique pebble-like

THE PLAZA WILL FUNCTION AS A LARGE FOYER AND CHANNEL VISITORS TO THE VARIOUS CULTURAL ELEMENTS OF THE CENTRE.

26

CONSTRUCTION START DATE IS Q1

CONSTRUCTION WEEK DECEMBER 12–18, 2009

MIR

S

ituated near Dhahran on the eastern coast of Saudi Arabia, the King Abdulaziz Centre for Knowledge and Culture is a project relatively small in size, but big on innovation, ambition and unique design.

The centre is estimated to cost around US $400 million (SR 1.4 billion) and is being developed by Saudi Aramco as part of the oil giant’s 75th anniversary celebrations.

Aramco says the purpose of the centre is to promote the development of knowledge and culture in the Kingdom by offering an array of exhibits, events and learning tools that engage and educate students, adults and scholars.

Covering a total of 70,000m2 it will include a library of 200,000 books, a 930 seat auditorium, a 315 seat cinema, a 1500m2 hall, a

from any other known cultural buildings around the world,” she says.

“The client had very clear aspirations for a never-before-seen-building. The idea of the pebbles came into play because the project has a lot of different functions and we thought each of these should get their own outlook.

These individual items are then composed together in one frozen moment.”

There are five main pebble shaped structures which are arranged to visually and physically support each other, she added.

One of the most visually interesting elements is the ‘keystone’ which is the only pebble suspended above ground level.

Wedged between the tower and another pebble, the keystone is a key element in the geometry of the pebble composition.

The function of the keystone will be as a public ‘dialog, discussion and contemplative space’ linked to the library.

THE GREAT HALL WILL COVER 1500M2 AND BE A VENUE FOR MAJOR EXHIBITIONS AND RECEPTIONS. ITS INNER SKIN CONSISTS OF DOUBLE CURVED, PERFORATED METAL PANELS.

MIR

MIR

“THE CLIENT HAD VERY CLEAR ASPIRATIONS FOR A NEVER-BEFORESEEN-BUILDING”

A STEAM WATER FEATURE NEXT TO THE TOWER AND BELOW THE “KEYSTONE” PEBBLE.

THE TOWER’S METAL SKIN WILL CONTINUE INTO ALL THREE BELOW GRADE LEVELS.

The tower itself will be 86m high with 17 floors and three below-grade levels. The various levels will include plant rooms, the learning centre and restaurants and lounge areas.

350 KILOMETRES OF STAINLESS STEEL TUBING WILL BE USED FOR THE EXTERNAL FAÇADE

Underneath the tower, linking all of the pebbles is the 4,000m2 plaza at grade level. The space will function as a large foyer and channel visitors to the various cultural elements.

Van Veen says one advantage to designing the project was that many of the centre’s different elements, such as the theatre, cinema, library, exhibition space, museum et cetera do not require large amounts of natural light.

“That is one of the reasons why we chose introverted shapes like pebbles,” she says.

“There are quite a lot of introverted functions in this project which means we didn’t have to worry about windows and conventional function – it allowed us play around a lot more with the shapes and design.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

27

“The tower is probably the only place where these rules of conventional function applied.”

While the design and the shape and the project may be unique, Van Veen says construction will be relatively conventional for the most part.

The tower will be built using a concrete core containing lifts, stairs, shafts and MEP while the other pebbles will use steel structures. The walls for all pebbles will be constructed using insulated wall systems, which will be faceted to follow the curves of the pebble’s unique external facade.

PROJECT SNAPSHOT • The project is developed by Saudi Aramco and designed by Snohetta • Main construction is due to start in Q2 2010 and finish in 2013 • The total site covers 70,000m2 • Project includes a library, auditorium, cinema, hall, museum, learning centre, children’s discovery zone and plaza • The central tower will be 86m high with 17 floors and three below-grade levels.

• The façade of stainless steel tubing will act as a ventilated solar shield to substantially reduce the heat load on the building • The centre is striving for a LEED gold environmental rating

28

GIG FASSADEN

GIG FASSADEN

A MOCK UP OF THE STAINLESS STEEL TUBE EXTERNAL FAÇADE.

THE TUBES WILL BE SQUASHED THIN AT WINDOWS TO ALLOW FOR EXTERNAL VIEWS.

THE FAÇADE

function as a ventilated solar shield against This bespoke external façade is made from the harsh Saudi Arabian sun. stainless steel tubes and is the secret to the French explains that the metallic surface distinctive smooth metallic look of the proj- will deflect a ‘substantial amount’ of solar ect. The tubes are 76.1mm in diameter and gain and any built up heat will be naturally will be wrapped around the pebbles with flushed out due to a 300mm cavity between the steel tubing façade and the inner faceta constant 9mm gap in between.

“Imagine wrapping a piece of string around ted wall of the pebble. a ball – that’s the The result of such a façade concept,” says will be to drastically lower Snohetta architect the air conditioning require“IMAGINE WRAPPING Peter French. ments of the buildings and A PIECE OF STRING “There is about thus the electricity conAROUND A BALL – 350km of pipe in sumption – a contributing THAT’S THE CONCEPT” total. Each pipe factor in achieving a LEED starts at an openrating for the project. ing and keeps on going until it meets another French says Aramco is aiming for a LEED pipe and then they turn away from each other. gold environmental rating which will be The pattern itself is self-generating.” achieved by implementing environmentally French says the tubes will be pre-bent to friendly design and construction techniques, follow the shape of the pebble using infor- efficient energy use and optimum building mation extracted from a highly accurate performance.  computer model.

Where there are windows in the buildings, he says the steel tubes will be squashed thin CONSTRUCTION IS EXPECTED to allow for a clear line of sight.

TO FINISH IN “The squashed pipes will be similar to louvers, in that you will be able to direct them to various points in order to control the view,” says French.

“They are also a terrific shading element for the windows.”

Aside from the aesthetic benefits, the stainless steel façade will also serve a very important

CONSTRUCTION WEEK DECEMBER 12–18, 2009

2013

THE AVAILABLE SIZES OF ULMA’S PANEL SYSTEMS CAN BE DESIGNED TO FIT ANY STRUCTURE.

FORMING THE FUTURE CONSTRUCTION WEEK DISCOVERS HOW THE FORMWORK SECTOR IS USING THE ECONOMIC DOWNTURN TO ITS ADVANTAGE

By Sarah Blackman

M

ake no mistake - the construction industry is troubled by the recent reports that state-run Dubai World will delay payments on a large proportion of its debt, worth US $80 billion (AED293.8 billion).

Just when there were whispers of recovery in 2010, contractors, developers and suppliers are now thinking they may have spoken too soon. So, how will formwork firms handle this situation and has their confidence been knocked?

CAUSE FOR CONCERN The first wave of the downturn caused demand of formwork systems to dip slightly as projects were put on hold or cancelled.

30

Now, suppliers fear that the latest news from Dubai World, whose subsidiary is construction giant Nakheel, may be a sign of things to come.

“We do worry, as many developers have not signalled very clearly that they are, in fact, not backed-up by the government and therefore creditors and contractors are basically on their own. This lack of transparency is scary, as one might wonder if there are more debt bombs lurking and the degree of their extent,” says Ulma general manager Andreas Gathmann.

“The debt that has been built so far needs to be repaid sometime and the message we are getting is that Abu Dhabi is not willing to underwrite all of it, only on a case-by-case basis. The perception is that when things start to go wrong, everybody is running for cover and the ones left outside may have to ride the storm by themselves. I do hope that this perception is unfounded.”

CONSTRUCTION WEEK DECEMBER 12–18, 2009

Manufacturer of formwork and scaffolding systems Peri also has fears for the future.

“There is a lack of money in the market, which will mean less business for us. Demand is very unlikely to increase in 2010,” says Peri managing director Hans Joachim Rau. Some contractors and developers affected by the financial storm are choosing to ride it out by delaying payments to formwork companies, as well as other subcontractors.

“The payment problem persists in Dubai and we, like others, are suffering with contractors taking a long time to honour their agreements,” states RJR Engineering managing director Roger Ratcliffe.

“Down the line, everybody is using the nonpayment excuse, whether valid or not.”

Gathmann agrees: “We have a couple of contractors who are not paying with the excuse that they are not getting paid themselves. This is not our problem, as our contract is with the contractor and not with the developer.”

> For more special reports visit www.ConstructionWEEKonline.com

In the meantime, formwork companies like Ulma are insisting on small but regular payments. Some are adhering to strict payments either with cash before delivery or in the case of rental, bank guarantees covering the amount of material on site, to ensure on-time payments.

“Of course, most of our clients are longterm partners, where trust has been built over the years but even with those, payment clearance is taking more time than usual,” adds Gathmann.

Michel Tannous managing director of Sten Gulf, a company specialised in the development and application of formwork, adds: “In some cases there are problems and we have had to be selective when choosing our clients.”

Despite this situation, contractors and suppliers alike are making the best of what they have. It is clear that construction companies are tightening their belts and they need to save money right now and not likely to be convinced by the long-term benefits building materials or equipment could bring.

“DOWN THE LINE, EVERYBODY IS USING THE NON-PAYMENT EXCUSE, WHETHER VALID OR NOT.”

So what can formwork suppliers offer that will save money, but still ensure high standards of a completed building?

FINDING A SOLUTION Currently, the most desirable formwork technology from the perspective on the contractor is a speedy and versatile system that can reduce labour costs.

Now, it looks as though formwork firms are working to meet this need.

“As a new formwork company, which supplies products to the GCC, our motto is very simple – we wish to offer simplicity, speed and satisfaction,” explains Sewvac Middle East technical director Vic Warden.

Aluma claims to be the market leader when it comes to offering a formwork system,

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ALUMA IS CURRENTLY SUPPLYING ITS FORMWORK SYSTEMS TO SEVERAL PROJECTS IN ABU DHABI, INCLUDING AL MUNEERA AT AL RAHA BEACH.

ULMA GENERAL MANAGER ANDREAS GATHMANN.

“PEOPLE WANT BETTER HIGHWAYS, BRIDGES, HOSPITALS, UNIVERSITIES AND ALSO BETTER HOUSING, TO REFLECT A BETTER QUALITY OF LIFE.”

which is fast and reduces the number of labourers needed on site.

“At our new Zayed University project, we are utilising an Aluma Super-Table, which measures 14m in length, is 7m-wide and 4.7m-high. This 100m2 table will be lowered onto wheels and lifted by crane to the next floor in just 20 minutes under the supervision of six workers,” insists Aluma area manager Daniel Taylor. “No other system can even come close to stripping, moving and re-erecting this volume of shoring in this time span, using so few laborers.”

In the case of Ulma´s CC-4 system, early striking of the concrete can be achieved safely and its lightweight panel system can be assembled by hand.

For vertical structures a heavy duty panel system, with a durable non-wood forming surface is the formwork of choice, according to Gathmann.

“The availability of sizes of these panel systems can be designed to fit any structure and the addition of a durable non-wood forming surface saves time as it does not need changing. Our products Orma and

FORMWORK FIRMS AND THEIR PROJECTS DOKA Doka has offered services to its customers since its launch in 1958. The company identifies each customer’s and project’s needs to provide an appropriate solution.

Major milestones in Doka’s history include work the Burj Dubai, for which the company produced a self-climbing system, Xclimb 60, for the wing-walled structure core of the building. Other projects include the Dancing Towers, located in Qatar’s West Bay Lagoon Plaza in Doha and the Jaber Al Ahmed International Stadium in Kuwait.

PERI Peri was founded in Germany in 1969 and is now one of the top 50 companies

in the European country. In 1997, Peri LLC was formed to expand its services of the representative office, which was established in Dubai in 1994. In 2006 a new branch was established in Abu Dhabi. The company is currently working on infrastructure projects in Dubai and Abu Dhabi.

GERMAN FORMWORK TECHNOLOGY German Formwork Technology (GFT) was established just last year but is already a leader in supplying formwork and scaffolding systems. GFT provides customers with technical consultancy, operational support solutions and repair and maintenance solutions.

ULMA Ulma is one of the top three developers, manufacturers and providers of formwork, shoring and scaffolding systems in the world. Founded in 1961, the company is headquartered in Spain and belongs to one of the biggest Spanish industrial groups – Mondragón Corporación Cooperativa. Among others, Ulma is currently involved in the Sports Complex in Dubai, a high rise tower that forms part of the Abu Dhabi Financial Centre, a five-star hotel at Palm Jumeirah in Dubai, several buildings at Princess Noura University in Riyadh, Saudi Arabia, and a high-rise tower at the Jabal Omar complex in Mekkah, Saudi Arabia.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

33

Superior, Fast and Safe Highest Quality Formwork Engineering - Made in Spain

PERI SUPPLIED ITS FORMWORK SYSTEMS TO LATIFA TOWER ON SHEIKH ZAYED ROAD, DUBAI.

LGR (especially designed for columns) fit these parameters.”

RJR also supplies a system that can be moved along a bridge without dismantling; its features enabling quick and easy assembly.

“Due to the unique features of system to some extent we have a niche market given the right project design features and also we are looking globally so our activities are not confined to this region,” explains Ratcliffe.

ALWAYS ROOM FOR FORMWORK It is true – business isn’t booming like it once was in the construction industry, but

according to formwork firms, demand is still very high in the Middle East.

Despite the burst bubble in the real estate market, there will always be a need for infrastructure, which is good news for formwork companies.

“Many governments of Middle Eastern countries want to channel the extra revenue due to oil, gas and natural resources towards improving basic infrastructure and raising their sophistication level to the benefit of its inhabitants,” stresses Gathmann.

“People want better highways, bridges, hospitals, universities and also better housing, to reflect a better quality of life. Hence, there will be a continuing demand for formwork across all construction segments.”

Warden also remains positive about the future of the sector: “We believe that infrastructure work cannot stop so the construction industry, in certain areas of the Middle East, will improve. And, some areas will level out due to financial payments, which will have to be paid back.”

Several formwork firms are also exploring wider activity in the Middle East and internationally, where the demand for formwork is higher.

In particular, Saudi Arabia, Abu Dhabi and Qatar are attracting construction companies from across the globe.

“It’s no secret that the Dubai construction industry was hit very hard by the world

economic crisis, but we are not concerned.

There is sufficient upcoming work in the Middle East outside of Dubai to ensure the growth of our business during 2010 and 2011,” observes Taylor.

Ulma also agrees that Middle East markets outside Dubai are the key areas to focus on. The company is currently supplying its self-climbing formwork system to several buildings at Princess Noura University in Riyadh and a high-rise tower in Mekkah at the Jabal Omar complex in Saudi Arabia.

“Running projects and the ones we have already earmarked for 2010 will keep us busy in the UAE and I have higher hopes for the Saudi Arabian and Qatari markets as we are getting seriously involved there,” explains Gathmann.

“Saudi Arabia is keen to modernise at a great speed and therefore projects like huge university campuses, whole economic and industrial cities and infrastructure require vast quantities of construction materials, including formwork.”

Sewvac is also exploring the benefits of going global and is busy in Southern India, with a very large housing project and several infrastructure projects.

Whatever the economy throws at it, the construction industry finds a way to carry on.

And, if the formwork sector continues along this path, the effects of the financial crisis may be easier to bear than first thought. 

FORMWORK FIRMS AND THEIR PROJECTS (continued) ISCHEBECK TITAN Founded in Germany in 1881, Ischebeck Titan has become a leading provider of falsework, formwork and provide safety and ground engineering products.

Ischbeck systems can be bought all over the world and all are supported by local representative who can provide advice on how each product can be suited to a particular project your client is developing.

ALUMA SYSTEMS MIDDLE EAST Aluma Systems Middle East rents and sells a portfolio of fast-track aluminium formwork systems that are designed to reduce floor cycles and labour needs. The

company is currently supplying its systems to several project in Abu Dhabi including Zayed University, Al Muneera at Al Raha Beach and The City of Lights on Al Reem Island.

STENGULF StenGulf is a company specialised in development and application of formwork used in civil engineering industry. It is capable of providing the construction units with services, covering engineering technical consultation, conceptual design as well as production, distribution, renting and on-site technical direction. The company is currently working on Tameer Towers in Abu Dhabi and King Abdulla Financial City in Saudi Arabia.

RMD KWIKFORM RMD Kwikform is the equipment services division of Interserve, the services, maintenance and building group. It provides formwork and shoring solutions to the global construction industry and operates from 48 branches in 16 countries around the world. The firm has offices located throughout the Middle East including the UAE, Qatar, Bahrain, Lemanon, Oman and Kuwait. It has also provided services for several projects in the region including Dubai Mall, Arabian Ranches Interchange and Yas Island Bridge. RMD Kwikform offers a range of products including shoring, access scaffolding, propping and decking.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

35

www.ConstructionWEEKonline.com/directory

§ § § § § DIRECTORY

DIRECTORY SHOWCASE | TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE

38 SHOWCASE 40 TENDERS 41 PROJECTS SPECIALIST SERVICES 42 Building materials 43 Construction chemicals/concrete 44 Education & training/flooring 45 Recruitment/steel CITY UPDATE 46 Abu Dhabi, UAE

To advertise please call Shishir Desai +971 4 435 6375, or email shishir.desai@itp.com

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

37

¦SHOWCASE

For images within these pages please email editor@constructionweekonline.com

ITP IMAGES FOR IMAGES WITHIN THESE PAGES PLEASE EMAIL EDITOR@CONSTRUCTIONWEEKONLINE.COM

TOP RIGHT: Saadiyat Island recently played host to Sheikh Sultan bin Tahnoon Al Nahyan, chairman of TDIC, Pritzker Prize-winner Jean Nouvel, support staff from Ateliers Jean Nouvel, directors from Buro Happold and Agence France-Museums and climate engineers TransSolar at the future site of Louvre Abu Dhabi. The Louvre Abu Dhabi was designed as a complex of pavilions, plazas, alleyways and canals, evoking the image of a city floating on the sea.

BOTTOM RIGHT: The collection of distinguished officials, architects and engineers including Jean Nouvel (pictured), who also designed the Institut du Monde Arabe in Paris, were on site to conduct lighting tests to determine the precise way in which beams of light will filter through the building’s signature perforated aluminium dome.

The dome is 180 metres in diameter – perforated with interlaced patterns, allowing a diffused light to filter through into the space.

BELOW: A six-metre prototype of the dome has been installed on Saadiyat Island for the purpose of testing the play of light and shadow on the site – the ‘rain of light’ concept – prior to fabrication of the final structure.

According to designers on for the project, the museum will not be affected by the rare rainy day in Abu Dhabi. To ensure that people won’t get wet in the walking spaces between the galleries, there will be a transparent film between the layers of the dome to ensure that it does not rain in these areas. There will also be a drainage system hidden at the edge of the dome.

38

CONSTRUCTION WEEK DECEMBER 12–18, 2009

For images within these pages please email editor@constructionweekonline.com

RIGHT AND BELOW: The dome represents a web of interlaced aluminium panels, tubes and bars, which is five and a half metres deep. To achieve the design intent, engineers began with overlapping rectilinear patterns or, essentially, the structural version of a tartan cloth. We then began to remove the non-critical patterns to achieve the correct filtering of light. Each layer has been mathematically matched up with those above and below it to achieve an exact size and shape for each dapple of light.

THE LOUVRE, ABU DHABI Photos by Efraim Evidor/ITP Images In 2007 French National Assembly approved the building of the Louvre Abu Dhabi under a 30-year cultural agreement between the UAE and France. The 24,000m2 branch of the famous Parisian museum is expected to open in 2012, as part of Saadiyat Island’s Cultural District project.

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

39

TENDERS §

¦TENDERS FREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRY TO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM

Tender focus

ROYAL COMMISSION FOR JUBAIL AND YANBU The Royal Commission for Jubail and Yanbu – a government entity – was established to develop two cities; Jubail on the east coast of Saudi Arabia and Yanbu on the west coast. Currently, the company is overseeing a massive expansion of Jubail, which includes new residential areas, a university, a rail network and a new industrial zone dubbed Jubail Two. This month, the commission has several tenders open for bidding. Contracts will be awarded for the expansion of the Multi Event Centre and the rehabilitation of an airport runway, both in Jubail Industrial City, plus the construction of two mosques at Yanbu Industrial City. 

To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com

BAHRAIN Issuer: Electricity and Water Authority Tender No: 325/2009/5310 Description: The supply of an 11KV VCB switch board panel for Sheikh Khalid Al Ali Mall.

Closes: December 23 Fees: BD15 Contact: Tender Submission Office, 7th floor, Tender Board Office at Al Moayyed Tower, Manama.

EGYPT Issuer: Egyptian Railways Integrated Services Company Description: Engineering, design, installation and commissioning of four stationary train washing systems in Cairo.

Closes: January 24 Fees: EP5000 Bond: EP200,000 Contact: The Railways Workshops, Al Farz, El Sharabiya, Cairo OMAN Issuer: Ministry of Transport and Communication Tender No: 319/2009 Description: Housing development for Civil Aviation Affairs at Seeb – phase 1.

Closes: December 14 Fees: OR1500 Contact: www.tenderboard.gov.om Issuer: Ministry of Transport and Communication Tender No: 322/2009 Description: Construction of an administration building for Ministry of Transport and Communication.

Closes: December 14 Fees: OR600 Contact: www.tenderboard.gov.om Issuer: Ministry of Education Tender No: 313/2009 Description: Construction of 20 classrooms in a boy’s basic

NEW TENDERS FOR WORK AT SAUDI INDUSTRIAL CITIES ARE DUE SOON.

education school in Al Khrayis, Wilayat Al Seeb.

Closes: December 21 Fees: OR330 Contact: www.tenderboard.gov.om Issuer: Ministry of Health Tender No: 312/2009 Description: Construction of a health centre in Al Ajaiz.

Closes: December 21 Fees: OR500 Contact: www.tenderboard.gov.om Issuer: Public Authority for Electricity and Water Tender No: 324/2009 Description: Construction of chlorination unit in Al Khoud Reservoir.

Closes: December 28 Fees: OR200 Contact: www.tenderboard.gov.om Issuer: Ministry of Health Tender No: 304/2009 Description: Construction of a health centre in Saham.

Closes: December 14 Fees: OR400 Contact: www.tenderboard.gov QATAR Issuer: Public Works Authority Tender No: PWA/GTC/053/09-10 Description: Construction, completion and maintenance for modifications and additions to existing schools around Doha.

Closes: December 22 Fees: QR2000 Contact: Contract department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/056/09-10 Description: Civil works in Ain-Khalid area.

Closes: December 29 Fees: QR4000 Contact: Contract department, Public Works Authority

Issuer: Public Works Authority Tender No: PWA/GTC/051/09-10 Description: Construction, completion and maintenance of administration offices and car parking for the Supreme Council of Justice.

Closes: January 5 Fees: QR1500 Contact: Contract department, Public Works Authority SAUDI ARABIA Issuer: Royal Commission for Jubail and Yanbu Tender No: PIC A-1019 Description: Procurement, construction, testing and commissioning of a bridge and intersections to connect the highway with the industrial and community areas at Yanbu Industrial City.

Closes: December 14 Contact: Director, Purchasing and Contracting Department, PO Box 30031 Issuer: Ministry of Transport Description: Construction of Bisha dual carriageway in Makkah.

Closes: December 21 Contact: www.mot.gov.s UAE Issuer: Ministry of Public Works Tender No: 2009/167/10-341104-7091-7048 Description: Construction of a maternity and children’s hospital in Sharjah, UAE. Closes: December 22 Fees: AED8000 Contact: www.mopw.gov.ae Issuer: Dubai Electricity and Water Authority Tender No: CNE/0114/2008(R) Description: Construction of water intake channel (onshore and offshore sections), and an outfall system.

Closes: January 25 Contact: The Chairman, Board of Directors, Dubai Electricity and Water Authority.

> For more tenders check online at www.ConstructionWEEKonline.com/tenders

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CONSTRUCTION WEEK DECEMBER 12–18, 2009

¦PROJECTS

> For the latest projects information visit www.ConstructionWEEKonline.com/projects

§ PROJECTS

A BAHRAIN DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM

Project focus

VILLAMAR TOWERS Villamar Towers is the first development located within Bahrain’s Financial

by Kuwait’s Gulf Holding Company (GHC) Harbour. Villamar’s three towers will and is destined to become one of the most vary in height, the tallest being 54 iconic structures in Bahrain. Construction storeys and around 220m-high. commenced in November 2007 and project Each tower will have hidden parkcompletion is penciled in for mid 2010.

VILLAMAR TOWERS WILL SIT ON THEIR ing levels in the centre, shops and Al Hamad Construction was awarded the OWN ISLAND IN BAHRAIN. restaurants around the base, three main construction contract in 2007. The US $650 million storeys of apartments in the middle and 18 luxury villas on (BD245 million) development will be on its own island the top. The buildings will feature a trademark twist.  PROJECT TITLE

CLIENT

CONSULTANT

MAIN CONTRACTOR

VALUE (US$MN)

STATUS

33-STOREY RESIDENTIAL BUILDING AT SEEF

Mr. Mustafa Ahmed Nasser

Syrconsult Consulting Engineers

Not Appointed

CEBARCO TOWER AT UMM AL HASSAN

Mr. Khaled Abdulrahim

Modern Architects

Cebarco

MALL AT A'ALI

Al Namal Group

United Engineering

Al Namal Construction

2.5 - 15

project under construction

RIFFA VIEWS - THE OASIS ESTATE

Riffa Views

Mohamed Salahuddin Consulting Engineering

Poullaides Construction/Terna Contracting

31 - 100

project under construction

AL MATROOK TOWER

Mr. Faisal Ali Al Matrook

Mohamed Salahuddin Consulting Engineering

Charilaos Apostilides (Chapo)

19

project under construction

5-STAR HOTEL & MULTI-STOREY APARTMENT AT BAHRAIN INVESTMENT WHARF

V.K Universal Property Management Co.

Future Engineering Consultants

Al Namal Construction

31 - 100

project under construction

SHOPPING MALL IN HIDD

V.K Universal Property Management Co.

Global Engineering Bureau

Al Namal Construction

40

project under construction

KING HAMAD GENERAL HOSPITAL IN MUHARRAQ

Ministry of Health

Ismail Khonji Assoc./Australian Design Group

AA Nass/Burhan International Construction

135

project under construction

DIYAR AL MUHARRAQ

Diyar Al Muharraq/Kuwait Finance House

Scott Wilson

Not Appointed

3,200

project under design

DURRAT MARINA

Al Khaleej Dev't. Co./Durrat Khaliji

W.S. Atkins

Not Appointed

130

project under design

DIPLOMAT COMMERCIAL OFFICE TOWERS

National Hotels Company

Mohamed Salahuddin Consulting Engg. Bureau

Chase Perdana Berhad

WATER GARDEN CITY

Albilad Real Estate

HOK/Scott Wilson

Not Appointed

VILLA COMPOUND AT AL AREEN

Al Khaleeji Commercial Bank

Modern Architects

AAA Homes

BAHRAIN NATIONAL THEATRE

Ministry of Works & Housing

W.S. Atkins/Architecture Studio (France)

Not Appointed

58

project under design

NURANA

NS Holdings Co./Manara Developments

Davenport Campbell

Not Appointed

1,000

project under design

WORKSHOP & ACCOMMODATION IN TUBLI

Skyline Trading Corporation

Aref Sadiq Design Consultants

Skyline Trading

2.5 - 15

project under construction

30 STOREY RESIDENTIAL BUILDING IN JUFFAIR

Tashyeed Properties Company

Syrconsult Consulting Engineers

Not Appointed

16 - 30

project under design

AL REEF SHOPPING CENTER

Ministry of Works & Housing

Aref Sadiq Design Consultants

Not Appointed

27

project under design

BAHRAIN 31 - 100 16

7,000 6

project under construction

project under construction project under design project under construction

To list your projects in this section email details to editor@ConstructionWeekOnline.com

70

bidding underway for the main contract

CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6473, OR EMAIL LEIGH.WRIGHT@ITP.COM

Supplier focus

THYSSENKRUP ELEVATOR MANUFACTURER OF ELEVATORS Headquartered in Dusseldorf, Germany, ThyssenKrupp Elevator is one of the leading elevator companies in the world and represented at over 800 locations in more than 60 countries. The firm employs 43,000 employees worldwide. Its capabilities include passenger and freight elevators, escalators and moving walks, stair and platform lifts, passenger boarding bridges, as well as a quality service for all products.

ThyssenKrupp Elevator UAE set up independently in Dubai in 2005 as a subsidiary of ThyssenKrupp Elevator AG after winning the largest contract in the history of the elevator industry – more than 800 elevators, escalators, moving walkways and passenger boarding bridges for Dubai International Airport’s Emirates Terminal 3.

In recent years, the company has won contracts in the Gulf including the New Doha International Airport and QIPCO’s Tornado Tower in Qatar. ThyssenKrupp Elevator also supplies the Twin elevator system, which has two cabins in one shaft functioning independently, thereby saving on construction costs and increasing the level of saleable space in a building.

Another technology offered by the company is the destination selection control in which all calls are distributed considering the shortest time to the destination. ThyssenKrupp Elevator UAE has branch offices in Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah. 

To advertise please call +971 4 435 6375 or email shishir.desai@itp.com

SPECIALIST SERVICES §

¦SPECIALIST SERVICES

THYSSENKRUP’S TWIN ELEVATOR SYSTEM BEING USED IN GERMANY.

BUILDING MATERIALS

42

CONSTRUCTION WEEK DECEMBER 12–18, 2009

BUILDING MATERIALS

STEEL

HARD LANDSCAPING SUPPLIER

§ SPECIALIST SERVICES

> For directory information visit www.ConstructionWEEKonline.com/directory

CONSTRUCTION/MANUFACTURERS

CONSTRUCTION CHEMICALS

Full range of plaster, tiles and gypsum tools

DEWATERING

Engineering Works Foundation Infrastructure (L.L.C.) P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E. Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: brian@ewfi.ae

SPECIALIZED DEWATERING SERVICES: • Specialized in Deepwell, Wellpoint, Open pumping techniques • Professional Service OTAL (LLC) Dubai, U.A.E Phone: (+971-4) 267 9646 e-mail: otal@eim.ae website: www.otal.ae

• Round the clock backup • Effective Groundwater control DECEMBER 12–18, 2009 CONSTRUCTION WEEK

43

To advertise please call +971 4 4 435 6375 or email shishir.desai@itp.com

CONSTRUCTION/MANUFACTURERS

SPECIALIST SERVICES §

¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4

CONTRACTORS/MANUFACTURERS

LANDSCAPING

POST TENSIONING

FLOORING

LOOK!! ½P PRICE

LESS THAN

EUROPEAN STYLE CHERRY SOLID WOOD 2

ORIGINAL PRICE $34m CLEARANCE PRICE 2

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$15m

2,000m AVAILABLE IN DUBAI

To advertise please call +971 4 435 6375 or email shishir.desai@itp.com

Alomi

Albert +971 50 854 5629 Simon +971 50 854 5327 Office +971 4 885 8825 www.alomirealwoodflooringllc.com A

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REAL WOOD FLOORS LLC

HVAC & PLUMBING RELATED EQUIPMENT

44

CONSTRUCTION WEEK DECEMBER 12–18, 2009

PP CORRUGATED SHEETS

RECRUITMENT

ยง SPECIALIST SERVICES

> For directory information visit www.ConstructionWEEKonline.com/directory

RECRUITMENT

,OOKING TO RECRUIT WORKERS FROM

)NDIA .EPAL

"ANGLADESH 3RI ,ANKA

0HILIPPINES 4HAILAND

6IETNAM 0AKISTAN To advertise please call +971 4 4 435 6375 or email shishir.desai@itp.com

OR LOCAL LABOUR SUPPLY 7E ALSO UNDERTAKE -IGRATION 3ERVICE TO !USTRALIA #ANADA 4EL &AX % MAIL ASSIDUAA EIM AE STEEL

STEEL

HEM, IPE, IPN, UPN

STEEL

WOOD AND TIMBER

DECEMBER 12โ 18, 2009 CONSTRUCTION WEEK

45

VALERIANO HANDUMON/ITP IMAGES

CITY UPDATE ABU DHABI, UAE

ABU DHABI IS AN INCREASINGLY ATTRACTIVE PROPOSITION FOR CONTRACTORS.

All systems go ABU DHABI IS RAPIDLY LOOKING LIKE ONE OF THE BEST CONSTRUCTION MARKETS IN THE WORLD

By James Boley

A

t a time where other parts of the world are reining in their construction budgets and suffering slowdowns, Abu Dhabi appears to just keep on going – a fact that has not been lost on contractors across the world.

The F1 Grand Prix may have been the exciting climax to one of Abu Dhabi’s major construction projects, but it also marks the beginning of the next phase, representing the steady construction flow in the UAE capital.

46

“Local companies are investing in Qatar and Abu Dhabi. Developers and contractors feel comfortable starting new projects in the area because new developments are progressing at a steady pace and are not accelerating too quickly,” says Wilo MD Simon Mrad.

Along with the well-known megaprojects of Yas and Saadiyat Islands, Abu Dhabi’s

growth is also creating opportunities in the form of housing. “Depending on which estimate you follow, Abu Dhabi has a housing gap of anywhere between 5,000 to 40,000 homes,” says Baniyas Investment and Development Company CEO Wael Tawil.

Companies are already picking up ancillary contracts related to the need for housing.

October saw Drake and Scull International (DSI) win a $108.8 million (AED400 million) MEP contract for a neighbourhood project in Abu Dhabi. The project consists of a 14-storey office building, 14 apartment buildings, 148 townhouses and 11 luxury villas, as well as various commercial spaces.

“DEVELOPERS AND CONTRACTORS FEEL COMFORTABLE STARTING NEW PROJECTS IN THE AREA BECAUSE NEW DEVELOPMENTS ARE PROGRESSING AT A STEADY PACE AND ARE NOT ACCELERATING TOO QUICKLY”

CONSTRUCTION WEEK DECEMBER 12–18, 2009

NEMANJA SESLIJA/ITP IMAGES

DSI VICE-CHAIRMAN AND CEO KHALDOUN TABARI.

“HIGHER ENERGY AND WATER EFFICIENT REQUIREMENTS CAN ALSO BE ACHIEVED THROUGH THE ABU DHABI BUILDING CODES TO MEET HIGHER SUSTAINABILITY RATINGS FOR BUILDINGS” “Being awarded this contract is an exciting and promising start to Q4 for DSI. Our management team and workforce have been working exceptionally hard to ensure the company’s success and profitability, and we hope to have more large-project announcements in the near future,” says DSI vice chairman and CEO Khaldoun Tabari.

Housing in Abu Dhabi should also not be considered as something entirely separate from the megaprojects. In November, developer Aldar, which is currently developing Yas Island, confirmed the possibility of a tie-up with Ferrari to create branded housing.

“There is a massive possibility that Aldar will work with Ferrari on future ventures in Abu Dhabi, perhaps residential or commercial,” says Aldar chief commercial officer Mohammed Al Mubarak. “We’re still in initial talks – very early stages – and we’ll tell you more once there’s something more

CURRENT PROJECTS ON YAS ISLAND MAY INFLUENCE PROJECTS ACROSS THE EMIRATE.

concrete to report. Housing is a big possibility. We’d like to look at Ferrari branded villas in Abu Dhabi.”

However, any construction firm hoping to do well in Abu Dhabi will need to familiarise itself quickly with the new building codes, which come into force in 2010.

“The Abu Dhabi codes will set the framework for construction of buildings and will outline the health and safety regulations for the building industry in the Emirate,” explains DMA and Building Codes Higher Council chairman Rashid Mubarak Al Hajeri.

In addition to health and safety practice, the codes will also enforce Abu Dhabi’s

TOP PROJECTS Al Raha Beach Development Al Falah Development in Abu Dhabi Hydra Village Abu Dhabi Saraya District of Abu Dhabi Abu Dhabi metro

commitment to environmentally sustainable projects.

All buildings designed in Abu Dhabi will have to comply with minimum environmental standards. The building codes will require developers to conserve the use of energy and water – two major components of any sustainability programme.

“Higher energy and water efficient requirements can also be achieved through the Abu Dhabi building codes to meet higher sustainability ratings for buildings,” said Abu Dhabi Department of Municipal Affairs consultant for policies and regulation Ali Bukair. 

US$ 18bn 2bn 1.5bn 1bn undisclosed

DECEMBER 12–18, 2009 CONSTRUCTION WEEK

47

DIALOGUE MOUNIR AJAM Teaching a lesson Sukad CEO Mounir Ajam talks about the importance of training professionals in project management

By Sarah Blackman

What are the key skills that project managers should have?

Most importantly, project managers should have interpersonal skills because they often have to deal a large group of people whom they have no authority over, so they have to be able to deliver a project through negotiation, motivation and leadership.

Do you think project management skills are limited in this part of the world?

Skills are limited, but this isn’t specific to this part of the world, it is general. This may be because 10 -15 years ago there wasn’t a single university, which offered project management programmes. Usually the people who practice project management are technical people, for example business analysts, computer programmers and engineers. These people are technically trained and then all of a sudden they are asked to manage a project, with no prior experience. This is one challenge that is faced around the world. This situation is improving and universities are starting to offer training in project management.

How do you train your clients?

Unfortunately a lot of the training that goes on is focused on theoretic knowledge and exams. What we believe is that project management has to be learned on the job. We offer outcome based training where people are able to learn about the concepts of project management and how to apply them into their projects.

How would you define best practice in project management?

There is no easy way to define it. The University of Texas in the US has 10 -12 well defined best practices in the construction industry. One of these points is constructability – basically you should ask yourself whether your design can be built effectively and efficiently.

Another is zero incidence – a best practice in safety – and scope alignment

48

– we should look at how we can ensure that all the different equipment is aligned to the scope of the project when we embark on it, so we don’t make mistakes.

Have more clients come to you during the downturn to ask for cost control advice?

Unfortunately not. There is a big misunderstanding, especially in the Middle East region, about the importance of project management and education in general. I know many people who will agree with this. There isn’t enough emphasis on education per se and, usually when expatriates want to change their career they go back to their own country to invest in education. Also, a lot of people still don’t understand project management. Some people view it as a bureaucracy and they don’t see that proper project management will help them improve efficiency, reduce costs and increase value for their project over the long-term.

Do you think that high maintenance costs, which are triggered by poor building quality, will encourage industry professionals to invest in project management courses?

Hopefully. But, we are human and people repeat the same mistakes. Obviously, in a fast-track environment, people want to produce Mounir Ajam has more than 20 years buildings very quickly and usually the of professional experience in the first thing they sacrifice is safety and engineering, construction, and process quality. If people want to cut costs they industries. He is the senior partner and usually do so by cutting corners. We are co-founder of Sukad, a professional fortunate that there have not been any consultancy and training service major disasters, although there definitely provider that is based in Dubai, but have been incidents where buildings operating across the Middle East. He have collapsed, which have been caused is currently serving as Sukad CEO by a lack of supervision and oversight. and lead consultant. In addition to his professional experience, Ajam has held numerous volunteer leadership roles.

These include serving on the 2008 PMI EMEA Congress Project Action Team.

Ajam is also a co-founder and the first chairman of the board for the recently established Global Project and Process Management Association.

CONSTRUCTION WEEK DECEMBER 12–18, 2009

When will this situation improve?

It is already starting to. There is no more fast growth so people are thinking about what they are doing. Obviously, for a while I think quality and safety will still suffer because we are in a state of significant cost cutting but when things pick up again people will be seriously thinking about quality.

Alumil Gulf fzc subsidiary of ALUMIL in the Middle East

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