SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
Construction An ITP Business Publication
WEEK
CONSTRUCTIONWEEKONLINE.COM
SEP 19–25, 2009 [288]
NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST
INSIDE
NEWS ANALYSIS Can the metro boost infrastructure projects in the GCC? PAGE 14
SITE VISIT
A trip to Sharjah reveals the progress of Al Wahda project PAGE 22
TOP 10 PROJECTS Leading healthcare projects in progress across the GCC PAGE 26
DOHA NOW TOP FIRMS OPEN UP OFFICES IN QATAR. SHOULD YOU?
HOW TO
Do you work safely at height? Pointers to avoid any trouble PAGE 34
CONTENTS SEPTEMBER 19-25, 2009 | ISSUE 288 2
FEATURES
12
22 ON SITE CW finds out how Sharjah’s main road project is progressing.
26 TOP TEN Top ten healthcare projects identified.
28 SPECIAL REPORT
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CW discovers the importance of standards and certificates.
14
34 HOW TO A guide on how to work safely at heights.
DIRECTORY 38 TENDERS 39 PROJECTS 40 SPECIALIST SERVICES
20
34
REGULARS 2 ONLINE 6 MAIL
FRONT 7 100% FOREIGN OWNERSHIP SET TO BOOST CONSTRUCTION If approved, the new law could see more foreign developers and construction companies flocking to the UAE.
9 FALLING MATERIAL COSTS BOOST AJMAN CONSTRUCTION The slump in building material prices has produced an “effervescent” real estate market in the emirate of Ajman.
10 NEWS IN BRIEF
13 NEWS IN PICS Topical images with the latest news.
14 NEWS ANALYSIS Construction Week analyses the Dubai Metro and discusses whether it will define the future of infrastructure.
BACK 44 CITY UPDATE The latest news and projects from Doha, Qatar.
17 EVENTS Industry dates for your diary.
46 CONSTRUCT SAFE
19 COMMENT
Highlights of the week.
Chris Roux on the importance of project governance and project management.
12 FACE TO FACE
20 LEGAL
Construction experts discuss the Dubai metro and what it holds for the future.
Mike Ankers discusses an alternative form of contract.
The industry’s very own comic strip on health and safety best practices.
48 DIALOGUE Emirates Green Building Council chairman discusses where the UAE is going in terms of green building.
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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ONLINE
www.ConstructionWEEKonline.com MOST POPULAR
FIRST PICTURES: DUBAI METRO LAUNCH DAMAC CEO QUITS FIRM UAE LOOKING INTO INTERCITY METRO POOR QUALITY MATERIALS CAUSED BUILDING COLLAPSE SAUDI INVESTORS BEG FOR RETURN OF MONEY
HAVE YOUR SAY HOW CAN WE PREVENT WORKER STRIKES? What steps should be taken to ensure workers don’t feel the need to strike?
JOBS OF THE WEEK Project delivery manager, Abu Dhabi Senior interface co-ordinator, Abu Dhabi Engineering manager, Abu Dhabi
IN PICTURES: DUBAI METRO: THE OPENING Dubai Metro opened on 09/09/09 and is now the first operating metro in the Gulf. VIPs and golden ticket winners got to enjoy the inaugural rides. See more images at www.ConstructionWeekOnline.com
FEATURES PMV
Design
IN TOTAL CONTROL A site in Abu Dhabi uses the latest in digital electronics.
GOING UNDERGROUND As design jobs go, a metro system has to be among the most unique. MEP
FM COMPANY WATCH Recognising the UAE’S custodians of the built environment.
IMPACT OF REDUCED FLUSH VOLUMES Does reduced flush volume have a negative effect on the performance?
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
NOW THAT THE DUBAI METRO IS OPEN, WILL YOU BE USING IT?
52.0% 24.0% 24.0% No. It’s not convenient
FM
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ONLINE POLL
Definitely. I don’t have a car so this is the best option
Yes, I don’t think I’ll be using my car much now
TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com
MAIL losing business and losing projects everywhere, its staff is still getting bonuses and incentives. How is the company assessing their productivity? The poor workers are harassed.
are only those that are reported. Many, many more go unreported due to the disregard many companies have for health and safety in the Middle East. TRACEY
JOHN
RE: INVESTOR CASH AT HEART OF CASAMIA STAR ROW All investors who have invested in this project want their hard earned money back. We do not care about your internal disputes. Moreover, remember one thing, God is watching you. Be careful of all the trouble being caused to investors - they are the reason you developers exist.
RE: HRW SLAMS AL HABTOOR OVER ‘OBSCENE’ ATTITUDE The government should take some serious steps to monitor construction companies in terms of wage payments, labour amenities, productivity issues, etc. In most of the cases because of their influential nature, all these issues are brushed aside.
CLARENCE S LEWIS
Mr Savage, can you please define productivity and the conditions in which you need to achieve it? How well are you treating your workers? Will he say what he did to his own countrymen? This is exploitation of labourers from Asia. If anyone speaks for his rights they are considered as trouble makers and deported. MARK
Leighton Construction is pretending to be one of the competitive companies in more than three or four countries. There are many flaws in the interim management and execution. Management of the company talks about the productivity measurement for the daily wages for labourers What about its staff? After
RE: CRANE FIGHT FATALITY DRAWS BIG RESPONSE Even if the operator was right in opposing the instruction of the engineer, this does not give him the right to use inappropriate language, especially to a superior in rank. Whatever the other reasons, the operator is guilty of cold blooded murder and no excuses of self defence can lessen his crime. KRASSIMIR DELIRADEV
IRSHAD SHABBIR
RE: POOR QUALITY MATERIALS CAUSED BUILDING COLLAPSE
RE: ACC GETS PENTOMINIUM CONSTRUCTION CONTRACT
I believe that the cause of the collapse so far provided, has been very general. I have seen more trivial incidents where the minutest details have been disclosed. All should be more transparent so as to avoid this from recurring in the future as part of the lessons learnt.
The reason it took so long was due to financing and bargaining. The developers were even considering reducing the height. I guess with the current cost of construction, not to mention the contractors pricing, which was a lot lower than last year, it appears feasible.
RAJI
FUAD HASAN
RE: ON-SITE FATALITIES DROP 55%
RE: DAMAC CEO QUITS FIRM
No work. Reduced fatalities. Improved statistics.
It’s hard not to read more into this, given the recent shenanigans at Damac. It’s like the latest instalment in one of those soapies so popular over Ramadan.
AKHILESH
The number of LTIs may have dropped, but let’s not kid ourselves. These
EWOUD
WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles. The opinions expressed in this section are of particular individuals and are in no way a reflection of the publisher’s views.
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CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
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CONSTRUCTION WEEK APRIL 4–10, 2009
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>News in brief
10
>Face to Face
12
>News in pictures
13
>Could construction now revolve around the Metro?
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VICTOR BESA/ITP IMAGES
FRONT
>Falling material costs boost Ajman construction
UAE ECONOMY MINISTER SAEED AL MANSOURI [CENTRE] SAID THE COUNTRY. NEEDS TO CREATE THE RIGHT ENVIRONMENT TO ATTRACT FOREIGN INVESTMENT.
100% FOREIGN OWNERSHIP SET TO BOOST CONSTRUCTION By Matt Warnock
The UAE economy minister, Sultan bin Saeed Al Mansouri, has revealed that all foreigners operating anywhere in the UAE could soon be free to own 100% of their companies. Two draft laws, expected to be submitted to the government cabinet before the end of the year, propose a change to legislation pertaining to the foreign ownership of companies outside of free zones, which is currently limited to a 49% stake. Companies currently operating in free zones can be 100% held by foreign owners. “We must create the right environment to attract foreign investors,” said Al Mansouri, who is known for his forward thinking. “Industry is one of the sectors we are trying to attract to the UAE, and have it as a major contributor to our GDP. To do that, we need to create the right environment for these industries worldwide.” The move could be a popular one with global contractors, suppliers and develop-
ers who are eager to make a mark in the region - many of whom are already operating in the UAE through joint ventures with locally-based companies. “The UAE is well-placed for emerging markets. Its location means that it should attract both Western and Eastern companies,” said UK-based Metro Design Consultants managing director Daniel Taylor. “As an interior architecture practice operating in Europe, Metro Design Consultants sees the UAE as an exciting opportunity with commercial businesses demanding high standards for their workspaces.” He also said that people will look for excellence in design to attract the best personnel. “We still consider Dubai to be a hub for other major countries in the Middle East and in order to overcome the economic crisis, foreign investors should be encouraged to be present in the region,” said Sinan Ozkocer, general manager of Turkish construction company Sembol Construction.
“The vision the UAE has presented to the world still offers a lot of opportunities to expand in the area.” Al Mansouri agreed: “We are looking at industries with large investments. The aim is to attract hi-tech [firms] with high value and at the same time, with good capital investment. “A lot of industries worldwide are very interested to move here, providing there are certain terms and conditions they would like to see in the industrial law.” Seconding the minister Ozkocer said: “Definitely, we’ve been operating in Dubai for the past two years but we would also welcome any undertaking in regards to the expansion of foreign investment rules and regulations in the country.” Al Mansouri concluded: “The draft law foreign investment is with the technical committee of the Ministry of Justice, and will be forwarded to the cabinet’s committee on legal and legislation affairs within two months for further scrutiny.”
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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FRONT AJMAN BOOSTED BY DROP IN MATERIALS COSTS
ON-SITE FATALITIES DROP 55% IN UAE
By Matt Warnock
By Sarah Blackman
Figures from the Statistics Centre of Abu Dhabi (SCAD) and the Abu Dhabi Government office have revealed a slump in the prices of building materials, with cement falling by an average of 1.74% over the previous three months. Aggregates and sand remained stable, but the cost of lime gypsum plummeted 5.3% month-on-month to US $340 (AED1251) a tonne, while wood products such as Malaysian red timber, concrete blocks and clay tiles held steady. However, the fall in construction costs has produced an effervescent real estate market in the emirate of Ajman, one contractor reported. “The monitored drop in construction prices will definitely boost the capacity of developers to continue the construction on their projects and, as the contracting company for one of the biggest community developments in Ajman, this presents an excellent opportunity that we intend to capitalise on,” said Sweet Homes General Contracting (SHGC) managing director Fawad Sattar Dero. SHGC, the in-house contracting arm of Sweet Homes Holdings, revealed that it has fast-tracked construction processes to leverage the favourable prices of building materials. SHGC is currently working on
ARTISTIC IMPRESSION OF AJMAN UPTOWN.
DERO SAYS WORK IN AJMAN GETS BOOST.
the $950 million Ajman Uptown community and, like other construction firms, claims it will continue to take advantage of the opportunity offered by current economic conditions. “As the market anticipates further reduction in prices due to global factors affecting the supply chain, our focus remains on the timely completion of all our current projects,” continued Dero. “With the support and backing of Sweet Homes Holdings and the opportunity presented by the current development in construction prices, we maintain an optimistic view of Ajman’s real estate market. “We are hoping that this break continues and leads to the total recovery of the market as a whole.”
MATERIALS INDEX 2009 STEEL
CEMENT
READY MIX
WHITEWOOD
$544.51
$4.08
$98
$292.67
Last week
This week
Last week
This week
Last week
This week
Last week
Build Safe UAE (BSU) – the not-for-profit organisation aimed at raising health and safety standards throughout the United Arab Emirates – has revealed a 55% fall in construction site fatalities since September last year. And, although these results may be affected by a significant drop in man hours worked over the past two months, the BSU report shows that 450.7 million man hours were carried out between January and June this year, compared to 409 million in the same period last year. Four labourers have died on UAE construction sites so far this year, compared to nine in the first eight months of 2008, according to data submitted to Construction Week by BSU. Falls from height remains the most common cause of workplace fatalities and one of the main causes of major injury, BSU group administrator Elias McGrath explained. “If you fall from a height above two metres, the likelihood is that you will sustain serious injuries. In 2008, Build Safe UAE recorded eight out of 20 fatalities and 81 lost time injuries (LTIs) relating to falls from height,” he said. The number of LTIs recorded from January to September has also dropped from 478 in 2008 to 329 LTIs this year. “But there is still room for improvement,” McGrath warned. “We have seen a significant reduction in fatalities this year, which signals a sign of improvement. But one accident is an accident too many and we need to capture more data from more main contractors operating in this region, in order to measure more accurate industry trends.” He also said that there is still a constant breach of regulations by unsafe construction stakeholders, which then leads to accidents and fatalities onsite. “These actions are truly appalling, unacceptable and discourage our efforts to promote a safer UAE construction market.”
This week
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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FRONT HIGHLIGHTS Kuwait
KUWAIT SIGNS US $2.65 BILLION POWER CONTRACT Kuwait Ministry of Electricity and Water has signed a US $2.65 billion (KD759 million) contract with GE Energy to meet the growing power demand in Kuwait. GE Energy and Hyundai Heavy Industries will develop a new 2000MW power plant in Sabiya. The plant is set to raise Kuwait’s power capacity from current levels to around 11,000MW.
hours without incurring any recordable days-awayfrom-work injuries among 1500 staff and workers since the start of May last year. The projects that are collaborations between Abu Dhabi Municipality (ADM), Urban Council, Department of Transport and Abu Dhabi Police, are part of Plan Abu Dhabi 2030. “Since the start, we have laid out a specific system to be strictly followed on a daily basis,” said ADM acting director of internal roads and infrastructure Eisa Mubarak Al Mazroui.
UAE
AL SALAM STREET RECORDS SAFETY MILESTONE Al Salam Street projects has completed 3 million working
Iraq
BIDDERS PREPARE FOR BAGHDAD METRO Seven international companies will submit bids
NEWS IN NUMBERS
5% to 7% Work on
70 Jumeirah Lakes Towers buildings will be completed by
2010
10
UAE
UAE LOOKING FOR INTER-CITY METRO Plans for an inter-city metro system, which will link up the other emirates in the UAE are being planned, the Roads and Transport Authority chairman Mattar Al Tayer confirmed at the launch of the US $7.6 billion (AED28
Dubai has
42
Housing project demand in Saudi Arabia has led to a projected growth in KSA’s real estate sector
for the construction of the Baghdad Metro project in January 2010, a senior official has said. “Seven companies have been selected to proceed to the bidding stage, given their experience in the field,” Baghdad’s mayor Sabir Al Issawi told news agency Aswat Al Iraz. The companies have been given six months to offer their bids, he said.
The number of LTIs caused by construction work has dropped from
malls under construction, according to latest industry studies Carillion’s halfyear turn over from the Middle East has increased by
78%
478 in 2008 to 29% 329 this year
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
of UAE projects either on hold or cancelled
billion) Dubai Metro on September 9. When asked if the Dubai Metro would link up the cities of Dubai, Sharjah and Abu Dhabi, Al Tayer told Construction Week that it was a federal issue in planning. Saudi Arabia
PREMCO WINS US $26.7 MILLION CONCRETE JOB Concrete producer Premco has signed an agreement to supply 62,000m3 of precast concrete to Princess Noura University in Riyadh, KSA. The deal is valued at US $26.7 million (AED98 million) and will take 24 months to build. The precast concrete is required for the construction of the parapet, walkways, precast slabs, spine etc for the Princess Noura University.
Dubai Properties Group claims it will showcase
5
landmark developments, scheduled for handover at Cityscape Dubai 2009
US $900 billion value of UAE construction sector - highest in the world
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FACE-TO-FACE METRO TALK
DR SHERIFF HASHEM
SCOTT RICHARDS
WSP Middle East Associate Director
ACW Holdings director of client services
WHAT IS YOUR REACTION TO THE DELAY OF 19 DUBAI METRO STATIONS ON THE RED LINE? I am not surprised at all. We’re talking about the largest fully automated driverless metro system in the world. I believe it was a totally sound decision by RTA to inaugurate the system on September 9 as planned, starting with 10 strategically located metro stations.
A soft-launch is a practical solution for an ambitious project and given the scale of the Metro. The Septemper 9 decision to hold back 19 stations was an advisable decision. It does impact the usefulness of the Metro at this stage but it clearly helped Dubai to get some proverbial runs on the board locally and internationally.
WILL YOU USE THE METRO? I certainly intend to use the long awaited metro system. It is a modern, reliable, safe, cost-effective and environmentally friendly mode of transportation. The extent of such use, however, will be affected by the ease of reaching metro station nodes from residences and business points.
Certainly. With the remaining stations open it provides a nice arterial reach to the malls and other regions of the emirate. I used the Metro on September 10 and it was one of those experiences in Dubai where they delivered expectations.
DO YOU THINK THE DUBAI METRO WILL BE A SUCCESS WHEN IT IS FULLY COMPLETED? A completed metro network covering Dubai will certainly encourage more commuters to go for public transportation in lieu of a car or taxi based transport solutions. Changing transportation habits, however, takes time; but the attractiveness and world-class operational service of Dubai Metro will accelerate the process.
Yes. The Red and Green lines will serve a lot of Dubai. I would say that the construction of the other lines are vital for the success of the newer regions of Dubai, particularly along Emirates Road, where the super-developments are being constructed.
WILL IT MEET THE INFRASTRUCTURE NEEDS OF THE CITY? Absolutely; after all, Dubai’s current and future map obviously needs a modern integrated mass transit system with a modern metro system in its core. A strong infrastructure serves as the backbone for the development and expansion of world-class cities.
It will contribute to the relief of congestion on the roads. The metro is just one part of a civic infrastructure, it offers a good-opportunity to make the workforce more mobile, and increase people’s choices as to where they live and work. It’s certainly a positive step towards the maturation of the city.
WHAT MORE CAN THE GULF DO TO IMPROVE ITS INFRASTRUCTURE? In the context of the subject, I would think of activating the strategic GCC railway system programme that has been under consideration for quiet some time. Such internal systems could be complemented with a rail link uniting the six countries. This requires a huge investment, but the reward could be enormous.
The infrastructure here has evolved at a phenomenal rate. There are clearly concerns around things such as electricity, sewage and waste disposal. Civic infrastructure takes time, and the master-planned communities have come about before that was in place.
BECAUSE OF THE DROP IN TRAFFIC THIS YEAR, IS THERE STILL A BIG DEMAND FOR ROAD PROJECTS? I believe the demand for road projects will continue, however with a new vision and strategy directing more funds and resources to strategic long-term projects, rather than primarily to urgent projects tackling traffic congestion at rush hours.
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CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
The road projects here can seem diabolical in their complexity and scale, but we have a road-capacity three times what we require for several reasons: access, growth and international drivers.
FRONT
> For more pictures log on to www.ConstructionWEEKonline.com
NEWS IN PICS
ABOVE: Pearl Dubai has announced the completion of 50% of the foundation works at its Dubai Pearl project. The news follows the completion of the raft pouring in the South Tower, one of four buildings in the development. The South Tower has a foundation slab, which is 3.25m-thick and spreads across 3072m2. The second raft pouring on the project was completed in a record time of 30 hours. RIGHT: Dubai’s Mirdif City Centre is soon to reach another milestone as work on its 272,000m2 car park is now 90% complete. The car park has a capacity to hold 7000 vehicles and is designed to offer access to Emirates Road and Tripoli Street. Once inside the car park, provisions have been made for 17 mall entrances to lead shoppers into the Mirdif shopping centre.
BELOW RIGHT: Stan Munro is an American artist with an unusual skill – the ability to construct models of real-world buildings entirely out of toothpicks. His Toothpick City II: Towers and Temples project is currently under construction and contains some of the most notable buildings in the Middle East, including the Masjid Al Haram in Makkah, Saudi Arabia (pictured) and a 5m tall model of the Burj Dubai.
LEILA CRANSWICK/ITP IMAGES
BELOW LEFT: Emirates Steel has awarded the next stage of its US $9 billion (AED33 billion) extension to the American Danieli Corporation, for EPC works for the entire phase. When completed in 2011, Emirates Steel will have the first heavy rolling mill in the GCC making it the only producer of heavy sections in the Middle East, as well as doubling the mill’s capacity. The company claims current work on the extension is two moths ahead of schedule.
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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ANALYSIS
THE METRO HAS THE POTENTIAL TO RAISE THE VALUE OF LAND, IN AREAS OF THE COUNTRY THAT HAVE, UNTIL NOW, BEEN WRITTEN OFF AS “TOO FAR.”
Building along the lines ARE FUTURE INFRASTRUCTURE PROJECTS DEPENDENT ON THE SUCCESS OF THE METRO? By Matt Warnock After years of research, months of road works and much fanfare, the doors of Dubai Metro stations – ten of them, at least – have finally opened. The implications are clear: quick, affordable transport. But will Dubai Metro succeed in being the save-all stimulant to an industry on which many hats have been hung? Dubai’s Roads and Transport Authority
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(RTA) has estimated that the Metro alone will drum up US $4.6 billion (AED16.9 billion) over the next ten years through fares, advertising, retail and sponsorship. An economist at Dubai International Financial Centre (DIFC), Fabio Scacciavillani, believes the total financial boost could be in the region of $7.6 billion over the next five years. “Public spending on
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
infrastructure produces positive economic returns. Higher endowment of infrastructure boosts the aggregate return on private sector capital investments,” he said, adding that the Metro could also save up to $1.4 billion a year in lost work hours. But what does that mean for real estate and further infrastructure developments? “It took some 30,000 workers, five big contractors and 150 other contractors to complete and make it possible to launch the project on schedule,” said RTA chairman and executive director Matter Al Tayer. With 19 more stations to be completed on the Red Line by February, and the Green Line following in June 2010, clearly many
> For the latest analysis log on to www.ConstructionWEEKonline.com
contractors will remain in the service of Dubai’s mass transport system. Developers too will continue to be involved; Nakheel Harbour and Towers Station has already opened and other Nakheel stations are to follow. Emaar will provide financing for the Burj Dubai Metro station, while many other developers, such as the Majid Al Futtaim Group and Limitless, will fund stations and roads to link their projects with the Metro. “We’re sure Dubai Metro will be a big hit with travellers. We’re looking forward to the opening of the Jafza/Limitless station at Downtown Jebel Ali in early 2010,” said Limitless corporate media relations manager Rebecca Rees. Limitless is far from
alone in these positive feelings towards Limitless revealed that Dubai residents rated the Dubai Metro project. living near to the Metro more important “We welcome Dubai Metro at Nakheel, than having a good view. Being walking as many of our communities are linked to distance from a station was a priority for the system, providing them with easy and 40% of those surveyed. convenient access to the rest of Dubai,” “Our research sends out a clear message: said a company spokesperson. people want to walk more and try alternative “Dubai has always been at the helm of transport, to the extent that it influences where positive change and such an achievement they live and how much they are willing to should contribute to the growth of the city pay,” said Limitless CEO Saeed Ahmed Saeed. as a tourism and business capital that is on The second part of that quote is key: Dubai par with any major global city. The avail- residents are willing to pay a premium for ability of a reliable and strong mass trans- properties located near Metro stations. For port system is a must for any major city and a real estate market that has been in freefall Dubai realised this, ensuring it delivered a for some months now, anything that brings strong solution.” extra value can only The commitment from develbe positive. opers – as well as other com- “HIGHER ENDOWMENT The logic is flawOF INFRASTRUCTURE panies, banks and services less but, in reality, BOOSTS AGGREGATE – has been a fine example it’s too early to know RETURN ON PRIVATE of private funding of public whether the Metro SECTOR CAPITAL services; the Dubai Metro and will turn things INVESTMENTS” its routes have long figured around, according in the plans for companies to CB Richard Ellis considering which patch of land to buy up Middle East associate director of research, and develop. Jebel Ali, for instance, suddenly Matt Green. feels much closer to the rest of Dubai. “It’s really a wait-and-see to what level of “We are currently focusing on our Down- impact the Metro will have. At the begintown Jebel Ali project, which is served by ning it will be minimal, but its usefulness to Dubai will increase when more stations are the Dubai Metro,” added Rees. The groundswell of support and encour- up-and-running and connectivity to Metro agement is undeniable, but can the Metro stations is improved,” said Green. really change Dubai’s fortunes? There’s He added that areas previously blighted by an awful lot of hope resting on those nar- traffic congestion, such as Bur Dubai, would row-gauge tracks. benefit from the Metro and this could see “The Dubai Metro will make the city’s an influx of savvy developers and investors business, residential and commercial centres in search of new opportunities. more accessible, boosting business activi“It’s a good bit of PR for Dubai during a time when things are difficult, and havties,” added RTA’s Al Tayer. “Property development has started to ing that kind of investment in your infraspring up along the metro lines and eco- structure is always going to help attract nomic generation will be induced,” he added, outside investors who are looking at the noting that property and land prices around Dubai market,” he added. Dubai Metro stations had seen increases in Of course, the long-term knock-on effects the region of 30%. Rents too are expected of the Dubai Metro could be monumental to rise with units served by Dubai Metro for development companies. Abu Dhabi is watching closely, as tenders for its own Metro seeing a 10% hike. Although rent rises will be controlled by system are soon to be announced. The UAE the Real Estate Regulatory Agency (Rera) recently set up the Etihad Trains Company rental price index in the future, increased to link up all parts of the country. The Metro is being used as a barometer demand means higher rents; higher rents means more demand from buyers and for the potential success of such networks that in turn, eventually means a thriving and should these come to fruition, tenders real estate and construction industry. The for massive infrastructure jobs will be up for same goes for commercial real estate too. grabs, while as-yet-untouched areas of the A recent study carried out by AMRB for country will turn ripe for development.
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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EVENTS
Event: Building Sustainability into the Middle East Overview: Construction Week has merged the Building Sustainability into the Middle East conference, and the GreenBuilding training series in order to offer strategic insight and practical learning in one exhibition. Date: October 25-26 Venue: Crown Plaza Hotel, Abu Dhabi Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: MEP Kuwait Overview: This conference aims to shine the spotlight on Kuwait and will discusses the challenges of engaging with Kuwait developers; future opportunities; the technology required now and in the future; and the long-term plans for the country and how these will impact on operations. Strong desings coming from architects offer an incentive for MEP companies to relocate or set up offices in Kuwait. Date: October 28 Venue: Radisson SAS, Kuwait City Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences
Event focus
BUILD SMART 2009 DATE: NOVEMBER 15-16 VENUE: YAS HOTEL, ABU DHABI WEBSITE: WWW.ITP.NET/EVENTS/ BUILDSMART Build Smart 2009 will present solutions, new technologies and best practice for improving efficiency and productivity during project development. But, the main focus at the event will be the official launch of new association, Building Smart Middle East. It will demonstrate that by establishing standards for the construction industry, Building Smart can facilitate improvements in profitability and sustainability in the region. Building Smart will eventually operate throughout the Middle East, as well as North Africa, as a not-for-profit organisation.
Event: Middle East Architect Awards Overview: The Middle East Architect awards are an opportunity for the industry to come together and toast exceptional performance in architecture, engineering and design. The awards recognise both regional and international architects and engineers who have made significant contributions to
the development of the Gulf. Award categories include overall project of the year, restoration/ conservation project of the year, green project of the year, mixed- used development of the year and infrastructure project of the year. Date: September 30 Venue: The Westin, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline.com/meaa
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 3 Venue: Raffles Hotel, Dubai Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: Construction Week Awards 2009 Overview: In its 5th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in 15 key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East. Award categories include project manager of the year, construction manager of the year, sustainable project of the year and developer of the year among others. Date: November 4 Location: Grand Hyatt, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/cwawards Event: Construction Week India Conference Overview: This event is designed to equip individuals to identify project risks and implement risk mitigating processes that can be easily and efficiently integrated into the entire construction process which will be essential in
the transformation of Indian cities. Date: November 11-12 Location: New Delhi Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: CID Awards 2009 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 15 Venue: Park Hyatt, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/cidawards Event: MEP Awards Date: December 9 Venue: The Westin, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/mepawards Event: Construction Week North Africa Conference. Overview: This Construction Week conference will provide a firm basis for all interested parties to come together and share their experience of the economic renaissance in North Africa. Date: December 17 Venue: Intercontinental Hotel, Cairo Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: Cityscape Dubai Overview: International property and development event. Date: October 5-8 Venue: Dubai International Exhibition Centre Phone: +971 4 332 1000 Event: International Symposium on Architectural Membranes Overview: The workshop will address the theoretical bases for structural analysis necessary for computer implementation. Date: October 14-15 Venue: American Univeristy in Dubai Website: http://isam-dubai.web.officelive. com/about.aspx Event: The Big 5 Overview: Big 5 is the annual meeting place for all industry professionals. Over 58,000 key buyers and decision makers from the public and private sectors attended the 2008 event. Date: November 23-26 Venue: Dubai World Trade Centre Website: www.thebig5exhibition.com
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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COMMENT > For the latest news and comments log on to www.ConstructionWEEKonline.com/comment
Project governance and investment risk CHRIS ROUX TAKES A LOOK AT THE IMPORTANCE OF PROJECT GOVERNANCE AND PROJECT MANAGEMENT AND HOW THEY CAN ULTIMATELY BE RESPONSIBLE FOR A PROJECT’S SUCCESS
The global economic collapse, like an outgoing tide that reveals once unseen reefs and wreckage, brought to the world’s attention an assortment of exposés about scams and high-risk speculations around the globe that have horrified and fascinated both professionals and the general public. Their stories are made public knowledge largely because of the severe financial and human cost they reportedly caused, and tend to share very little about the decision making processes involved. Somewhere between projects that have been cancelled or put on hold, and those that were overexposed to business uncertainty, are the better geared investments now confronted with new conditions demanding changes to the variables and assumptions in their feasibility model. The changes in market conditions present both opportunities and new risks, which have to be factored into the feasibility reviews. This assumes, of course, that some decision making framework and models existed in the first place. Models vary from simple Net Present Value calculations based on discounted future cash flows, to highly complex Real Options models applying multiple sources of uncertainty and managerial choices regarding future payoffs. Whatever model is applied in determining the type of a strategic investment, unless a robust system of continuous project governance is in place to oversee the delivery, the process of managing investment risk becomes more difficult. Project governance is deliberately mentioned here as opposed to project management, which is a necessary, but not sufficient, determinant for investment success. Good project management is essential for the successful delivery of an investment
decision, while project governance applies across the full span of its life cycle. Undoubtedly, the cause of most investment failure is the absence of both responsible project governance and good project management. Project governance can be seen as the managerial system responsible for the sum of all decisions that determine the ratio between the real worth of an investment and the cost of having it, which includes capital, operating and opportunity costs. Much of the responsibility of project governance is delegated downwards through the project management process but accountability for the project’s ultimate success remains with the directors of the investing company. Good project management can highlight inadequate project governance and if engaged at a sufficiently early stage, can significantly improve the probability of investment success through methods such as risk management, value engineering, configuration control, and alternative procurement and construction strategies. These are important functions, however devalued they have become, in a competitive market that often reduces project management to mere construction supervision. It is the primary role of a project governance system within a firm to continuously study external and internal uncertainty and dynamics, and diligently manage the process of decision making throughout an investment project’s life, in order to achieve the pay-off it was chartered to yield. Project governance in turn, is only as effective as it is structured and allowed to act by the directors of an enterprise. There is an old maxim that management cannot improve poorly evaluated ventures and that at best it can then only deliver the wrong strategy. The function of project governance is to ensure that this does not happen.
“GOOD PROJECT MANAGEMENT IS ESSENTIAL FOR THE SUCCESSFUL DELIVERY OF AN INVESTMENT DECISION”
Chris Roux is the business development manager for Coffey Projects in the UAE. He has a long history in the delivery of investment undertakings beginning with contracting. Roux did an eight year stint with consulting engineers, followed by 13 years in project management in South Africa. He holds an MBA and a PhD in strategic management, with emphasis on project management as a method of strategy implementation.
The opinions expressed in this column are of the author and not of the publisher.
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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LEGAL > For more legal advice log on to www.ConstructionWEEKonline.com/comment
Risk allocation in the Silver Book MIKE ANKERS DISCUSSES AN ALTERNATIVE FORM OF CONTRACT, WHICH PLACES RISKS AT THE HANDS OF THE CONTRACTOR RATHER THAN THE EMPLOYER
“MAJOR RISKS THAT WOULD NORMALLY REST WITH THE EMPLOYER ARE PLACED FIRMLY WITH THE CONTRACTOR”
Ankers is a senior quantity surveyor currently assigned to the Government of Abu Dhabi Claims Committee Team as part of a multi-disciplined team, tasked to review and make recommendations on outstanding contractual claims that cannot be resolved in-house by the Abu Dhabi Government’s various Works Departments. His responsibilities include the detailed analysis of contractual entitlement, causation and damages on Abu Dhabi Public Works infrastructure building and civil engineering projects.
The opinions expressed in this column are of the author and not of the publisher.
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The Fidic “Silver Book” is a significant departure from typical risk allocation contained in the other Fidic forms of contract. This change of risk allocation is designed to give employers an alternative to the standard form when a pre-determined fixed final cost is the most important factor for the employer; even more so than obtaining the lowest price for a project. For certain employers there is a need to know the cost from the beginning of the project and how this is achieved is not the primary concern. Fidic recognises this need and rather than having employers heavily amend the existing standard contracts, has set out to produce a contract specifically to fit this need. The Silver Book achieves greater price certainty in a simple way; major risks that would normally rest with the employer are placed firmly with the contractor. The Silver Book is a design and build type contract where the contractor produces a design to satisfy the employers requirements. In a normal contract, the employer is responsible for the correctness of the employers requirements and the contractor is responsible for his own proposal and detailed design. With the Silver Book, the contractor is responsible for checking the employers requirements, as well as the contractors proposal, whilst making sure that both are correct. Any errors found in the employers requirements are to be corrected by the contractor at the contractor’s cost. Other risks, which the Silver Book places with the contractor rather than the employer, include unforseeable shortages of personnel and materials. Changes to risk allocation under the contract do not extinguish these risks, but merely move responsibility to the contractor. With the Silver Book risk allocation, the contractor must determine the potential
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
likelihood of the risk materialising and the cost that may be associated with that risk. The contractor needs to make the commercial decision on the risk allowance to be included in his tender. In this way, the employer pays for the risk whether it occurs or not, and the contractor can either benefit from an additional profit if the risk does not occur or loses if he underestimates the risk. It should also be borne in mind that risk allocation in the Silver Book construction, is not a risk free enterprise. Fidic still leaves certain risks with the employer, such as employer variations and delays caused by the employer. Standard forms of contract will not protect the employer from additional costs caused by his own actions. Fidic recognises that it is for employers and contractors to decide whether the conditions are appropriate for a particular project. It is for the parties to decide what is best for their own particular circumstances. The original standard form of contract provides a universally recognised starting point.
UNSUITABLE CONDITIONS In line with the revised risk allocation under the Silver Book, Fidic has indentified four situations where the Silver Book is considered unsuitable. These are: • If there is insufficient time or information for tenderers to scrutinise and check the employer’s requirements, risk assessment studies and estimating • If construction will involve substantial work underground or work in other areas which tenderers cannot respect • If the employer intends to supervise closely or control the contractor’s work, or to review most of the construction drawings • If the amount of each interim payment is to be determined by an official
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WA H DA R E L I E F THE MAJOR INFRASTRUCTURE PROJECT THAT IS AL WAHDA STREET IS SET TO BE FULLY OPENED THIS TIME NEXT YEAR, MUCH TO THE DELIGHT OF SHARJAH RESIDENTS AND COMMUTERS. BUT THE JOURNEY TO THIS STAGE IN THE PROJECT HAS NOT BEEN TAKEN WITHOUT FACING A FEW BUMPS IN THE ROAD, AS CONSULTANT HALCROW EXPLAINS By Sarah Blackman; Photos by Khaled Termanini
A
l Wahda Street is classed the main artery that runs through Sharjah, heading off towards the emirate. Last year this vital corridor, from Al Falah Plaza to Cultural Square, was closed to traffic so that construction of one of the biggest road projects the city has seen could begin. It comes as no surprise that the closure has caused a hot topic of discussion among Sharjah residents and those traveling in and out of the city. But, as any project goes, there has to be a little disruption before there can be construction. And, according to Halcrow, the developer on the project, Al Wahda Street was in much need of a revamp. “Traffic was heavy before and there were temporary bridges over all junctions that were put in place in the 1980’s,” says Halcrow chief resident engineer Steve Hodgkins.
HODGKINS SAYS TRAFFIC WAS VERY HEAVY IN SHARJAH BEFORE THE AL WAHDA ROAD PROJECT BEGAN.
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“These bridges just couldn’t cope with the sheer volume of traffic so they had to be replaced with proper designed junctions. Obviously it has taken a long time for the design to be prepared and implemented in the fashion that it has.” The entire project involves the redevelopment of 6km-long road consisting of four major interchanges - Cultural Square, Flying Saucer roundabout, Yarmouk junction and Abu Shagara. The project is due to be fully completed in September, 2010. Last month, the two former interchanges were opened to the public six days ahead of schedule. The cultural square interchange now consists of an underpass along Al Wahda Street, passing below cultural square roundabout and leading traffic to and from Sheikh Mohammed bin Saqr Al Qassimi Road. The ramp portion of the tunnel is around 500m-long on either side with a closed tunnel of length around 175m, while the interchange at the flying saucer junction is grade-separated with a viaduct around 550m-long and an at-grade signalised junction. When it comes to Al Wahda Street, Halcrow has handled everything from concept design through to construction management. And, although the first phase of the road project has been launched successfully, there were a few twists and turns before the building process could even begin. In April 2006, Halcrow was awarded the contract to take on the major road project and soon realised that it would be no easy
“THE FIRST YEAR WAS DEVOTED ALMOST ENTIRELY TO ALTERNATIVE TRAFFIC ROUTES”
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
task. Al Wahda Street runs from the southern emirates through to the northern emirates – a route for traffic but also a route for all the major utilities. “We have had to divert them all,” said Halcrow senior resident engineer Mike Johnston. “Also, we have had to layer all the services because there wasn’t room to put them all side by side.” Utilities such as a 2.2 diametre water pumping main, as well as 132KV cables and 30 inch gas pipelines ran through the tight corridor. Further, the developer had to take into account how traffic could flow without the use of Al Wahda Street and thus needed to create alternative routes. Halcrow improved all roads, which were use to divert traffic to and developed them into three-lane roads. The company also improved roundabouts and junctions, such as Kuwait Square. “We have had to keep local access, which is a nightmare because Al Wahda is the main commercial road,” explains Johnston. “We turned nine roundabouts into signalised intersections. We widened nearly 20km of road to ease the traffic flow and all of this was done in advance to keep traffic moving.”
AL WAHDA – FAST FACTS:
“The first year was devoted almost entirely to alternative traffic routes and investigating the services that had to be diverted and that took over a year before we could consider closing Al Wahda Street in the form that it’s closed today,” reports Hodgkins. Once the road was closed, there was an agreed opening schedule of the various junctions to allow the people of Sharjah to get back the use of Al Wahda Street. “Hopefully [the launch of Al Wahda Street] will tie in with other events like the completion of King Abdulaziz, which is a separate project in itself,” Hodgkins adds. King Abdulaziz is the other main road in Sharjah that Halcrow wanted to create, which passes through industrial areas before crossing over Al Wasit Road towards Al Wahda Road, and stretching out towards the Al Qasimia area via Abu Shagara. This route didn’t exist five years ago and is expected to be finished between 2010 and 2011. “The plan is to extend it still further across the creek so King Abdulaziz will become the main artery in and out of the port, running through to the east coast and other emirates.” Another challenge faced by the developer during the improvement of Al Wahda Street
CONSULTANT
Halcrow International Partnership
CLIENT
Directorate of Public Works, Government of Sharjah
PROJECT MANAGER
In-house
ARCHITECT
In-house
MAIN CONTRACTOR
Sharjah General Contracting Company
PILING WORKS
Al Marwan General Contracting Company
LIGHTING DESIGNER
Sharjah Electricity and Water Authority
VIADUCTS AND UNDERPASS
China Harbour Engineering
VALUE
US $228.7 million
TENDER DATE
April 4, 2006
START DATE
November 25, 2006
EXPECTED COMPLETION
September 26, 2010
ABOVE: LABOURERS WORK ON THE FLYING SAUCER ROUNDABOUT. RIGHT: THE MAP SHOWS AL WAHDA AND KING ABDULAZIZ ALONG WITH DIVERTED TRAFFIC ROUTES.
was the critical issue of Sharjah’s water table, located just below, and in some cases no more than 1m below the surface. “This is an issue for all construction in Sharjah, which is why the emirate floods all the time it rains and every time you build something you have to dewater in order to go down any distance at all,” explains Hodgkins. Not only is Halcrow responsible for constructing a major project that is not just a want but a need among several thousands of people but they have been doing this all under the watchful eye of Sharjah’s ruler. This caused a slight problem when improving Al Wahda Road at Cultural Square.
“The ruler’s office is there and, of course, [from there] he can see the Qur’an located in the centre of the Cultural Square roundabout. He didn’t want to spoil any of that so we built and underpass leading underneath the round about,” says Johnston. “Generally that isn’t too much of a problem but the he watched everything we did and we got phone calls from the ruler himself when he saw something he didn’t like.” But despite a few stop signs along the way, Halcrow has kept moving on and is currently running on track and on time. The second phase of the project includes the construction of Abu Shagarah underpass, which will be around 534m-long, and
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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“WE WERE TOLD THAT THE ROAD COULD BE CLOSED FOR NO MORE THAN TWO YEARS”
SENIOR RESIDENT ENGINEER MIKE JOHNSTON EXPLAINS THE COMPLEXITIY OF THE ROAD PROJECT.
is expected to be open by September 26 next year. Meanwhile, a 1.5km-long viaduct is being built between King Faisal Interchange and the Gold Centre intersection. This is set to open on April 30, 2010. To speed up the process of this section, for the benefit of Sharjah residents, Halcrow switched from an in situ concrete bridge to precast beams and has created a casting yard and batching plants. This is one factor that has caused the cost of the entire contract to rise by approximately 76% since the project started.
“The quality will still be the same when using precast,” added Johnston. “There is pressure to complete the project. We were told that the road could be closed for no more than two years.” The original contract price was US $130 million (AED477 million) in 2006 and has now been revised to $229 million. “The original tender was very basic and they [the client] put it out in a hurry,” explains Johnston. “Also, we have had changes in design – the bridge from Yarmouk is now twice as long as it was initially planned to be.”
Since the improvement of Al Wahda Road began, Halcrow has eaten slept and breathed this project. But, was it all worth it? According to the developer, the answer is yes. Once the work is complete and the entire road is finally opened, the time it takes to head all the way through Al Wahda Street and to the emirate’s airport will be radically reduced. “It will be free flow,” says Hodgkins. When Dubai traffic enters Sharjah you will be able to drive the whole length of Al Wahda Street all the way along airport road without having to go through traffic lights. “If you did this route six months ago, at the wrong time of day, it literally could take hours. But, if you take the journey [after the entire project is completed], it could take around 15 to 20 minutes from the border of Sharjah up to the airport,” he added.
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TOP 10 HEALTHCARE PROJECTS IN THE GCC CONSTRUCTION WEEK TAKES A LOOKS AT TEN HOSPITALS, HEALTH CENTRES AND CLINICS IN THE GULF THAT ARE SET TO BE COMPLETED IN THE NEXT FEW YEARS By Conrad Egbert and Lutfi Qaraman Hospitals in this feature are listed in value order.
SIDRA MEDICAL AND RESEARCH CENTRE Location: Qatar Value: US $2.3 billion Client: Qatar Petroleum (client representative for Qatar Foundation) Schedule: A joint venture between OHL Construction and Contrack International was awarded the main construction contract in 2008. Construction is in progress and expected to be completed in early 2012. Keo International Consultants is managing construction, while Pelli Clarke Pelli is the design architect. Scope: The project calls for construction of Sidra Medical and Research Centre in Qatar. The capacity of the hospital is 380 beds. The centre will include parking for approximately 2000 vehicles and will become home to 350 resident nurses.
JABER AHMED AL JABER AL SABAH HOSPITAL Location: Kuwait Value: US $1 billion Client: Ministry of Health; Ministry of Public Works Schedule: The Ministry of Public Works has received bids for the main construction contract. The lowest bidder is Arab Kuwait Contractors Company. Construction is to begin in the first quarter of next year and expected to be completed in the first quarter of 2014. The main consultant is Gulf Consults and Langdon Wilson International. Scope: The project calls for the construction of Jaber Ahmed Al Jaber Al Sabah Hospital in Surra, Kuwait. The total built up area is 270,000m². The hospital provides a comprehensive range of medical services and comprises diagnostic and treatment services, a trauma center and casualty services, outpatient services, dental services, Ob/Gyn services, inpatient care services, VIP suites for the visiting heads of states and also another wing for VIP suites.
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CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
CLEVELAND CLINIC HOSPITAL Location: UAE Value: US $1.9 billion Client: Mubadala Development Company Schedule: The application deadline for technical bids for the main construction contract was last month, while the deadline for commercial proposals is October 21. Companies involved with the project so far are Arabtec Construction, Aktor and Driver Consult. Construction is expected to be completed in Q4 2011. Scope: The project calls for the construction of Cleveland Clinic in Al Sowah Island in Abu Dhabi. The hospital includes 324 specialised clinics and 360 beds. The total built up area of the project is 417,000m² with a car park, which can hold 3100 cars.
> For more top 10s visit www.ConstructionWEEKonline.com
AL MAFRAQ HOSPITAL Location: Abu Dhabi, UAE Value: US $871 million Client: Abu Dhabi Health Services Company Schedule: The hospital is still in the design stage and the main contract is expected to be awarded by the end of this year. Construction is expected to start in the first quarter of next year and is set to be completed in 2013. Scope: The new hospital is being designed to triple the number of treatment rooms to 690 beds and it will span an area of 306,803m² with a built up area of 246,118m². The hospital is among the oldest in Abu Dhabi and is to be replaced with a new building, which will incorporate environmentally friendly and energy-efficient designs - it will recycle waste water, reduce electrical use with fibre optic interior sun lighting and incorporate the use of solar panels.
AL JALILA BINT MOHAMMED BIN RASHID AL MAKTOUM HOSPITAL Location: UAE Value: US $370 million Client: Dubai Health Authority Schedule: In July this year, UAE vice president and prime minister and ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, laid the foundation stone of the hospital. The project is expected to be completed in the second quarter of 2011. Scope: The hospital will be located near Al Wasl Hospital in Garhoud. The 200-bed hospital dedicated for children will have sub-specialties in pediatrics.
DANAT AL EMARAT WOMEN & CHILDREN’S HOSPITAL Location: UAE Value: US $150 million Client: United Eastern Medical Schedule: Construction began last week with a groundbreaking ceremony. The project is expected to be completed in 2011. Al Ghurair Arabian Foundations Engineering was selected for the first phase of construction and the contracts for the second and final phases are still to be tendered. Singaporean healthcare operators Parkway Health will manage the facility. Scope: The project includes a 200-bed women and children’s hospital, a network of primary care and specialty health centers and Abu Dhabi’s first Medical Spa.
AL KHOBAR HOSPITAL Location: Saudi Arabia Value: US $55 million Client: Ministry of Health Schedule: Al Kifah Construction Equipment Company was awarded the main construction contract in March 2008 with construction beginning in May of the same year. Construction is in progress and expected to be completed in May next year. Scope: The development calls for construction of Al Khobar Hospital in Saudi Arabia. The hospital is located in Al Khobar city with a capacity of 200 beds.
BAYAN PALACE HEALTH CENTRE Location: Kuwait Value: US $54 million Client: Ministry of Public Works Schedule: Al Amiah Contracting Company was awarded the main construction contract in July 2008. Construction started in August 2008. Project duration is 17 months. Scope: The project calls for the construction of a health centre at Bayan Palace in Kuwait.
SAUD BIN JALWAEI HOSPITAL Location: Saudi Arabia Value: US $55 million Client: Ministry of Health Schedule: Al Kifah Construction Equipment Company was awarded the main construction contract in March 2008. Construction began in January this year. The duration of the project is 24 months. Scope: The project calls for construction of Saud bin Jalwaei hospital in Al Ahsa. The capacity of the hospital is 200 beds.
AL MOKOWAH HOSPITAL Location: Saudi Arabia Value: US $24 million Client: Ministry of Health Schedule: Saeed Al Mobti and Partners Company for Contracting was awarded the main construction contract in March 2008 with construction beginning in May that year. The project is expected to be completed in May next year. The capacity of the hospital is 100 beds. Scope: The construction of a hospital in Al Mokowah.
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
27
STANDARD OPERATIONS THE RECENT COLLAPSE OF A NEWLY CONSTRUCTED BUILDING IN DUBAI HAS BROUGHT BUILD QUALITY TO THE FORE AND IN PARTICULAR THE ADHERENCE TO RECOGNISED STANDARDS AND CERTIFICATIONS. WHAT IS EXPECTED OF CONSTRUCTION FIRMS AND IS THIS LIKELY TO CHANGE? CONSTRUCTION WEEK INVESTIGATES By Alison Luke
T
he collapse of an eight-storey building in Deira in mid-August hit the headlines across the region. The fact that it was a new built property and there was no immediate reason for the collapse, such as a fire, heightened concern over why it had happened. The results of an investigation by Dubai Municipality into the collapse are expected to be announced within the next few weeks. However, initial statements from the investigating committee have confirmed that aspects being included within their scope are whether suitable building materials were used in construction; whether the design of the structure was flawed; and the operational aspects of the project. One of the main ways to gauge all of these factors is whether they met approved standards and certifications. But what does gaining recognised certifications actually mean and are the authorities likely to increase the strin-
BSI ABU DHABI GENERAL MANAGER AHMAD AL KHATIB RECOMMENDS ISO9001 FOR QUALITY.
28
gency of their requirements following this latest incident?
STANDARD PRACTICE There are a wide number of standards and certifications applicable to firms operating within the construction industry. Those that must be adhered to by law vary according to discipline and the local authority regulations, however, certain standards are now recognised globally and widely used throughout the industry. “From a certification perspective, I would say that ISO14,001 for environment; OHSAS 18,001 for occupational health and safety; in addition, ISO9001 for quality [are among the main standards that must be adhered to in GCC countries],” states BSI Abu Dhabi general manager Ahmad Al Khatib. In general, the certification of firms to such standards shows that they adhere to recognised methods of working that have been set out within the listed standard. The aim of doing so is to improve performance, efficiency and safety, with the certifications demonstrating the firm’s achievements to outside parties. Although standards are voluntary and separate from legal and regulatory systems, they can be used to support or complement legislation. Some of the other standards that are applicable within the industry relate to specific materials or products. “For reinforcing steel the product standard mainly used is the British Standard BS 4449: 1997,” explains UK Cares executive director Ben Bowsher. “The standard requires either steel supplied by a company that has a valid accredited product certificate, which is normally sup-
“THERE IS STONG DEMAND AND NEED FOR INTERNATIONAL BEST PRACTICES AND STANDARDS”
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
HOW TO GET CERTIFIED • Identify the relevant certification body that works best for you • Contact the relevant local authorities to establish what certifications are required • Contact the certification body to determine their requirements • Appoint an individual to oversee the implementation of the standards procedures • Submit any required materials to the issuing body and/or allow access for any inspections needed prior to gaining certification
WHY WE RECOMMEND GETTING CERTIFIED • Win contracts – being able to prove that your firm operates to internationally accepted standards and certifications can win you contracts • Top Quality – operating to the methods given in accepted standards and certifications will ensure a better quality end-product • Better H&S - health and safety standards both within the firm and on projects on which it is working will be improved • Higher productivity – efficiency of operations and productivity increase when there are set and accepted standards under which to work • Better assessments – benchmarks can be set to enable continuous improvement of the firm’s operations to be accurately assessed • Easier global expansion - it is easier to expand operations geographically if the firm is working to internationally recognised standards that are valid in many regions
> For more special reports visit www.ConstructionWEEKonline.com
UK CARES’ BOWSHER SAYS DON’T CUT CORNERS.
“IN THE CURRENT CLIMATE, THERE WILL BE MORE TEMPTATION TO CUT CORNERS ON QUALITY” plied by Cares, or there should be a product testing regime applied, which approved each batch of steel from a non-certified source,” he adds. Such stringent quality control over products is imperative in the construction of buildings. The absence of approved and properly installed products can create major issues warns Passive Fire Protection Federation (PFPF) chair David Sugden: “[In the case of passive fire systems] you can’t test the installed system you need to have the products tested in a lab in a test rig. But unless you install the materials and products in a building to the same standard as they were in the test rig then they won’t perform in the same way,” he warns.
CONTROLLED STANDARDS Just how strictly are the application of standards and certifications enforced in the region and are firms complying? Again this appears to vary between countries, disciplines and the size of firms involved. “In specific sectors like construction some of the standards are regulated,” assures Khatib. “In Abu Dhabi, for example, the government started an initiative this year on regulating HSE implementation for the build and construction sector,” he explains. “I understand that, in the main, steel from Cares-certificated sources are used although
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
29
“WARRINGTON FIRE HAS A ROLE WITH THE CIVIL DEFENCE DEPARTMENT OF DUBAI IN SETTING STANDARDS”
SUGDEN SAYS SOME PRODUCTS WILL WORK ONLY IF INSTALLED IN BUILDINGS OF THE SAME STANDARD.
it is apparent that sometimes this is not the case,” reports Bowsher. “I have seen steel from sources of dubious origin supplied to reinforcement fabricators in this way, when in the UAE,” he warns. In general, the international firms comply with such standards as a matter of course and also seek certifications from any sub-
contractors they employ. A spokesperson from a major construction industry contractor comments: “We take services and materials from companies that are registered to certain ISO systems; also, from subcontractors we want to see health and safety discipline.” There are several reasons cited by major contractors for following internationally recognised standards that are not specifically required by law. These include the ability to standardise the company’s processes and services to increase efficiency; plus the ability to bid for work in markets that require the additional standards such as the oil and gas sector, municipalities and government departments. And for those standards that are legally required, ensuring that all work is carried
out within guidelines is essential in order that the final building produced can be used. “Currently, before we can pour a [concrete] slab on site we have to get the work inspected by the municipality; they have to be convinced that the supporting structure is correct,” states the spokesperson. “The municipality has to sign off the slab pour and we must show these documents before can get an occupation notice on completion of the building,” he explains. So with the Deira building collapse fresh in everyone’s minds, are the regulations for the region’s construction industry likely to become stricter? “Not necessarily,” stated Al Khatib. “This issue is more related to companies adhering to the local law and construction guidelines imposed by the local authorities rather than not having the right law in place. Nevertheless, it might raise a need for better or stronger specifications and standards.” “The need for standards and best practices is increasing due to the nature of high-profile, huge, extremely expensive projects in the
> For more special reports visit www.ConstructionWEEKonline.com
Middle East region, there is a strong demand and need for international best practices and standards,” adds Al Khatib. Economic circumstances also play a part in any tightening of and adherence to standards, making the current situation a significant issue. “In the current economic climate, where costs are being driven down, there will be more temptation to cut corners on quality,” warns Bowsher. Enforcement of the standards is made by different local authorities throughout the region. “In the UAE, for example, Abu Dhabi Municipality is in charge of enforcing HSE (14 and 18) implementation and certification to the build and construction sector of Abu Dhabi,” reports Al Khatib. “PFPF member firm Warrington Fire has a role with the Civil Defence Department of Dubai in setting and maintaining standards,” adds Sugden Penalties for non-compliance vary according to the severity of the consequences that this would invoke and could involve a warning notice, fine, removal of trading license or,
in the event of a death on site, the people INTO THE FUTURE One of the major forthcoming events due deemed responsible can be jailed. And aside from potential legal consequenc- to take place in the standards sector is the es, operating without applying recognised introduction of Eurocodes. These structural standard procedures can create even more codes are scheduled to come into force in serious issues. “The penalty for occupants if March 2010 and the flexibility of their design a passive fire system is not properly installed has meant that several countries outside of is death,” stresses Sugden. Europe have already committed to adopting So what more can be done to ensure that Eurocodes reports the BSI. BSI is currently working to identify existbuildings are constructed to international standards and standards-certified products ing regulations for construction. are used on projects? The introduction of the Eurocodes has several “Create national building regulations, objectives, including the provision of common design codes and product standards and design criteria for mechanical resistance; enforce their use,” suggests Bowsher. to form a common basis for research and Ensuring that the message reaches a development, in the construction industry; wider audience is also vital. “Establish- and to enable the preparation of common ing forums where experts and end-users design aids and software. They are also can get together to discuss several related intended to provide a common understanding issues and share ideas regarding the design and working with of structures between “THE DEIRA COLLAPSE the local authorities designers, manufacMIGHT RAISE A NEED FOR on regulating many turers and contracBETTER AND STRONGER of those standards,” tors of construction SPECIFICATIONS AND he adds. products. STANDARDS”
OTHER CERTIFICATIONS AND STANDARDS There are numerous standards and certifications that can be applied to construction firms and their operations throughout the GCC countries. Some of the most widely recognised and followed are as follows.
ISO 9001 ISO 9001 outlines the requirements for a quality management system (QMS) ie a framework around which an organisation can control its processes in order to achieve set objectives including customer satisfaction, regulatory compliance and continual improvement. First published in 1987, it was thoroughly revised for the third edition, which was introduced in 2000; changes included new requirements and a sharpened customer focus. The fourth and latest edition, ISO 9001:2008, does not require any specific reassessment for certification.
published in 1996, it has since been updated several times.
ductility of the three grades of steel approved for use on the reinforcement of concrete.
OHSAS 18001
LEED
OHSAS 18001 provides specifications for Occupational Health and Safety (OH&S) Management Systems. It is intended to enable an organisation to control its health and safety risks and ensure a continually improving performance trough ongoing measurement and setting of targets. Registration to OHSAS 18001 by an independent, third party, certification body demonstrates a commitment to implement, maintain and improve the way in which you manage your health and safety system
Developed by the US Green Building Council, the Leadership in Energy and Environmental Design (Leed) rating system is used to establish the environmental accreditations of new construction or major renovation projects. There are six categories in the Leed system - sustainable sites; water efficiency; energy and atmosphere; materials and resources; indoor environmental quality; and innovative design – each of which has a number of options. An environmental designer or Leed Accredited Professional (Leed AP) uses these categories to determine what environmental features the project can incorporate given its geography, goals and budget and assigns a certification level which range from certified to platinum.
ISO 14001 ISO 14001 sets out the requirements for an organisation’s environmental management system (EMS). It applies to those aspects over which an organisation can be deemed to have control or influence over. First
BS 4449 BS 4449 is the specification for carbon steel bars used for the reinforcement of concrete. The standard lists the characteristic yield strength, tensile properties and
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
31
Confidence in Steel for Concrete Construction
? CARES Product Certification
or High Risk
• Verified compliancewith British Standards
• That non-CARES approved steel will not have been fully assessed to the British Standards
• Assurance of on-going compliance of every delivery • No need for further testing • No need for certificates • Avoid unnecessary site delays • Full traceability of steel from steel mill to site • Full backing of CARES in cases of complaints to suppliers
• That traceability of steel from source to site is non existent • That the steel will not consistently meet the requirements of the British Standards • That processing of non-conforming steel may result in damage to personnel or the structure
Why take the RISK? For further information about CARES and an up-to-date list of manufacturers and suppliers holding CARES certification please consult the CARES website: www.ukcares.com Alternatively, contact the office:UK Certification Authority for Reinforcing Steels, Pembroke House, 21 Pembroke Road, Sevenoaks, Kent TN13 1XR
Telephone - 01732 450000 Fax - 01732 455917 E-mail - general@ukcares.com
Confidence in Steel for Concrete Construction CARES is a UK based, internationally recognised certification body fully accredited and operating independently for the benefit of all key sectors of the supply chain for construction materials and products. The key products covered by CARES are reinforcing steels, prestressing steels and associated products, for their manufacture, processing and stocking and distribution including installation against defined product standards and design codes. The CARES certification schemes ensure that products supplied to the construction industry consistently satisfy the customer’s requirements.
Compliance with product standards All products covered by the CARES schemes are tested against product standards or specifications both by the manufacturer and at intervals for verification by CARES. The efficient use of constructional steels is dependent on these having the specified product properties and also being properly processed and installed.
The importance of the CARES approved processor or installer The CARES approved processor or installer is the vital link between the steel producer and the construction site and ensures that: • The steel or the construction product satisfies the customers requirements and therefore of the product standard or specification. • The steel and associated products are not damaged during processing or installation. • Traceability has been maintained and all steel and products used are from a CARES approved supplier or those acceptable to CARES. • Processing or installation are performed by suitably trained and qualified personnel.
Traceability A key element of the CARES certification schemes is traceability of the manufacturer and of the product and processing details. CARES approved manufacturers and processors must keep records of material and products used and when required these can be produced. As a result it is not necessary for contractors to
require additional testing of material or products or for copies of test certificates to be sent with products to site.
Avoidance of site delays Contactors receiving material from a CARES approved processor or stockist can use the materials or products with confidence and therefore do not need to carry out further tests in order to ensure compliance. Alternatively, failure to specify CARES approval places the onus of compliance fully on the shoulders of the purchaser which in turn may result in further testing resulting in the addition of significant cost and often site delays. Material that does not comply with the standard or specification in all respects increases the risk that the structures in which they are used will not perform as specified.
Monitoring of Scheme performance The CARES certification schemes require that records of complaints relating to compliance of the product made against approved firms are properly addressed and that details of these complaints are returned to CARES at regular intervals. Further action may be taken by CARES against the approved firm if required. CARES acts as a point of reference when the performance of one of its approved firms casts doubts on the effectiveness of the relevant certification scheme.
CARES list of approved firms CARES regularly updates a list of approved firms which is maintained on the CARES website (www.ukcares.com ). Each firm’s entry gives the scope of the CARES certification as well as other key details of the firm. Occasionally firms make spurious claims regarding CARES approval. This may relate to approval of the firm itself or of the products and services for which they might hold approval. If there are any doubts concerning the approval status of a firm, then the CARES list of approved firms should be consulted or alternatively the CARES office should be contacted for verification.
Why take the RISK?
For further information about CARES and an up-to-date list of manufacturers and suppliers holding CARES certification please consult the CARES website: www.ukcares.com Alternatively, contact the office:UK Certification Authority for Reinforcing Steels, Pembroke House, 21 Pembroke Road, Sevenoaks, Kent TN13 1XR
Telephone - 01732 450000 Fax - 01732 455917 E-mail - general@ukcares.com
HOW TO… WORK SAFELY AT HEIGHTS 3
CONSTRUCTION WEEK TAKES A LOOK AT HOW TO PREVENT AN ACCIDENT WHEN WORKING ABOVE GROUND AND HOW LABOURERS CAN BE PROTECTED IF THEY SLIP OR FALL By Sarah Blackman
You don’t have to be a construction Bruce Shahabi, director of operations specialist to know that working at height for Combisafe Gulf, a developer of safety means working at any place above solutions for construction sites, adds: ground level, where if “The number one precautions are not taken, cause of injury a person could seriously “PRIOR TO USE, SAFETY when working HARNESSES SHOULD injure themselves. at height is the BE INSPECTED BY A So far this year, there perception of the COMPETENT PERSON” have been 329 lost time management team injuries (LTIs), according that safety is a cost, to statistics compiled by which during these Build Safe UAE (BSU), a non-profit economic conditions can be eliminated.” organisation aimed at raising health and The main causes of falls from height safety standards in the country. include the lack of adequate exclusion This statistical data, submitted to BSU zones – these must be set up before work by 31 main contractors between January commences and should be enclosed with and August, shows that 40 of the physical barriers. LTIs were caused by falls from height “Hazard warning tape is not acceptable – the number one cause of injury on a as a means of demarcating and construction site. Slips and trips have preventing people entering exclusion been the second main cause of injury zones,” states the latest Best Practice onsite this year with 36 LTIs recorded. Guidelines for Working at Heights, also Earlier this month, a Bahraini labourer compiled by BSU this year. died when he fell down a three-storey But, it’s not only falls that lift shaft when working on a project for cause injuries when working Skyline Building Construction. And, at height. Materials and tools in March, a 28-year old construction are likely to fall onto workers worker from India was killed instantly during activities such as erecting when he fell from the 14th floor of the scaffold or formwork systems, if Twin Building Project in the Bahrain proper precautions are not taken. capital of Manama. So why is it that so many accidents Protect workers from injury happen on site? With so many high rise buildings being developed across “We are witnessing a constant breach the Gulf it is essential of regulations by unsafe construction that necessary safety stakeholders,” explains BSU group measures are put administrator Elias McGrath. “These actions are truly appalling and discourage in place. our efforts to promote a safer UAE.”
AN EXAMPLE OF SAFE CONSTRUCTION PRACTICE.
Harnesses are common items, which are worn to prevent a fall and protect a person, should they fall. A harness must be designed to hold a person both during and after a fall in such a way that his/her head remains in an upright position with no more than a 50° angle compared to the vertical, according to All Safe, a lifting and fall arrest solutions provider in the Middle East. Lanyards are devices, which connect the harness to an anchorage point, and must be designed to support a load. “Prior to use, safety harnesses, its lanyards, shock absorbers and hooks should be inspected by a competent person,” says All Safe corporate sales manager Hugo Laverdin. It is also vital that safety systems must comply with internationally recognised standards. For example, if an
MAIN CAUSES OF FALLS FROM HEIGHT
TIPS TO AVOID ACCIDENTS AT HEIGHT
PREPARING YOUR WORKFORCE
• Trip hazards • Oil or grease on the floor • Strong blustery winds • Lack of signage • Poor lifting or rigging techniques • Poor material storage
• Look for the hazards • Identify who might be harmed and how • Evaluate the risks and decide whether the existing precautions are adequate • Record your findings • Review your assessments
• Provide daily task briefings • Use international signage and barriers • Test their medical fitness • Provide safety news alerts • Offer monthly internal and external training
34
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
> For the latest analysis log on to www.ConstructionWEEKonline.com
operator falls, they will absorb a shock impact that can lead to injury but, if the anti-fall device has a shock impact equal or lower than 600 Deca Newtons, then injury or even death can be prevented. The newton is the unit of force required to accelerate 1kg at a rate of 1m per second. Prevent on-site accidents If contractors wish to create a safe work environment, labourers need not only be protected, but injuries need to be prevented. “The best approach to working at height is to avoid exposing the workforce to exposed edges in the first place,” reports Shahabi. “This can be achieved by pre-fabrication of permanent works, pre-installation of edge protection or designing out the risks by working closely with the consultant. If this cannot be achieved fall prevention systems are the best approach.” These systems must take into account the fall of objects, as well as workers, from the edge especially in severe wind storms, he says. Barriers include guard rails and safety netting. Put safety into practice Omran is one construction company that has complied with safety regulations and, as a result, completed 3 million
man hours without LTIs during the development of the Asian Beach Games site in Oman. “We achieved this by implementing risk analysis for critical jobs, HSSE meetings and daily tool box talks,” explains Omran vice president for construction Nasser Al Maqbali. Arabian Construction Company (ACC) is also aiming to create a safe working environment during the development of what will be the tallest residential building in the world, The Princess Tower. “We train our workers by holding weekly tool box talks and make sure the appropriate equipment is used,” says ACC senior project manager, Bill Parker. This year, it seems that more contractors are taking into account safety regulations as the number of construction site fatalities has dropped by 55% since September 2008. And, the number of LTIs recorded from January to September has also dropped. But there is still a lot of room for improvement. “One accident is an accident too many and we need to capture more data from more main contractors operating in this region to measure more accurate industry trends,” adds McGrath.
EXAMPLE OF UNSAFE CONSTRUCTION PRACTICE.
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§ § § § DIRECTORY
DIRECTORY TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE
38 TENDERS 39 PROJECTS SPECIALIST SERVICES 40 Building materials 41 Construction chemicals/concrete 42 Education & training/flooring 43 Recruitment/steel CITY UPDATE 44 Doha, Qatar
To advertise please call Shishir Desai +971 4 435 6375, or email shishir.desai@itp.com
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
37
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
QATAR GENERAL ELECTRICITY AND WATER
To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com
Qatar General Electricity and Water (Kahramaa) is the sole transmission and distribution owner, and operator for the electricity and water sector in Qatar. It was established in July 2000 to regulate and maintain the supply of these utilities to its customers. Since its inception, Kahramaa has operated as an independent corporation on a commercial basis with a total capital of US $2 billion (QAR8 billion). The organisation is also the client for the Qatar Power Transmission System Expansion Project. Phase nine of this project is expected to start in Q4 of this year and the scope of work includes the construction of 22 substations and three underground stations; upgrade of eight existing substations; and the supply of 375km of cables at the 400KV, 220KV, 132KV and 66KV levels. The main construction contract award is yet to be announced.
BAHRAIN Issuer: Bahrain Electricity and Water Authority Tender No: 226/2009/5310 Description: Supply an underground 11KV power cable. Closes: September 30 Fees: BHD50 Bond: BHD5000 Contact: www.tenderboard.gov.bh Issuer: Central Stores Directorate Tender No: TC/NB/PT-2605/08/09 Description: Supplying spare parts for Al Door Substation. Closes: September 30 Fees: BHD15 Contact: www.tenderboard.gov.bh EGYPT Issuer: Potable Water and Sanitary Drainage Company Description: Companies specialised in waste water solutions to design lifting stations at villages within Kafr El Sheikh Governorate. Closes: October 7 Fees: EGP5000 Bond: EGP500,000 Contact: Potable Water and Sanitaty Drainage Company, opposite the court yards complex, Tanta OMAN Issuer: Oman Tourism Development Company Tender No: 249/2009 Description: Consultancy services for Oman convention centre. Closes: September 21 Fees: OMR1000 Contact: www.tenderboard.gov.om Issuer: Muscat Electricity Distribution Company Tender No: 250/2009 Description: Provide distribution Scada system for Muscat Electricity Distribution Company. Closes: September 21 Fees: OMR1500 Contact: www.tenderboard.gov.om
38
KAHRAMAA DISTRIBUTES AND TRANSMITS ELECTRICITY IN QATAR.
Issuer: Oman Tender Board Tender No: 262/2008 Description: Construction of new Salalah Airport. Closes: September 21 Fees: BHD1500 Contact: www.tenderboard.gov.om Issuer: Majan Electricity Company Tender No: 251/2009 Description: Construction of a new 2x10MVA 33/11KV substation in Tarrif Makhmra, Shinas province. Closes: September 21 Fees: OMR323 Contact: www.tenderboard.gov.om QATAR Issuer: Public Works Authority Tender No: PWA/GTC/048/07-08/R2 Description: Construction of a service building in Um Salal. Closes: September 29 Fees: QAR1000 Contact: Contracts department, Public Works Authority Issuer: Qatar Petroleum Tender No: GT09109900 Description: Irrigation, landscape maintenance and refurbishment works at Qatar Petroleum locations. Closes: October 4 Fees: QAR500 Contact: Qatar Petroleum, PO Box 3212
ONE TO WATCH Issuer: Qatar General Electricity and Water Description: Construction of 22 substations and three underground stations; upgrade of eight existing substations; and supply of 375km of cables at the 400KwV, 220KV, 132KV and 66KV levels. Award date: Unknown Project value: US $1.5 billion Contact: PO Box 41, Doha, State of Qatar
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
SAUDI ARABIA Issuer: Royal Commission for Jubail and Yanbu Tender No: PIC G-1589D Description: Construction of housing units for bachelor medical staff at Haii Al Nawa 3 at Yanbu Industrial City Closes: September 28 Fees: SAR1000 Contact: Director, Purchasing and Contracting Department, PO Box 30031, Yanbu Industrial City Issuer: Royal Commission for Jubail and Yanbu Tender No: 325-S13 Description: Operation and maintenance of infrastructure including roads, storm drainage, material handling facilities in Jubail Industrial City. Closes: October 12 Fees: SAR12,500 Contact: Contract section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City Issuer: Holy Makkah Municipality Tender No: 4/00/00/296/1/2/19 Description: Construction of pedestrian facilities in several areas of Makkah. Closes: October 24 Fees: SAR5000 Contact: www.holymakkah.gov.sa UAE Issuer: Dubai Electricity and Water Authority Tender No: CE/0239/2009 Description: The supply of 11KV power cables. Closes: September 24 Fees: AED5000 Contact: www.dewa.gov.ae Issuer: Dubai Electricity and Water Authority Tender No: CE/0408/2009 Description: Supply, installation, testing and commissioning of 132/11KV substations. Closes: September 24 Fees: AED5000 Contact: www.dewa.gov.ae
¦PROJECTS
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§ PROJECTS
A QATAR DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM
Project focus
LUSAIL DEVELOPMENT Construction on the US $5.5 billion (QAR20 billion) Lusail development began in the first quarter of 2006 and is expected to be completed by the beginning of 2018. Lusail is a new coastal city located in the north of the Qatari capital of Doha and will cover 35km² of land. The project will contain 18 different districts and will include a lagoon with two marinas, 25,000 residential units, retail areas, two golf courses, 22 schools, as well as a hospital and holiday resorts. Al Jaber Group was awarded the main construction contract for the infrastructure package in 2008 and is expected to complete the work by the second quarter of 2011. Parsons International Company is the project manager on the development.
CLIENT
CONSULTANT
MAIN CONTRACTOR
VALUE (US$MN)
STATUS
AL RAYYAN RESIDENTIAL TOWER
Sheikh Mishaal Bin Hamad al-Thani/Maryam
GHD Global
Al Darwish Engineering
59
project under construction
AL SADD OFFICE TOWER
Sheikha Nela Sadd M Al Misned
Cansult Maunsell
HBK Contracting
44
project under construction
AL ATTIYAH OFFICE BUILDING
Sons of Abdulla bin Hamed Al Attiyah
Arab Engineering Bureau
Construction & Reconstruction Company
27
project under construction
AL WAKRA HOSPITAL
Public Works Authority
GHD Global
Joannou & Paraskevaides Overseas
508
project under construction
AL REFAA RESIDENTIAL TOWER
Sheikh Mishaal bin Hamad Al Thani
GHD Global
Al Darwish Engineering
31 - 100
project under construction
MODEL SCHOOL AT NAJMA - SCHOOL NO: 23
Public Works Authority
In House
Inshaa Contracting Company
11
project under construction
4 SHOWROOMS ON SALWA ROAD
Nasser bin Khaled & Sons Group
Consulting Engineering Group
Imperial Trading & Contracting Company
36
project under construction
AL MAJID RESIDENTIAL TOWER
Ahmad Mahdi Ali Al Majid
Arab Engineering Bureau
Al Seal Contracting
57
project under construction
SIDRA MEDICAL & RESEARCH CENTRE
Qatar Foundation
Cesar Pelli & Associates/Ellerbe Becket
OHL/Contrack International
2400
project under construction
LIBRARY FOR QATAR UNIVERSITY
Qatar University
Arab Architects Group
Tadmur Contracting & Trading Establishment
69
project under construction
RESIDENTIAL BUILDING IN FOX HILLS
Buzwair Real Estate/QDREIC
Faim Design
Not Appointed
2.5 - 15
project under design
APARTMENT BUILDING AT AL SADD
Nasser Abdul Aziz Nasser Al Nasser
Consulting Engineering Group
Not Appointed
16 - 30
award awaited for the main contract
PALM TOWERS
Dar Investment & Development Company
MZ & Partners
Al Seal Contracting
218
project under construction
151 VILLAS IN AL RAYYAN
Sheikh Naser Faleh Al Thani
South West Architecture
Imperial Trading & Contracting Company
110
project under construction
BUZWAIR HEADQUARTERS BUILDING
Buzwair Real Estate
A4
Zublin International
13
project under construction
RESIDENTIAL TOWER IN PEARL QATAR - PARCEL 8A
The Land/UDC
Callison Architects/ KEO International
Al Arrab Contracting
31 - 100
project under construction
QATAR
To list your projects in this section email details to editor@ConstructionWeekOnline.com
PROJECT TITLE
THE NEW CITY OF LUSAIL WILL COVER AN AREA OF 35KM².
CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL SHISHIR.DESAI@ITP.COM
Supplier focus
AL WATANIYA CONCRETE MANUFACTURER OF CONCRETE
Al Wataniya, a concrete manufacturer, was established in May 2005 under the umbrella of Al Jaber Group, a major Middle East developer. The company is based in the west bay area of Doha, Qatar, but has seven branches distributed across cities in the GCC state including Ras Laffan, Mesaieed, Ras Abu Fontas and Al Khor. The company is currently working on increasing its production and reforming the company, but is waiting for its home-country to recover from the downturn. For now, Al Wataniya Concrete’s products are available locally, but the company is looking to expand into the UAE. Al Wataniya Concrete, which employs 700 staff, has tried to see the downturn as an oppor- AL WATANIYA CONCRETE HAS SEVEN BRANCHES DISTRIBUTED ACCROSS THE STATE OF QATAR. tunity to reform, reorganise and change strategy. In addition, the manufacturer has used a fabrication facility. Due to the high temperatures in the Gulf, this period to test new systems. which created the necessity of maintaining a moderate temperaAl Wataniya has its own precast production facility ture for concrete, Al Wataniya has partnered with international located in Mesaieed Industrial City, as well as several ready firms to create cooling systems to help prevent built structures mix concrete mixing plants, a cement grinding mill and from cracking and to preserve concrete quality.
To advertise please call +971 4 435 6375 or email shishir.desai@itp.com
SPECIALIST SERVICES §
¦SPECIALIST SERVICES
BUILDING MATERIALS
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CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
BUILDING MATERIALS
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CONCRETE
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CONSTRUCTION/MANUFACTURERS
CONSTRUCTION CHEMICALS
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DEWATERING
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To advertise please call +971 4 4 435 6375 or email shishir.desai@itp.com
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To advertise please call +971 4 435 6375 or email shishir.desai@itp.com
FLOORING
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CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
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To advertise please call +971 4 4 435 6375 or email shishir.desai@itp.com
SEPTEMBER 19โ 25, 2009 CONSTRUCTION WEEK
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CITY UPDATE DOHA, QATAR Opening the door LINKING TO THE REST OF THE WORLD IS INCREASINGLY A PRIORITY FOR DOHA, WITH LUCRATIVE INFRASTRUCTURE CONTRACTS DRAWING CONTRACTORS TO QATAR By James Boley
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CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
QATAR IS CONSTANTLY REINVESTING REVENUES FROM ITS OIL AND GAS SECTORS, BACK INTO THE ECONOMY.
THANOS LAZOPOULOS/ITP IMAGES
I
nfrastructure appears to be the name of the game in Doha. Still buoyed by considerable oil and gas revenues, the Qatari capital is increasingly looking at ways in which those revenues can be used for projects providing greater access to the rest of the world. One of the major projects scheduled to begin next year is the Qatar-Bahrain ‘Friendship’ causeway, designed to create a road link between the two nations, shaving off four hours’ travelling time and the need to pass through Saudi Arabia. The project, worth US $3 billion (AED11 billion), was supposed to begin in May 2008 but has been delayed. “Negotiations are still underway regarding the cost and are expected to be finalised by the end of the year, but initial estimates hover around the $3 billion mark. Bahrain and Qatar have already allocated a budget of $500 million to start the project,” said Bahrain’s Works Minister Fahmi Al Jowder. He said a detailed design of the causeway, which incorporates a 13m-wide railroad bridge, was currently being developed. Work will start on the motorway and then in 2012, work will begin on the railway bridge, with rail tracks being added later. The 40km-long causeway (22km bridge and 18km embankments) will be the world’s longest marine causeway when complete. It will connect the west coast of Qatar near the Zubara fort to the east coast of Bahrain, south of its capital Manama.
Moving in As Doha expands its links to the world, it also seems that the world is trying to move to Doha. Construction giant Carillion is looking to expand on the success it has had in the UAE, with a view to expand into Qatar during 2010. Meanwhile, Al Habtoor Leighton is increasingly expanding with Qatar, forming its second largest market. The company has just signed a $244 million water station deal and is chasing contracts worth a total of $3 billion. However, it’s local developers who are really making an impact. Barwa Real Estate has built Barwa Village, which has been designed to provide homes for those displaced by the Heart of Doha project. “It’s a big development that was valued at $412
THANOS LAZOPOULOS/ITP IMAGES
“IN QATAR THE QUALITY OF CONSTRUCTION IS GENERALLY MUCH BETTER THAN OTHER PLACES”
KHALID ABDULLA AL HITMI TALKS CONSTRUCTION.
million,” explains Barwa Village project manager Khalid Abdulla Al Hitmi. “It’s a mixed residential and commercial development and is like one of those gated communities you have in Dubai and other places in the Gulf. The project has all sorts of amenities including an international standard school, nursery, park, public plaza, playground, shopping centre, mosque, and administration building,” he continued. “The quality of construction is also very
DOHA’S BARWA VILLAGE IS A BIG DEVELOPMENT.
good, but then in Qatar the quality of the finish and construction is generally much better than other places,” he adds. Qatar-based construction company Marbu was the main contractor for the 400,000m² Barwa Village.
TOP PROJECTS New Doha International Airport Lusail Doha Metro Barwa City Doha Convention Centre and Tower
$11 billion $5.5 billion $3 billion $1.35 billion $1.5 billion
ConstructSAFE Construction Week and Build Safe UAE have come together to bring you an illustration to communicate health, safety and welfare risks to all construction stakeholders (especially the workforce) to prevent accidents on site. Exclusive to Construction Week.
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CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
> For the ConstructSafe comic strip log on to www.ConstructionWEEKonline.com
Introducing the Construct Safe lead characters (from Left to Right)
experience. Poor health, safety & welfare knowledge
Raoul: Senior Supervisor with 30 years experience and good health, safety & welfare knowledge
Farik: Apprentice labourer new to the industry with no experience. Poor health, safety & welfare knowledge
Achmat: Construction labourer with little
Illustrations by Jincom Publishing
If you have a health & safety or environment issue that you would like to see addressed through this comic strip email your ideas or comments to editor@ ConstructionWeekOnline.com. Alternatively, log onto www. ConstructionWeekOnline.com to see the comic strip.
SPONSORED BY: Kone solutions
SEPTEMBER 19–25, 2009 CONSTRUCTION WEEK
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DIALOGUE DAVE STOREY Climbing the ladder Dave Storey, director of international recruitment agency Michael Page explains how careers in construction are slowly becoming more accessible
By Sarah Blackman
There has been a drop in the number of available construction jobs since the downturn. Has this situation turned around in recent months?
It’s important to mention that the slow down is not consistent across all industries. Obviously the banking, construction and property specific markets have slowed down considerably since October 2008. However, the public infrastructure sectors have remained in line with the previous two to three year growth phase. Since June this year, we have seen more confidence in the construction market but less in property or real estate. The contracting market remains buoyant due to the fact that many projects are currently in completion stages. Resourcing for construction companies has been less this year, however, it is refreshing to see that companies are looking for either specialists in the market or executive construction completion experience, rather than having a quantity or volume driven focus. When do you predict the construction jobs market will pick up again?
The construction jobs market is slowly picking up again in Dubai and has remained solid in areas such as Abu Dhabi and Doha. With an increased level of confidence from our clients, and the costs of raw materials standing at a reasonable level, the market will, continue to improve and remain a key region to expand ones career. How significant is the difference between the number of people you placed into jobs this year compared to last year?
Definitely significant - like any business aligned to the markets, which have been affected, our business is based on executive demand from our clients. This demand has wavered lower than last year as per global market pressures. Fortunately, as a group, we have been partnering with our clients at a regional level not domestic level, and therefore our partnerships within the construction sector in these more remote, yet robust, markets have increased.
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What is your general opinion on the current state of the construction market - in terms of recruitment?
Michael Page construction and real estate business units have appointed more executives into roles across the region over the past three months than the first two quarters of 2009 and we expect this demand to continue. Personally, I believe we will only have a true indication on the construction marketplace in Q2 2010 as there are many projects coming offline on a mega scale. Therefore, it will be important to see what new projects come online. In addition, our clients are now more selective about the talent they attract, and the recruitment decision making process is more extensive than before (i.e. it is more in line with mature markets.) This ensures greater quality, process and retention strategies. In which areas of construction have you had the most success in having people placed in jobs?
We have a significant executive global talent reach across the infrastructure and public sector markets and this has been a core focus in the GCC marketplace. Currently, projects aligned to highways, roads, bridges, tunnels and utility sectors are experiencing considerable growth. Other niche sectors in construction, which have required strong international understanding, are airports and port works across the GCC. How have the requirements of construction employers changed since the downturn?
Dave Storey is the director at Michael Page International for the Middle East and has been based in the region for two years. Michael Page International has offices in Dubai, and Abu Dhabi servicing the GCC market across professional middle management to senior executive employment. From a recruitment perspective, Storey partners closely with his clients assisting them in executive recruitment of chief level and general management level appointments, primarily within the property and construction sector in the GCC market.
CONSTRUCTION WEEK SEPTEMBER 19–25, 2009
Specialist expertise coupled with an understanding of the local GCC market is highly important now for employers. They are also critically assessing the achievements of candidates, prior to offering them a position. For example, employers question whether an employee has completed a construction project successfully; if they have worked globally and coupled this experience in the local marketplace; if they have experience working in a multicultural environment; and if they are looking solely for a salary rise or if they are joining due to the vision of the firm, challenge and diversity of the projects.
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