SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
Construction An ITP Business Publication
Licensed by Dubai Media City
WEEK
CONSTRUCTIONWEEKONLINE.COM
MAR 27–APR 2, 2010 [314]
NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST
DOFHOCAUS
CITYpage 44
INSIDE NEWS
German firm Hochtief wins US $114 million Bahrain contract PAGE 11
COMMENT
David Lee asks if it is time to include MEP in the design g stage? g PAGE E 17
LEGAL ANALYSIS Industry experts feel the GCC needs more mediation forums PAGE 18
EPORT SPECIAL R
INSULATION
CW looks at insulation options that best suit local conditions PAGE 30
E AN - TH D Y ST E E M SITS F THE RICH CW VIO ME O HE WORLD T N EW H R AC E I N
CONTENTS MARCH 27-APRIL 2, 2010 | ISSUE 314 2
FEATURES
17
21 MEYDAN CITY The Meydan Racecourse is now up and ready to go, in time for the eagerly awaited Dubai World Cup to be held this week. CW looks at how it got to where it is today.
21
11
18
30 30 SPECIAL REPORT CW examines the different types of insulation materials available
REGULARS 2 ONLINE 4 MAIL
DIRECTORY .
38 SHOWCASE 40 TENDERS
FRONT 11 GERMAN HOCHTIEF TO SET UP JV Hochtief has formed a US $114.8 million joint venture BAC to provide facility management services for the Bahrain International Airport.
13 EMAAR’S 29 BURJ BOULEVARD TO SEE 2 YEAR DELAY The Dubai-based developer has pegged February 2012 as the new completion date for 29 Burj Boulevard.
BACK
14 NEWS IN BRIEF
44 CITY UPDATE
Highlights of the week.
The latest updates from Doha.
17 COMMENT David Lee looks at the long-term cost of variations in MEP contracts and searches for alternatives.
46 CONSTRUCT SAFE The industry’s very own comic strip on health and safety best practices.
18 NEWS ANALYSIS
48 DIALOGUE
With disputes on the rise, is it time to establish more mediation forums in the region?
Hazem Ashry explains what Egypt can expect from the construction industry this year.
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
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ONLINE
www.ConstructionWEEKonline.com MOST POPULAR
SIX OF THE BEST: TOP GCC EDUCATION PROJECTS AL HABTOOR-SPECON WINS AED320MN MEP CONTRACT AED3BN MIRDIF CITY CENTRE OPENS ON TIME EMAAR’S 29 BURJ BLVD PROJECT DELAYED TWO YEARS
HAVE YOUR SAY DUBAI WORLD RESTRUCTURE
What do you think is going to be the outcome?
JOBS OF THE WEEK Technical assistant, Dubai, UAE Site support technician, Abu Dhabi, UAE Customer services co-ordinators, Dubai
IN PICTURES: OCEAN HEIGHTS In August 2007 – two months after the US $175.6 million (AED645 million) main contract was awarded to Arabtec – construction of the Ocean Heights tower began. And using the design plans from Hong Kong-based architectural design firm Aedas, and expert advice from Meinhardt, a structural consultant from Singapore, the main contractor has created a distinctive silhouette. To read more visit www.ConstructionWeekOnline.com
FEATURES
ONLINE POLL WHAT’S YOUR BIGGEST HEADACHE RIGHT NOW?
42.3% 30.8% 26.9% 0.0% Finding work right now
Getting the money we’re owed
Construction
Design
SIX PROJECTS THAT DIDN’T MAKE IT A look at some big regional projects that remain on the drawing board
VINTAGE CZECH The Augustine covers seven historic buildings in the heart of Prague
Dialogue
How to
CAIRO FESTIVAL CITY CW gets an update on Cairo Festival City
HOLISTIC ENERGY MANAGEMENT How to spend less on artificial lighting
Unhappy workers
Materials procurement
TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com
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CONSTRUCTION WEEK MARCH 27-APRIL 2, 2010
WORLD PIONEERS
AED 3 BILLION MIRDIF CITY CENTRE OPENS I would honestly say that Mirdif City Centre is not worthy of being LEED certified because there is so much unnecessary lighting installed in the huge car park, which will lead to an enormous waste of power. Come on LEED consultants, wake up and suggest some concrete measures, so such instances can be avoided in new real estate developments. CLARENCE LEWIS
SAFETY CARTOON: WORKING AT HEIGHT
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The working at height cartoon is fantastic. The picture alone gives across the desired message. Construction companies should print this out and put it on their notice boards. RAJESH PETER GAJ GROWS REGIONAL DESIGN TEAM Congratulations to Brian Jonson and the team, I had the pleasure of working with the team back in 1994. GAJ has always been at the forefront with their design and use of the most advanced construction technology. RAY RADOVIC
BUILD SAFE REACTS TO FATALITY Inspection of safety procedures by relevant authorities must be conducted at intervals and heavy penalties levied on companies for noncompliance. Peoples’ lives cannot be played with for the sake of saving a few dirhams. MOLLY SEBASTIAN
SCOTT WILSON WINS MAKKAH-MADINAH RAIL CONTRACT It is good news that this major rail project is now going ahead. However, I would like to point out the risk of derailment if a high speed train should run into a section of the track, which has been drifted over after a sandstorm. This commonly happens to the roads in the Eastern Region. It is difficult to see how such a condition could be monitored without an aerial survey after each sandstorm. TONY MARSHALLSAY
KSA TO LAUNCH AIRPORT TENDERS Finally. Jeddah is an old airport and need some TLC; it is, after all, a gateway to one of the biggest cities in the GCC. I am also pleased that the government is planning to build an airport in Madinah. LAURENCE
DUBAI WORLD RESTRUCTURE We are expecting that Dubai World will control its debts: the Gulf economy can look forward to a bright future. SALEEM NOOR Dubai will not recover by 2011. It is still thinking about how it will pay off its debts. New construction projects will probably start in 2012. VICKY ROY I am positive that Dubai World can handle its debts, especially now that the economy of Dubai is slowly recovering. JESSICA SY
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.
w w w. z a m i l s t e e l . c o m 4
CONSTRUCTION WEEK MARCH 27– APRIL 2, 2010
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CONSTRUCTION WEEK MARCH 27– APRIL 2, 2010
PUBLISHED BY AND © 2010 ITP BUSINESS PUBLISHING, A DIVISION OF THE ITP PUBLISHING GROUP LTD, REGISTERED IN THE BRITISH VIRGIN ISLANDS COMPANY NUMBER 1402846
FOREWORD THE RICHEST RACE IN THE WORLD!
“THE RACE TRACK COMPLEX CONTAINS TWO TRACKS WITH SEATING FOR UP TO 20,000 AND A TOTAL CAPACITY OF 60,000, A HOTEL, A VARIETY OF RESTAURANTS, A THEATRE AND A MUSEUM.”
By the time you read this, the Dubai World Cup will probably already be over and done with. The ‘Dubai races’ as it is popularly known has a prize of US $10 million attached to it, making it the richest race in the world and of course, the most sought after competition in racing. But, besides the value of the award, the magnificence of the Meydan racecourse is what will remain with you for a long time to come. Besides the magnificent structure of the grandstand, with its crescentshaped roof and the sky bubble lounge on top, what the real race enthusiasts (not the Irish Village variety) will appreciate, is the massive 200m straight, which no other racecourse in the world can claim to have - pure luxury! The race track complex contains two tracks with seating for up to 20,000 and a total capacity of 60,000, a hotel, a variety of restaurants, a theatre and a museum. In a special report on page 21 in this issue, you will find some interesting facts about Meydan City – the grandstand and the racecourse are just a part of this larger development – which will give you a better idea of the scale of the entire project. Construction Week visited the site as it was being constructed to meet the March 27 deadline for the races and spoke to some of the top people working on the project. As the world worries over the state of Dubai and its future, the Dubai World Cup brings back all the glamour for which Dubai has been infamously famous for all these years. Amid all the doom and gloom that is hanging over us in these times, the races come like a breath of fresh air and give us a little something positive to look forward to.
CONRAD EGBERT EDITOR conrad.egbert@itp.com
WRITE TO THE EDITOR Please address your letters to: Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest articles.
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CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
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FRONT
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>Highlights
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>Comment
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>Legal Analysis
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>Special Report: Meydan
21
BAHRAIN AIRPORT COMPANY AND HOCHTIEF HAVE PARTNERED UP FOR THE FACILITIES MANAGEMENT OF BAHRAIN AIRPORT.
GERMAN HOCHTIEF TO SET UP JV WITH BAHRAIN AIRPORT COMPANY By Conrad Egbert
German construction group Hochtief has formed a US $114.8 million joint venture with Bahrain Airport Company (BAC) to provide facility management services for the Bahrain International Airport. The new entity, named Hochtief Facility Management Bahrain Airport WLL, will offer technical and infrastructure services for all properties located within the airport, Hochtief said in a statement. The German firm will initially employ around 170 people, who will be involved in the operation of all technical systems and the airport infrastructure. The contract will run for six years with a performancebased option to extend it for a further five years. At present Bahrain International Airport spans almost 70,000m2, on which there are various buildings such as the terminal,
aircraft hangars, cargo halls, administrative buildings and a ďŹ re station. In future Hochtief facility management will provide technical and infrastructure services for all of these properties and the airport grounds. For example, the service provider will be taking responsibility for building management systems, passenger bridges and cleaning, and will also deal with the sensitive infrastructure of the apron area and the runways. Bahrain International Airport handles around eight million passengers per year. A new terminal, due for completion by 2015, will increase capacity to 15 million passengers. Overall, a total of $4.7 billion will be spent on upgrading the airport. Hochtief facility management is contributing its lengthy
experience in the area of airport management, including Athens Airport. The company will also be supported by the group subsidiary Hochtief AirPort, which has holdings in a total of six airports around the world and possesses the corresponding expertise. The contract marks a further internationalization of Hochtief’s service business.
VALUE OF CONTRACT WON BY HOCHTIEF FACILITY MANAGEMENT BAHRAIN AIRPORT
MARCH 27-APRIL 2, 2010 CONSTRUCTION WEEK
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FRONT EMAAR’S 29 BURJ BOULEVARD EXPECTED TO SUFFER TWO YEAR DELAY
HILL BAGS US $11MN AL KHAFJI CONTRACT
By Conrad Egbert Last week, Emaar announced that the two apartment towers at its 29 Burj Dubai Boulevard project will suffer a two year delay due to renegotiations. According to a report by newswire Bloomberg, the Dubai-based developer sent out letters to investors and buyers informing them of the delay, while pegging February 2012 as the new completion date. In a statement emailed to Construction Week last Monday, Emaar Properties said the project was “in varying stages of development from initial start-up phase to handover.” The company also said that it was “currently negotiating with the contractors to achieve reductions in construction costs, which are being adjusted in the pricing of some projects. “Customers have been informed of these negotiations. Additionally, we are working with them on an individual basis, offering them flexible payment solutions.”
The 29 Burj Dubai Boulevard includes two 45-storey buildings, designed by New York-based Frank Williams and Partners Architects, which feature separate, spacious double height lobby entrances for both towers. Emaar is the developer of Downtown Burj Dubai, the master development which includes the 29 Burj Dubai Boulevard project.
2012
THE NEW COMPLETION DATE FOR THE 29 BURJ DUBAI BLVD
Project management firm Hill International has received a contract to provide construction management services to Al Khafji Joint Operations, a joint venture of Kuwait Gulf Oil Company and Saudi Aramco, according to a statement. The three-year contract has an estimated value of approximately $11 million. The project Hill will be managing includes the construction of senior and junior bachelors’ quarters for over 250 residents, a warehouse complex consisting of 15 separate buildings, an aviation control building and five schools. The project is in Al Khafji, which is located on the Kuwait/ Saudi border.
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FRONT HIGHLIGHTS Technology
HYDER CONSULTING OPTS FOR TEKLA Hyder Consulting has installed Tekla’s BIM Solution to help it develop and manage future projects. According to Tekla product manager Reza Mashayekhi, BIM can help companies reduce project costs. “Hyder Consulting is involved in the creation of many iconic projects across the region and the need for a comprehensive 3D modeling software is paramount for ultimate project success,” said Jonathan Huang, principal structural engineer in Hyder Consulting. Business
DEPA BUYS OUT MARBLE PRODUCER CARRARA Fit-out firm Depa, which carried out interior work on the Burj Khalifa, has wholly acquired a local marble contracting firm Carrara Middle East Industrial. A company spokesperson told Arabian Business that the value of the deal was not being
NEWS IN NUMBERS
US $816.76 million, 196,000m2 The US $816.76 million, 196,000m2 Mirdif City Centre has been delivered on time, with 85% of its 430 retail outlets opening on the same day 14
disclosed. Founded over 30 years ago, Carrara has more than 1000 employees and posted revenues of US $41 million in 2009. The firm’s operations also include three facilities in the UAE. Projects
RTA OPENS AED1 BILLION MEYDAN ROADS Dubai’s Roads and Transport Authority (RTA) and Meydan City Corporation opened bridges and roads leading to Meydan Racecourse at Nad El Sheba last week. The US $272.28 million (AED1 billion) Meydan Roads and Bridges project comprises bridges extending 2025m, including two 710m-long bridges and another private bridge for VIP use providing direct access to Meydan Grandstand. “The project is one of the key developments undertaken by the RTA and its importance is underlined by the massive nature of Meydan project, which spans an area of 67 million square feet,” said Mattar Al Tayer.
US $87 million Al Habtoor-Specon has secured an US $87 million contracts to provide MEP works for the Khalifa Port
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
Contracts
SCTA AWARDS MUSEUM CONTRACTS The Saudi Commission for Tourism and Antiquities (SCTA) has signed contracts worth around US $38 million (SR145 million) for the construction of four new provincial museums in Baha, Tabuk, Hail, and Dammam, according to reports. The four museums are scheduled to be built over a period of two years. In a statement, Prince Sultan bin Salman bin Abdul Aziz, president of SCTA president Prince Sultan bin Salman bin Abdul Aziz, said that SCTA was also carrying out a development and rehabilitation programme at all national museums in the Kingdom. Design
GAJ GROWS REGIONAL DESIGN TEAM Godwin Austen Johnson (GAJ) has added 10 architects and interior designers to support its operation in the Middle East. This follows a
run of wins in Tunisia and Libya plus the awarding of additional contracts on Sharm Al Sheikh City Stars, a 15-year multi-use development in Egypt. “The MENA region appears to have weathered the economic storm that we have seen globally over the past two years better than most. The countries that make up the region are still developing many aspects of their economies and the projects that we are undertaking there are reflections of this,” said GAJ principal Brian Johnson. Projects
SHUAA SAUDI TO START WORK ON JEDDAH HOTEL Shuaa Capital Saudi Arabia will soon start work on an US $133.3 million (SR500 million) hotel following the purchase of a plot on Jeddah’s seaside corniche. The site will house a 35-storey, 140 metre-tall tower. The land was acquired by the Shuaa Saudi Hospitality Fund I, a private investment fund with a target size of $533.29 million.
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COMMENT > For the latest news and comments log on to www.ConstructionWEEKonline.com/comment
MEP design at tender stage time for a change? DAVID LEE LOOKS AT THE LONG-TERM COST OF VARIATIONS IN MEP CONTRACTS AND SEARCHES FOR ALTERNATIVES THAT WOULD BE BETTER FOR THE FINANCES OF THE CLIENT
Have you ever seen working drawings for structural concrete, or for the finishings? No? Why is it then, that under a ‘fully designed’ contract, the MEP subcontractor has to produce a new set of drawings for approval, before he can start installation? Here is another question. Why does virtually every specification document sent out to tender for the MEP works have a clause in it which says: ‘if there is a discrepancy between any or all of the documents, you are deemed to have allowed for putting it right, at no cost to the client’. Keep in mind that the designer has had two years to design the works and the tenderer has maybe eight weeks to find these discrepancies, notify the client’s team and price them. MEP is approximately 30% of the cost of the average construction contract. To allow this major, and arguably, most important, package of works to proceed without full design, is a great financial risk. An analysis of the final accounts on eight construction contracts completed in Abu Dhabi showed that on average the MEP was responsible for over 50% of the total cost increase attributed to variations. Most MEP contracts have a degree of ‘design completion’ inherent in them. But why? It just seems to be accepted practice in the industry for this to happen. At tender stage, the extent of the design completion is not defined and so becomes a major area for dispute. When the MEP contractor asks for a variation, the debate begins as to whether it should have been allowed for in the tender. The usual comment is that it is at the contractors’ risk. But why? The one actually taking the risk, and paying for it, is the client. All manner of arguments can be advanced as to why the design cannot be completed prior to tender, the usual ones include; differing possible choice of equipment suppliers,
inability to coordinate with the structure and allowing the contractor freedom to install in the manner he sees best. Surely there should be a complete, workable, functioning, co-ordinated design, that is fit for competitive tender? That being so, the client team could easily evaluate the documents without the extended period, carry out post-tender discussions and incorporate those suggestions that the tenderer has proposed. Further sets of drawings are then issued almost as soon as a contract price has been agreed, under the guise of ‘construction issue’. These become yet another fertile ground for dispute, disagreement and variation. Surely the design should have been ‘ready for construction’ before being sent for tender? The counter argument could be that the client is not prepared to pay for a complete design, and anyway, the fees are insufficient to allow the designer to undertake a full design. The client eventually ends up paying for the contractor to complete the design via an enhanced tender price, so why not pay the consultant? A further complication arises when the client puts pressure on the design team to distribute the documents by a certain date. Why not take a little longer with the documents and have them at a stage where queries are minimised? Whatever the answer, the fact remains that going out for prices with an incomplete MEP design will cost the client more in the long run. In order to minimise the risks of time and cost overruns, it is suggested that the following be implemented: undertake an MEP risk assessment at tender stage; check for completeness of design; allow adequate time for tendering; and ensure that documents are current and reflect the design intent.
“MEP IS APPROXIMATELY 30% OF THE COST OF THE AVERAGE CONSTRUCTION CONTRACT. TO ALLOW THIS MAJOR, AND ARGUABLY, MOST IMPORTANT, PACKAGE OF WORKS TO PROCEED WITHOUT FULL DESIGN, IS A GREAT FINANCIAL RISK.”
David Lee is a senior consultant for Hill International in Abu Dhabi. He is has involved himself in the project management and engineering of MEP services. Experienced in most major forms of contract, including all of the Fidic versions, he has worked across all sectors of the industry including airports, railways, infrastructure, and all types of buildings and construction. Currently David is working on a range of projects including a new international airport in Yemen and a power station in Saudi Arabia.
The opinions expressed in this column are of the author and not of the publisher.
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
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ANALYSIS Does the region need more mediation forums? WITH DISPUTES ON THE RISE, IS IT TIME TO ESTABLISH MORE MEDIATION FORUMS IN THE REGION? CW TALKS TO VARIOUS INDUSTRY EXPERTS TO FIND OUT HOW THEY’RE DEALING WITH THE SITUATION AND WHAT ELSE IS AVAILABLE BEFORE OPTING FOR COSTLY COURT HEARINGS. By Candice Mcgillivray
A
s the level of construction related disputes in the region continues to rise, contractors and developers should consider using mediation forums to resolve disputes before raising costly court or arbitration proceedings. While there is currently no official mediation centre for construction related disputes in the UAE, parties may nevertheless opt to fly qualified mediators into the country from other jurisdictions such as the UK. Mediation can provide more commercially flexible solutions than binding court judgments or arbitration awards. Furthermore, fees for the service are significantly lower than the sums at stake should the dispute be referred to formal litigation or arbitration proceedings. “The pool of local mediators with good
18
experience of large scale construction disputes is currently small, so one option is to bring in mediators from abroad, probably from the UK. This is not a cheap option, but where substantial sums are at stake, the cost of a mediator is not significant”, says Stephen York, Head of Dispute Resolution at Lovells, Middle East.
“FACILITATION CAN ASSIST PARTIES REACH AGREEMENT ON NEGOTIATIONS MORE QUICKLY THAN THEY MAY DO SO BY USING LAWYERS.” York would support the introduction of an official mediation centre in Dubai for construction related disputes. A law implementing an “Amicable Disputes Settlement Centre” in Dubai for property disputes has already been passed, however so far there
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
are no indications of a similar centre being set up for construction related disputes. Stephen Oehme, of Hyder Consulting, agrees that a mediation centre specialising in construction disputes could be extremely valuable to the region. “The mediation route has been introduced in many places in the world and is sometimes a very beneficial tool”, he says. “Construction is so involved and so difficult compared to many other commercial issues and this adds to the time and expense of litigation.” Oehme also believes that due to the technical nature of construction cases, specialised mediators may have a better understanding of the issues involved than judges or arbitrators. A clear understanding of the technical issues will, in turn, facilitate achieving a fairer resolution for all parties. “Sometimes, especially in construction cases, the issues can be very technical and
> For the latest analysis log on to www.ConstructionWEEKonline.com
FACILITATION FACTS Facilitation is where an independent third party helps parties ďŹ nd a solution to a problem by assisting negotiations. It is similar to mediation, but where there is no dispute. 1. Facilitation may assist parties to renegotiate construction contracts by “smoothingâ€? negotiations 2. It may help avoid a “stalemateâ€? situation 3. Facilitators may help parties renegotiate contracts more quickly than by using lawyers STEPHEN OEHME: MEDIATION IS SOMETIMES A VERY BENEFICIAL TOOL..
clarity is obscured by lack of expertise. In these circumstances mediation can provide a far better solution for both sides.� The rising level of construction disputes in the region is mainly attributable to late payment by developers to contractors. Loss of revenue in the off-plan sale market has left many developers unable to meet payment deadlines specified in construction contracts. “The employer has a commercial problem, so the contractor in turn has a commercial problem�, says York. In order to avoid the need for costly litigation or arbitration, some companies are choosing to renegotiate their contract terms with employers. “The market needs to adjust to the situation we are in�, says Riad Kamal, CEO of Arabtec. “Whenever circumstances change, contracts are open to being discussed, whether on a downturn or an upturn.� However, Marwan Awad, legal counsel of Reem Investments, believes that renegotiation should only be considered if it is
CJM
CJMASSET MANAGEMENT
necessary for a project to move forward. “The relationship between a developer and contractor (and the project consultants), as well as between a contractor and its sub-contractors, is obviously key to the successful execution of a project. If the renegotiation leads to a one-sided contract or if the contract was one-sided
“WHENEVER CIRCUMSTANCES CHANGE, CONTRACTS ARE OPEN TO BEING DISCUSSED, WHETHER ON A DOWNTURN OR AN UPTURN.� prior to renegotiation, then the project is most likely to face delays which will give rise to possible claims and cost overruns. My view is that the question that both a developer and contractor need to answer at the outset is whether renegotiation is necessary to bring about a successful execution of the project.� Contract renegotiation may be a good means
of avoiding the need for formal proceedings down the line; but renegotiations are often lengthy and may end in a stalemate. York recommends that parties consider using facilitators to assist in achieving a successful commercial outcome. A facilitator is an independent third party such as a lawyer or engineer that helps smooth negotiations. It is a similar process to mediation, but where there is no dispute. “Facilitation can assist parties reach agreement on negotiations more quickly than they may do so by using lawyersâ€?, he says. Where contract renegotiation is not an option, contractors may be forced to raise ofďŹ cial proceedings in the event of nonpayment by a developer. In York’s experience most construction related disputes currently go to arbitration under the rules of the Dubai International Arbitration Centre (DIAC). However, due in part to the huge inux of cases DIAC received last year, he believes that parties may increasingly contract for arbitration under the rules of the DIFC-LCIA Arbitration Centre.
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CONSTRUCTION WEEK
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ANALYSIS “The DIFC-LCIA arbitration centre is relatively new, and so has not been swamped by cases in the last year; that means its administration will be quicker. Second, DIFCLCIA arbitration is supervised by the DIFC Court where the judges are experienced in construction contracts.” While arbitration is generally perceived as being more expensive and lengthy than court proceedings, York says that when you consider the appeal process in litigation, this may not always be the case. “You have to look at the lifecycle of the case, and for court cases this means taking into account the appeal process.” For international companies it is preferable to contract for arbitration proceedings since it enables parties to choose the law governing their contractual relationship. “English law can be chosen, for example, and that entails all the case law and experience reflected in English Law,” says York. “In short, parties will know the rules on which to conduct their contract. English law is not perfect, but at least it’s more familiar to construction people.” Irrespective of the ultimate dispute forum parties have contracted for, York would advise a contractor to follow the operation of contractual provisions when faced with a potential dispute. For example, if a
DIAC VS DIFC-LCIA ARBITRATION CENTRE Most construction disputes currently go to arbitration under the rules of the Dubai International Arbitration Centre (DIAC), but contractors may increasingly choose the rules of the DIFC-LCIA Arbitration Centre. 1. The DIFC-LCIA Arbitration Centre may handle cases more efficiently than DIAC due to lower volume of case-load 2. The DIFC-LCIA Arbitration Centre is supervised by the DIFC Court where judges are experienced in construction disputes 3. The DIFC-LCIA Arbitration Centre rules are based on the LCIA rules used in international disputes for many years, and may be more familiar to international companies
“IN SHORT, PARTIES WILL KNOW THE RULES ON WHICH TO CONDUCT THEIR CONTRACT. ” RIAD KAMAL, CEO OF ARABTEC, BELIEVES THE MARKET MUST ADJUST TO THE SITUATION.
contractor stops work in response to failure by a developer to make payment, the developer would be entitled to terminate the contract and employ another contractor a later date. By doing this, the contractor would effectively be playing into the developer’s hands. “If they stop work it may make commercial sense for the developer to repudiate the contract and employ another contractor later,” says York. “The developer is then already up, say 20%, on construction progress,” he says. York anticipates that the number of construction disputes in the region will continue to rise in the meantime, albeit at a steadier rate than the increase we saw last year. However, on a positive note, he believes that these litigious times will ultimately lead to improved contractual provisions and a more cautious and controlled approach to 20
ARBITRATION VS LITIGATION Arbitration is a form of alternative dispute resolution where disputing parties appoint arbitrators to decide on a dispute, and agree to be bound by the arbitrators’ decision. 1. Most construction related disputes in the UAE go to arbitration rather than litigation 2. Arbitration allows parties to choose which law governs their contractual relationship unlike litigation 3. Arbitration applies more internationally compatible standards than local courts 4. Arbitration is often perceived to more expensive and lengthy than court litigation
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
business by developers and contractors. “[Contracts will be] more detailed, using international forms and familiar laws (English for example)”, he says. York also believes that we may start to see the introduction of more mediation forums in the region, such as facilitation and adjudication. It would appear then, despite the rise in litigation the regional construction industry has experienced in the last year, the outlook for the future is positive. Improved contracts and implementation of mediation forums in the region should lead to more efficient resolutions of construction disputes and, ultimately, a more mature contractual environment going forward.
The opinions expressed in this column are of the author and not of the publisher.
MEY HE NEWA T F O T B E EN ELOPM D AL SH HE DEVIN DUBAI’S NA T T A S K E CW LOO RACECOURS
DAN
MARCH 20-26, 2010 CONSTRUCTION WEEK
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CONSTRUCTION WEEK MARCH 27–APRIL 2, 02,2010 2010
M E Y DA N – T H E R AC I N G W O R L D ’S ‘ M E E T I N G P L AC E ’ DUBAI WILL BE THROWN BACK INTO THE LIMELIGHT WHERE IT HAS BEEN FOR THE PAST FEW YEARS, WHEN THE US $10 MILLION DUBAI WORLD CUP KICKS OFF THIS WEEK AT THE NEW MEYDAN RACECOURSE IN NAD EL SHEBA. By CW Staff
D
espite the global financial crisis that was followed by one of the worst economic downturns, Dubai has managed to complete the construction of its grandstand and racetrack at Meydan City in time for the 2010 Dubai World Cup. The launches of high profile projects such as the Burj Khalifa and the Dubai Metro overshadowed Meydan a little, but no more, as it becomes the new home of the world’s most expen-
sive horse race. “Meydan is the Arabic word for ‘meeting place’. Meydan is going to be the newest and most important integrated business and lifestyle destination for the UAE and for the world,” explains Meydan commercial director Mohammed Abdul Nasser Al Khayat. The enormous 18.6 million m² project consists of four separate areas including the development’s central feature the Racecourse with Meydan Hotel, Meydan Horizons, Godolphin Park and Meydan Metropolis. The 1.4 million m2 Horizons development will be a new business and residential centre containing its own marina with inter-woven bicycle paths, canals and pedestrian promenades. The iconic structures in the area will include the sail-shaped Meydan Gateway Towers and the Horseshoe Plaza. Metropolis, on the other hand takes its design inspiration from earth and metal and their associated values of strength energy and determination. Meydan hopes Metropolis will be “the undisputed choice for companies who really mean business.”
MARCH MARCH27–APRIL 27–APRIL02, 2, 2010 CONSTRUCTION WEEK
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BUILDING THE TRACKS
THE GIANT CANTILEVERED CRESCENT ROOF IS NOW COMPLETE AND CAN HOLD MAXIMUM 60,000 PEOPLE.
The final and most outstanding section is Godolphin Parks which will contain a 40 storey tower featuring a horse image cut through its façade. The tower will be for commercial and retail use including the Signature Mall, a 1.4km structure.
THE GRANDSTAND “The grandstand is the longest and largest in the world with a span of 1.6kms or the length of 22 Boeing 747 planes,” explains Khayat. Meydan’s head of projects, Douglas Small revealed that between 2600 and 5000 construction workers were onsite at any time during the building process; meanwhile, at the height of construction, there were eighteen cranes also onsite. Measuring almost 1.6kms across and boasting a built area of
306,580m2, the grandstand has seating for 20,000 spectators, although its total actual capacity lies closer to 60,000. Meydan officials are expecting to see around 300,000 race fans at the grandstand this Saturday. The grandstand consists of several sections and lying at one end of the complex and taking up a third of it is the five-star ‘The Meydan’ hotel. The rooms are all fully integrated and 95% of them overlook the course itself. At the other extreme of the grandstand is a marina which, through the construction of a canal network, joins up to Dubai Creek, providing boat owners with a convenient place to stop during race days. Designed by Malaysian outfit TAK – the master planner behind the Palm Deira – which has also served as the project management firm for the first phase of Meydan City, the grandstand’s most impressive point, however, is at its centre where the seating, restaurants,
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THE NUMBER OF TENNIS COURTS THAT CAN BE FIT ONTO THE VAST CRESCENTSHAPED ROOF OF THE GRANDSTAND. MEYDAN CHAIRMAN SAEED AL TAYER.
Meydan now boasts two new racetracks, a 2400m turf track and a 1750m all-weather track – replacing the previous dirt track – as well as high quality turf and all-weather training tracks. The turf track consists of Bermuda grass (over-sown with rye) on top of two layers of sweet soil root zone, a red sand tapered drainage layer and a bed on natural subgrade soil. The all-weather track is based on a dedicated system called Tapeta. “The Tapeta surface has proven to be a safe and reliable, and has shown outstanding durability in this climate, says Dubai Racing Club’s Frank Gabriel Jr. “It provides drainage and great cushioning for horses, aiding their longevity. The top layer is made from a mix of fibre, rubber, sand and wax.”
THE MEYDAN HOTEL OVERLOOKS THE RACECOURSE.
bars and VIP/corporate suites are topped by a cantilevered crescent roof that runs 426m in length and spans 56m across. “On the upper side of the roof, there are 4840 solar panels generating a 750KW output,” explains marketing and communications manager William Oburu. “The solar panel surface area measures 5852m2 and the underside is made from titanium. It took 9000 tonnes of steel, in total, to create.” The crescent roof was topped off in April last year, less than two years after ground was broken on the grandstand.
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
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SKY BUBBLE LOUNGE Sitting snuggly under the crescent roof is the grandstand’s piece de resistance – the rooftop bubble lounge or ‘the sky bubble’ as Meydan is calling it, which was a late addition to the original design concept. With the capacity to hold more than 4500 people, the glass pod has 360 degree views back over Sheikh Zayed Road as well as, of course, the racecourse. It also offers great views over Meydan’s other ingenious and, in many cases, unique features, such as the world’s largest LED screen which runs almost 110m along the track in front of the grandstand and has a screen area of 1213m2. You can also glimpse the elaborate network of tunnels – totaling more than 2km in length – that guide horses, trainers and jockeys quickly around the facilities. Then there is the Imax theatre that seats 585 viewers. “The grandstand development has a value of around $1.25 billion,” claims Meydan chairman Saeed Al Tayer. “But the net value including the Falcon Car Park, training facilities and infrastructure will be about $2.7 billion. It’s a very detailed project.”
rubber, sand and wax. “What’s extremely exciting is that the Dubai World Cup and Sheema Classic can now start and end right in front of the grandstand.”
THE CAR PARK The Falcon Car Park structure holds bays for 8622 cars and is so named because, “the design as you approach the track is of a falcon and is the most challenging architectural feat to date, especially considering the whole project was completed within 24 months,” explains TAK managing director Teo A Khing. While Meydan may be a good news story at a time when Dubai really needs one, the Meydan chairman insists that it will be far from the last of the emirate’s successes. “Sheikh Mohammed Bin Rashid Al Mak-
THE RACETRACK “A lot of work has gone into the racecourse,” said Dubai Racing Club CEO Frank Gabriel Jr. “Meydan now has a 2400m turf track and 1750 all-weather track created by specialists Tapeta Footings. The drainage is superb, it provides a great cushion for the horses with several layers and is topped by a layer of fibre,
AROUND 300,000 FANS ARE EXPECTED TO SHOW UP.
toum and the Dubai government granted us the land for this landmark building and its associated projects and they have therefore been extremely helpful and supportive throughout,” continued Saeed Al Tayer. “The economy is difficult for the world, not only Dubai. It’s a challenge for everyone else too. We’re dealing with it,” he adds.
“THE GRANDSTAND IS THE LONGEST AND LARGEST IN THE WORLD WITH A SPAN OF 1.6KMS”
INFRASTRUCTURE Last week, Dubai’s Roads and Transport Authority (RTA) and Meydan City Corporation opened bridges and roads leading to Meydan. The $272.28 million Meydan Roads and Bridges project comprises bridges extending 2025m, including two 710m-long bridges and another private bridge for VIP use providing direct access to Meydan Grandstand. “The project is one of the key developments undertaken by the RTA and its importance is underlined by the massive nature of the Meydan project,” said RTA chairman and executive director Mattar Al Tayer. Work on the project involved diverting the route of Meydan Road, which surrounds Meydan City, and providing corridors to access Meydan City. Meydan Road comprises four lanes in each direction, starting from the existing interchange with Dubai-Al Ain Road and
FAST FACTS Turf • Left handed • 2400m oval • Chutes of 1200m and 2000m • 30m wide • 5% banking on turns • 1.5% banking on straights • Final turn to finish 450m All weather • Left handed • 1750m oval • Chutes of 1500m and 1600m • 25m wide • 6% banking on turns • 1% banking on straight • Final turn to finish line 400m 20% TO 30% OF COMPONENTS, FIXTURES, FITTINGS AND CARPETS CAME FROM LOCAL COMPANIES.
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
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THE NUMBER OF BOEING 747 PLANES WHICH MAKE UP THE LENGTH OF THE GRANDSTAND.
extending 4.5km up to the Falcon Club. The project also included partial construction of the water canal within the right of way of Meydan Road, beneath the main bridge of the project, which is planned to link up with Dubai Creek and Meydan Grandstand in future to facilitate marine navigation below the main bridge of the project. “These projects are part of RTA strategy to keep pace with the current and future needs of urban development, development drive and demographic growth and expansion,” added Mattar Al Tayer.
“THE ECONOMY IS DIFFICULT FOR THE WORLD, NOT ONLY DUBAI. IT’S A CHALLENGE FOR EVERYONE ELSE TOO. WE’RE DEALING WITH IT.”
COMPLETION Talking about the completion of the rest of the facilities at Meydan, Saeed Al Tayer says, “we’re dedicated to our investment and we’re working closely with partners but it’s also in their hands to decide.” Khayat agrees. “We’ve focused on the infrastructure, which is very important because it gives investors an indication when they can start on their own land. We cannot define when construction goes on, it depends on the investor. Some want to start because they have already invested in the land and there are some who are not looking to start just yet. It’s a phased development like Dubai Marina, which took almost 10 years to be fully ready.” Far-eastern firms have played a significant role in the completion of Meydan grandstand and Saeed Al Tayer claims that those relationships remain strong. “The Chinese contribution to this project
THE NEW TURF TRACK FEATURES A MASSIVE 200M STRAIGHT.
was immense – from the curtain wall, to work on the Falcon car park to the principle construction carried out by China State Construction. Chinese companies provided between 45% and 50% of construction supplies for the grandstand and racecourse. “However, many of the other suppliers and JVs are based locally and 20% to 30% of components, fixtures, fittings, interiors and carpets came from national companies,” he adds. The message is clear: the developers and all involved with Meydan City are determined to provide not only a top class racing venue but, in fact, a top class development. “You’ve seen what has been accomplished,” finishes Saeed Al Tayer. “We’re now going to hold a racing season with the kind of facilities that we’ve never had in racing.”
DUBAI RACING CLUB CEO FRANK GABRIEL JR.
NOT WITHOUT TROUBLE Over a year ago, Meydan cancelled the US $1.25 billion (AED4.6 billion) contract it had with a joint venture between the Malaysian contractor WCT and Arabtec, for the construction and completion of the main building works, external works and infrastructure works of the racecourse project. Meydan claimed the contract had been cancelled as the JV “failed to abide by the time schedule for the completion”, however there were suggestions that the JV was unhappy about payment being behind construction, which was 60% complete at the time. “In any construction project there are always differences between what you want to achieve and what is actually happening on the ground,” a WCT spokesman said. “Changes to the design and to the work that is to be done are always happening in every project.” China State Construction Engineering Corporation and Mammut Building Systems later stepped in to take over principle construction of the project.
MEYDAN’S ABDUL NASER AL KHAYAT.
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
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KEEPING COOL IN ALL WEATHER ENSURING THAT THE CHOICE AND INSTALLATION OF INSULATION IS CORRECT CAN HAVE A HUGE IMPACT ON THE LONG-TERM OPERATION OF A BUILDING. CONSTRUCTION WEEK EXAMINES THE DIFFERENT TYPES OF INSULATION MATERIALS AVAILABLE AND THEIR POTENTIAL APPLICATIONS By Alison Luke
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CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
W
ith high temperatures and humidity the norm in the Middle East, combined with the recent upsurge in sustainability issues, insulation is now a primary feature in the region’s projects. Selecting the most effective insulation material for a job is only the first step; the incorrect installation of a product can have a profound effect on its role and the overall success or otherwise of the building’s long-term operation. The thermal, fire safety and environmental barriers of many products will be reduced significantly if, for example, they become wet. And although damage from humidity is the primary concern for moisture ingress in the region, the recent period of heavy rain and thunderstorms has compounded the need for any insulation materials to be correctly sealed and protected. The impact of poor insulation application is several-fold. “Wet insulation is inefficient; energy costs are increased; the air conditioning system is ineffective; pipes can corrode; mould can spread and the cost of replacement or refurbishment is high,” stresses Mike Whelan, Resolco International. A wide variety of products are now offered in the market that can effectively combat the potential of water ingress, in addition to providing the required insulation. These include materials such as cellular glass, phenolic foam, gypsum, polyurethane and specialist coatings, with manufacturers continually adding to the options available. In many cases manufacturers also offer contractors training to ensure the best practice installation methods are followed.
marily in hospitals, schools, universities, offices and shopping malls for insulating chilled, cold, hot water and heating pipes in heating, ventilation and air conditioning (HVAC) systems. “Insulphen has a number of major advantages,” reports Whelan. “It has the lowest thermal conductivity of any material, therefore the thickness can be reduced and space savings made; it is environmentally safe; and it is available as a higher density product for use at pipe support points to maintain the integrity of the insulation system and vapour barrier.” In addition, phenolic thermal insulation meets international fire and smoke safety regulations, producing low smoke emission in the event of a fire. Its closed-cell structure provides the all-important protection against water. “[The structure] resists the ingress of moisture, which is important in high temperature and humid climates such as the Gulf,” stresses Whelan. There are, however, several key elements that should be considered during the application of phenolic foam if it is to prove successful. “Insulation design and thickness calculations should relate to the local ambient conditions,” warns Whelan. “The UAE and Gulf states have harsh conditions: condensation can be a major problem so [contractors] must ensure the thickness is more than sufficient to prevent condensation,” he adds. The system should be protected with metal cladding if installed in areas of high
PHENOLIC FOAM The effectiveness of phenolic insulation in the region’s climate has meant its selection for several high-profile projects including the Burj Al Arab, Burj Khalifa and Dubai Metro Stations. Resolco Insulation is the official distributor, fabricator and sales partner for Resolco International in the UAE and Gulf states. As such, it offers the firm’s Insulphen CFC and HCFC-free closed-cell, rigid phenolic thermal insulation. Initially manufactured as rigid blocks, the Insulphen is then fabricated into pipe sections, sheets and pipe supports as needed using CNC-controlled profile cutting machines. The product is used pri-
MARCO VINCENZ, GM OF PITTSBURGH CORNING MIDDLE EAST.
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
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TIGER PROFILES’ PRODUCTS WERE USED AT THE NAD AL SHEBA HORSE RACING CLUB.
mechanical abuse and insulated pipe supports are important for providing load-bearing. “The use of a good quality, factory-applied vapour barrier, usually aluminium foil, is imperative, as is the use of an experienced, qualified installer,” Whelan stresses. For external applications the product specifications should be increased and good maintenance is essential in all applications.
CELLULAR GLASS INSULATION With sustainability high on the construction industry’s agenda, Pittsburgh Corning’s Foamglas is making a big impact on the market. The closed-cell thermal insulation is produced from recycled glass and continued improvements to the product features have meant strong recognition for its green credentials. “We were recently certified by Masdar sustainability department and are listed
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“THE APPLICATION [OF THE PRODUCT] CAN BE DONE BY ANY CONTRACTOR THAT IS USED TO INSULATION JOBS.” in ecospecifier, a library of proven ecological materials,” explains Pittsburgh Corning Middle East general manager Marco Vincenz. “LEED credits or ESTIDAMA pearls can be gained with the use of Foamglas and it has been shown as the thermal insulation with the lowest CO2 equivalent,” adds Vincenz. Pittsburgh Corning supplies and produces the cellular glass insulation in densities ranging from 100 to 165kg/m3. It is fully resistant to moisture, so does not degrade. In addition, it does not contain any organic materials, so is fully fire-resistant, with ASTM and EN tests proving no flame spread or smoke development in the event of a fire. This makes the product particularly suited to wall applications in high-rise and public buildings. “We can provide a solution for wall applications as soon as fire protection is being discussed, for lightweight cladding façade, GRC elements or stone finishing,” assures Vincenz. Foamglas is also suitable for roof insulation and has been applied in such applications for more than 50 years.
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
“The compact installation of Foamglas on the roof brings even more benefits,” states Vincenz. “The waterproof properties of the insulation, combined with the fully-bonded application and closed joints prevents water from penetrating into the system,” he explains. For roof installations, in general hot bitumen is applied to provide a binding component for the product. Mechanical fixtures or a cold adhesive is used for fixing wall applications. Underground applications should generally be given an additional coating to ensure protection during land-filling work. “The application [of the product] can be done by any contractor that is used to insulation jobs,” assures Vincenz. The firm offers a free training session to local contractors to ensure the highest quality standards of installation can be met. “Even if not correctly installed Foamglas will not suffer or degrade like other materials; the durability of the material is not affected and the thermal performance is guaranteed for the long-term,” states Vincenz. “The failing system has to be fixed to enable the
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WALL INSULATION WITH RENDER FINISH EIF Foamglas resists every impact, and does not deform even in high humidity It’s dimensional stability eliminates any danger of deformation and provides the highest fire safety
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PITTSBURGH CORNING Europe (Branch Middle East) Dubai Airport Free Zone, P.O.Box 54823, Dubai, UAE TEL +971 (0)4 7017 522 FAX +971 (0)4 7017 523 EMAIL info@foamglas.ae WEB www.foamglas.ae
INSULATION MANUFACTURERS AND SUPPLIERS HAPRI MIDDLE EAST Hapri Middle East Insulation manufactures rigid polyurethane panels for application in thermal insulation systems. The firm was established by German-based parent company Hapri Werk Baustoff in June 2003 to meet the needs of the Middle East region, in particular the UAE market and GCC Countries. The firm’s product ranges include Tekurat insulation system for flat roofs; Takurat W thermal insulation system; and Iso Duct pre-insulated ducts. www.haprimiddleast.com KIMMCO Kuwait Insulating Material Manufacturing Company (KIMMCO) was established in 1977. A subsidiary of Alghanim Industries, KIMMCO is a major insulation solution provider in the Middle East. It manufactures and supplies customised, reflective, acoustic and fire-resistant insulation products to international standards. All products are offered with or without reflective vapour barriers or acoustic facings for use with continuous working temperature up to 230°C.. www.kimmcoinsulation.com KNAUF Knauf is one of the leading manufacturers of plaster, gypsumboard and drywall systems. It has been active in the Middle East for more than a decade; its GCC headquarters are located in Dubai. In addition to a wide range of drywall systems, Knauf offers a range of services and products including: value engineering and technical consultancy for architects and consultants to meet specified design requirements; hands-on training and supervision for contractors and applicators when installing drywall systems; theoretical training for contractors and applicators at Knauf Drywall Training Programmes. www.knauf.ae; www.knaufinsulation.com PITTSBURGH CORNING MIDDLE EAST Pittsburgh Corning Europe Middle East office was established in 2006. With its regional headquarters in Dubai, the firm is a wholly-owned subsidiary of Pittsburgh Corning Europe. It operates throughout the GCC and offers a wide service including sales and technical support, design and on-
site technical training. The firm is a supplier and producer of cellular glass insulation Foamglas, which is offered in a range of densities to suit different applications. www.foamglas.ae RESOLCO INTERNATIONAL Resolco Insulation is the official distributor, fabricator and sales partner for Resolco International in the UAE and Gulf States. The firm manufactures Insulphen CFC and HCFC-free closed-cell, rigid, phenolic thermal insulation. Produced in the firm’s state-of-the-art manufacturing plant in Holland, Insulphen is manufactured as rigid blocks that are free from pin holes, voids and cracks, then fabricated into pipe sections, sheets and pipe supports using CNC-controlled profile cutting machines. The product is primarily used for the insulation of chilled, cold, hot and heating pipes in HVAC systems. www.resolco.com RUBBER WORLD INDUSTRIES (RWI) Rubber World Industries (RWI) is the leading manufacturer of closed-celll rubber insulation Gulf-O-flex in the Gulf and d South-East Asia. Established in 1993, 93, the firm is part of the international business iness conglomerate the Shaikhani Group p of Companies. RWI currently supplies s more than 85% of the rubber insulation, pipes and sheets and other rubber-derived ed products used in the region. www.gulfoflex.com TIGER PROFILES & INSULATIONS NS Tiger Profiles and Insulation (TPI) is sa member of Tiger Group of Companies es that was established in the UAE in 1968. TPI was launched in 1993 as a subsidiary of Tiger Steel Engineering to provide specialised lised services to the metal building construction ruction industry. The firm offers a wide range ge of insulation products including metal building components for roofs, walls, false ceilings eilings and floor decks. It is the exclusive distributor istributor for SolaCoat in the Middle East, Africa ca and Asia. An Australian product manufactured ctured by Coolshield International, Solacoat at is a water-based heat-reflecting paint that provides a radiant barrier insulation coating. www.tigerprofiles.com www.solacoat.com
calculated performance,” he warns, “but even after years it can be reused for the improvement of the failure.” A recent addition to Pittsburgh Corning’s product range is its Tapered Roof System. The integrated slope removes the need for a sloping screed, reducing weight and construction time. The product is currently being installed at Doha Airport. And with sustainability in mind, the firm has another product launch planned for the near future: Foamglas W+F. Suited to most roof applications, the product has an improved thermal performance and high compressive strength.
EXTRUDED POLYURETHANE FOAM Tekurat rigid extruded polyurethane foam insulation boards from Hapri Middle East Insulation are installed in an ‘upside-down’ approach to flat roofs, while providing a high level of insulation and moisture resistance. Laminated on both sides with aluminium foil, the insulation is installed above the roof’s waterproof membrane, with physical properties such as low water pick-up, ruggedness and ease of handling saving time on site while ensuring a water-tight protection is provided. Advantages of the system include ease of installation and maintenance; high insulation capacity; solvents resistance, so it will be unaffected by any bitumen solvents used in the waterproofing; plus it will maintain the roof temperature close to
FOAMGLAS W+F INSULATION IS SUITABLE FOR ROOFS.
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CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
that of internal building temperature. In addition, the insulation provides a layer of protection for the building’s waterproof membrane, shielding it from temperature extremes, UV radiation, mechanical damage and damage due to interstitial condensation. In order to ensure an effective result several steps must be taken: the waterproof membrane must be clear of debris before and during installation of the insulation; the insulation boards must be initially loose laid, half lapped in a brick bond pattern; full inter-locking of the edges must be ensured.
RUBBER INSULATION Closed-cell rubber insulation manufacturer Rubber World Industries (RWI) is finding continued success with its Gulf-O-flex insulation products within the region. In March the firm announced a contract win worth AED600,000 to supply a range of Gulf-O-flex products to the Saadiyat Island project in Abu Dhabi. Under the contract, RWI will supply Gulf-O-Flex rubber insulation tubes, rubber insulation sheets, PVC black tape and
Gulf-O-Glue for application in the 15,400m2 visitor centre at the Manarat Al Saadiyat art venue on Saadiyat Island. Designed for professional MEP contractors, GulfO-flex has been proven to prevent condensation or frost formation on refrigerant lines, cold water plumbing and chilled water systems. “We are confident that our products will meet the project’s requirements, which are focused on reducing costs and energy consumption,” states RWI chair Abu Baker Shaikhani. “We intend to leverage this as we look into securing more deals and partnerships with leading developers of massive mega projects, in line with our aims to increase our share of the regional market,” adds Shaikhani. Phase one of the project opened in November 2009, with further art galleries due to open in April 2010.
With the options for insulation continuing to increase, contractors are set to have more choice in the future. But with new choice may also come new installation techniques, so installers should be alert in order to avoid system failure in any future downpours.
MIKE WHELAN OF RESOLCO INTERNATIONAL.
“WET INSULATION IS INEFFICIENT; ENERGY COSTS ARE INCREASED; AND THE COST OF REPLACEMENT OR REFURBISHMENT IS HIGH.”
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www.wago.com MARCH 13–19, 2010 CONSTRUCTION WEEK
35
www.ConstructionWEEKonline.com/directory
§ § § § § DIRECTORY
DIRECTORY SHOWCASE | TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE SHOWCASE 38 Dallaglio cycle slam charity event 40 TENDERS 41 PROJECTS SPECIALIST SERVICES 42 Design software 43 Construction manufacturers/steel CITY UPDATE 44 Doha, Qatar
To advertise please call Shishir Desai +971 4 435 6375, or email shishir.desai@itp.com
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
37
¦SHOWCASE ITP IMAGES TO BUY IMAGES WITHIN THESE PAGES PLEASE EMAIL ITPIMAGES@ITP.COM OR VISIT WWW.ITPIMAGES.COM
To buy images within these pages please email itpimages@itp.com or visit itpimages.com
LEFT: Construction software services company Causeway was the main sponsor for the event bringing in about US $100,000 with the help of personal donations from developers, consultants and contractors. Pictured here from left to right is Causeway CEO Phil brown, COO Paul Madeira and Chairman Peter Nagle. BELOW LEFT: A cyclist takes a fall, but the race goes on. BELOW: Andrew “Freddie” Flintoff and Lawrence Dallaglio dressed up in fancy dress - one of the event’s more entertaining routines.
38
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
To buy images within these pages please email itpimages@itp.com or visit itpimages.com
RIGHT: Dallaglio set up the foundation after the death of his mother in 2008, who he lost to cancer. BOTTOM: The cyclists left Rome on February 12. Dallaglio navigated the cyclists through north Italy and the South of France before arriving at the Stade de France on February 22. BELOW: Lawrence Dallaglio and Prince Harry show their support for the charity.
DALLAGLIO CYCLE SLAM CHARITY EVENT, EUROPE After cycling 24 days and covering 2800kms from Rome to Edinburgh, rugby legend Lawrence Dallaglio raised around US $1.9 million for charity. The proceeds from the event, which saw many consturction companies, including Middle East-based Cyril Sweet International, Laing O’Rourke Middle East and Cerbarco donate good sums of money, will be split equally between Sport Relief and the newly formed Dallaglio Foundation, whose beneficiaries include Cancer Research, DebRA, Leukemia and Lymphoma Research, Help for Heroes and the RPA Benevolent Fund.
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
39
TENDERS §
¦TENDERS FREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRY TO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM
Tender focus
PUBLIC WORKS AUTHORITY
To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com
In January 2004 Qatar’s Public Works Authority (Ashgal) was established as part of a decree put forward by HH Sheikh Hamad bin Khalifa Al Thani. The purpose of the body is to oversee all infrastructure related projects and public amenities in Qatar. Ashgal has since managed a number of projects including the construction Al Khafaji Street and Airport Street, as well as Al Khor Environmental Park and Al Wakrah Hospital. The government body is currently inviting construction companies to bid for the contracts to repair and build several roads and other infrastructure developments in the country. Contracts include the reconstruction of the Najma road extension, construction of the remaining part of Al Amir Road and the improvement of traffic signal junctions in the Gulf state.
BAHRAIN Issuer: Ministry of Works Tender No: SPdh/097/10 Description: Construction of a theatre comprising a 1000-seat auditorium. Closes: April 21 Fees: BD50 Contact: www.tenderboard.gov.bh EGYPT Issuer: Egyptian Electricity Transmission Company Description: Implementation of two overhead power transmission lines. Closes: April 27 Fees: EP10,966 Bond: EP7,677,320 Contact: 5 Sixth October Street, El Mounib, Giza KUWAIT Issuer: Central Tenders Committee Tender No: PAYS/18/2008/2009 Description: Construction of Sheikh Saad Abdullah multi purposes complex. Closes: April 4 Fees: KD2500 Contact: Public Authority for Youth and Sport Issuer: Central Tenders Committee Tender No: 26/2009/2010 Description: Refurbishment of Massjed Rashad Al Khayyat. Closes: April 6 Fees: KD260 Contact: Central Tenders Committee – Ministry of Islamic Arts Issuer: Central Tenders Committee Tender No: RA\\140 Description: Construction of Al Jaber Ahmed Al Jaber Al Sabah Bridge in Kuwait. Closes: June 8
40
QATAR’S PUBLIC WORKS AUTHORITY WILL OVERSEE ROAD PROJECTS.
Fees: KD5000 Contact: Central Tenders Committee - Ministry of Public Works
> For more tenders check online at www.ConstructionWEEKonline.com/tenders
OMAN Issuer: Ministry of Agriculture Tender No: 31/2010 Description: Construction of a veterinary laboratory at Soual. Closes: March 29 Fees: OR608 Contact: www.tenderboard.gov.om Issuer: Ministry of Education Tender No: 29/2010 Description: Construction of 26 classrooms for a boys’ basic education school at Ashkarah. Closes: March 29 Fees: OR565 Contact: www.tenderboard.gov.om Issuer: Ministry of Transport and Communication Tender No: 65/2010 Description: Construction of a roundabout at Nakhal. Closes: March 29 Fees: OR350 Contact: www.tenderboard.gov.om QATAR Issuer: Public Works Authority Tender No: PWA/GTC/045/09-10 Description: Reconstruction of the Najma Road extension. Closes: April 20 Fees: QR7000 Contact: Contract Department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/077/09-10 Description: Construction of a sewerage system in Qatar. Closes: March 30 Fees: QR2500 Contact: Contract Department, Public Works Authority
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
SAUDI ARABIA Issuer: Royal Commission for Jubail and Yanbu Tender No: PIC G-1507B Description: Construction of four girls’ schools in Yanbu Industrial City. Closes: March 30 Fees: SR7500 Contact: Director, Purchasing and Warehousing Department, PO Box 30031 Issuer: Ministry of Water and Electricity Tender No: 16/1431/1432 Description: Construction of Damd Water Treatment Plant. Closes: April 4 Fees: SR3000 Contact: http://app.mowe.gov.sa Issuer: Ministry of Water and Electricity Tender No: 90/1431/1432 Description: Construction of a Ministry of Water and Electricity Building In Jandariah. Closes: April 4 Fees: SR1000 Contact: http://app.mowe.gov.sa
UAE Issuer: Federal Electricity and Water Authority Tender No: 4EW/2010 Description: Construction of a desalination plant in Al Zawrah, Ajman. Closes: April 22 Fees: AED5000 Contact: www.fewa.gov.ae
¦PROJECTS
> For the latest projects information visit www.ConstructionWEEKonline.com/projects
§ PROJECTS
A OMAN DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM
Project focus
ABU DHABI AIRPORT EXPANSION Construction of the Abu Dhabi Airport expansion began in the second quarter of 2009 and will take four years to complete. The project will consist of a new terminal, which will eventually include 58 gates to cope with the number of passengers expected to pass through the complex. It will also offer retail and food areas, as well as a three star transit hotel. National Services and Contracting Company was awarded the piling contract in February 2009 and the work is expected to be completed this month. The client on the project, Supervision Committee for Expansion of the Abu Dhabi International Airport (SCADIA), is reviewing the submissions of companies who have bid for the main construction contract.
PROJECT TITLE
EXPANSION PROJECT EXPECTED TO BEGIN IN Q2.
CLIENT
CONSULTANT
MAIN CONTRACTOR
VALUE (US$MN)
PROJECT STATUS
CITY OF LIGHTS - C10, C10A AND C11
Tamouh Investments
Palm & Turner Architects
China State Construction & Engineering Corporation (CSCEC)
101 - 250
project under construction
ROYAL CITY SEASONS HOTEL IN ABU DHABI
City Seasons Group
James Cubitt & Partners
Tae Young Contracting
101 - 250
project under construction
RITAJ MIXED-USE COMPLEX IN DIP
Dubai Investments Real Estate Co.
Al Jabal Consultants
Robust Contracting
155
project under construction
LAYIA HOSPITALITY IN DUBAI
Gulf General Investment Co.
National Engineering Bureau
Not Appointed
AL FALAH DEVELOPMENT IN ABU DHABI - 2000 VILLAS
ALDAR Properties
Al Torath Engineering Consultants
El Seif Engineering & Contracting Co.
251 - 500
project under construction
FISHERMAN’S QUAY IN RAS AL KHAIMAH
RAK Properties
EDAW
Not Appointed
101 - 250
project under design
UNION CO-OPERATIVE HYPERMARKET IN AL BARSHA
Union Co-operative
Archdome Consulting Engineers
Bu Haleeba Contracting
33
project under construction
EXTENSION TO THE RULER’S COURT IN SOUK AL KABIR
Dubai Municipality
Arif & Bintoak Consulting
Not Appointed
22
project under design
ARJAAN HOTEL APARTMENTS IN ADNEC
Bin Hamoodah Properties
GA Architects & Engineers
United Engineering Construction (UNEC)
31 - 100
project under construction
BAFCO HEADQUARTES IN DIC
Bafco Trading, Dubai
Model Engineering Consultants
Evan Lim Penta Construction
2.5 - 15
project under construction
FRANKFURT SPORTS TOWER 1 IN DSC
Memon Investments
Al Hatmy Design & Engg. Cons.
OST Constructional Projects
92
project under construction
THE VILLA IN DUBAILAND - PHASE 3
Dubai Properties
Shadeed Engineering
Al Shafar General Contracting
91
project under construction
LILIES TOWER IN EMIRATES CITY
R Holdings
Adnan Saffarini
Abou Seif Building Contracting Co
87
project under construction
CHAMPIONS TOWER II IN DUBAI SPORTS CITY
Memon Investments
Adnan Saffarini
Al Sarh Contracting
30
project under construction
CHAMPIONS TOWER III IN DUBAI SPORTS CITY
Memon Investments
Adnan Saffarini
Al Sarh Contracting
40
project under construction
REFURBISHMENT OF OASIS HOSPITAL IN AL AIN
Oasis Hospital
Peddle Thorp Architects
Not Appointed
OMAN
31 - 100
bidding underway for the main contract
bidding underway for the main contract
To list your projects in this section email details to editor@ConstructionWeekOnline.com
31 - 100
SPECIALIST SERVICES §
¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 210 8351, OR EMAIL JASON.BOWMAN@ITP.COM
Supplier focus
DANIAL BUILDING MATERIALS
SUPPLIER OF WOOD, METAL AND HARDWARE
To advertise please call +971 4 210 8351 or email jason.bowman@itp.com
Danial Building Materials was set up in Dubai in 2008 and since its inception, its main objective has been to become one the leading suppliers of building materials in the region. The brand only represents companies with an international reputation that provide quality products that have been personally inspected and whose quality can be guaranteed by Danial Building Materials. Its network of clients now spans across the UAE, Oman, GCC, Eastern African Coast, Iran and the Asian sub-continent. The company regularly deals with over 40 building material products, broadly classified under wood, metals and hardware. Its products include aluminum, structural steel, laminated sheets, wood products, pipes and fittings, hot and cold rolled products such as coils, hardware, G.I products, stainless steel and partition/ceiling products. The company’s clients include contracting and sub-contracting firms, ship-chandlers, interior decorators, fitout companies, fabricators, joineries and carpentries. Danial Building Materials provides the buyer with competitive prices for products as per requirements, specifications and delivery needs. And, due to its relations with some of the biggest suppliers from around the world, the company is able to provide the buyers with preferential prices and reliable shipment. Danial is still building its business and has grown five-fold since its inception.
42
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
CONSTRUCTION/MANUFACTURERS
BUILDING MATERIALS
ยง SPECIALIST SERVICES
> For directory information visit www.ConstructionWEEKonline.com/directory
CONSTRUCTION/MANUFACTURERS
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43
CITY UPDATE DOHA
NEW BEGINNINGS THINGS CAN ONLY GET BETTER FOR DOHA’S CONSTRUCTION INDUSTRY, AS CW DISCOVERS By Sarah Blackman
D
ue to its abundant supply of natural resources our past, rediscover our traditions, and regenerate the comproviding a solid foundation for its economy, munities we have lost in this world,” said Dohaland CEO Issa Qatar is one of the few countries with an Al Mohannadi. “We will do this by combining the spirit and aeseconomy strong enough to stop the finan- thetic of yesterday with environmentally friendly and sustainable cial crisis in its tracks. know-how of tomorrow.” In fact, while other regions are taking The mixed-use development will contain 226 buildings and a step back, when it comes to develop- will be home to 27,637 residents. It will also have a dedicated ment, Qatar is taking two steps tramway, with a combination of commercial and residential forward. For a start, a huge section of the properties, retail, cultural and “DIYAR AL KUWAIT’S PLANNED SCHEDULE capital city of Doha is currently entertainment areas. FOR THE PROJECT IS ‘AGGRESSIVE BUT DO-ABLE’...WITH WORK SET TO BEGIN IN 2010.” being rebuilt in an attempt to The project, which will spread reduce urban sprawl. Ground across 350,000 m2, will be combreaking on the Musheireb pleted in five phases, with the project, previously known as the Heart of Doha, took place in first phased due for completion by 2012 and the entire project is January and the completion of the development is expected to due to be complete by 2016. mark the return of Qatar’s old link between the communities and A new mixed-use development in Lusail – Qatar’s newest city their environment. and an extension of Doha – is also set to begin this year, follow“Skyscrapers and isolated living compounds are not the com- ing KEO International Consultants’ design contract win at the munities we aspire to in Doha. We therefore decided to revive beginning of this month. 44
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
BIG BUDGET DOHA PROJECTS • New Doha International Airport - $11 billion • Lusail - $5.5 billion • Doha Metro - $3 billion • Barwa City - $1.35 billion • Doha Convention Centre and Tower - $1.5 billion
THE HEART OF DOHA HAS A NEW NAME: MUSHEIREB.
NEW DOHA INTERNATIONAL AIRPORT.
The waterfront project, valued at around US $800 million (QR2.9 billion), will offer 160,000m2 of commercial space, 130,000m2 of office space and 30,000m2 for retail. A residential area covers a further 87,000m2 and comprises 640 apartments as well as 27, four-bedroom townhouses. Diyar Al Kuwait’s planned schedule for the project is ‘aggressive but do-able’ according to Dherar Al Nisf, project manager at the developer, with work set to begin on site in late 2010. The conceptual architectural design has been approved and the development is now going into the detailed design phase. KEO is also providing project management services to the development, which is yet to be named. The project is located in the southeastern corner of the Lusail’s Marina District, roughly 20km north of the planned Doha International Airport. On that note, phase one of the US $7 billion New Doha International Airport (NDIA) is currently set to be completed by 2011. It is set to fulfil three critical roles once complete: to make Qatar a global gateway; serve as the hub for Qatar Airways and other airlines; and provide a cargo and aircraft maintenance centre. It will be one of the first airports in the world to accommodate unrestricted operations by all commercial aircraft, including the new A380 airliner that will soon be added to Qatar Airways’ fleet. On its opening day, NDIA will be able to annually accommodate 24 million passengers, 1.4 million tonnes of cargo and over 360,000 aircraft movements. The master plan, overseen by Bechtel, allows the project to increase until Q1 2015, when NDIA will have an ultimate annual capacity of nearly 50 million passengers and 2.5 million tonnes of cargo.
When the 22km2 airport opens in 2011, it will have two runways (4,850m and 4,250m) in addition to a giant passenger terminal and concourse measuring 600,000m2 and providing 41 contact gates. Other facilities include the Emiri Terminal, air traffic control tower and cargo complex. Inside the passenger terminal – the foundations of which were laid by Six Construct – the design focus has been on the creation of a spacious but efficient and convenient airport experience. The terminal has been designed by HOK architects so that all passenger transfers can occur under one roof. With short walking distances between gates, and shorter connections between flights, passenger waiting and walking times are minimised. The cargo complex is made up of seven facilities covering over 290,000m2 and will have the capacity for processing 1.4 million tonnes of cargo per year, making it amongst the largest in the world. MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
45
ConstructSAFE Ingesting hazardous materials
46
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
> For the ConstructSafe comic strip log on to www.ConstructionWEEKonline.com www.ConstructionWEEKonline K .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: ETTS
MARCH 27–APRIL 2, 2010 CONSTRUCTION WEEK
47
DIALOGUE HAZEM ASHRY
Egypt at a glance Hazem Ashry, general manager for Emaar Misr, explains what Egypt can expect from the construction industry this year
By Sarah Blackman
What projects are you currently working on in Egypt? Emaar Misr, the wholly owned subsidiary of the UAE-based Emaar Properties, is one of the largest foreign direct investors in Egypt’s real estate sector. Emaar has identified Egypt as a key market for growth, and has three ongoing projects: Uptown Cairo, Marassi and Mivida. Emaar has also partnered with Abu Dhabi Municipality to develop the Sheikh Khalifa City.
friendly initiative that does not depend on the drinking water source. This irrigation facility, developed at a cost of EP25 million, is executed for the first time in a private development. In Marassi, Emaar Misr has already marked a milestone with the completion of the beach clubhouse in the summer of 2009. The masterplan competition for Sheikh Khalifa City is in the final stages.
What do these projects offer? Uptown Cairo is a residential, commercial and leisure development located at the highest point of downtown Cairo Mokattam Hills. Spread over 4.5 million m2, this development features a business park, town centre, mall, resorts, spa, sports and leisure facilities, a golf course and residential villages. Marassi is a 6.24 million m2 tourist resort situated along Egypt’s North Coast. The resort will feature up to 3000 hotel rooms, a marina, golf course and healthcare facilities. Mivida is a residential development at the 5th district, New Cairo City. The 3.8 million m2 development will feature 5000 homes designed by international architects. Sheikh Khalifa City is a 2.2 million m2 project located in New Cairo, the project is developed in line with the guidance of the Egyptian Ministry of Housing, Utilities and Urban Development, and is a social project.
What can Egypt expect from the construction industry this year? The construction industry outlook for Egypt at large is robust. This is led by the strong organic demand from the population that is growing at over 1.2 million every year. Additionally, there is strong demand from Egyptians living and working abroad, who transfer their money back to Egypt. The property sector witnesses remarkable activity, especially in middleincome housing. However, Emaar is specialised in developing homes that are fully finished. This is an exclusive niche and demand for such developments is expected to remain strong.
How is Egypt faring the downturn? Egypt has shown remarkable resilience even in the face of the global financial crisis. In the property sector, for example, demand has been domestic-led which meant the market was not marred severely by the global financial downturn. In How are the developments progressing? key trends, a staggering 92% of the property transactions for Emaar Misr is focused on the on-schedule completion and residential units were in cash. The dynamism in the property delivery of its projects in the country, and work is progressing as per schedule. The first homes in Marassi and Uptown Cairo sector has attracted several GCC contractors who tender aggressively to compete with local will be handed over this year and in contractors. One of the key factors Mivida in 2012. In Uptown Cairo, BIO Emaar Misr signed an agreement driving the property market is the With over 24 years of combined professional valued at EP80 million with the overall infrastructure. To further experience in auditing and real estate development, Water Authority Company of drive the economic growth, the Ashry is responsible for leading the day-to-day Great Cairo to supply drinking and Egyptian government spent EGP administrative functions and overseeing the irrigation water in the community. 10.5 billion on infrastructure in the management of Emaar Misr’s lifestyle projects in The agreement covers the water first half of 2009 alone. Not only Egypt. He joined Emaar in 2007 from MAK Holdings, supply infrastructure of Uptown does this spending help keep Egypt a real estate developer and investor. He started his Cairo, to cater for the first residents. to post healthy economic growth for career at Touche Ross International and worked A key component of the project the year even as other economies with Deloitte & Touche Egypt, where he was Audit & is the distribution of irrigation slow, it will make future residential Business Advisory senior manager. water, through a sustainable projects more attractive by easing development and environmentbottlenecks across the country. 48
CONSTRUCTION WEEK MARCH 27–APRIL 2, 2010
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