SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
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CONSTRUCTIONWEEKONLINE.COM
JAN 30–FEB 5, 2010 [306]
Licensed by Dubai Media City
WEEK
NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST
INSIDE NEWS Project management has role to play in conserving resources PAGE 09
FACE TO FACE Experts explain how solar solutions can ‘green’ a building PAGE 15
WALLS New materials and techniques speed the building of walls PAGE 24
SAFE
SITE
CW GETS FIRST-HAND EXPERIENCE OF THE HSE AT ABU DHABI’S CENTRAL MARKET
SHOWCASE Progress at Villamar Towers in Bahrain Financial Harbour PAGE 30
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CONTENTS JANUARY 30-FEBRUARY 5, 2010 | ISSUE 306 9
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FEATURES 20 SITE VISIT Recently named Abu Dhabi’s safest construction site, just what are the HSE teams on Central Market doing to keep workers out of harm’s way?
24 SPECIAL REPORT CW talks to industry experts to discover the modern and sustainable ways of building walls. .
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DIRECTORY 30 32 35 36
10
SHOWCASE TENDERS PROJECTS SPECIALIST SERVICES
24
20
REGULARS 2 ONLINE 4 MAIL
FRONT 9 DON’T REPEAT THE SAME MISTAKES, PM EXPERTS WARN As construction companies recover from the downturn, experts are urging firms to invest in project management.
15 FACE TO FACE
10 RTA ALLOCATES US $2 BILLION FOR PROJECTS
16 LEGAL
38 CITY UPDATE
Larry Lin takes a look at what the best options in alternative dispute resolutions and if mediation or adjudication is better, or in some cases both.
The latest news and projects from Jubail, Saudi Arabia.
A budget of US $2.9 billion (AED10.74 billion) has been set for the RTA’s expenses in 2010, with $2 billion allocated for project development.
CW asks how solar technology can boost a building’s sustainability.
18 NEWS ANALYSIS 12 NEWS IN BRIEF Highlights of the week.
Smart grid technology has been heralded as the saviour of energy efficiency.
BACK
40 DIALOGUE 3M country business leader for safety, security and protection services Walid Feghali rates the quality of on site safety in the Middle East.
JANUARY 30–FEBRUARY 5, 2010 CONSTRUCTION WEEK
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ONLINE
www.ConstructionWEEKonline.com MOST POPULAR ABU DHABI TDIC PREPARES TO FLOAT TWO MORE TENDERS KUWAIT SET FOR POTENTIAL BUILDING BOOM RTA ALLOCATES US $2 BILLION FOR PROJECTS VISION WINS SAUDI ARABIAN MEP JOB
HAVE YOUR SAY IS THE MARKET READY TO GENERATE LONGTERM REWARDS?
Will we see a transition towards long-term investments in the GCC?
DISTRICT COOLING TO BOUNCE BACK IN 2010 The district cooling industry ‘practically halted and came to a complete dead end’ in 2009, but ‘it should move back in 2010’. This is the view of father-and-son team Fahed and Aslan Al Barazi from Imec Electro Mechanical Engineering. “That being said, there are still some projects going on, and we are on top of that. You obviously need to be winning orders at the same time,” comments Aslan. “This is something that over the last ten years has turned the market upside down. For example, a fan used in a cooling tower costs US $1200 if imported from China. That same fan, made in Germany or the US, costs US $12000. This state of affairs has caused great turmoil in the market among suppliers and manufacturers,” says Fahed. Aslan says this is because of the size and scope of the district cooling industry in the UAE, which has transformed itself into the biggest in the world. “The tonnages here are unheard of elsewhere. In the US, a big plant is 25 000 TR, whereas here it is 100 000 TR.” To read the full interview visit www.ConstructionWeekOnline.com
Senior Designer Hospitality, Dubai, United Arab Emirates CAD Operator Interior Design, Dubai, United Arab Emirates
ONLINE POLL WHERE WILL YOU MAKE THE MOST MONEY THIS YEAR?
37.5% 25.0% 20.8% 16.7% 0% Abu Dhabi
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FEATURES
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JOBS OF THE WEEK
Interview
Design
EDDIE FOSTER Scott Wilson’s regional head discusses KSA, payment and the economy.
DODGING IRRELEVANCE Up close and personal with Ross Lovegrove.
Dubai
PMV
Projects
HEAVYWEIGHT CHAMPIONS A Sennebogen manager shares his thoughts on the industry.
IN TOTAL CONTROL Machine automation is here.
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
Kuwait
TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com
MAIL RE: MASDAR EYES MALAYSIA FOR CARBON NEUTRAL CITY Only the Masdar Institute building, the Masdar/ Irena HQ, plus a few small buildings will be built. This is less than 1/20th of what they promised. The PRT system will go, with only 10 vehicles as a Disney-style attraction. After five years, there is nothing to show except one small school, one building, a “fund” that is losing money and a few investments in Europe. Nothing to share with the world, and no contracts for hungry companies. NAME WITHHELD
On a recent visit to the Masdar project, we were all surprised at the lack of interest the Masdar staff showed towards what could have been beneficial to them. They said: “we have thought about that, but instead we will buy more carbon credits.” Take a look at their carpark – it’s full of 4x4s and not a low emission car in sight. Surely this must be taken into account in the calculations for their carbon footprint? Will they just buy more carbon credits for the big cars as well? At no stage are they trying to build the project in a carbon neutral way. I asked them how they are monitoring their subcontractors carbon emissions and they said: “that’s not our concern”.
South East Asian nations to push for sustainable practices, should be able to immensely contribute towards this goal. This could further spur the growth of carbon neutral cities in more countries and form exemplary standards for the rest to emulate. KESEVAN J
RE: GREEN BUILDING GURU Some parts of green building are more important than others. Here in the Middle East, it’s all about reducing energy for cooling, and water recycling. Most so-called sustainability experts that come from the West try to apply their own criteria to buildings here. Get it into your head, we don’t use heating, people. Cooling takes up 70% of the energy consumed in buildings. Take that down significantly and you are on to a winner.
ITP BUSINESS PUBLISHING CEO Walid Akawi MANAGING DIRECTOR Neil Davies DEPUTY MANAGING DIRECTOR Matthew Southwell EDITORIAL DIRECTOR David Ingham VP SALES Wayne Lowery PUBLISHING DIRECTOR Jason Bowman EDITORIAL SENIOR GROUP EDITOR Stuart Matthews EDITOR Conrad Egbert TEL +971 4 435 6256, EMAIL conrad.egbert@itp.com NEWS EDITOR Matthew Warnock TEL +971 435 6179, EMAIL matthew.warnock@itp.com ASSISTANT EDITOR Sarah Blackman TEL +971 4 435 6278, EMAIL sarah.blackman@itp.com MEP EDITOR Gerhard Hope TEL +971 4 435 6252, EMAIL gerhard.hope@itp.com PMV EDITOR Greg Whitaker TEL +971 4 435 6263, EMAIL greg.whitaker@itp.com CONTRIBUTING EDITOR Alison Luke ADVERTISING PUBLISHING DIRECTOR Jason Bowman TEL +971 4 435 6344, EMAIL jason.bowman@itp.com COMMERCIAL DIRECTOR Raz Islam TEL +971 4 435 6371, EMAIL raz.islam@itp.com ONLINE SALES MANAGER Scott Woodall TEL +971 4 435 6172, EMAIL scott.woodall@itp.com STUDIO GROUP ART EDITOR Daniel Prescott ART EDITOR Nadia Puma DIRECTOR OF PHOTOGRAPHY Sevag Davidian CHIEF PHOTOGRAPHER Khatuna Khutsishvili SENIOR PHOTOGRAPHERS G-nie Arambulo, Efraim Evidor, Thanos Lazopoulos STAFF PHOTOGRAPHERS Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav PRODUCTION & DISTRIBUTION GROUP PRODUCTION MANAGER Kyle Smith PRODUCTION COORDINATOR Devaprakash V.A MANAGING PICTURE EDITOR Patrick Littlejohn IMAGE RETOUCHER Emmalyn Robles DISTRIBUTION MANAGER Karima Ashwell DISTRIBUTION EXECUTIVE Nada Al Alami
SAHAR KHARRUFA
RE: ABU DHABI SET TO RELEASE MAJOR AIRPORT TENDER This is going to be the first major tender coming into UAE market post recession in 2010 and brings a great deal of hope for the contracting business in the region. Let’s hope 2010 will see more similar projects bringing buoyancy in the current ‘not so happening’ market. FRANCIS MOYALAN
DEREK TROTTER
It will a good move if we can create a twin carbon neutral city with Malaysia. Malaysia, being one of the first leading
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It’s good to read that the UAE is slowly coming back to its style and scale of projects, post recession. ANGAD MAINI
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.
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CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
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FOREWORD INFRASTRUCTURE DOLLARS
“CONTRACTORS WHO GET A SLICE OF THIS ACTION MAY BE ABLE TO KEEP THE WOLF FROM THE DOOR FOR A YEAR OR TWO MORE, ASSUMING THEY SUCCESSFULLY COLLECT PAYMENT”
At the beginning of 2009 I wrote, more than once, about the value of being involved in infrastructure projects. Adherents to the Keynesian idea that you can buy your way out of a recession through government investment will know why. It seems the same may be true of 2010, as announcements of infrastructure projects are once again being heralded. Just last week CW reported the Dubai’s 2010 budget will have an infrastructure focus. The estimated spend on the economic sector, infrastructure and transportation is US$4.75 billion. The estimated allocation of expenditure for the development of infrastructure project is US $2.91 billion. Saudi too has announced a 16% increase in total project spending, laying out a plan to plough US $70 billion into construction projects during 2010, in an effort to attain a 4.5% economic growth rate within the year. Contractors who get a slice of this action may be able to keep the wolf from the door for a year or two more, assuming they successfully collect payment. While the numbers are hefty, it’s important the money goes to the right places if it is to support real and sustainable growth. Growing cities need roads, transport infrastructure and solid municipal services if citizens are going to be attracted and retained. Emerging cities don’t need vanity projects, or fanciful images of ‘future plans’. Leaving those to the private sector will let market forces determine their viability. It will also leave real money for real work. Clarification: The image on pages 34 and 35 of issue 304 of Construction Week was not correctly attributed. The image is the property of Gerald Donovan. Construction Week apologises for the error.
STUART MATTHEWS SENIOR GROUP EDITOR stuart.matthews@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 JANUARY 30–FEBRUARY 5, 2010
FRONT
>RTA allocates US $2 billion for projects
10
>Highlights of the week
12
>Face to face
15
>Legal
16
>News Analysis
18
AS CONSTRUCTION COMPANIES RECOVER FROM THE DOWNTURN, EXPERTS ARE URGING FIRMS TO INVEST IN PROJECT MANAGEMENT.
DON’T REPEAT MISTAKES, WARN PROJECT MANAGEMENT EXPERTS By Matt Warnock Although the regional construction industry has no doubt felt the pinch of the global economic slowdown as much – or more – than most other sectors, some countries in the Middle East have continued to grow throughout the downturn. Last month, the Saudi government, for example, announced a 16% increase in total project spending, laying out a plan to plough US $70 billion (SR262.5 billion) into construction projects during 2010 in an effort to attain a 4.5% economic growth rate within the year. Meanwhile, Lebanon witnessed a 6% increase in construction permits – which now cover more than 11.42 million m2 of granted projects – while $1.8 billion of megaprojects were launched in the country during 2009 alone. In light of these good news stories, project management experts have called on developers and contractors in these countries not to repeat the mistakes made elsewhere in the past. “Projects being planned throughout KSA in 2010 will require systematic management and a Saudi workforce capable of dealing with any possible operational problems,” said Bassam Samman, founder and CEO of
CMCS, a regional project portfolio management (PPM) provider. “The challenge is to develop and build the know-how needed by the burgeoning local projects sector to fulfill its role in sustained economic recovery.” ESI International regional manager Craig Jordan agreed, explaining: “At the heart of good project management are risk management and cost control; these factors have been major contributors to the financial meltdown and mismanagement of many projects across globe. “There are too many businesses that do not recognise project management as a core skill but in today’s world it is an absolutely fundamental competency for any middle manager to master and not just the domain of the project management department. The KSA’s public expenditure could reach 35% of GDP in 2010, with King Abdullah Bin Abdul Aziz Al Saud recently announcing a national budget that has increased 14% on 2009 – the largest in its history. The government has allocated $70 billion for new investment projects and $37 billion for education. The municipal sector has been granted $6 billion, the transport and telecommunications sector $6.5 billion,
and the water, industrial and agricultural sector $12 billion. Great news for the country but only, argued Samman, if well managed and monitored. “Project failure can have devastating effects not only on organisations but in host countries as well. The good news is that these can be easily prevented by adopting sound PM practices; the bad news is that many project-driven businesses throughout the region still do not recognise the importance of PM.” CMCS aims to enhance the skills of Saudi Arabia Lebanon’s project-driven professionals by training them on Project Management Institute compliant Project Portfolio Management methodologies using internationallyrecognised tools, such as Oracle Primavera, Deltek Cobra, and Hard Dollar. ”We will empower project-driven organisations to create a PPM-supported environment that promotes the selection of the right projects that best fit their goals and efficient execution,” continued Samman. “Our seminars are opportunities for interested parties to learn more about available PM tools and their efficient use and consequently help in ensuring the productivity of Lebanon’s numerous projects.”
JANUARY 30–FEBRUARY 5, 2010 CONSTRUCTION WEEK
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FRONT PLANT THEFT RING BUSTED IN SHARJAH By Greg Whitaker
A BUDGET HAS BEEN SET FOR THE CONSTRUCTION AND COMPLETION OF ROADS AND PUBLIC TRANSPORT.
RTA ALLOCATES US $2 BILLION FOR PROJECTS By Sarah Blackman A budget of US $2.9 billion (AED10.74 billion) has been set for the Road Transport Authority’s expenses in 2010, with $2 billion allocated for project development. The project budget will be set aside for undertaking around 129 developments, 13 of which are new projects relating to roads, marine transport, public transport and operational building projects. “In 2010, RTA will complete the construction of the undergoing projects and engage in a host of other fresh ones as well. Among the key projects underway is the completion of Dubai Metro Project, the first stage of which was opened in September,” said RTA executive director Mattar Al Tayer.
“Work is progressing on schedule in the construction of the Metro Green Line as well, and will continue in Al Safouh Tram project, which comprises two phases extending 14km along Al Safouh Road.” Al Tayer confirmed that the Government of Dubai is proceeding with upgrades to infrastructure, including roads and transportation projects, in the belief that this will drive economic growth. “Among the key road projects earmarked for construction this year is Sheikh Zayed Road’s Parallel Roads project, which will extend 108km starting from Sheikh Rashid Road in the North and stretching up to the outskirts of Abu Dhabi,” he added.
A gang in Sharjah are being held on suspicion of stealing heavy machinery in order to sell it abroad. The group allegedly stole the machinery from various businesses around the emirate, only to dismantle them so that they could be exported as ‘spare parts’. The machines could presumably be reassembled at destination ports. Sharjah police formed a division of the Criminal Investigation Department to deal with the thefts, and as a result, apprehended the gang, which included 15 suspects described as being of ‘Arab and Asian origin’. Another man has been arrested on suspicion of helping the gang. All apparently confessed, and have revealed the location of the stolen plant. “Collaboration was made between Sharjah Police and other forces, in order to apprehend the suspects. It took several weeks of investigation, which eventually led to their arrest,” a police official told a daily newspaper.
HABTOOR COULD LOOK TO IPO By Matt Warnock Habtoor chairman, Khalaf al-Habtoor, last week announced that the group – its JV with Australia’s Leighton is one of the Middle East’s biggest construction firms – could float its engineering arm or even the whole group in the second half of 2010, with possible listings in Dubai and London. He also said that the conglomerate had set its sights on winning up to US $8.2 billion worth of building contracts in 2010 “We are expecting this year that we have to grab a minimum of 25-30 billion dirhams in projects,” Habtoor said, explaining that Habtoor-Leighton is eyeing airport project contracts in
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CONSTRUCTION WEEK JANUARY 30–FEBRUARY 6, 2010
several countries, bidding for a $1.5 billion project in Turkmenistan and has signed a preliminary agreement to build the first phase, in excess of $500 million, of a Kuwait airport. “We are bidding for the airport in Abu Dhabi which is in excess of $6.5 billion,” he added The company also expects to boost its presence in Qatar as it looks to diversify revenues away from its home market. “Qatar is becoming to us the second for construction after the UAE,” he said. Habtoor expects the group to achieve growth of 103% in net profit. The company’s turnover in the first half of 2009 exceeded $2.45 billion.
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FRONT HIGHLIGHTS PMV
KRUSE GROUP CLEANS UP DIRTY TRUCKS The first plant in the Middle East for producing urea – a chemical used by many new trucks to reduce soot emissions – has been opened in the Al Qusais industrial area of Dubai. Urea, more commonly known by the trade name AdBlue, is used by most manufacturers of modern diesel trucks to prevent toxic nitrogen dioxide, as well as carcinogenic soot particles from being emitted by the vehicle’s exhaust. Toxins can be reduced by as much as 95% in some applications. “AdBlue is a clear, non-toxic solution of a chemical,” explained Mattias Kruse, CEO of Kruse Group, which manufactures the product under license. MEP
TURN YOUR AIR-CON OFF, URGES MEP FIRM The best way to reduce energy use is to “turn off the system completely,” Scott Wilson associate director: building services Cathy
NEWS IN NUMBERS Dubai Aluminium Company’s Jebel Ali primary aluminium complex produced 1 mn tonnes of cast aluminium products in 2009, making it the world’s largest modern smelter 12
Crocker argued. This can be problematic in terms of dust and noise, but these issues can be addressed successfully at the design stage. “For residential buildings or leisure facilities, it is very important for us to be able to design buildings so they can be ventilated naturally in winter, as that will save a huge amount of energy.” Cathy said that Scott Wilson’s favoured design approach, wherever possible, is deemed ‘mix match’. “In essence it just means turning off the air-con when you do not need it. You have to have a building that is designed correctly to enable natural ventilation.” Manufacturing
STRIKING STEELWORKERS PLAN TO ESCALATE ACTION Production at Algeria’s largest steel coking plant – the ArcelorMittal El Hajar facility in Annaba – ground to a halt earlier this week after 7200 workers went on strike. According to an AFP correspondent on the ground in Algeria, the discontent workers are
Tourism Development & Investment Company has issued pre-qualification invitations for 2 contracts in Abu Dhabi. The larger of the two jobs covers main contract works for Deyar Al Mafraq
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
planning to ‘escalate their action’ unless the Algerian government offers them a written commitment to re-open a coking facility closed last October. “We have decided to launch a general and indefinite strike,” union leader Smain Kouadria told Reuters. “We will stop the strike only if the coking plant is renovated, but top management has informed us that [this] is not a priority. We must defend our jobs.” Architecture
FAÇADE DESIGN CREATES NEW LANDMARK A new landmark building has been handed over in Dubai’s business bay. The O-14 tower has divided architectural opinion in the city, with its unusual exterior treatment. Designed by Reisur and Umemoto Architecture in New York, the tower flips structure and skin, and makes strong use of a perforated concrete façade. The façade perforations serve as a solar screen, letting light and views through to the interior occupants. A one-metre
Vision Electro Mechanical Company has won an
US $ 349mn contract to carry out MEP works at Princess Noura Bint Abdurrahman Girls University in Riyadh
space between the façade and the building’s glass surface also develops a chimney effect, causing hot air to rise, creating an efficient passive cooling system, which aims to reduce energy consumption by at least 30%. Construction
25 BUILDINGS TOPPED OUT AT REMRAAM Dubai properties Group has topped out on its 25th building at the 2.2 million m2 Remraam development of five-, six- and seven-floor residences. The Dubai World developer says that more than 85% of excavation and 50% of foundation works have also been completed by the 3000 construction workers and 50 cranes that are on site each day. “The new construction milestones met by the Remraam development reflect our commitment to delivery schedules. We have mobilised our contractors and labour force to achieve rapid progress and offer a pioneering new project to clients and customers,” commented Group CEO Khalid Al Malik.
Masdar will consider the development of a carbon-neutral city in Malaysia and explore clean technology projects worth
US $100 mn in total
FACE-TO-FACE SOLAR DISCUSSION
KHURRAM NAWAB
JIT CHAKRAVARTY
Mulk Holdings, managing director
Eurostar Solar Energy, divisional manager - solar technical and business development
CW ASKS HOW SOLAR TECHNOLOGY CAN BOOST A BUILDING’S SUSTAINABILITY HOW DOES YOUR COMPANY CONTRIBUTE TO BUILDING SUSTAINABILITY? We offer a product called Suntrof. This harnesses solar energy and converts it into thermal energy to generate electricity. The whole structure is recyclable. In 2008 we built the prototype in the US and last year we built the commercial-sized trough in Sharjah and began to construct our solar demo plant. We will unveil it in March.
We provide turbo systems, which heat water using less energy. We also provide photovoltaic (PV) technology, which generate electricity. The electricity is stored and recycled. Our solar thermal systems also reduce commercial and household carbon emissions.
HOW DO YOU PLAN TO IMPROVE ENERGY EFFICIENCY THIS YEAR? We have close to around 600MW of power project contracts, which have been signed in the US, Morocco, Qatar and India. These projects are at design stage and will be implemented in 2011.
We are hoping the Abu Dhabi government will provide grid connectivity so we can connect PV panels to the grid. The grid connected systems can offset your total power consumption. It is possible to half your energy bill by generating your own solar power.
WHAT ARE THE CURRENT GREEN BUILDING TRENDS? People are focusing on solar trough technology right now. They are investing heavily in this. But, whatever green technologies are used, they will help reduce carbon emissions and contribute to sustainability.
Building integrated photovoltaic technology is very popular and if the plans for grid connected solar PV come through, then your entire building can generate power. Another trend is passive solar architecture, where a building is designed to use less energy.
WILL THE MIDDLE EAST FOLLOW COPENHAGEN’S PLANS TO BECOME CARBON NEUTRAL? Possibly. If technology advancements using renewable energy become viable, then almost 30% to 40% of power, which is generated by burning oil, will be knocked out. This is will lead to reduced carbon emissions.
Yes. Masdar City is obviously planning to become carbon neutral and a lot of awareness is being raised about green building in the GCC. The next best thing to sustain the economy will be renewable energy.
HOW CAN THE CONSTRUCTION INDUSTRY MAKE EXISTING BUILDINGS MORE SUSTAINABLE? Mulk Holdings is into the façade business and we offer energy saving systems. We also provide PV panels, which can provide some power to a building. We have a design where you can retro-fit the system into existing buildings.
You can incorporate double glazing windows and insulation, which help keep a building cool by preventing outside hot air from getting in. You can also implement energy efficient lighting and motion sensors, which control when lights are switched on and off.
HOW CAN PEOPLE BE ENCOURAGED TO INVEST IN GREEN SOLUTIONS? People all over the world are talking about the environment. There a lot of projects where developers have said they wants to put 30% of their investment into green building, but banks are not ready to provide the funding.
Compulsory regulations have to come from government, because some companies aren’t investing in sustainable building due to high short-term costs. People also need incentives in to be persuaded to invest in green building; they need to see the financial benefits.
JANUARY 30–FEBRUARY 5, 2010 CONSTRUCTION WEEK
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LEGAL > For more legal advice log on to www.ConstructionWEEKonline.com/comment
Mediate, adjudicate or both? LARRY LIN TAKES A LOOK AT WHAT THE BEST OPTIONS IN ALTERNATIVE DISPUTE RESOLUTIONS AND IF MEDIATION OR ADJUDICATION IS BETTER, OR IN SOME CASES BOTH
“EADS AGREED TO REFER THE DISPUTE TO MEDIATION BUT OBJECTED TO ADJUDICATION BECAUSE IT CONTENDED THAT CLAUSE 31.3 PROVIDED A CHOICE OF EITHER MEDIATION OR ADJUDICATION”
Larry Lin is a Fellow of the Royal Institution of the Chartered Surveyors with 24 years of experience mainly in civil engineering. He has practiced Quantity Surveying in the Far East and for the last 4 years, in the Middle East and is currently a consultant QS in Jeddah. He also holds a LLM in Construction Law & Arbitration and LLB from UK and Australia. He has completed the academic stage of the Graduate Diploma of Legal Practice with the College of Law, Sydney that will eventually lead to be admitted as a legal practitioner in NSW, Australia.
The opinions expressed in this column are of the author and not of the publisher.
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Increasingly, when a dispute arises between two contracting parties, they are strongly encouraged to settle the dispute in question through various types of resolution methods available. Such methods are collectively called alternative dispute resolution (ADR), and include negotiation, mediation or adjudication and should be used before the dispute is escalated into arbitration or litigation. But at any time, if a party has embarked on one resolution in relation to a specific dispute, can it not also at the same time or later embark on another type of resolution. In other words, can both mediation as well as adjudication be instituted concurrently? This was what Justice Akenhead was asked, among other issues, to decide upon in a recent case. The Claimant, Ericsson, was employed as a sub-contractor by the Defendant, Eads, in June 2007. Eads had entered a contract with the Government for the provision of an emergency communications system to the Fire and Rescue Service in England. The whole system was scheduled to be completed well before the London Olympic Games 2012 in order that the system can be tested well in advance as to provide a vote of confidence. Ericsson was responsible for developing and supplying software and this software was based on a software system owned by Ericsson. This system, to coordinate and manage the response of the emergency services, was defined as a key element in the overall systems. The initial date for the supply of the software was January 2009 and was subsequently being amended due to delay. There had been several revisions to the date of completion and this was one issue that the court had been asked to decide on. Since the whole system was to be in full operation prior to the Olympic Games, Eads was concerned about the slippage caused by Ericsson and had written to Ericsson expressing the con-
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2009
cern. Letters were exchanged between the parties and each alleging the other to be responsible of causing delays. Then on September 29, 2009, Ericsson advised Eads of referring the dispute to mediation pursuant to Clause 31.3 of the agreement. The issue was whether or not Ericsson was contractually obliged to deliver the software by September 30, 2009. Clause 31.3 states: “If Ericsson and Eads fail to resolve the dispute through such consultation within …10 business days, either party may give notice of its intention to proceed to mediation in accordance with the…CEDR Model Mediation Procedure for long-term contracts, or to refer the matter to adjudication.” Two days later, on October 1, 2009, Ericsson wrote to CEDR and requested the appointment of a mediator. On the same day, Eads sent a letter to Ericsson notifying a Material Default had been committed by Ericsson. Simultaneously, Ericsson served a notice of adjudication to Eads on 1 October 2009 too. Thus the same dispute of delivery date on September 30, 2009 was now being referred to a mediation, as well as adjudication concurrently. Eads agreed to refer the dispute to mediation but objected to adjudication because it contended that Clause 31.3 provided a choice of either mediation or adjudication and it was not open to Ericsson to pursue adjudication in relation to those two disputes. Justice Akenhead held that the dispute resolution provisions do not by implication or otherwise suspend a party’s rights under the contract to take whatever steps which it is entitled to take. His Honour’s view was that “it is open to either party on a given dispute either to mediate or to adjudicate or to do both ... The wording of Clause 31.3 does not prevent or limit a party from going down either route” Ericsson was therefore entitled to pursue remedies in adjudication as well as in mediation.
Alumil Gulf fzc subsidiary of ALUMIL in the Middle East
Technology Park, RAK FTZ, RAK tel +971 7 2444106, fax +971 7 2444107 email support.uae@alumil.com
ANALYSIS Smart solutions SMART GRID TECHNOLOGY HAS BEEN HERALDED AS THE SAVIOUR OF ENERGY EFFICIENCY By Peter Ward
A
t the recent World Future Energy Summit, held in Abu Dhabi, there was much discussion of grand and green ideas, but substantive measures remain elusive. One widespread and significant change that is steadily becoming a reality, through pilot programmes and large scale trials, is the development of a smart grid. It seems likely that as the concept develops and becomes established, contractors will have to familiarise themselves with the inclusion and installation of smart grid components on a large scale. Retro fitting of such equipment will also have a part to play. Smart grids can be hard to define. Rather than being one single product, system or design, it is more a bringing together of several concepts and one overriding aim: energy efficiency. The main feature of a successful smart grid is two way communication between a consumer’s household and the energy provider. “Technology has reached a stage where the devices have become intelligent and can start communicating with each other. There was a big revolution in the telecommunication market, if Alexander Graham bell was alive, he would not recognise the phones we use today. But if Thomas Eddison was, he would still recognise the bulb and the grid because it hasn’t changed in all these years,” explains Syed Hasan, director at Al Mostajed Technologies. The concept of a smart grid in the Middle East is one that is becoming more appealing here. “There is strong interest. We see some of the utilities beginning to pilot smart meters and thinking about what they need
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SYED HASAN, DIRECTOR AT AL MOSTAJED TECHNOLOGIES.
“TECHNOLOGY HAS REACHED A STAGE WHERE THE DEVICES HAVE BECOME INTELLIGENT AND CAN START COMMUNICATING WITH EACH OTHER” in terms of the communications infrastructure. We see more awareness in what is going on in the distribution grid and doing more automation around the distribution substation, so I think it is beginning,” says Robert Gilligan, vice president of transmission and distribution at GE Energy. Smart grid systems have been implemented in the US and in Europe to a certain extent already, and now Dubai seems to be taking a major step towards implementing one itself. The Middle East has a unique opportunity to advance this technology, as Gilligan points out.
TEST PILOT AlMostajed is implementing an IMS project with a major utility and is engaged with several private bulk consumers of electricity and water, who are seriously evaluating the IMS, as part of the energy efficiency and green initiative. AlMostajed realises the importance of local availability of resources when utilising modern stateof-the-art technologies.
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
KHALED AWAD, DIRECTOR OF PROPERTY DEVELOPMENT AT MASDAR.
“MOST IMPORTANT IS THE INTEGRATION OF SUPPLY AND DEMAND” “I think that the Middle East, there is an opportunity to leapfrog because as you are putting all this new infrastructure in you can enable it from the time you put it in with sensors and communication etc to enable a smarter grid so you can actually move faster.” The key element of smart grids is the smart meter, which is vastly different from the old meters which are currently used in the majority of households. “You will be able to know in real time, online, where the energy is being consumed. So you can utilise your assets more economically and efficiently. Then you can generate more efficiently. And you can warn consumers about excess energy use by giving them information, which can encourage them to consume less energy,” states Hasan. The benefits of this system are multiple. Khaled Awad, director of property development at Masdar, lists some of them. “Most important is the integration of supply and demand. That is a focus of our energy team. The communication of data from end to end, this smart grid can provide a dynamic flexible platform so it can adapt to varying levels of demand and supply,” states Awad. The introduction of smart grids into the Middle East is not without its challenges, however. “The smarter grid systems are facing several top level challenges including raising the networks complexity, the
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ROBERT GILLIGAN, VICE PRESIDENT OF TRANSMISSION AND DISTRIBUTION AT GE ENERGY.
WALTER DUSSAUCY, COMMUNICATIONS DIRECTOR AT AREVA.
increased demand for energy and electricity, moving towards an environmentallyfriendlier energy mix, volatile energy prices and critical energy losses and large emerging Gulf transmission networks,” Walter Dussaucy, communications director at Areva explains.
Policies and regulations of individual countries can play a big part in how smart grids can be used. Changing tariffs are one of the major policy changes which can be part of the grid’s benefits. “From the data you can apply tariff changes in a country. These are the tools that we are providing which
will then be used by the people making the policies,” stresses Hasan. Gilligan also believes that policies will have a huge part to play in the future of smart grids. “There is not a big technology challenge, I think we have technology that can address the needs of a smarter grid. The challenge is going to the policy and the regulatory frameworks, getting the right incentives around efficiency, ensuring that it pays to reduce losses.” The challenges are set and the benefits are clear, now it is important that policy makers don’t lose sight on how important the implication of smart grid technology is. “This is clearly the challenge of the future; the power generation and the power transmission sector is a key factor of the world’s development. We are now thinking all the time of how to deliver solutions in a way which satisfies us by taking into account a greener and reliable environment. We are the architects of a smarter world,” concludes Dussaucy.
TDIC Construction Opportunities Pre-Qualification Invitation - Project in Al Ain, Abu Dhabi Primary Bulk Earthworks and Enabling Works (including retaining wall structures) Tourism Development & Investment Company (TDIC) hereby invites suitable contractors with commensurate experience to undertake the Primary Bulk Earthworks and Enabling Works (including retaining wall structures) for a new development in Al Ain. Initial Primary Bulk Earthworks will include cut, fill, compaction and leveling for an area of approximately 400,000m² (40 hectares) with the construction of related retaining walls. Contractors who meet the criteria can register their interest and request a Pre-Qualification Questionnaire (PQQ), at alainproject@tdic.ae, before 3rd February 2010, and arrange for the collection of the PQQ by 10th February 2010 from: Tourism Development & Investment Company, Behind Khalifa Park, Eastern Ring Road (Salam Street), Abu Dhabi. Conditions and Rules: Interested companies must demonstrate successful delivery of relevant construction projects that meet the following requirements: 1. Recent experience on projects similar in size, character and complexity. 2. Be a major registered construction company with representation in the UAE. 3. Have had a minimum annual company turnover for construction activities of AED 400 million in each of the last 3 years. 4. Successfully completed 5 projects each in excess of AED 200 million in the last 3 years. 5. Be prepared to be one of a number of short-listed companies willing to submit a construction works tender under a single stage competitive tender process. A non-returnable payment (in the form of a manager’s cheque made payable to the Tourism Development & Investment Company) of AED 10,000 will be required at the time of collection of the PQQ. Responses to the PQQ must be submitted in a sealed envelope no later than 12pm on 18th February 2010 to: Pre-qualification for Al Ain Project (P081), Tourism Development & Investment Company, Behind Khalifa Park, Eastern Ring Road (Salam Street), Abu Dhabi.
Abu Dhabi develops with TDIC www.tdic.ae
RECENTLY NAMED ABU DHABI’S SAFEST CONSTRUCTION SITE, JUST WHAT ARE THE HSE TEAMS ON CENTRAL MARKET DOING TO KEEP WORKERS OUT OF HARM’S WAY
GRACE UNDER FIRE By Matt Warnock
“The absolute minimum PPE you can wear on site is a hard hat, a safety vest and safety boots,” explains Atkins health and safety manager Shaun Dent. As he warns me to beware of uneven surfaces in order to avoid slips, trips and falls, I pull on my PPE while continuing to pay full attention. “Stay vigilant. Keep looking around you at all times – don’t forget to look above, too.” Over the past few months, the region’s construction industry has taken several knocks in the form of mid-construction building collapses and on-site fires blazing into the night. Just last week, experts told Construction Week that the region was at particular risk from fire injuries and casualties, due to the extra difficulties presented by building the ubiquitous high-rises. We wanted to see just what could be done to prevent the risk of fires and accidents when working hundreds of metres up in the air, so where better to head to than the project recently named Abu Dhabi’s safest construction site at a prestigious industry awards night? “This site has the highest possible safety reputation and we’re working hard to maintain that throughout,” continues Dent, speaking with pride about Aldar’s Foster + Partners-designed Central Market project – a 5.2 million m2 development of three supertall towers and an Arabian souk. Dent inducts every single worker that enters the site. “You would usually face three different inductions but as you’re going to be with highly-trained HSE experts throughout, you’ll just have the one. We run through the protocol in the event of a fire – exactly where I have to go, how I get there and what I have to do – and then it’s time to meet the other HSE specialists on site.” With over 6,000 men on site at any one time, Dent stresses the importance of remaining safe and vigilant at all times, as well as leading by example. “That’s so important,” chimes in Geoff Bottomley, the health, safety and environment manager for Arabian Construction
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JANUARY 30–FEBRUARY 5, 2010 CONSTRUCTION WEEK
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CENTRAL MARKET, UNDER CONSTRUCTION IN ABU DHABI, HAS WON AN AWARD FOR SITE SAFETY, AN ACCOLADE PARTLY PUT DOWN TO INCESSANT TRAINING AND TOOL BOX TALKS.
Company (ACC). “We obviously get a big influx of Asian workers. Yesterday, they were farmers, traders or fishermen and today they’re working 80 floors up on a construction site.” How then do the HSE specialists bridge this safety and knowledge gap? “It’s all about training and tool boxes. We tool box and tool box and tool box them,” continues Bottomley. “Every Saturday morning at eight o’clock, the foremen deliver talks on a topic of their choice. There are 16 members of the safety team working here on Central Market, all of them speak both English and Asian languages.” All of the HSE guys accompanying me today – Aldar’s head of HSE Andrew Broderick, Aldar HSE executive Reju Jose Manjooran and ACC project manager Pierce O’Donnell are also lending their expertise to the site visit – have horror stories to tell about the state of sites and workers when they first arrived in the Middle East. The battle, they claim, has been to completely change the safety culture. It’s a fight they seem to have won; when the Ministry of Labour visited the Central Market site last month, they didn’t find a single worker lacking the suitable PPE. As we make our way to the workers’ carriage elevator, Aldar’s top health and safety man, Broderick, points out the unit where chemicals and flammables are stored
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securely and, most importantly, away from tors can sound the alarm if they observe the towers. a fire. In each stairwell there are site plans, showFlammable materials being kept on-site, along with sparks produced by hot works, ing workers exactly where they need to go are the major causes of fires on construc- in the event of an incident, as well as all relevant contact numbers. Fire action and tion sites, explains O’Donnell. “The containers first aid notices appear on are well-protected the walls in English, Hindi, “IT’S ALL ABOUT and workers take Urdu, Arabic and Bengali. TRAINING AND TOOL Staircases between floors up flammables on BOXES. WE TOOL BOX a daily basis,” he also all feature emergency AND TOOL BOX AND TOOL BOX THEM” explains. “One of lighting throughout the conthe challenges in struction process. promoting HSE on-site here is obviously “From Aldar’s point of view, there are communication, due to unskilled workers three drivers of health and safety,” explains coming from so many places, but, compared Broderick. “Moral, legal and financial. to my experience doing this in the UK, in “We take our moral responsibility extremely some ways it’s easier. Workers here have seriously. We want people to feel safe and yet to acquire any bad habits. You tell them secure when working on one of our sites. once and they listen.” Our HSE policy is contractual – it’s in every We all step into the lift and are quickly document and all contractors get a copy, rewarded with a stunning view over Abu which is updated each year. Contractors such as Atkins and ACC also have siteDhabi as we climb to the 67th floor. “You’ll notice we keep slabs extremely clean,” specific contracts that will be completely says ACC’s Bottomley. “It’s a simple thing individual to the project. No two projects but effective at reducing risk quickly.” will be alike.” “And, finally, there’s the financial driver. Stepping out onto the slab, he points out the safety features present on every floor Aldar, of course, has very good insurance for throughout the entire construction process. a project like this. Things like fire hoses on Each level has a fire hose with a length suf- every level up to two below the top current ficient for reaching all areas of the floor; working level is stipulated by insurance, there’s a fire alarm button too, while all which is very expensive. It pays for us to cradles also have a button so that opera- go that step further.”
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
“OUR PRIORITIES ARE TO PREVENT FIRES IN THE FIRST PLACE”
As far as regulations are concerned, Broderick highlights the fact that local authorities are fast catching up to those of western countries, with six sets of international codes set to be introduced later this year. “Aldar has already been contacted about using our projects for case studies,” he beams. “In many ways, until now, we’ve had to be self-governing, as we’ve a huge reputation. Very few developers have HSE teams, relying on the project manager instead. We want to pave the way – safety is about lives. Sometimes, being a developer is not about financial decisions; it’s about doing the right thing.” And working with the right partners, it seems. “We’re really happy with ACC – they take it all very seriously. They’re experts in highrises, but also experts in fire safety,” says Broderick, pointing out the net protection and triple barriers around the edges of the slab – regulations only require doubles.
So, I ask, hoping that I’m not tempting fate with my theoretical question, what exactly would happen if there was a fire on-site right now? Bottomley fields this one. “Once the alarm has been raised, everyone would head to their designated assembly point where fire wardens – trained by third party assessors – control the area. Foremen count the men and wardens count the foremen, while guards control the street.” There are regular drills on-site and the last one took 18 minutes in total, although this figure will obviously increase slightly as the building height increases. A significant part of the process follows each drill when the HSE team discusses any problems that arose and how to put them right. “Our priorities are to prevent fires in the first place, then to identify them quickly and finally for trained workers to deal with them,” adds Dent.
“We take pictures, we run Powerpoint presentations and we also have a completely blame free culture here, which is as imperative as the communication.” At the heart of all that Aldar, ACC, Atkins and EC Harris are doing at Central Market lies the principles behind BuildSafe, for which Broderick is the Abu Dhabi spokesperson. Aldar will only work with contractors that are signed up with BuildSafe, he says, and the BuildSafe notices and instructional diagrams decorating the site back up this claim. “If there are any incidents, BuildSafe investigates them and encourages the sharing of knowledge rather than covering up mistakes. That’s how the industry improves.” It can be easy to see a construction site – especially one for a project as large as Central Market – as a hundred mini-projects, a thousand small jobs, a million separate tasks…and, in many ways, that’s true. Workers arrive, head to their floor, their section, their duty for the day and rarely interact. However, having spent an hour or so onsite here it demonstrates just how uniting HSE can be. “No matter what problems exist between the client, the contractor and sub-contractors – and, of course, issues do occur – everyone wants the same thing when it comes to health and safety. We’re all pulling in the same direction,” explains Broderick. It must be good to know, when you’re 67 floors up, carrying out hot works, that should anything happen, 6,000 men and a whole lot of safety procedures have got your back.
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JANUARY 30–FEBRUARY 5, 2010 CONSTRUCTION WEEK
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OFF TH E WA L L CW TALKS TO INDUSTRY EXPERTS TO DISCOVER THE MODERN AND SUSTAINABLE WAYS OF BUILDING WALLS By Sarah Blackman
F
orcenturies,heavystone, rocks and clay have been used to build walls around the world. Hadrian’s Wall in Scotland, the Great Wall of China and defensive walls of the ancient world were all constructed in the traditional block-like fashion. But, times have changed and bricks and mortar are no longer the building materials of choice. Energy-saving precast, and drywalls are now the order of the day, particularly in developing regions like the Middle East.
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Clearly, walls have two main purposes - to support roofs and ceilings and to separate rooms. Sound’s simple, but without the right materials and proper installation, building a wall can be a heavy load to bear.
SAVING TIME Knauf, an international supplier of building materials believes there is a way of making light work out of constructing a partition, by using drywall instead of bricks and plaster. “There is really no contest. Drywall is an easier, faster and more cost-effective solution, applicable in the same places where
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
traditionally plaster would be used. It is lighter than brick and plaster,” says Knauf marketing manager Kerim Caglar. “One m2 of drywall weighs around one tenth of 1 m2 of plaster.” To assemble drywall, boards are first cut to size and secured into metal frames before their edges are straightened using corner beads. The joints are then taped over using paper or fibreglass mesh tape. This is later covered with three layers of joint compound (a type of sealant). When the compound is dry the wall can be sanded and painted.
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KNAUF MARKETING MANAGER KERIM CAGLAR.
GULF WALL PANELS ARE PREFABRICATED BEFORE THEY ARE PLACED INTO POSITION ON SITE.
“DRYWALL IS AN EASIER, FASTER AND MORE COSTEFFECTIVE SOLUTION THAN BRICK AND PLASTER”
“Also, you can apply paint directly over it as soon as you have installed it, which means no waiting and no wasting time.” It seems that saving time is a must when it comes to constructing in the Middle East, as a number of new projects continue to roll out, even in the tough economic climate. Another manufacture which claims to meet this need is Gulf Wall, a supplier of light-weight partitions. The company’s walls are prefabricated before they are transported to a site, placed into position and filled with concrete. “They are essentially ‘flat-packed,’ with every panel numbered and identified on the project drawings,” says Gulf Wall general manager Toby Cooke.
“The system is fast and simple, yet delivers a robust and smooth-finished product, with no need for plaster.” Jehan Green Walls, which opened its offices in Sharjah less than a year ago, manufacture and supply 3D panels. These can be cast in situ (on site) or precast (cast off site) using gypsum or concrete, both of which have fire resistant properties. The panels are made out of expanded polystyrene (EPS) board with a galvanized (coated with zinc to prevent corrosion) steel mesh on either side. MEP works can then be applied before concrete or gypsum is spayed onto the panels to form a ‘skin’. “Our walls are much lighter [than traditional partitions]; hence they reduce the weight
As with other dry stone structures, the wall is held up by the interlocking of the stones. Such walls are used in building construction, as field boundaries, and on steep slopes as retaining walls for terracing.
used to construct load-bearing walls in large buildings are concrete, block, or brick.
Drywall can also be shaped around their frames to create curves. And, according to Caglar, it requires less manpower to assemble, as it is lighter and each partition has a much greater surface area than a brick. “An interesting way to look at it is that 15 truckloads of bricks can be used to cover the same areas as one truckload of drywall partitions. So even before you start constructing, you save delivery time and money,” he says.
TYPES OF WALL CURTAIN WALL The curtain wall is the non-structural outer layer of a building. It is a façade that does not carry any dead load weight from the building and is designed to resist air and water infiltration and sway induced by wind and seismic forces.
DRY-STONE WALL A dry-stone wall is constructed from stones without any mortar to bind them together.
LOAD-BEARING WALL A load-bearing wall bears the weight and force resting upon it, conducting the vertical load from the upper structure to the foundation. The materials most often
DRYWALL Drywall is the term used for a common method of constructing interior walls and ceilings using panels made of gypsum pressed between two thick sheets of paper. Drywall became prevalent as a speedier alternative to traditional plaster interior finish techniques.
JANUARY 30–FEBRUARY 5, 2010 CONSTRUCTION WEEK
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“THE STEEL USED IN OUR WALLS IS 80% RECYCLED AND THE POLYSTYRENE IS ALSO RECYCLABLE”
of the building and require lighter foundations to support them,” states Jehan Green Walls general manager Cedric Pinto. “Installation time is cut by 50% when using our walls.”
SAVING ENERGY So preassembled or readymade panels have proven to save time, but enough about the practicalities, what about energy? Just how sustainable are these partitions in comparison to brick and stone walls that have stood the test of time? “Drywall is sustainable,” insists Caglar. “Our boards contain a certain mixture of recycled gypsum, which is easily available to us. Additionally, the paper used for the boards comes from managed tree farms that are exclusively at Knauf’s disposal.” Gulf Wall’s partitions are also made out of gypsum: “The embodied energy to produce the product is very low in comparison with traditional materials, and the nature of this product makes it easy to recycle at the end of its life cycle,” adds Cooke. Further, Gulf Wall panels do no not require cementitious plaster, meaning the problem of cracking and/or flaking is eliminated. So what makes Jehan Green Walls green? When comparing to traditional constructions, the company claims that carbon footprint emissions are reduced by 20% when its partitions are used.
5 KEY TRENDS • Precast walls – assembled off site and implemented on site • Flat-pack building – ready-made panels and placed into the required position • Gypsum – a popular recyclable material used to make partitions • Low U-values – increasing a product’s resistance to heat flow using insulation • No more plaster – problems of cracking and flacking can be eliminated
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JEHAN GREEN WALLS HEAD OF MARKETING AND SALES CEDRIC PINTO.
“The steel used in our walls is 80% recycled and the polystyrene is recyclable, thus making the 3D panels sustainable elements,” says Pinto. The core of Jehan’s walls also provides thermal insulation, which reduces the power required to cool or heat a building. The U-value of the company’s partitions can be adjusted to suit the requirement of the client by varying the thickness of EPS. U-values gauge how well a material allows heat to pass through. The lower the U-value, the greater a product’s resistance to heat flow and the better its insulating value. “A 200mm thick wall gives a U-value of 0.451W/m2 °K and a 250mm thick wall gives a U-value of 0.314W/m² °K,” explains Pinto. The cavity of Knauf’s wall linings are filled with thermal insulation materials such as rockwool, glasswool, EPS or extruded polystyrene foam at required thicknesses. “The wall lining system improves not only the thermal insulation of the exterior wall but also its sound insulation, thus providing a more comfortable environment for occupants,” says Caglar. “You get exactly the same insulation value as brick at just a quarter of the thickness.” Gulf Wall also works closely with several insulation providers to optimise the performance of its products and meet certain criteria, including thermal and sound insulation, fire resistance and strength.
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
JEHAN WALLS’ 3D PANELS ARE DESIGNED REDUCE THE WEIGHT OF A BUILDING.
“When designed for the project in conjunction with one of the specialist thermal assemblies available, any U-value can be achieved,” states Cooke.
FUTURE OUTLOOK It is obvious what the benefits are of using recyclable materials to construct walls, but is there a demand for such products? The answer, it seems, is a resounding yes. “Our products are even more attractive when the market is heavily cost conscious, so overall the new, more rigorous climate is an advantage for us,” says Cooke, who hopes to see a greater focus, by the regulatory authorities, on efficient sustainable design in 2010. The firm is currently working on a residential project in Ajman, a student accommodation block in Dubai and four labour camps in Abu Dhabi. Despite its short time in the industry, Jehan Green Walls has also witnessed an encouraging response from the market. “Keeping in mind that our system and products are new, the construction industry still believes in quality products and has an affinity towards green solutions.”
PRECASTING HAS BECOME A POPULAR METHOD FOR CONSTRUCTING WALLS ACROSS THE GLOBE.
The company hopes to continue to raise awareness about the benefits of green building through campaigns this year and carry on with the projects it is currently supplying products to.
Such developments include labour accommodation in Ajman and Dubai and a villa compound in Fujairah. Knauf also has a positive outlook to the future: “We are able to show definite
growth to previous years,” says Caglar. “As a result, we are convinced that there is a high demand for our products in this climate. We will soon be introducing a series of advanced products to meet the market requirements.” Knauf hopes to expand its production further this year. Its Ras Al Khamiah plant is operational but there is still another phase of the plant, which is yet to start functioning. The company is currently working on a number of commercial and residential projects in Qatar, Bahrain and Oman, where progress is steady. “I must say, we have come through this downturn very well. Our achievements during this phase include hiring more employees, starting off our operations in Qatar, investing in our production plant in Ras Al Khaimah and kicking-off production of metal profiles at the plant,” he adds. “My hopes for 2010 are to show further growth by becoming a bigger and better team.”
Exova Façade Tes ng Services in Abu Dhabi From January 2010 Exova, one of the world’s leading testing houses opens a new façade testing facility in Abu Dhabi. The operation, which re ects the company’s vision and values, has been prompted by the policy to enhance its services in Abu Dhabi. One of Exova’s key strengths is the large, integrated network of local, regional and international laboratories, including two facade testing facilities in the UAE, which ensures that clients can bene t from the company’s specialist expertise. “We are looking forward to supporting you, our customers, and adding value to your business by delivering on our promise for exceptional service and where possible exceeding your expectations.” said Chris Davey, General Manager, Abu Dhabi. The new facility, situated on Reem Island, is capable of testing complex facade samples with respect to air leakage, static water penetration, dynamic water penetration, wind resistance, seismic, building movement, thermal cycling and impact resistance tests. The tests can be performed to relevant ASTM, BS/EN and CWCT standards.
For further information please contact: Exova Limited (Abu Dhabi) Plot 25, Umm Al Naar (Sas Al Nakhl) P.O. Box 9191, Abu Dhabi United Arab Emirates. T: +971 (0) 2 558 2345 F: +971 (0) 2 558 4515 M: +971 (0) 50 6171168 E: market@exova.com W: www.exova.com
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DIRECTORY SHOWCASE | TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE
SHOWCASE 30 Villamar Towers, Bahrain 32 TENDERS 35 PROJECTS SPECIALIST SERVICES 36 Design software 37 Construction manufacturers/steel CITY UPDATE 38 Jubail, Saudi Arabia
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¦SHOWCASE
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TOP: A view of Bahrain Financial Harbour at sunset. ABOVE AND RIGHT: Work in and around the developing harbour has made steady progress over the last 12 months.
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CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
VILLAMAR TOWERS, MANAMA, BAHRAIN Photos by George Dipin The US $650 million (BHD245 million) Villamar Towers is the first development by Kuwait’s Gulf Holding Company (GHC) and is destined to become one of the most iconic structures and enviable addresses in Bahrain.The development will essentially be on its own island located within Bahrain’s ongoing Financial Harbour. Villamar’s three towers rise out of a terraced podium. The towers each will vary in height, the tallest being 54 storeys and around 220m high, but all three will have the trademark “gentle twist” to set them apart from the tall tower competition.
JANUARY 30–FEBRUARY 5, 2010 CONSTRUCTION WEEK
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LEFT: New property developments have still left room for some harbour access too. BELOW: The harbour district covers an 380,000 m2 of prime Bahrain waterfront property, featuring high specification office space, residential accommodation, leisure and retail.
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¦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
ETIHAD RAILWAY COMPANY In July last year, a federal law decree was approved to set up the AED1 billion Etihad Railway Company, which is set to launch the UAE rail network. The company has been given the mandate to engage in a number of activities including the owning, leasing, renting, purchasing and selling of trains and investing in the transport of passengers and goods. In September, the members of the board were revealed. The tender for engineering and design of the $8 billion UAE rail network is expected to be released by Etihad Railways Company early this year. The network will run 1100km from the Saudi Arabia border to Oman. Construction is set to begin in the last quarter and completed in 2015.
To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com
BAHRAIN
THE RAIL NETWORK IS SET TO BE COMPLETED IN 2015.
KUWAIT
Issuer: Electricity and Water Authority Tender No: 378/2009/3200 Description: Construction of a customer service centre at Country Mall. Closes: February 10 Fees: BD50 Contact: Purchasing and Supply Directorate, Central Stores, Ground Floor, Electricity and Water Authority, PO Box 5325
Issuer: Central Tenders Committee Tender No: MEW/39/2008/2009 Description: Design and construction of Al Zour desalination plant, phase 2. Closes: March 9 Fees: KD3000 Contact: Central Tenders Committee, Ministry of Electricity and Water
Issuer: Electricity and Water Authority Tender No: 263/2009/4130 Description: Procurement work for Alstom gas turbines. Closes: February 10 Fees: BD15 Contact: Purchasing and Supply Directorate, Central Stores, Ground Floor, Electricity and Water Authority, PO Box 5325
Issuer: Central Tenders Committee Tender No: RA\\140 Description: Construction of Jaber Ahmed Al Jaber Al Sabah Bridge in Kuwait. Closes: June 8 Fees: KD5000 Contact: Central Tenders Committee – Ministry of Public Works
Issuer: Electricity and Water Authority Tender No: 001/2010/5310 Description: Purchasing single core copper cable and PVC insulated copper wire. Closes: February 10 Fees: BD15 Contact: Purchasing and Supply Directorate, Central Stores, Ground Floor, Electricity and Water Authority, PO Box 5325 Issuer: Ministry of Health Tender No: MOH/101/2010 Description: Expansion of pharmacy section and construction of guard room at Hamad Kanoo Health Centre. Closes: February 17 Fees: BD15 Contact: Tendering submission office, tender board’s office at Al Moayeed Tower, Seef Area EGYPT Issuer: Egyptian endowment authority Description: Construction of five residential buildings comprising 484 housing units in Menia. Closes: February 16 Fees: EP19,000 Bond: EP1.5 million Contact: Egyptian Endowment Authority, 109 Tahrir St., Dokki, Giza
OMAN Issuer: Ministry of Transport and Communication Tender No: 418/2009 Description: Construction of Wadi Al Ain link roads. Closes: February 8 Fees: OR600 Contact: www.tenderboard.gov.om Issuer: Ministry of Health Tender No: 416/2009 Description: Construction, completion and maintenance of a proposed medical store at Rustaq Hospital. Closes: February 8 Fees: OR250 Contact: www.tenderboard.gov.om Issuer: Supreme Committee for Town Planning Tender No: 10/2009 Description: Consultancy services for the preparation of the master-plan of Duqm Town. Closes: March 8 Fees: OR300 Contact: www.tenderboard.gov.om
Issuer: Public Works Authority Tender No: PWA/GTC/063/09-10 Description: Construction of two health centres. Closes: February 2 Fees: QR1000 Contact: Contract Department, Public Works Authority SAUDI ARABIA Issuer: Royal Commission for Jubail and Yanbu Tender No: 627-C17 Description: Procurement and construction of an elementary school for girls, three kindergartens and expansion of an elementary school for boys in Jubail Industrial City. Closes: February 24 Fees: SR9000 Contact: Directorate General of the Royal Commission in Jubail UAE Issuer: Dubai Electricity and Water Authority Tender No: CNE/0488/2009 Description: Construction of four accommodation buildings at Jebel Ali Power Station. Closes: February 24 Fees: AED2000 Contact: The Chairman, Board of Directors, Dubai Electricity and Water Authority
ONE TO WATCH Issuer: Etihad Railway Company Description: Engineering and design contracts for the UAE rail network. Open date: Q1 2010 Fees: Unknown Contact: info@EtihadRailways.co info@EtihadRailways.com m
QATAR Issuer: Ministry of Municipality of Urban Planning
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Tender No: 145/2009-2010 Description: Construction of plaza and play yard in Umm Salal – Phase 2. Closes: February 1 Fees: QR300 Contact: www.ctc.gov.qa
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
> For more tenders check online at www.ConstructionWEEKonline.com/tenders
¦PROJECTS
> For the latest projects information visit www.ConstructionWEEKonline.com/projects
§ PROJECTS
A UAE DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM
Project focus
ONYX TOWERS The mixed-use US $200 million (AED734.5 million) Onyx Towers development is being built across 22,000m2 of land and will consist of three buildings including a 16-storey and 25-storey tower with office and retail space and a four star 14-storey business hotel, with 10 suites and 200 rooms. The buildings will be linked via an interconnected podium PROJECT TITLE
THE ONYX TOWERS ARE BEING BUILT BY ARABTEC.
area. In August 2009 Ishraqah for Development awarded Arabtec Construction the main construction contract. The project, which is located on Dubai’s Sheikh Zayed road, next to Emaar Business Park, is expected to be completed in the third quarter of 2012.
CLIENT
CONSULTANT
MAIN CONTRACTOR
VALUE (US$MN)
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
FISHERMAN'S QUAY IN RAS AL KHAIMAH
RAK Properties
EDAW
Not Appointed
101 - 250
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
Not Appointed
31 - 100
award awaited for the construction contract
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
31 - 100
WATANI RESIDENTIAL DEVELOPMENT - 600 VILLAS AND 48 BUILDINGS
Sorouh Real Estate
Ewan Arch. Engg./WSP Group
Not Appointed
251 - 500
SANDOVAL TOWNHOUSES & RESIDENCES IN JUMEIRAH VILLAGE
Bavaria Gulf
Diar Consult
Al Sayegh Contracting
AL GURM COMPLEX IN WEST ABU DHABI - BANYAN TREE HOTEL
ALDAR Properties
Dar Al Handasah
Not Appointed
101 - 250
award awaited for the construction contract
CITY CENTER IN MASDAR CITY
Masdar
Laboratory for Visionary Arch.
Not Appointed
101 - 250
project under design
UAE
31 - 100
project under construction project under design
bidding underway for the main contract project under design project under construction
To list your projects in this section email details to editor@ConstructionWeekOnline.com
31 - 100
bidding underway for the main contract
SPECIALIST SERVICES §
¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6344, OR EMAIL JASON.BOWMAN@ITP.COM
Supplier focus
CAUSEWAY MIDDLE EAST SPECIALIST SOFTWARE FOR THE CONSTRUCTION INDUSTRY
To advertise please call +971 4 435 6375 or email shishir.desai@itp.com
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36
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
CAUSEWAY SOFTWARE IS BEING USED FOR THE YAS ISLAND PROJECT.
BUILDING MATERIALS
HARD LANDSCAPING SUPPLIER
CONSTRUCTION/MANUFACTURERS
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JANUARY 30โ FEBRUARY 5, 2010 CONSTRUCTION WEEK
37
CITY UPDATE JUBAIL, SAUDI ARABIA
The next agenda JUBAIL IS SET FOR ANOTHER YEAR OF SPEEDY PROGRESSION, CW DISCOVERS By Sarah Blackman
S
o far, Jubail Industrial City, commonly known as the biggest construction project ever attempted, has been progressing at a fast pace. Even at the peak of the economic downturn, the development was moving onwards and upwards with contracts being awarded left, right and centre. July 2009, for example, saw the Royal Commission of Jubail and Yanbu award five
38
contracts worth a total of US $257.5 million (SR64.3 million). The largest contract, worth $93.5 million, was awarded to Azmeel Contracting and Construction Corporation in association with Saudi Tumpane Com-
“EVERYBODY WAS GAMBLING ABOUT JUBAIL’S FAILURE AND NOW EVERYBODY IS TALKING ABOUT ITS SUCCESS”
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
JUBAIL IWPP WILL PRODUCE 2745MW OF POWER AND 800,000M3 OF DESALINATED WATER PER DAY ONCE COMPLETE.
pany for phase one of Jubail’s Community site development. “Jubail and Yanbu are success stories. When they were started in the 1980s, everybody was saying ‘these people are crazy, don’t bother doing it’ – everybody was gambling about its failure and now everybody is talking about its success,” says Saudi Arabia’s deputy minister for Town Planning Abdulrahman Al Shaikh. Up to now, the main focus on the development has been on the supporting infrastructure, which is being completed in four phases, with each stage roughly covering 20km². Stage one began in 2004 and finished in 2009, while stage two is scheduled to finish in December this year, stage
LIKE RIYADH, RESIDENTIAL BUILDINGS ARE PLANNED FOR JUBAIL.
three in December 2012 and stage four in December 2015. Currently, Suez Energy International and Acwa Power Projects are constructing a $3.4 billion independent water and power plant for the Power and Water Utility Company for Jubail and Yanbu. The power plant will comprise of four blocks and will be based on combined cycle generation turbines. Jubail IWPP will produce 2745MW of power and 800,000m³ per
FAST FACTS • Jubail Two covers 84km2 and its infrastructure is set for completion by 2015 • 40km2 of new residential zones are expected to be fully built out by 2023 • Bechtel has started front-end design on a 195km rail network across Jubail One and Two • The Royal Commission has at least 50 active contracts at any time • Jubail’s night time population of 100,000 is expected to grow to 300,000 • Site preparation is underway for Jubail University College which will cover 1.85km2 • Site preparation is underway for Jubail University College which will cover 1.85km2 • The Royal Commission’s 2009 budget of $880 million was a 35-40% increase on the previous year
SAUDI ARABIA’S DEPUTY MINISTER FOR TOWN PLANNING ABDULRAHMAN AL SHAIKH.
JUBAIL TENDERS
“WE’RE NOW PROCEEDING WITH THE ENGINEERING DESIGN OF THE JUBAIL RAIL NETWORK” day of desalinated water to Jubail Industrial City and the Eastern province of Saudi Arabia. Construction began in 2007 and is set to be completed early this year. Recently, however, the attention has turned to real estate. In November, the Royal Commission signed a contract with Al Kifah Contracting Company for executing a group of housing units in Jubail Industrial City. The contract was signed by the commission’s president Prince Saud Ben Abdullah Ben Thenayan in Riyadh. The project, which is expected to be completed in 36 months, consists of nine, four-storey apartment buildings spread over 33,000m². Al Kifah is responsible for the construction of the apartment blocks, as well as roads and parking. Jubail Industrial City currently has a permanent night time population of around 100,000 but this is expected to grow to around 300,000 with the development of the new residential districts. Each of the areas is around 10km² and, when built up, will have 8500 dwelling units housing around 45,000 people. The entire residential area isn’t expected to be complete until around 2023.
Issuer: Royal Commission of Jubail and Yanbu Tender No: 575-C27R Description: Reinforcement of community irrigation system, phase 1. Closes: February 8 Fees: SR1000 Issuer: Royal Commission of Jubail and Yanbu Tender No: 090-C23 Description: Rehabilitation of Jubail Industrial City Aiport, including runway and taxiways. Closes: February 9 Fees: SR1000 Issuer: Royal Commission of Jubail and Yanbu Tender No: 627-C17 Description: Procurement and construction of one 7025m2 elementary school for girls and three kindergartens. Closes: February 24 Fees: SR9000
Next inline for the city is the Jubail Rail Network, a 195km heavy rail line across Jubail One and Two. “We have already completed a concept study and we’re now proceeding with the engineering design,” says Bechtel programme manager George Dinic. Meanwhile, the Royal Commission of Jubail and Yanbu is inviting contractors to bid for the reinforcement of a community irrigation system, the rehabilitation of Jubail’s Airport runway and taxiways and the construction of schools and kindergartens in the city. Bidding deadlines are February 8, February 9 and February 24, 2010 respectively.
JANUARY 30–FEBRUARY 5, 2010 CONSTRUCTION WEEK
39
DIALOGUE WALID FEGHALI
Safety first 3M country business leader for safety, security and protection services Walid Feghali rates the quality of on-site safety in the Middle East
By Sarah Blackman
How successful was the recent Intersec security and safety trade fair?
The event was quite busy and we didn’t expect it to be. We have exhibited at Intersec almost every year and, compared to last year, it was very successful. Intersec is a very important trade fair, which gives us the opportunity to display the range of products that we offer. How does your company ensure the safety of construction workers?
Workers are exposed to dust, chemicals and to hazards and, for each type application, we have the right product for protection. Workers need helmets, but these helmets can deteriorate if they are exposed to UV-rays. We have a special technology, which lets the worker know when the helmet needs replacing. We also have a huge range of hearing protection products, including ear plugs and ear muffs and we also offer eye protection products.
the Dubai Municipality to elevate awareness and safety standards. Damage to the eyes, ears and lungs is irreversible so it is important that safety knowledge is past on to contractors, supervisors and workers so that the right tools are provided. How do you encourage companies to invest in your solutions during the current economic climate?
When clients get to know the advantages and benefits of the products they will invest and make sure their workers are protected from harm. I don’t like the negative outlook people have towards the economy. The downturn is behind us now and we need to be optimistic. We have a large sales team and we go to the end users we explain what we offer in detail and demonstrate how they are used. Once the products have been sold, we then train the workers on how to use them. We also conduct a lot of safety seminars, which don’t just cover what 3M does, but attempt to increase safety awareness.
Will you be introducing any new products this year?
At the moment, we are promoting our communication range – our ear muffs have microphones attached to them so workers can speak to each other from different ends of a construction site. A supervisor located at ground level could speak to a crane operator, for example. We want to present the communication range in an efficient way. How would you rate the standards of on site safety in the Middle East, on a scale of one to ten?
I would rate it as a four out of ten at this point in time. We have to keep hammering the importance of safety by holding seminars and presenting demonstrations to improve this figure. We are actively working with
40
Have you witnessed an improvement of on site safety over the last year?
I would say that we have seen a lot of improvement in on site safety and the level of awareness is getting better. We have a dream that one day every single individual will know which products to use so that workers can be safe and productive on site.
In the 15 years spent at 3M, Feghali has progressed up the company ladder. He started as a business development manager for the Middle East, Egypt and Pakistan and, in 2003, he became the country general manager for Kuwait and Iraq before being appointed as the country business leader for the Middle East in 2005.
CONSTRUCTION WEEK JANUARY 30–FEBRUARY 5, 2010
What are your hopes for 2010?
We have a new construction safety product coming online very soon. It will be a key product for us but I don’t want to discuss the details at this moment. In terms of projects, our approach will remain the same – to promote our products and raise awareness about construction safety.
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