MEP Middle East - Dec 2009

MIDDLE EAST

NEWS UPDATE | 06 THE BIG INTERVIEW | 15 VENTILATION | 24 BUSINESS LEADS | 33 LEGAL | 35 THE LAST WORD | 40

Essential information for mechanical, electrical and plumbing professionals

An ITP Business Publication | December 2009 Vol. 4 Issue 12

PUMPS THE IMPORTANCE OF DESIGN CRITERIA

HVAC FOCU S LAT

EST T TECHNORENDS, LOG M A IN Y S U PPL I E RS

HUMMING ALONG Rotary Humm’s flagship Novotel Hotel project for API in Al Barsha

ALSO: DSI’S CHARLES LEVER ON THE SUPPLY CHAIN

DECEMBER 2009 VOLUME 4 ISSUE 12

CONTENTS 15

22 03 CONSTRUCTION WEEK ONLINE 05 COMMENT

20 SITE VISIT The API multi-use complex in Sheikh Zayed Road.

30 OPINION Contractual and legal advice.

33 BUSINESS LEADS 06 UPDATE

22 PUMPS KSB on pump design.

11 CONSTRUCTION WEEK CONFERENCE DSI MEP director Charles Lever on future growth.

24 VENTILATION

35 LEGAL 36 METAL MONITOR

IMEC on energy-recovery ventilation.

38 PRODUCTS 26 HVAC SUPPLIERS

15 THE BIG INTERVIEW Dan Mizesko on chiller maintenance.

www.constructionweekonline.com

40 THE LAST WORD 29 SUPPLIER PROFILE Victaulic’s grooved piping method.

Human-resource development in the construction industry.

December 2009 | MEP Middle East 1

Everybody is talking "going green". We have the right solar and renewable energy solutions for you.

The Viessmann Group, whose head office is located in Germany, is an internationally leading manufacturer of heating system technology.

With its current product range, Viessmann offers heating equipment in three distinct categories with output ranging from 1.5 kW to 20 MW. On offer are freestanding and wall mounted boilers for oil and gas, DHW calorifiers, as well as systems utilising renewables, such as heat pumps, solar heating systems and boilers for sustainable fuels. The product range is rounded off with control technology and data communication equipment. Viessmann represents quality made in Germany.

Check us out at www.viessmann.com.

)NDIVIDUAL SOLUTIONS WITH EFĂź CIENT SYSTEMS FOR ALL FUEL TYPES AND APPLICATIONS

Domestic boilers, DHW cylinders and calorifiers

Wall mounted boilers

Solar collectors

Heat Pumps

Commercial boilers

Viessmann Middle East FZE SAIF Zone PO Box 120841, Sharjah UAE phone +971-6-557 87 56 ¡ fax +971-6-557 87 65 e-mail: info-me@viessmann.com

CONSTRUCTIONWEEKONLINE.COM M IN PICTURES

MOST POPULAR

• Indian professionals earn below ‘average’ salaries • ‘Average’ construction salary is $6047 per month • 2009 Construction week Salary Survey • Al Hamad workers strike in Bahrain

EDITOR’S CHOICE

SAUDI’S ‘SMART CITY’ El Seif has completed the fi rst phase of infrastructure works at the Information Technology ogy Communications Complex (ITCC) in Riyadh, Saudi Arabia.

For more galleries, check out www.constructionweekonline.com/galleries

COLUMNS AND FEATURES STARK REALITY

RACY

Selina Denman, Editor, Commercial Interior Design

Jeff Roberts, Editor, Middle East Architect

The six-day IFI General Assembly and Design Congress was a massive coup for Dubai and its relatively young Association of Professional Interior Designers (APID).

I had the opportunity to visit Abu Dhabi for the fi rst F1 race in UAE history. Like me, you’ll probably recall hearing about this particular piece of architecture about 18 months ago.

WIND OF CHANGE

LONG WAY

Greg Whitaker, Editor, PMV Middle East

Conrad Egbert, Editor, Construction Week

“The pessimist complains about the wind, the optimist expects it to change and the realist adjusts the sails,” wrote William Arthur Ward … There is a wind of change blowing in the heavy equipment industry.

The results of the Construction Week salary survey shed a lot of light on the inner workings of the construction industry.

Some pretty amazing trends have been revealed, and some rather alarming facts.

For more comments, check out www.constructionweekonline.com/comments www.constructionweekonline.com

• 77.8% face non-payment issues: poll • Burj Dubai ‘grows’ thanks due to new rules • Bouygues wins massive $1.3bn contract in Qatar • DAMAC issues New Cairo project tender

SPOT POLL

Does your company work with local universities to develop and recruit top talent?

50% No, but it’s something that we’re looking at doing in the future.

25% Yes, we work very closely to find ways to support and recruit graduates.

25% No, we have no interest in hiring students in this region.

December 2009 | MEP Middle East 3

COMMENT MIDDLE EAST

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000 Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London 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 Tel: +971 4 435 6293 email: stuart.matthews@itp.com Group Editor Jeff Roberts Tel: +971 4 210 6269 email: jeff.roberts@itp.com Editor Gerhard Hope Tel: +971 4 435 6252 email: gerhard.hope@itp.com ADVERTISING Commercial Director Raz Islam Tel: +971 4 435 6371 email: raz.islam@itp.com Sales Manager Atif Majid Tel: +971 4 435 6328 email: atif.majid@itp.com STUDIO Group Art Editor Dan Prescott Art Editor Simon Cobon PHOTOGRAPHY Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographer Efraim Evidor Staff Photographers Leila Cranswick, Lyubov Galushko, Thanos Lazopoulos, Jovana Obradovic, Ruel Pableo, Rajesh Raghav PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Production Coordinator Devaprakash V A Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami CIRCULATION Head of Circulation & Database Gaurav Gulati MARKETING Head of Marketing Daniel Fewtrell ITP DIGITAL Director Peter Conmy ITP GROUP Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 435 6000 Subscribe online at www.itp.com/subscriptions Certain images in this issue are availiable for purchase.

Please contact itpimages@itp.com for further details or visit www.itpimages.com Printed by Atlas Printing Press L.L.C. Dubai The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers.

Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

BPA Worldwide Audited Average Qualified Circulation 6,724 (Jan - June 2009)

Published by and © 2009 ITP Business Publishing, a member of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Registration number 1402846

www.constructionweekonline.com

Just where has the year gone?

B

y the time you read this, the giant exhibition space at the Dubai International Convention and Exhibition Centre will be empty again.

The figures were truly impressive: 3 000 exhibitors from 52 countries, covering 43 000 m² of exhibition space, and 22 national pavilions. However, the sheer magnitude of the spectacle that was The Big 5 could only be grasped once you entered the teeming concourse area and felt the palpable buzz of excitement and anticipation. Yes, it was big.

Given the current focus on infrastructure development, it was not surprising that MEP – and the HVAC sector, in particular – were very well represented, with companies from as far afield as Wales and China touting their products, on the lookout for business, or canvassing for agents. If you looked hard enough, there was a welcome break from the overall gravitas of the event with such oddities as waterless urinals incorporating television screens to gold-plated faucets.

While we are unable to report on the show in any detail in this issue due to print deadlines, the January 2010 issue of the magazine will contain a detailed report from Construction Week news editor Matthew Warnock on major HVAC companies represented at The Big 5. Warnock canvassed a number of exhibitors, and reported that, “in spite of a global slowdown that has forced many in the construction and development industries to look for the lowest-price options, the manufacturers and suppliers of HVAC and MEP solutions have claimed that developers and specifiers are not cutting corners on price.”

In one of the biggest business deals unveiled at The Big 5, Alessa Industries from Saudi Arabia announced a US$200 million JV with Huntair of the US, a major manufacturer of air-handling equipment. An important part of the deal is that Huntair will train Saudi engineers in the US. “We are very excited about the development taking place in the Gulf,” said Eric Roberts, president of the CES group that owns the Huntair brand.

This general sense of optimism about the future was the main feature of The Big 5. Yes, people expressed concern about uncertain market fundamentals affecting the pace and extent of the recovery going into 2010. Yes, companies have to work much harder in accessing the opportunities that do exist, and there are problems like cash-flow constraints and human-resource issues. But if there was one overarching message from The Big 5, it is that the construction industry has shrugged off the doomand-gloom attitude that prevailed at the outset of the downturn, and that it is business as usual (even if the

There was a lot of optimism and excitement at The Big 5

market conditions continue to be slightly unusual.)

It strikes me as strange that this is the final issue of MEP Middle East for 2009. Just where has the time gone? The preceding year has been a crucible of fire for many, who have been tempered by the experience. The MEP sector especially has used the slowdown to focus on issues of supply-chain management, quality assurance, skills development and regional expansion, which is a laudable indication of its maturity and sustainability. Given what happened at the end of last year, many are understandably hesitant at predicting what 2010 has in store. I think there is a general sense of relief at having survived the turmoil thus far. I also think there is an understanding that there is no respite from the hard work that lies ahead for everyone.

Therefore it is indeed fitting that we end the year in proper celebratory mode at the MEP Awards 2009 gala banquet on Wednesday 9 December at Grosvenor House. See you there!

GERHARD HOPE Editor gerhard.hope@itp.com

Keep up-to-date with all MEP Middle East news at

December 2009 | MEP Middle East 5

UPDATE

DSI acquires new business stream Its fi rst acquisition since listing on the Dubai Financial Market in March 2009

269/339 MILLION What the 2005 population in the MENA region is expected to increase to by 2015

Bilfinger Berger Facility Services MD Joachim Foerderer and Drake & Scull CEO Khaldoun Tabari ACQUISITION

Drake & Scull International PJSC (DSI) plans to unlock further potential for its MEP division by entering the lucrative wastewater and water treatment industry.

This was revealed by CEO Khaldoun Tabari at the official signing ceremony for its acquisition of Passavant Roediger of Germany.

“It is a known fact that less than 30% of houses in the Middle East, and it goes down to less than 15% in the North African sub-continent, are connected to water and sewerage, compared to Europe and the US, where it is 97% in certain areas,” said Tabari.

“This gap needs to be addressed. We believe the future trend will be how to reuse the water we are expending every day.

So DSI has taken the step to become involved in this industry.

“The advantage is that, while this market is growing, there are few companies addressing this demand. It is a tremendous feat for DSI to be associated with a company like Passavant Roediger” commented Tabari. Conversely, “it makes great sense for 6 MEP Middle East | December 2009

a company like Passavant Reodiger to associate itself with DSI, especially when we can easily integrate MEP and civils to deliver a one-stop solution.”

Research indicated that about US$25 billion a year is being spent at present on wastewater treatment, with demand set to exceed US$81 billion by 2012.

“It is in answer to these needs, as well as DSI’s ambition to evolve continually, that we have announced our fi rst acquisition of a global developer of leading technologies in wastewater, water and sludge treatment, with over 150 years experience, 5 000 installations worldwide and a presence in 13 countries across four continents.”

Passavant Roediger MD Robert Huth said the company is presently involved with a wastewater treatment plant in Fujeirah

serving a population of 182 000.

The sewage reticulation network comprises 160 km to date, with 34 pumping stations. Huth said Passavant Roediger would continue to transfer skills and expertise from Germany to bolster its presence in the UAE and across the entire MENA region.

The company is working on 25 projects, and is bidding on more as far afield as Egypt, Algeria, Saudi Arabia and Lebanon, with a total contract value of AED1 billion. Its most recent contract wins include a AED127 million sludge digestion plant in Jordan.

Tabari explained that the “enterprise value” of the acquisition was AED145 million, with DSI owning 82%, while the remaining 18% will be held by Bilfi nger Berger, a leading public-listed company in Frankfurt, Germany.

Tawfiq Abu Soud, DSI’s executive

director director for infrastructure, water and power, will oversee the operations of Passavant Roediger. However, Tabari said “we do not intend to change the basics of Passavant Roediger. It will run absolutely independently, with guidance from DSI.” Tabari described the acquisition as an “exciting milestone” for the company. He concluded: “Passavant Roediger’s unrivalled technologies will extend our ability to deliver superior services to the region, and will continue to further position DSI as a leading end-to-end provider in the engineering industry.

“With this acquisition, DSI will become a key provider in the regional wastewater, water and sludge treatment industry, offering a globally innovative solution, backed by DSI’s 40 years of local experience in procurement engineering and construction capability. This is just the beginning of a new phase in DSI’s evolution, and as such we will continue to exploit every opportunity to support the expansion and growth of our company in the same manner we have undertaken every endeavour in DSI’s long history in the Middle East,” concluded Tabari.

All countries in the MENA region are expected to increase their household connection rates to wastewater treatment systems and plants significantly, from an average of 13% in 2005 to 60% in 2015.“ www.constructionweekonline.com

UPDATE

Hyder scoops top UK award Burj Dubai wins ‘Innovation of the Year’ AWARD

Hyder Consulting’s involvement on the iconic Burj Dubai has won it the ‘Innovation of the Year’ award at the British Expertise International Awards (BEIA) held in London.

Hyder deployed a team of i nt er nat iona l l y - ex p er ienc ed engineers to ensure technical accuracy and execution of high building standards. There were various innovative MEP engineering applications: • Upper HV/LV substation: Located on the 155/156 oors at well over 500m above ground, making this the highest substation anywhere in the world; • Burj Dubai’s connected load: In excess of 80MW, with a maximum demand of 46MW, provided via 20 separate 11kV supply cables, making this the most complex HV service to a single building in the world; • Hydraulic systems: Burj Dubai operates on a three lift principle, with water pressures peaking at 35 bar. Such pressures are normally only associated with process/industrial design, and not

MEP design of buildings. The building’s hydraulic systems are totally unique; • Lift design: There are many unusual aspects of the lift design, but one particularly different feature is that, in the event of transformer failure in any of the building’s many substations, a new one can be lifted into position easily and quickly without special arrangements.

In addition, Robert Baker (29), highways and infrastructure function manager, won the ‘Young Consultant of the Year 2009/10’ award. Baker is currently in the process of establishing an internal training programme for all graduate engineers who are rotating from Hyder’s Middle Eastern ofďŹ ces to Manila and vice versa to ensure they obtain construction supervision experience. “I am delighted that Hyder has won these two prestigious awards. Together they recognise the innovation of our people and the delivery of excellence to our clients,â€? commented Hyder Consulting CE Ivor Catto.

3PUBSZ )VNN . & 4FSWJDFT 6 " & - - $ .FDIBOJDBM &MFDUSJDBM &OHJOFFST $POUSBDUPST

Robert Baker, Hyder Consulting Middle East regional MD Wael Allan and CE Ivor Catto www.constructionweekonline.com

1 0 #PY %VCBJ 6 " & 5FM 'BY 8FC XXX SPUBSZIVNN DPN

December 2009 | MEP Middle East 7

UPDATE

Metro MEP works nearly complete All remaining Red Line stations expected to be up and running by February 2010 DUBAI METRO

Electromechanical works on the 19 remaining stations of the Dubai Metro’s Red Line are 80% to 97% complete, with the opening of these scheduled for February 2010, according to His Excellency Mattar Al Tayer, RTA chairman and executive director.

The Command and Control Centre at Rashidiya, one of the most sophisticated of its kind in the Middle East, is also scheduled to be inaugurated in February 2010. The centre will enable full control of the daily operation of the Metro service on both the Red and Green Lines. The centre will be a hub for controlling, supervising and monitoring train movement and related systems, such as telecom, electrical transformers and power feeders to both the rolling stock and the Metro stations.

It will also enable supervision of safety systems such as fire extinguishing and firefighting services, ventilation systems for the

A rendering of a completed Dubai Metro station

tunnels, stations and trains, and train air-con systems, as well as the safety of doors, brakes and engines on each train separately.

The centre also provides a means of communication with train passengers through an onboard communications system fitted in the carriages and the

control room, which is for use in emergency situations.

Electromechanical works at Mall of the Emirates station have reportedly reached 90% completion, 88% at GGICO station and 95% completion at Karama station, while MEP works at the World Trade Centre station have been

completed fully. Pilot technical testing of the latter is underway to ascertain its preparedness for operation, while final touches are being made to the Emirates Towers station to prepare it for its technical trial run. Electromechanical works are 85% complete at the Al Qouz and Dubai Marina stations, while Ibn Battuta station has achieved 95% completion.

Al Tayer expressed his overall satisfaction with the progress of the MEP works on the Dubai Metro, and commended the diligent efforts of all involved to achieve the planned opening date. The project was opened officially in September, with only ten stations ready in time. The Green Line is due to begin operations during mid-2010, while the Purple Line has been put on hold due to the economic downturn. The RTA has plans to extend the Red and Green lines over the coming four years, with an additional 12 stations expected to be added to these routes.

Qatar shines light on energy efficiency SUSTAINABILITY

Plans to test solar panels and energy-efficient lighting in Qatar will soon be put into action. This follows Chevron’s appointment of Mike Farshchi as research manager of its Centre for Sustainable Energy Efficiency at Qatar Science & Technology Park (QSTP).

Farshchi will be responsible for

US$3 BILLION What Chevron has implemented in energy efficiency projects since 2002

8 MEP Middle East | December 2009

working with local organisations to identify and deploy sustainable energy technologies specifically suited to Middle East conditions.

Chevron is investing US$20 million over five years in the Centre for Sustainable Energy Efficiency, a collaborative partnership with QSTP that aims to spur the adoption of green technologies in Qatar. Farshchi was previously a project engineer at Chevron Energy Solutions, headquartered in San Francisco, which has implemented hundreds of solar and energy-efficiency projects for customers, and is one of the largest energy service companies operating in the US. The Centre for Sustainable Energy Efficiency, which is expected to open in October 2010, will

Research manager Mike Farshchi

help MEP engineers to: • Identify solar power, solar airconditioning and low-energy lighting technologies best suit-

ed for Qatar’s specific desert environment; • Provide training and internships for MEP engineers, officials and students in sustainable energy; and • Assist local authorities, property developers and architects to consider and implement green building technologies.

“I have been involved in sustainable energy for many years in the US, and have seen the industry take off. Chevron alone has implemented more than US$3 billion of energy efficiency projects since 2002. Qatar’s excellent education and research base, plus abundant sunshine, provide the opportunity to introduce green technologies that benefit this region,” said Farshchi. www.constructionweekonline.com

CONSTRUCTION WEEK CONFERENCE

10 MEP Middle East | December 2009

CONSTRUCTION WEEK CONFERENCE

LEVERAGING change The growth of Drake & Scull International PJSC (DSI) has mirrored the remarkable growth in the region itself. MEP Middle East speaks to MEP director Charles Lever about the company’s future plans. ew incumbent Lever garnered extensive building services or MEP experience at contractor/developer Taylor Woodrow in the UK, where he was instrumental in instituting a policy of collaborative partnership. Lever says such an approach is in line with DSI’s own strategic goals, and the MEP sector in the UAE in general, “where there are developments here that are on a par with the quality and complexity of those that I worked on in Europe. Therefore we have a great opportunity to implement best practice in the MEP sector here that takes into account the best of both worlds.”

The MEP sector in the UAE is currently in an ideal position to look at nurturing a bestpractice culture, adds Lever. “The UK is definitely the more challenging business environment at present, and is really down compared to a year ago. In comparison, the sector over here is far more stable, and there are still opportunities available. Our challenge at present is to take advantage of these opportunities, and to formulate an all-encompassing growth strategy to take us forward.”

Indeed, DSI has been adapting and responding to changing market conditions since it was established originally in Abu Dhabi in 1966 and in Dubai in 1974. “DSI has been here a long time, and throughout its history has changed quite regularly as to how it conducts its business, and improving, adding to its core strengths in recent years in the form of civils and infrastructure, water and power (IWP).

“Our growth has paralleled that of Dubai.

Over the years, of course, we have seen www.constructionweekonline.com

phenomenal growth here. It is certainly my opinion that Dubai has led the whole region in terms of development. This year alone we have seen the completion of the Burj Dubai, and we are looking forward to seeing that in all its glory, and the launch of the Dubai Metro.

PRIDE “I think it is when we look at these kinds of projects in the region that we can all feel extremely proud to be in a sector that is leading the world in many ways. That is where we intend to take ourselves as a business: as leading the region and beyond in MEP,” asserts Lever. This is no ideal boast either, as “DSI has some of the best engineers and people on-site I have seen anywhere. We are well-respected as a brand, and as a superior MEP engineering company that delivers quality projects on a cost-efficient and on-time basis, moving forward with our successful clients.”

Lever says “there is no doubt that the financial constraints in the market in the past year or so have hit the majority of businesses. In my mind, companies with a strong financial underpinning have continued to grow, and can look forward to a healthy future.” In this regard, DSI’s successful IPO came to fruition with excellent timing, and was soon oversubscribed.

“We realised a large amount of capital that has allowed us to invest in growth. This has helped us move through this recent period relatively unaffected, and enabled us to continue growing.” However, despite its ongoing success, DSI has always adopted a considered and measured approach to its own future.

Lever says it is continually assessing its own strengths and opportunities, including taking a long hard look at its main business stream itself, namely the MEP sector itself.

CONSTRAINTS “MEP was traditionally a core business, but this is changing. It currently represents over 50% of our turnover, and the civils and IWP business streams sharing the balance. We see the balance shifting to take into account the large number of infrastructure projects out there. The focus of the MEP sector itself has moved from residential and commercial to hospitals, schools and airports, for example. This presents an opportunity to engage our company’s entire engineering and construction capability, to which we are very well suited. “If we were to just stay in MEP, perhaps as a business we would be more constrained than we would really want to be. What we need to do is look at business streams to complement MEP

One is only as good as his supply chain. If your suppliers fail, you fail. I think companies tend to forget this, and treat the supply chain with some disdain as a result.

That is not the best way to take a business forward.“ Charles Lever, MEP director, Drake & Scull International PJSC (DSI) December 2009 | MEP Middle East 11

CONSTRUCTION WEEK CONFERENCE and help it grow. Hence IWP was started, and is extremely successful, delivering some of the largest district cooling plants in the region. We have gained some excellent experience in that field to date,” says Lever.

“Most businesses have realised in the past year or so that infrastructure is still a very positive market to be involved with. Hence our focus on civils as a natural expansion of our business, which will allow us to approach projects on a total turnkey basis. You have to ask yourself where the big spend is at the moment in terms of engineering services, and that is clearly civils. There is also big spend in power, oil, gas and petchem, so we are starting to put our tentacles out, expanding our scale to cover many of these markets.”

Coupled with this focus on complementary business streams to unleash new synergies is a focused regional expansion plan. In Dubai itself, DSI is expected to sustain its turnover on a comparable level in 2010, but it is anticipated that the market will only begin to push out green shoots in 2011. “However, we are starting to see things become more optimistic for Dubai,” notes Lever.

“For us, the region has a lot of opportunity, so we are looking at expanding across the entire region.” Lever says the main focal points for this regional growth at present are Abu Dhabi and Saudi Arabia. In the latter, the company is executing a major MEP JV project for

SAR400 MILLION The value of DSI’s MEP works contract at KAUST

the King Abdullah University of Science and Technology (KAUST), the first LEED-certified project in Saudi history and the largest LEED Platinum project in the world. “This has been a great opportunity for us to get our foot in the door, to demonstrate our capability, to be able to transfer our skills into that market and to help our business grow,” comments Lever.

SOUTH EAST ASIA Another important foothold, this time into the potentially lucrative South East Asian market, is DSI’s involvement as the main MEP contractor for luxury property developer Raimon Land on The River, Bangkok’s most exclusive riverside condominium development. Commencing in 2008, and scheduled for completion in 2012, the project comprises a 72- and 42-floor twin residential towers, together with a five-storey podium, comprising a total of 105 000 square metres of sellable floor area and a total of 851 units. “This project is particularly exciting for us because it is such a high-profile showcase,” says Lever, adding that DSI has established an office in Thailand as a result.

The company is also exploring opportunities as far field as Libya, Egypt, Jordan and Kuwait.

“All this represents a logical extension of our business, as we like to develop along with our successful clients as they themselves expand, as this minimises the risk for all involved,” explains Lever. The advantage of this approach is that the bulk of DSI’s work is in the form of repeat business from existing clients. “It is such strategic relationships that ensure our continued growth,” says Lever.

Coming back to the issue of collaborative partnerships, Lever says an exciting development at DSI is a new focus on optimising its supply chain and engaging with local manufacturers and specialist fabricators. “One is only

as good as his supply chain. If your suppliers fail, you fail. I think companies tend to forget this, and treat the supply chain with some disdain as a result. That is not the best way to take a business forward. But by working with suppliers and understanding their needs, you will be able to deliver a better project overall.”

Associated challenges are looking at the overall spend, analysing those areas where this is highest, determining what level of technical support is required by the supply chain, relooking at the selection process for suppliers, and monitoring their performance and implementing continuous improvement programmes. “A problem to date is that the focus has always been on the lowest price and not necessarily taking account of the lifecycle costs, technical support and quality necessary to meet our clients requirements; we are looking at those suppliers who are willing and able to meet tough commercial challenges whilst adding value and continuously improving in the industry along with us,” says Lever.

Quality is a particular focus, especially in the light of the trend towards sustainable solutions. Lever says this is a particular area where the MEP sector can enhance the construction industry as a whole. “Our continuing efforts in this regard are important for the region and the world. We need to engage with our clients and help them with their projects by looking at the design and seeing if any alternative solution might cut costs and boost performance.

“As we move from speculative developments, the focus is changing to how much it is going to cost to run, operate and maintain a particular project over a certain number of years, as opposed to just considering the initial development cost; at DSI we are well-placed to assist our clients in arriving at the most appropriate solutions,” concludes Lever.

KAUST is the first LEED-certified project in Saudi history and the largest LEED Platinum project in the world

12 MEP Middle East | December 2009

www.constructionweekonline.com

ARE YOU REALLY INSULATING? ARE YOU PROVIDING A SAFE ENVIRONMENT?

Insulation of pipes has not been given enough importance or attention, previously the main focus has been on condensation prevention.

Now Engineers, designers and owners NEED to consider the environmental impact AND the opportunity to SAVE ENERGY and REDUCE CO2 Emissions. INSULPHEN is THE MOST EFFICIENT THERMAL INSULATION vs Fibre or Rubber. YOU WILL SAVE ENERGY - ask us for comparisons.

Also in High Occupancy buildings Thermal Insulation MUST be Fire and Smoke safe - low flame spread and low smoke emission is critical to enable people to escape in the event of a fire.

Products selected must meet the regulations - Class 0 to UK buildings regs AND ASTM E84 25/50 flame spread/smoke emission rating!!

Only Insulphen WORLD CLASS Insulation gives you the best of all worlds.

THE BIG INTERVIEW

man Al Shirawi US Chillers clinched the ‘Specialist Contractor of the Year’ title at the 2007 and 2008 MEP Awards. Managing partner Dan Mizesko talks about the challenge of inculcating a maintenance culture in the chiller industry.

Can you give us some background on the company in the region?

US Chiller Services International is an independent, large-tonnage chiller service organisation that specialises in the service, repair, retrofit and modernisation of liquid chillers from all manufacturers. US Chiller Services was established in 1975 by a group of industry experts from Carrier, Trane, York, McQuay, Honeywell, Siemens and the Bechtel Construction Company. These industry professionals formed a nationwide service organisation with technical capabilities and synergies that were far superior to the service offerings by any of the manufacturers.

In 2001, US Chillers made a strategic decision, and agreed to bring its expertise and resources to the Middle East and Gulf region to fill the service void. The company is called Al Shirawi US Chillers LLC. This meant that, for the first time in the Middle East, professional large-tonnage chiller specialist services were available, all performed and supervised

by US and British service engineers who are industry- and factory-certified by all the major chiller manufacturers.

Customers have the benefit of knowing our engineers are certified, and this is a real value, but what makes this so powerful is the culture of the organisation in that it is mandatory that all engineers on any service or response must follow the industry, factory and EPA guidelines and specifications. In addition, our engineers carry the service tool which allows us to upload all chiller operating parameters, and e-mail these off to other engineers for analysis 14 MEP Middle East | December 2009

and peer-review diagnosis. This allows us to inform the engineers which service literature or factory bulletins to access on our employee Web site for further relevant service information. These allow us to be proactive and 100% current and up to date on the operating conditions of the chillers, and apply the proper services for the utmost equipment reliability and efficiency. No other service organisation approaches the liquid chiller service segment in such a proactive and professional fashion.

US Chillers’ whole organisation, including our energy engineering department, is completely committed and focused on providing and supporting the Middle East and Gulf region with the most highly-advanced services and solutions available in the HVACR industry, at fair and honest prices. We work for, and look out for, the interests of our customers, and not the manufacturers.

What was the strategy behind establishing the company here?

The reasoning was rather straightforward.

US Chillers recognised that the large-tonnage

chiller services being provided in the region were very poor at best. We decided to bring our expertise to the region to fill this huge void. To be quite frank, we are very proud that we have, in fact, raised awareness in this region that the equipment end-users are no longer dependent on the OEM for service, and that a superior alternative is available at competitive pricing and with the best interests of the end user in mind, not the manufacturer.

What main products and services does it offer?

Our custom technical support programs include preventive and predictive maintenance agreements, as well as our exclusive chiller energy diagnostic software support program, which can guarantee chillers run at design kW per ton at full load, and even more efficiently at part-load conditions. In addition, we also offer our exclusive comprehensive chiller assurance programs.

The latter is the ideal way for a facility to budget yearly chiller maintenance and repair cost. For one fixed monthly rate, we guarantee the proper operation of your chillers,

If your equipment fails unexpectedly, you face downtime and potentially inconvenienced occupants.

With predictive maintenance, you will know about potential problems before breakdowns occur.“ Dan Mizesko, managing partner, Al Shirawi US Chillers www.constructionweekonline.com

THE BIG INTERVIEW completely eliminating expensive emergency repair costs. If a component within the chiller fails, we provide all the necessary parts and labour to repair or replace it, at no additional cost. Component replacement will be not be undertaken if worn, broken or not within the manufacturer’s or industry specifications.

This program ensures equipment life will be prolonged, as well as continuous modernisation of equipment, without additional capital expenditure. In addition, efficiency of the operating equipment will increase and the facility will have guaranteed accountability. Our exclusive coverage will also reduce equipment lifecycle cost, as equipment replacement budgets can be redirected and used in other areas.

US Chillers will be responsible for all maintenance, repairs, parts and emergency service on covered equipment. Under this blanket coverage, you are guaranteed that we will maintain your chiller in optimum operating condition. We also offer full plant operation/ maintenance/service and energy agreements for larger cooling plants and the district cooling industry in general.

Not only can we identify where and how your electricity is being used, but we can solve many of the problems that contribute to inefficient electrical distribution systems and high electricity bills. Once our solutions are installed, they begin to deliver immediate, non-stop savings.

You will realise a decrease in energy consumption during the entire time your facility is operating. Even more impressive, our systems and solutions take advantage of passive technology, meaning that neither you nor your staff will have to remember to turn the system on or off, and no complicated programming and control upgrades will be required. We save you money when your equipment is up and running.

Can you tell us a bit about your trained service personnel?

Along with the most advanced technology, our service engineers are the most experienced

0.687 TO 0.760 KW/PER TON What water-cooled electric centrifugal chillers in the region are generally selected and designed to operate in the range of.

16 MEP Middle East | December 2009

Not only can we identify where and how your electricity is being used, we can solve many of the problems that contribute to inefficient electrical distribution systems and high electricity bills.“ Dan Mizesko, managing partner, Al Shirawi US Chillers and highly trained in the industry. If you want service engineers who are industry-certified and factory-trained by all the major manufacturers, US Chillers can provide them. All our engineers receive ongoing training direct from factories in the US, as well as local training by our engineers on a ‘coach-the-coach/ peer-to-peer’ basis.

In other words, when an engineer goes off to receive training from, let us say, ASHRAE or the Refrigeration Engineers’ Society, he brings this knowledge back to our engineers and shares the training with them as a refresher course. No one knows chillers better than a US Chillers field service engineer.

Our organisation also receives training programs from the MCAA and the ACCA, which are both leaders in the training of service engineers in the US. When people need expert service engineers to repair their equipment, they count on US Chillers field service engineers. That is the bottom line of our business.

We provide engineering and consultative services that are targeted at providing solutions to the customer and the equipment user, not the equipment manufacturer. US Chiller Services will always provide an independent and unbiased recommendation on services, repairs and new equipment selection.

How advanced is the maintenance industry in the UAE? I feel the liquid chiller service industry is far behind in this region, the reason being that, before 2001, everyone had to rely on the OEM or its agents for chiller services, and had to pay whatever the cost, and wait however long for service, as this was a monopoly market.

This is no longer the case.

Are customers paying more attention to maintenance so as to cut overall costs?

I have found that customers always value maintenance. However, their expectations were always very low. US Chillers brings you the most advanced technology available in the industry. If your equipment fails unexpectedly, you face downtime and potentially inconvenienced occupants. With predictive maintenance, you will know about potential

problems before breakdowns occur. This will afford you the ability to schedule repairs before they become more costly – and at times when they will not inconvenience you or your building occupants.

Using today’s best testing tools and technologies, we can discover or rule out virtually any kind of hidden system problem. As a result, we can help: • Find, identify and correct minor problems inexpensively before they lead to more complex and expensive repairs; • Avoid needless downtime and inconvenience or discomfort to occupants; • Ensure continued production when equipment is used in process applications; • Control energy cost; • Prolong equipment life, thereby deferring replacement cost, and • Prevent overtime cost for expensive unscheduled repairs.

Predictive maintenance is key to optimal building systems management. With this you can make the most informed decisions and achieve the lowest overall operating cost.

Some of the predictive services we offer are vibration analysis, thermographic testing, eddy current testing, water/oil/refrigerant analysis performed by an independent US laboratory, motor insulation testing, ultrasonic flow analysis, chiller performance and energy analysis.

What are some of the main maintenance or service-related issues you come across regularly?

To be quite honest, the most common things we find are that chillers have not been correctly commissioned and started to factory specifications, and are maintained at these same poor standards. This puts the end user – whether it be a district cooling utility or a building owner – behind the eight ball, so to speak, from day one, and it is downhill from there in terms of energy and reliability.

Our commissioning, decommissioning, continuous commissioning and retro-commissioning are premised on the core philosophy that we can assure the end user and owners of the facility that the chillers are operating as per design from the moment we perform our www.constructionweekonline.com

THE BIG INTERVIEW

services. I can assure you this is not the case on almost 100% of the chillers we have come across in the region; but this holds true as well in the US, South America and worldwide.

A survey report by the San Diego State University Energy Engineering Institute on 31 chiller plant sites across the US found that chillers which should have been operating in a range of from 0.65 to 1.00 kW/ton, according to the OEM specifications, were often actually operating at 1.5 to 3.0 kW/ton, and that most chiller plant operators had no idea how well their chiller plants were performing.

A survey report on 14 plants by the Northwest Energy Efficiency Alliance found a substantial variation in chiller energy efficiency, ranging from 0.55 to 1.80 kW/ton. A report by the California Energy Commission stated that buildings and chilled water central plants invariably do not perform as well in practice as anticipated during design. The main reasons for this were found to be improper equipment selection and installation, poor feedback on operational performance and energy performance and lack of rigorous commissioning and proper maintenance.

What we have found in this region is that water-cooled electric centrifugal chillers are generally selected and designed to operate in the range of 0.687 to 0.760 kW/per ton.

We looked at 2003 to 2009 operational data, ranging from newly-constructed and commissioned plants to five-year-old plants, as well as York YCWA5-150 & 200 chillers

chillers up to five years old. All were electricdriven centrifugal plants. We determined that the operating range of these chillers, before chiller diagnostics, corrective service procedures and chiller optimisation strategies were applied, was between 0.98 to 1.8 kW/per ton.

Of the chillers that these services and strategies were applied to by US Chiller Services, the kW/per ton is now 0.513 ~ 0.759.

Maintenance is a critical part of energy efficiency. Are you finding a growing awareness of maintenance strategies?

Unfortunately, I am not finding the awareness for maintenance or operational strategies for ‘green’ issues being addressed with the urgency and importance that they should be afforded. It is unfortunate that the majority of the end users feel that if they have a BMS, energy management or facility control system installed, they have achieved an acceptable

0.98 TO 0.1.8 KW/PER TON The operating range before chiller diagnostics, corrective service procedures and optimisation.

‘green’ solution. The fact of the matter is that a proactive recommissioning, predictive and preventative maintenance program on the chillers will save more money than most any other ‘green’ solution available.

The chillers account for the bulk of the energy consumption. Unless the chillers are, first and foremost, operating in peak condition, huge amounts of kWh and associated money is being wasted, which no control system can correct. The priority for district cooling, building owners, shopping malls or any industry or facility that has liquid chillers has to be proactive professional chiller services and maintenance being applied, so the kWh achieved and attendant money savings become the biggest contributor to the region’s sustainability goals.

Any new developments at the company?

We have introduced two energy-saving and/ or water-saving solutions that save substantial quantities of water, energy and eliminate condenser chemicals.

What are your biggest opportunities and challenges at present?

Our biggest opportunities are in educating any and all facilities managers to understand the vast amounts of energy that chillers consume, and how much potential savings are available to them at no additional investment.

US Chiller Services can achieve these savings with one of our custom-designed service technical support programs, without any capital investment, as it can be paid out of the operational budget.

In most, or all, instances we are lower in cost than our competitors. Without a doubt, the cost is less than an in-house service, and our savings will be realised immediately. Our biggest challenges are complacency, facilities thinking they are receiving good service on their chillers either outside or in-house and not realising they are not really getting what they deserve, and who are willing to go along consuming excessive energy and not really knowing they are doing so.

What is your outlook for the future?

I by no means can predict the future of the industry or the economy, and as the past year-and-a-half has proven, neither can the socalled experts. The global downturn caught everyone by surprise; I am sure the recovery will as well.

The 2009 MEP Awards will take place on 9 December at Grosvenor House in Dubai, and will be featured in the January 2010 issue.

December 2009 | MEP Middle East 17

The perfect twist for shut-off valves.

Water is our element.

agor, Zurich g ,

www.belimo.eu

Tight-closing butterfly valves with new rotary actuators.

Belimo butterfly valves from DN 50 to DN 350 allow components like heat generators, cooling machines or open cooling towers to be selectively connected or disconnected. Perfectly matched rotary actuators with 20, 40 or 60 Nm keep the butterfly valves tightly closed at all times – while reducing electricity consumption to a minimum. Creeping energy losses and unnecessarily high operating costs are now a thing of the past. Have we aroused your interest? Ask for more information today!

Head office: BELIMO Automation AG, Brunnenbachstrasse 1, CH-8340 Hinwil, Switzerland Phone +41 (0)43 843 61 11, Fax +41 (0)43 842 62 68, www.belimo.eu

SITE VISIT

The Al-Ali Property Investment (API) multi-use development in Al Barsha just off Sheikh Zayed Road, which includes a 437-room Novotel hotel, is a high-profile project for MEP contractor Rotary Humm.

his project follows on from Rotary Humm’s successful involvement with the Atlantis on Palm Jumeirah and the new Ibis hotel, also in Al Barsha.

Contracts manager David Gamble tells MEP Middle East that the contract, which is currently in its very early stages, is valued at US$54.5 million.

“We have worked with API for over two years now on a variety of residential and hotel projects, so it is a well-established client of ours. I would say our continued relationship is due to our widely-held reputation for on-time delivery and focus on overall quality, which are critical focus areas in these difficult times,” asserts Gamble.

The project comprises three basement levels, six podium levels and a furnished-apartment tower of 41 floors, plus a residential and office tower, both also 41 floors. “Our scope of work on this project is a total MEP package, including fi re protection and a building management system. It also includes all associated services such as CCTV, security and access control,” explains Gamble.

The project is scheduled for completion

by March 2011. At present there are 80 staff on-site, which will increase gradually as the project progresses.

COOLING LOAD

A view of some of the basement-level ductwork

The location of the grey-water recycling tanks for the cooling towers

The total designed cooling load for the project is 5 000 TR, provided by six watercooled centrifugal chillers located on the Basement 1 level, with corresponding cooling towers at roof level. A particular innovation of the project in terms of sustainability is that a grey-water recycling system will be used for the cooling towers. Three chillers are dedicated to the hotel, and three to the office and residential component.

10% TO 15% MEP and main contract completion to date

www.constructionweekonline.com

December 2009 | MEP Middle East 19

SITE VISIT

Rotary Humm’s current staff complement is 80 workers on-site

“Other ‘green’ building measures include the use of energy-efficient lamps throughout the project, either CFLs or LEDs, while all equipment selection is based on as long a service life as possible and with minimal maintenance requirements,” says Gamble.

The air-conditioning system employed on the project comprises a series of 20 fresh air handling units and more than 2 000 fan coil units. The total designed electric load is 17000 kW via 19 No. 1100 kVA transformers, with 2 No. 1500 kVA emergency generators and a UPS for essential services back-up.

“We do try and stay with reliable, well-proven suppliers,” comments senior construction manager Joseph Karle. “We recently went to investigate a potential new supplier who claimed to have stock, only to discover that the stockholding is not in this country. Even in the current times, although the demand has diminished, suppliers are reducing their stock levels as well in order to help reduce overheads. This means one has to be very careful in selecting potential suppliers, and need to confi rm that their existing stock levels are adequate,” says Karle.

A particular feature of Rotary Humm’s approach to the project is the extensive use of off-site fabrication. “The main challenge of this project for us is a very constrained site, as it has a limited footprint,” says Gamble. Indeed, part of Sheikh Zayed Road is so close to the edge of the project that health and safety regulations require the use of suspended netting to prevent any rubble or objects falling onto the highway.

“We have obviated this problem by careful 20 MEP Middle East | December 2009

Joseph Karle and David Gamble

Due to the tight footprint, it is difficult to get 20m or even 12m sections in, so we are restricted to 6m to 8m sections.“ David Gamble

staging of deliveries based on just-in-time theory, predicated on the idea of keeping the site as free and as open as possible. In addition, special attention is paid to general site cleanliness, which also aids overall site movement and logistics. In terms of off-site fabrication, we are manufacturing as much equipment as possible off-site in handleable sizes.

FABRICATION “Due to the tight footprint, it is difficult to get 20 m or even 12 m sections in, so we are restricted to 6 m to 8 m sections. At present these are being manufactured in the workshops of various ducting manufacturers, although we are considering establishing our own fabrication operation at some point in the future,” reveals Gamble. He adds that the main advantage of off-site fabrication is “quality control in a dedicated manufacturing environment.” All the hotel and apartment bathrooms, numbering 1 400 in total, will also be fabricated off-site.

An API spokesperson says the company seeks to align itself “with world-class players such as Rotary Humm, which is capable of meeting the challenge of providing and developing user-friendly technologies that are not only innovative and environment-

friendly, but which also embrace the ‘green’ building principles of resource optimisation and energy efficiency.”

The Rotary Group was established in 1954 in Northern Ireland, with a specific focus on mechanical, electrical and plumbing engineering and contracting. It recently merged with the Hastie Group of Australia, a leading MEP contractor specialising in building services and refrigeration.

“The combined strength of these two organisations, with their global resources, makes them one of the foremost international electro-mechanical organisations in the world today,” notes Rotary Humm operational manager Ernie Purvis. Rotary Humm is the group’s operating company in Dubai, established in 1999.

LIST OF PROFESSIONALS Main contractor: Dutco Balfour Beatty MEP contractor: Rotary Humm Elevators: ETA Melco Cladding: ALUMCO Steel fixing: Al Naser Salah Formwork: CONSTECH Dewatering: National Dewatering Slipform: BRM

www.constructionweekonline.com

PUMPS

DESIGNERbenefits How does a manufacturer design a pump to meet particular client requirements?

Axel Lüdecke, water transport GM at KSB Aktiengesellschaft, gives us the lowdown. hat does a manufacturer look at when designing a pump? What are the objectives? What are the associated benefits for the customers buying the pumps? “We are looking at the highest long-term efficiency and the maximum operational availability, which

22 MEP Middle East | December 2009

is very important in terms of service quality and especially ease of maintenance, because the equipment is likely to be used for 20 to 30 years,” explains Lüdecke.

All these objectives are focused towards providing customers with benefits in terms of the lowest operating cost, the best operational re-

liability and the most economic maintenance cost. What this equates to ultimately is “a commitment to a cost-effective solution that provides the lowest lifecycle cost,” says Lüdecke.

PUMPS Contractors out to buy pumps may want to observe and monitor in the long term how different suppliers perform, what they guarantee, and what they actually deliver.“ Axel Lüdecke, water transport GM, KSB Aktiengesellschaft Take for example a district cooling application, where the flow/head range starts from 650 cubic metres or 2 800 gallons/min up to 4 000 cubic metres or 17 200 gallons/min respectively. In terms of head requirements, this starts from 16 m/52 feet up to 30 m for the highest flow requirements, corresponding to approximately 100 feet, up to a max of 160 m or 520 feet respectively. Lüdecke points out that these are rounded figures, and that the conversion rates may vary slightly.

SPECIFIC REQUIREMENTS “We meet the specific requirements for district cooling with two different pump series, namely the Omega and the RDLO. The design principles of both pumps are very similar. The materials used are cast iron with bronze and chrome steel for the shaft and shaft sleeves. The Omega type, occasionally when the pressure rating requires it, utilises a nodular iron casing, with the same material combination for the rest of the components,” explains Lüdecke.

The RDLO series is supplied with a cast iron casing and bronze and chrome steel for the remainder of the components. “I gather that there is an increasing demand for district cooling plants to use seawater. Both pump series are available in a duplex steel material combination, and have been supplied successfully to various desalination applications. This gives our customers the assurance that they will be suitable for a district cooling application using seawater,” says Lüdecke.

At the end of the day, one of the most important benefits for customers is reduced operating cost. “We perform computeroptimised flow design in order to maximise the overall efficiency. We provide replaceable wear rings on both the impeller and in the casing, which is the key element to re-establishing efficiency after a long period of operation. There may be wear due to suspended solids in the liquids. Having wear rings that can be replaced easily means it is equally easy to return a pump to its original efficiency,” says Lüdecke. www.constructionweekonline.com

PUMP EFFICIENCY While pump efficiency is a critical factor, there is an associated cost factor that customers sometimes balk at, ignoring the long-term cost-savings and reduced payback period.

The simple fact of the matter is that high-efficiency pumps will incur a higher initial capital cost, just as high-efficiency motors and chillers do as well. “Superior equipment providing superior performance in terms of operating expenditure is usually not the lowest cost.”

In order to illustrate how important pump efficiency is to system efficiency, Lüdecke uses an example of a typical largescale district cooling installation with a hydraulic power demand of 2 000 kW, 3 000 operating hours a year, a power cost of AED0.2 kW/h and a total lifespan of 20 years. “Now suppose you have a pump with 85% efficiency and a pump with 87% efficiency. The better efficiency gives a lifecycle cost-saving of AED650 000.”

However, it is important to note that a 2% difference in efficiency is usually covered by the acceptance criteria standard. “You may be supplied with a pump with an 88% efficiency as listed in the data sheet. At the end of the day, you may get a pump with only an 85% efficiency, because that is covered in the ef-

ficiency tolerance class. Now we can tighten the acceptance class to no negative tolerance on efficiency, but this would have an adverse effect on the pump price, because the manufacturer may need another one or two trim runs as part of acceptance testing.

SUPPLIER PERFORMANCE “Alternatively, contractors out to buy pumps may want to observe and monitor in the long term how different suppliers perform, what they guarantee, and what they actually deliver. There may be suppliers always making full use of the tolerance band within the acceptance class, and there may be pump suppliers giving some efficiencies, but not using the full tolerance as per the applicable acceptance standard,” notes Lüdecke.

In terms of reliability and availability benefits, there are various technical solutions available to enhance these. One example is having shaft nuts and fixing the shaft sleeves on both sides, with an additional shaft nut at the very end. “The horizontal split-casing pump provided by ourselves has got full-length shaft sleeves all the way into the bearing housing. There is no shaft screw in-between, as this would mean having a thread exposed to ambient conditions such as dust and condensation water. In addition, any thread usually concludes in stress concentration, affecting availability and reliability in the long run.”

The single nut allows self-alignment of all the components alongside the shaft, including the mechanical seals and bearings. “As far as maintenance benefits are concerned, these usually tie in with the mechanical design and engineering. Overall we believe that our design objectives have met customer requirements with regard to associated maintenance benefits,” concludes Lüdecke.

PROJECTS SUPPLIED BY KSB BURJ DUBAI DEVELOPMENT AREA Supply of up to 10,000 m³/h cooling water DCP-01: 36 pump sets in total Burj Dubai: 31 pump sets in total

An example from the RDLO range

YAS ISLAND, ABU DHABI Cooling water supply to F1 stadium and other related buildings DCP-08 and DCP-09: 43 pump sets in total, 9 off RDLO at 3,450 m³/h (15,200 gpm) to 45 m (145 ft) each pump AL RAHA BEACH, ABU DHABI RB-02 and RB-04: 54 pump sets in total, 18 off RDLO at 3,475 m³/h (15,300 gpm) to 34 m (110 ft) each pump

December 2009 | MEP Middle East 23

VENTILATION

ERV is a breath of

FRESH AIR

Even though a proper ventilation strategy offers substantial savings, its role is less clearly defined than chillers, cooling towers and pumps. International Mechanical Engineering Corporation (IMEC) executive director Aslan Al-Barazi takes a closer look at the issue.

lobal warming and the greenhouse effect may seem removed from our everyday lives. Being in the MEP HVAC business, however, we play a major part in this chain.

About 60% to 70% of the total energy produced is attributed to HVAC. The actual carbon footprint (in kilograms) of this can be measured; the corollary is that the attendant savings when using environment-friendly ventilation products can also be calculated.

IMEC, in collaboration with Vent-Axia, conducted a year-long (January to December) study in this regard, based on a commercial

90%

Energy recovery achieved by the Sentinel Totus system

24 MEP Middle East | December 2009

air-conditioned office with a balanced central ventilation system. The air flow was 0.555 m³/s and the mean room temperature was 23°C. The following figures were derived at:

from Vent-Axia (90% energy recovered from used cooled indoor air being extracted to lower hot incoming air), there are significant reductions in the annual air-conditioning load and carbon dioxide generation:

ANNUAL LOSSES WITH NO ENERGY RECOVERY Monthly kW/h: 16 300 Energy costs: AED5 379 Carbon dioxide generated: 16 952 kg The fixed-volume ventilation system also suffers from over-ventilation when offices are partially occupied, with higher running costs and shorter filtration life cycles, which equates to increased maintenance costs.

With the adoption of the Sentinel Totus demand energy recovery ventilation system

ANNUAL SAVINGS WITH ENERGY RECOVERY Recovered energy kW/h: 14 670 Energy cost saved: AED4 841 Carbon dioxide saving (kg): 15 257

PAYBACK ANALYSIS Product costs Supply and extract fan: AED8 175 Energy recovery ventilation unit: AED24 347 Variance: AED16 172

VENTILATION It is imperative that government put stricter legislation in place that would require the industry to use environmentfriendly solutions. Millions of tons of carbon emissions wasted in HVAC may thus be saved through tighter and more energy-efficient building regulations.“ Aslan Al-Barazi, executive director, International Mechanical Engineering Corporation (IMEC) Savings Reduction in air-conditioning cost: AED8 125 Recovered energy cost: AED4 841 Total reduction: AED12 966 These putative savings allow significant reductions to the installed air-conditioning plant capacity; reduced installation costs (six units as opposed to seven); and reduced operating costs. The demand ventilation strategy opted for optimises fresh-air ventilation for occupants (carbon dioxide control), ensuring excellent indoor air quality.

In addition, there is added potential for further significant running cost reductions when the offices are only partially occupied.

Another interesting result of the above study was from the lifecycle cost analysis perspective. The study showed that payback would accordingly be in less than two years. Thus the system advantage applies to both environment as well as returns on investment.

It also has built-in carbon dioxide sensors, allowing the carbon dioxide level to be specified at the correct and healthy standard of no more than 1 500 parts per million. The carbon dioxide sensory system would then pace the levels of carbon dioxide in the air, regulating the fresh air as and when needed. This naturally increases the levels of alertness and consequential performance from both a workforce perspective as well as an academic/schools perspective, which is ultimately the most important investment any country can have.

The system’s environmental settings also features acoustic linings for noise control, and can be operated via a building management system if need be. The Sentinel Totus system from Vent-Axia is the UK’s first D-ERV (demand energy recovery ventilation) system to be www.constructionweekonline.com

rated independently and tested to EN308.

Vent-Axia’s low-carbon ventilation range includes EC/DC motors, which not only reduce power consumption by up to 90%, but which can actually reduce their carbon footprint by 7 kg to 47 kg a year. The Sentinel D-ERV solution goes one step further by featuring in-built sensors for carbon dioxide, pressure (passive infrared occupancy detection), temperature and humidity. This system can sense when occupants enter a room, and adjust the air-flow accordingly to the number of occupants. The fans stop operating as soon as the occupants leave the room.

The Totus range incorporates both EC/DC motor, on-demand ventilation and heat recovery, and is able to extract up to 90% of the cooling load being wasted via discharge back to the outside atmosphere. It achieves this by means of a counter-flow heat exchanger that furthermore does not contaminate the intake flow with the flow being exhausted outside the building, as they are in separate flow circuits. Thus it is ideal for schools, hotels, theatres, offices and other environments with changing occupancy rates.

For further detailed information on the IMEC/ Vent-Axia cost-effectiveness study, contact Aslan Al-Barazi at imec@emirates.net.ae.

The Sentinel range

A GROWING MARKET Energy recovery ventilation (ERV) systems, which provide exceptional energy efficiency and enhance indoor air quality (IAQ), are in demand in these environment-conscious times. Recent analysis from Frost & Sullivan of the North American ERV market cites earned revenues of US$324.6 million in 2006, expected to reach US$778.7 million in 2012. “ERV is a growing segment within the HVAC market, particularly in areas with warmer and high humidity climatic conditions,” said Frost & Sullivan research analyst Jorge Moreno.

The technology is being introduced to the Middle East by International Mechanical Engineering Corporation (IMEC), the official regional distributor for Vent-Axia of the UK. IMEC is showcasing Vent-Axia’s Sentinel Totus ERV systems for such diverse applications as offices, hotels and schools.

“The focus on IAQ is another key trend benefiting ERV, as people become increasingly conscious of the importance to maintain air quality through properly designed and managed HVAC systems,” comments Moreno. Conditions such as sick building syndrome (SBS) are common due to structural changes in buildings that affect the quality of air circulating inside.

Energy waste constitutes another serious consequence. End users are not only aware of this issue, but also take an active interest in reducing building energy costs and greenhouse gas emissions, as well as adding building value in terms of savings and beneficial impact on occupants.

ERV systems present a potentially effective solution to both these issues because of their unique functioning that allows them to capture and recycle building energy to preheat, pre-cool, humidify or dehumidify the incoming air, instead of exhausting the energy to the outside.

The lack of knowledge on updated energy-saving practices and the potential to reduce operating costs is a restraint for this industry. Typically, facility managers and building owners rely on contractors to select the HVAC equipment for a building. Contractors, however, work within a budget and tend to purchase equipment based on price, rather than long-term efficiency and cost benefits, in the absence of immediate returns on investment.

The challenge lies in educating contractors about energy savings, IAQ and sustainability. Manufacturers must also convey the energy-saving message.

December 2009 | MEP Middle East 25

HVAC

HVAC SUPPLIERS in focus MEP Middle East takes a closer look at some major suppliers in the HVAC sector, their main products and sustainability initiatives.

LG ELECTRONICS

Can you give us a bit of background on your commercial HVAC product range?

Dharmesh Sawant, senior sales manager: LG Electronics, the world’s largest air-conditioner manufacturer, has a wide range: • Ducted split: This unit is supplied with eco-friendly R407C refrigerant (as well as R22 as an option); • Single package: An economic and userfriendly model, designed for medium-sized houses and shops. Features include a number of operational modes, auto restart and a washable anti-bacterial filter; • Ceiling cassette: This model is used mainly in commercial environments like restaurants, hotels, offices and meeting rooms. It features four louvres to circulate air in all directions, providing even large areas with an evenly-conditioned atmosphere; • Floor-standing: This type blends in perfectly with its surroundings. Clean and fresh air-conditioning is ensured with a high level of cooling or heating performance and air-purifying operation.

Multi V is LG’s premium-brand inverter system. This VRF air-conditioner uses a new eco-friendly refrigerant and high-efficiency inverter. The new inverter allows for optimal control of a single large compressor, which is based on multi-compressor technology comprising a DC inverter compressor and high-efficiency, constant-speed compressor.

LG has been proactive in adopting environment-friendly R410a refrigerant in its inverter system (Multi V) and R407C in its ceiling-concealed units

The adoption of this technology has enabled precise control dependant on the cooling/ heating load , leading to ultra energy-efficient heating and cooling.

What are some of your latest product developments?

Sawant: LG Electronics is currently focusing on eco-friendly air-conditioners, whereby the carbon dioxide emissions are controlled throughout the lifecycle from design and manufacturing to usage and disposal, thus allowing the products to be more energy-efficient. In the past few years, LG’s residential air-conditioner segment has

The continuous increase in the number of supermarkets and shopping malls has provided an impetus to the growth of the market for commercial refrigeration and cold chain equipment.“ Dharmesh Sawant, LG Electronics senior sales manager 26 MEP Middle East | December 2009

witnessed enormous growth, together with an expanding market share in commercial air-conditioners, all due to its high energyefficiency technology.

The latest development is Hybrid COGEN, which simultaneously generates electricity and heat, utilising liquefied natural gas (LNG). It uses 32% less energy, while also reducing the emission of environmental pollutants such as carbon dioxide gas. Hybrid XEO combines a highly-efficient, energy-saving inverter system air-conditioner with geothermal heat pumps. It reduces energy consumption by about by 30% a year.

What do you see as some of the major trends in the HVAC industry at the moment?

Sawant: The continuous increase in the number of supermarkets and shopping malls has provided an impetus to the growth of the market for commercial refrigeration and cold chain equipment. This certainly highlights the fact that the HVAC industry in UAE will undergo many changes and expansion within the next five to ten years. Thanks to pending regulations by the UAE authorities, developers are now considering the lifecycle cost of products.

How is the R22 phase-out expected to impact on your product range in the UAE? Sawant: While the R22 refrigerant phase-out will be gradual, LG has been proactive in adopting environment-friendly R410a refrigerant in its inverter system (Multi V) and R407C in its ceiling-concealed units. This has helped to encourage developers to adopt ‘green’ products. www.constructionweekonline.com

HVAC

What do you see as some of the major trends?

Blanchflower: The energy-efficiency drive is moving away from individual components like chillers to a more holistic system overview (‘system’ kW per ton). A high-efficiency chiller does not automatically translate into a high-efficiency system. The pumps, cooling towers and controls must all be integrated.

Petere Blanchflower

TRANE

Can you give us a bit of background on your commercial HVAC product range?

Peter Blanchflower, Trane Middle East, Africa and India region marketing manager: Trane has long been the world’s largest producer of the massive chillers used in commercial air-conditioning systems. Our industry leadership is based on the comprehensive systems we design to accommodate the specific needs of our customers’ buildings, complete with sophisticated controls and chillers, all supported with Trane parts and services.

What are your latest product developments?

Blanchflower: Trane has just completed an unprecedented introduction of new products, and has effectively launched more new products worldwide in the past 18 months than in the past 20 years combined. This also incorporated a complete refrigerant conversion from HCFC-22 to environmentally-responsible HFC refrigerant, R410A, for its entire

unitary product line in the Americas to ensure full compliance with federal refrigerant regulations. Unitary products are packaged products that are designed, built and tested in manufacturing facilities, then delivered to the customer for quick installation and operation.

The conversion is complete, well in advance of government deadlines. Among the 17 new products are: • Model CGAM air-cooled scroll chiller: Customers requested greater energy efficiency, lower sound levels and an easierto-install system. Available in 20 to 120 ton capacities; and • Odyssey split-system: The redesigned Odyssey product provides flexibility, serviceability, reliability and durability with superior performance. The split-system provides ease of installation with lower cost of ownership. It features microprocessor controls for greater control and increased system reliability. Available in capacities ranging from 6 to 20 tons of cooling.

Can you give us a bit of background on your commercial HVAC product range?

Abby Thomas, senior manager: consumer electronics department: Panasonic’s key focus area for 2010 will be split air-conditioners, followed by large-room air-conditioners using ducted units. Ducted capacities range from 24 000 BTU up to 108 000 BTU.

What is your outlook for growth?

Blanchflower: In the US, the market is about two-thirds retrofit and one-third new equipment. Of course, here a lot of equipment is still relatively new. However, as the market matures, you will end up with a lot of older equipment that needs to be replaced.

99.98% Total amount of particles and allergens removed from the air by Trane airconditioning technology

What would you cite as your main sustainability/energy-efficiency benefits?

Thomas: The recent test conditions carried out by ITS, and also our internal laboratories, show clearly that our energy-efficiency ratio as per the industry standards is the highest.

If customers require any documentation in this regard, Panasonic can provide this for purposes of comparison.

What are some of your latest developments?

Thomas: In the case of split air-conditioners, our aim is to provide for multi-functional products – that is, air-conditioners plus in-built air purifiers plus energy-conserving patrol sensors. In the case of large-room air-conditioners, our main focus is on on thin indoor ducted and quiet operational units.

What is your outlook for growth in the HVAC sector in general?

How is the R22 phase-out expected to impact on your product range in the UAE?

www.constructionweekonline.com

Blanchflower: The impact on Trane’s global markets, especially the UAE, will be minimal.

The first product to use the new refrigerant has already been sold in the region.

air-conditioner industry. We have already introduced R410A refrigerant for the European sector, and are very much capable of fulfilling any similar request from this region.

PANASONIC MIDDLE EAST FZE

Thomas: As a company we are very well equipped for the R22 phase out, as we are the largest compressor manufacturer in the

How is the R22 phase-out expected to impact on your product range in the UAE?

Abby Thomas

Thomas: The growth or driving factor will be surely from the big markets – that is, Saudi Arabia/Iran and the UAE. We should also not forget Oman and Qatar, which cater to largecapacity unit requirements for the major industrial projects that have been confirmed in the region.

December 2009 | MEP Middle East 27

Thank you for contributing to our success at The Big 5!

Heat recovery units

Chilled beams

Grills and diffusers

Displacement units

For further information about our products, please contact Swegon or Intercool.

Gunnar Svensson, Swegon Mobile: +971 50 919 7181 gunnar.svensson@swegon.ae

www.swegon.com

Bassel Anbari, InterCool Mobile: +971 50 667 0527 bassel@intercool.ae

VAV units

PROFILE

121°

The temperature the joining system can achieve with correct gasket selection, making it ideal for the HVAC market.

Grooved piping method

SLASHES COSTS Victaulic products have been used at the Jumeirah Beach Hotel and the Burj Al Arab in Dubai he grooved piping method, pioneered by Victaulic, dramatically reduces the amount of installation time and saves 10% to 30% percent on total installed costs as compared to welding, threading or flanging.

It is now used extensively for HVAC, plumbing, fire protection, water and wastewater treatment, oil field operations, mining, industrial processes, power plants, military and marine systems and other demanding fluid-handling applications. The economics of the grooved method derive from simplified assembly due to: • A pressure-responsive gasket that creates a leak-tight seal; • Couplings that hold the pipe together; and • Fasteners that secure the couplings.

A groove is rolled into the end of the pipe to engage the coupling housings, whereupon the gasket seals on the outside diameter of the www.constructionweekonline.com

pipe. The gasket sealing action is enhanced as the coupling housings are tightened and by line-operating pressure or vacuum.

What began as simply a faster, easier and more economical way of joining pipe has evolved into a whole new approach to solving piping problems, a total systems approach.

Victaulic, a global leader in grooved- and plain-end mechanical pipe joining systems, offers complete, start-to-finish solutions that anticipate a project’s every need. The products comprise rigid and flexible couplings, adapters, valves, fittings, gaskets and tools and accessories.

PIPING MATERIALS The Victaulic grooved-piping method accommodates most piping materials, including lightwall, standard and extra-heavy steel, stainless, aluminum, PVC, ABS and other plastics, as well as FRP glass fibre and high-

density polyethylene and polybutylene. In addition, products for copper tubing (CTS) and ductile iron (AWWA) for water supply, as well as underground- and waste-treatment process piping, are available.

Many metric/ISO sizes are available in addition to products made to British Standards (BS), Deutsches Institut Fur Normung e.V. (DIN), Japanese Industrial Standards (JIS), Australia Standards (AS) and other worldwide specifications. Victaulic also offers products using unique joining methods.

For example, the company´s installationready technology can install up to ten times faster than welded joints and six times faster than flanged joints, whilst featuring no loose parts during installation, making it ideal for compressed project schedules. In addition, the Depend-O-Lok line of products allows mechanical joining of large diameter pipe regardless of the size or standard.

Utilising the various products in the range, the Victaulic joining system can achieve working pressures up to 1000 psi /69 bar – or even higher for some couplings – and with correct gasket selection, temperatures up to 121°C, making it ideal for the HVAC, fire protection and industrial markets. Victaulic coupling and fitting sizes range from 25mm to 1524mm, with its latest product, the new advanced groove system (AGS), accommodating sizes from 350mm to 1524mm.

JOINING SYSTEM To create the roll groove in the pipe end, essential to the correct working of the joining system, Victaulic has a wide range of grooving tools available for hire or purchase. From portable trolley and hand-held systems, which are ideal for smaller jobs, to on-site and housed machines for larger construction projects, the company has a grooving tool to suit.

Today, Victaulic rigid and flexible couplings, accessories, valves, fittings and adapters, gaskets and tools can be found on many building projects, ranging from residential, commercial and retail developments to stadia, hospitals and schools.

December 2009 | MEP Middle East 29

OPINION

Getting

CONTRACTUAL Mark Bull from Illumine Middle East FZE looks at why contractual and legal advice has never been more important.

any myths are currently being peddled around Dubai and other emirates about how the legal profession is the only growth industry at the moment. This is simply a black lie. In reality, one of the most pressing practical difficulties in Dubai in 2009 is the refusal of many construction companies to engage legal services, and thereby obtain assistance with improving their current contractual and commercial plight.

All the usual excuses are being deployed.

Although we should be used to them by now, they still drive the owners of small and mediumsized legal practices stir crazy. (We are not in Phil Spector territory yet, only relatively, mainly because it is impossible to import the necessary parts legitimately, and Russian roulette is illegal). Here are some of the usual suspects: • “We must not upset the Client.” Even if the Client’s commercial conduct is driving us out of business.

• “It is pointless to take external action because it is not possible to hold the Client to account.” Yes, but the Client can be held to account in other jurisdictions.

• “We just need to wait until the current situation corrects itself.” The worst recession in 50 years will definitely correct itself. After a lot of good and bad companies have gone to the wall, and a lot of good and bad employees have been made redundant on a full-time, rather than part-time, basis.

• “The legal profession is only interested in making as much money as possible out of our misfortune, and will not solve any of our problems.” The legal profession is certainly driven by the desire to make money, but it is also driven by the practical deployment of brainpower, and this services a deep-seated intellectual need to solve complex and nuanced problems. And many practitioners are still motivated by the desire to please by either solving or reducing the size of their prob30 MEP Middle East | December 2009

lems and giving them some peace of mind.

Inertia and an almost pathological refusal to make decisions are amongst the biggest real problems in modern business in this region, and although we are not being served by a dumbed-down and zombie-like Western culture that, instead of assisting people to face up to business problems, prefers to make a television series ridiculing and mocking ‘business’ participants by employing a thirdrate, gonged-up businessman to deconstruct their efforts to solve contrived and artificial problems, ultimately all problems in the real business world have to be faced up to, and a responsible plan of action must always be implemented.

Here are ten reasons why companies in the region should obtain contractual and legal assistance and end the year stronger: 1. Experienced company directors and managers are not omniscient. Legal consultants have specialist knowledge that only they can apply, and either a first or second legal opinion is often invaluable.

2. Solving contractual problems often requires a deep-seated understanding of the interrelationship between clauses in a contract or subcontract. Lawyers deal with this matter every working day when drafting and re-drafting contracts.

3. Many smaller and medium-sized legal prac-

Inertia and an almost pathological refusal to make decisions are amongst the biggest real problems in modern business in this region.“ Mark Bull

tices have changed their fee structures this year, and are also more flexible in terms of negotiating the commercial basis of their fees. (However, some prospective Clients should still take heed of the fact that, if they try to obtain legal services for nothing, they will be rebuffed more often than not).

4. Legal consultants have the ability to identify the contractual crux of a problem, and thereby solve certain problems quickly.

5. Some employers are using contractual and legal chicanery and subterfuge to evade their responsibilities. Main contractors and sub-contractors must now meet fire with fire.

(Even at the risk of the fire brigade being called out).

6. There is often more than one way of solving or mitigating problems. Lawyers are trained to identify and evaluate the strengths and weaknesses of solution options and advise the Client of the best solution.

7. Lawyers can draw on their experience of solving similar problems in other territories in order to help their Clients.

8. The internal contractual and commercial procedures of Clients can be improved by the drafting and re-drafting of delay and disruption manuals.

9. The amount of revenue that a company earns from a contract or sub-contract can be increased by the incorporation of certain terms and conditions that only legal consultants can provide.

10. Some legal consultants are happy to adopt a background role in negotiations and supply briefing notes upon agenda topics or disputed issues.

In the current economic climate, the advice of contract lawyers and legal consultants is more important than ever and, given the fact that an initial consultation with prudent practitioners is free of charge, companies must act to resolve their contractual problems by consulting with lawyers. In conclusion, get contractual while you still can! www.constructionweekonline.com

Your partner for a greener future

T O TA L

S O L U T I O N S

hot water free from the sun

F O R

Y O U R

EXPRESS by HOLIDAY INN (Al Wasl, Dubai) – 6500J Commercial System – 12,500 Litres/day

H O T

&

C O L D

W AT E R

N E E D S

EXPRESS by HOLIDAY INN (Al Garhoud, Dubai) – 6500J Commercial System – 15,000 Litres/day

Largest Known Hot Water Installation 84 nos. of Commercial System @ 700,000 Litres/day

ALBA Bahrain – Commercial System – 4,000 Litres/day

Saadiyat Island (Abu Dhabi) – Labour Accommodation for 20,000 personnel

Residential Solar Hot Water Systems (Capacity - 150/180/220/300/440-Litres)

High Capacity Heat Pumps – 3kW to 1,300kW Air to Water & Water to Water.

www.solahart.com

Commercial Solar Hot Water Systems (Capacities – 1000/1500/3500/5000/7000-Litres)

SOLAHART Commercial Drain-Back System: The only system that prevents overheating during the summer and heat loss during the night.

SOLARHART Residential Thermo-siphon System: The Closed-Circuit Systems are equipped with overheating protection.

Residential & Commercial Solar Water Heaters

High Capacity Heat Pumps

High Capacity Boilers & Steam Generators

Premium Heat Transfer Solutions

Photo-Voltaic Systems

Swimming Pool Heat Pumps

Tel: +971-4-298-4141 Fax: +971-4-298-5598 P.O.Box: 83021 Dubai, United Arab Emirates Email: ecoval@eim.ae Website: www.ecovalme.com (Visit our Showroom – Shop No., Al Bannal Building, next to Mister Bakers, Opp. NMC Specialty Hospital, Al Nahda)

BUSINESS LEADS

PROJECTS IN KUWAIT MEP Middle East and Ventures Middle East have teamed up to provide you with essential project information JABER AHMED AL-JABER AL-SABAH HOSPITAL SURRAH, KUWAIT CITY, AL ASSIMAH, KUWAIT Client: Ministry of Health, Ministry of Public Works Consultant: Gulf Consult, Langdon Wilson Main Contractor: Kuwait Arab Contractors MEP Contractor: Not appointed Contact: Mr Khaled HD Al-Razni, Director of Media Information Dept.

Tel: 00965-2462289, e-mail: Khaledr@intermedia.gov.kw Value: US$1.2 billion This is a 1 200-bed hospital with a total built-up area of 270 000 square metres. The hospital will provide a comprehensive range of medical services, comprising diagnostic and treatment, trauma centre and casualty, outpatient, ob/gyn, in-patient care and VIP suites for visiting heads of state. Kuwait Arab Contractors was awarded the main construction contract in August 2009, with construction expected to be completed by 2012. US Langdon Wilson is responsible for architectural, conceptual and engineering design works. Gulf Consult is tasked with detailed engineering and landscape design, cost control and tender documentation.

Project Title

Client

Consultant

Main Contractor

MEP Contractor

Value (US$. Mn)

Project Status

Type of Project

College of Technological Studies at Shuwaikh

Public Authority for Applied Education & Training

Al Dowailah Engineering Consultants

Not Appointed

Not Appointed

16 - 30

award awaited for the main contract

Educational Facilities

Vocational Training Institute in Jahra

The Public Authority for Applied Education & Training

In House

Not Appointed

Not Appointed

31 - 100

award awaited for the main contract

Educational Facilities

Administration Building at Kuwait International Airport

Directorate General of Civil Aviation (DGCA)

Dar Al Handasah/Jassim Qabazard

Not Appointed

Not Appointed

101 - 250

award awaited for the main contract

Commercial Buildings

Immigration Headquarters at Farwaniya

Ministry of Public Works

Kuwait Technical Consultant

Not Appointed

Not Appointed

2.5 - 15

bidding underway for the main contract

Commercial Buildings

Hotel at Salmiya

Mr. Fahad Al Maiylem

Al Aliyan Consulting

Not Appointed

Not Appointed

31 - 100

project under design

Hotel

Neighborhood Centre at East of Al Ahmadi

Ministry of Public Works

Kuwait Technical Consultant

Not Appointed

Not Appointed

40

award awaited for the main contract

Mixed Use

Kuwait Institute of Justice

Ministry of Public Works/ Ministry of Justice

Al Zamami Consultant

Not Appointed

Not Appointed

31 - 100

bidding underway for the main contract

Educational Facilities

Immigration Headquarters at Farwaniya

Ministry of Public Works

Kuwait Technical Consultant

Not Appointed

Not Appointed

2.5 - 15

bidding underway for the main contract

Commercial Buildings

Avenue Shopping Mall Expansion - Phase 3

Mabanee Company

PACE/Gensler

Not Appointed

Not Appointed

908

project under design

Shopping Centre

Medical Village in Mahaboola

The Commercial Real Estate Company

SSH/Bernard Khoury Architect

Not Appointed

Not Appointed

220

project under design

Mixed Use

Service Building for PAAET in Kuwait

The Public Authority for Applied Education & Training

In House

First Kuwaiti General Trading & Contracting

Not Appointed

248

project under construction

Commercial Buildings

For the latest Middle East MEP project information, visit www.constructionweekonline.com

December 2009 | MEP Middle East 33

LEGAL

Letters of

CREDIT Dennis Brand from HBJ Gately Wareing examines the trend of late payment and its impact in the current downturn.

any have entered into contracts with payment terms being 30 days from receipt of invoice, but there has developed a practice by some, due to lack of financial resources or otherwise, to pay much later, to the extent that some contractors will say that payment 90 days from submission of invoice is the norm.

The FIDIC 1999 Suite of Contracts, in particular the Conditions of Contract for Construction, for Plant and Design Build and for EPC/ Turnkey projects include a provision (Clause 2.4 – Employer’s Financial Arrangements), state that, if so requested, the employer shall provide the contractor with reasonable evidence that financial arrangements have been made and are being maintained which will enable the employer to pay the contract price.

The clause includes more detail, of course, but the point here is that FIDIC recognises that a contractor assumes both financial risks and liability in entering into a contract for services, and therefore it is not unreasonable to require the employer to demonstrate an ability to pay for those services. Although such a provision is contained in the FIDIC standard forms, I have yet to see a contract where that provision is retained; which is perhaps not unusual given the more traditional method of contracting adopted in the region.

Whether or not such a provision is included in a contract, the concern of a contractor, subcontractor or supplier is to ensure that payment is made, and on a timely basis. Recently I have become aware of requests being made by a contractor, in order to secure payment, for the employer to establish a letter of credit on the basis that, if it is normal for suppliers, particularly those overseas, to require payment by way of letter of credit, then why should a contractor not have the benefit of a letter of credit under a construction contract? www.constructionweekonline.com

As a general point, it must be understood clearly that, regardless of the number of references to the letter of credit in a contract, and regardless of the number of references to the contract in a letter of credit, a letter of credit is a separate contract between the issuing bank and the beneficiary. It may be helpful if I outline some of the various forms of letters of credit, their advantages and, where appropriate, their disadvantages: • Irrevocable: This means it cannot be revoked or amended in anyway by any of the parties without the unanimous agreement of all parties – that is, customer, bank and beneficiary. The opening bank assumes an obligation to pay the beneficiary, provided that the conditions are met to the satisfaction of the issuing bank. While the advantage is that the beneficiary has the benefit of the obligation of the bank to pay, it is a matter for the bank as to whether the beneficiary has satisfied all the conditions of the letter of credit, which conditions may be onerous, and therefore while the obligation to pay remains, it is for the bank and its customer to determine when the conditions precedent have been satisfied, which can be a way of delaying payment.

• Revocable: Allows any party to revoke, cancel or amend the letter of credit without reference to any other party. This could cause a major problem for a contractor performing services on the basis of a letter of credit containing previously agreed conditions, only to find subsequently that those conditions have

Some contractors will say that payment 90 days from submission of invoice is the norm.“ Dennis Brand, HBJ Gately Wareing

been modified, which may result in requiring compliance with more onerous conditions to achieve payment.

• Confirmed: Frequently used where payment is to be made by a bank other than the issuing bank. This could be where the issuing bank is in one country, and the supplier or seller is in another, and submits his application for payment and supporting documents to a bank in his home country to obtain payment. The purpose of the confirmation here is that, whereas the issuing bank has an obligation to pay the supplier of the service or seller of the product, unless the other bank that is to effect payment has similarly confirmed its obligation to the seller or supplier, then should that bank fail to make payment, the seller or supplier cannot easily enforce payment, and would have to seek redress from the issuing bank in another country.

• Unconfirmed: Simply the opposite of a confirmed letter of credit, with obvious disadvantages.

• Standby: Used most frequently where the purchaser of the goods or services has simply to transfer payment. There are no test certificates, certificates of origin or bills of lading, etc. to be checked or supplied. It is simply a matter of making payment. Sometimes a standby letter of credit is used where the normal method of payment under a contract may not be available – that is, insufficient or no funds in an account, and therefore the standby is issued, which allows for the beneficiary merely to submit a copy of his documents, for example an invoice, to obtain payment.

It may be quite a steep learning curve for employers to accept the industry issuing letters of credit. However, unless a mechanism is found that allows contractors, subcontractors and suppliers of goods and services to receive payment on a timely basis, then this will only result in such lack of security being reflected in the contract prices.

December 2009 | MEP Middle East 35

METAL MONITOR

NON-FERROUS METAL PRICES The London Metal Exchange (LME) is the world’s premier non-ferrous metals market. The LME offers futures and options contracts for aluminium, copper, lead, nickel and NASAAC, among others. Many of these materials are indispensable in the MEP sector. The latest historical data from the LME is presented to give readers insight into this dynamic trading market. For further information visit www.lme.co.uk.

OCTOBER 2009 THE LONDON METAL EXCHANGE LIMITED AVERAGE OFFICIAL AND SETTLEMENT PRICES US$/TONNE Primary Aluminium (dollars)

Aluminium Alloy (dollars)

Copper

Lead

Nickel

NASAAC

(dollars)

(dollars)

(dollars)

(dollars)

Cash Buyer

1,877.80

1,682.27

6,286.77

2,239.23

18,514.09

1,716.95

Cash Seller & Settlement

1,878.57

1,689.59

6,287.98

2,240.77

18,525.23

1,727.27

Cash Mean

1,878.18

1,685.93

6,287.38

2,240.00

18,519.66

1,722.11

$6513

3-months Buyer

1,914.07

1,713.82

6,309.61

2,263.41

18,590.91

1,746.59

Copper 3-months seller

3-months Seller

1,914.80

1,723.68

6,310.84

2,265.89

18,620.23

1,757.50

3-months Mean

1,914.43

1,718.75

6,310.23

2,264.65

18,605.57

1,752.05

15-months Buyer

2,014.95

1,799.77

6,298.64

2,270.82

18,427.95

1,865.00

15-months Seller

2,019.95

1,809.77

6,308.64

2,275.82

18,527.95

1,875.00

15-months Mean

2,017.45

1,804.77

6,303.64

2,273.32

18,477.95

1,870.00

27-months Buyer

2,081.05

1,883.18

6,237.73

2,247.00

17,978.64

1,936.59

27-months Seller

2,086.05

1,893.18

6,247.73

2,252.00

18,078.64

1,946.59

27-months Mean

2,083.55

1,888.18

6,242.73

2,249.50

18,028.64

1,941.59

THE FOLLOWING STERLING EQUIVALENTS HAVE BEEN CALCULATED, ON THE BASIS OF DAILY CONVERSIONS: Settlement Conversion Copper Cash Seller & Settlement:

£3,883.92

Lead Cash Seller & Settlement:

£1,384.12

Exchange Rates $/JY

90.3605

LME AVERAGE SETTLEMENT PRICES IN EURO Metal

Euro Settlement Conversion Rate

Primary Aluminium

1,267.38

Aluminium Alloy

1140.05

Copper

4,241.99

Lead

1511.65

Nickel

12,497.32

Nasaac

1,165.41

SEPTEMBER 2009 THE LONDON METAL EXCHANGE LIMITED AVERAGE OFFICIAL AND SETTLEMENT PRICES US$/TONNE Primary Aluminium (dollars)

Aluminium Alloy (dollars)

Copper

Lead

Nickel

NASAAC

(dollars)

(dollars)

(dollars)

(dollars)

Cash Buyer

1,833.09

1,669.77

6,195.09

2,203.09

17,462.27

1,693.36

$6073

Cash Seller & Settlement

1,834.11

1,680.77

6,196.43

2,204.55

17,473.18

1,702.73

Copper 3-months seller

Cash Mean

1,833.60

1,675.27

6,195.76

2,203.82

17,467.73

1,698.05

3-months Buyer

1,866.34

1,699.77

6,208.11

2,223.68

17,499.77

1,722.73

3-months Seller

1,867.34

1,711.36

6,210.41

2,225.84

17,517.73

1,732.05

3-months Mean

1,866.84

1,705.57

6,209.26

2,224.76

17,508.75

1,727.39

15-months Buyer

1,962.91

1,787.95

6,150.91

2,196.77

17,292.27

1,845.00

15-months Seller

1,967.91

1,797.95

6,160.91

2,201.77

17,392.27

1,855.00

15-months Mean

1,965.41

1,792.95

6,155.91

2,199.27

17,342.27

1,850.00

27-months Buyer

2,027.32

1,872.05

6,053.41

2,169.73

16,912.27

1,916.36

27-months Seller

2,032.32

1,882.05

6,063.41

2,174.73

17,012.27

1,926.36

27-months Mean

2,029.93

1,877.05

6,058.41

2,172.23

16,962.27

1,921.36

THE FOLLOWING STERLING EQUIVALENTS HAVE BEEN CALCULATED, ON THE BASIS OF DAILY CONVERSIONS: Settlement Conversion

LME AVERAGE SETTLEMENT PRICES IN EURO Metal

Euro Settlement Conversion Rate

Primary Aluminium

1,259.29

Aluminium Alloy

1154.09

Copper

4,255.02

Lead

1513.76

Nickel

12,000.35

Copper Cash Seller & Settlement:

£3,791.10

Copper 3-months Seller:

£3,800.04

Stg/$

1.6343

Tin

10,207.83

Lead Cash Seller & Settlement:

£1,348.97

$/JY

91.4341

SHG Zinc

1,293.58

Lead 3-months Seller:

£1,362.13

Euro

1.4566

Nasaac

1,169.11

Exchange Rates

Neither the LME nor any of its directors, officers or employees shall, except in the case of fraud or wilful neglect, be under any liability whatsoever either in contract or in tort in respect of any act or omission (including negligence) in relation to the preparation or publication of the data contained in the report.

36 MEP Middle East | December 2009

www.constructionweekonline.com

PRODUCTS TOTAL BIM SOLUTION MagiCAD provides a complete BIM solution for building services design. It speeds up design with easy-to-use and intelligent design tools, as well as increasing project accuracy, with such features as integrated calculations, automatic bill of materials and collision control functions. MagiCAD includes several modules, each fully compatible with all current AutoCAD platforms: • A design and calculation tool for ventilation systems; • A design and calculation tool for heating, cooling, air-conditioning, water, sewer and special systems; • A design and calculation tool specifically suitable for sprinkler systems; • A drawing and design tool for electrical, lighting, telecom and data systems and switchboard schematics; • A drawing tool for creating electrical circuits of different complexity; • A design tool for creating a 3D model of the building, together with heat-loss calculations; • A comfort and energy package solution to perform simulation and analysis of a building’s energy and internal climate; and • An object enabler, a free application to view and examine MagiCAD drawings. www.progman.fi MagiCAD provides smart, simple design tools

The new flue-gas analyzer from AFRISO

‘VIRTUAL’ REFRIGERANT CHARGE SENSOR With the new Eurolyzer ST flue-gas analyser from AFRISO, a complete standardised heating check can be carried out simply, quickly and reliably.

The heating check represents an explicit, standardised process for the inspection of heating installations in order to identify weaknesses in energy efficiency, mainly in older, but also in newer, heating installations.

In times of high energy costs, climate change and the sustainability agenda, advice on proper energy usage is becoming ever more important.

The Eurolyzer can check the following: • Heat generation: Checking of the boiler with regard to flue gas-, surface- and ventilation losses, heat value utilisation, over-dimensioning and system control; • Heat distribution: Hydraulic adjustment, heating pump, insulation of pipes, storage vessels and fittings.

• Heat transfer: Room-temperature control via radiators, convectors or underfloor heating systems. www.afriso.de

PLASTIC PIPES AND FITTINGS Terrain offers a single-source solution comprising a range of products and systems, mainly for commercial buildings such as hospitals, hotels, leisure centres, sports stadia, retail complexes, public buildings plus offices and apartments, where quality, range and system integrity are of key importance to designers and installers.

Based in Dubai, the company has been supplying its products throughout the Middle East for over 50 years, during which time it has built up a network of well-established relationships in the construction industry. Its products meet British Standards, and have been supplied to such iconic

projects as Burj Al Arab, the World Trade Centre in Bahrain and the Sheraton Hotel in Qatar.

This year saw the inaugural participation of Terrain at The Big 5 exhibition. Products on display included the company’s unique range of pipes, fittings and associated products for aboveground drainage, water supply, ventilation and rainwater attentuation.

“Our long history with this area has shown that our products have been thoroughly tested and proven in the challenging Gulf environment,” says commercial director Robin Appleby www.polypipe.com Terrain offers a range of piping solutions

38 MEP Middle East | December 2009

www.constructionweekonline.com

‘‚WE HELP MANAGE AND SAVE CRITICAL RESOURCES SUSTAINABLY,’ 2QH 6WRS 6ROXWLRQ 3URYLGHU %URDG UDQJH RI +DUGZDUH DQG 6RIWZDUH 0RUH WKDQ \HDUV RI ([SHULHQFH VHUYLQJ FRXQWULHV DQG 0LOOLRQV RI 6DWLVILHG &XVWRPHUV 0RUH WKDQ \HDUV RI ([SHULHQFH VHUYLQJ FRXQWULHV DQG 0LOOLRQV RI 6DWLVILHG &XVWRPHUV

Energy-Contracting

Hardware & Retrofiting

Reading & Billing Solutions

Energy DataManagement

Issuing Bills

Electricity

Chilled Water

Local Reading

Gas

Central Reading (RF / M-Bus) Combined bill

Water

Energy Passport

T: +971 4 214 6624, infoME@ista.com DIENSTLEISTUNGEN

www.ista.com

THE LAST WORD

Building

PEOPLE ALR Learning and Development Ltd. MD Alistair Redgrave and Middle East and Far East regional director Colin Morris discuss human resource development in the UAE. edgrave argues it is a misconception that buildings are the main focus of the construction industry.

“Actually the mechanics of getting to that point is all about people. Whether you get a project completed on time to the correct quality and on budget is all about your human resource skills, right down to how you negotiate the right deal in the fi rst place.” Morris concurs, as it is all about “managing the process and the relationship in a nonadversarial, win-win situation.”

“What we have found out here is that everything is broken,” comments Redgrave. “In parts of the world where human resources are more developed, there are better links in terms of how people are managed and developed.”

Morris elaborates further: “The process begins with looking at what skills are required for the job, then interviewing, assessing, introducing them into the company, seeing if there are any gaps, looking at performance management and monitoring, all the way through to exiting that person, determining who are the correct people to make redundant, actually managing that part of the process, and then refocusing the team that is left.”

R e d g r a ve adds that Alistair Redgrave the cur40 MEP Middle East | December 2009

rent economic crisis resulted in a ‘knee-jerk’ reaction on the part of many companies. “No thought was given to it whatsoever; they recruited in haste, and they fi red in haste.

There is no strategic link between what we are trying to achieve as a business and what we are trying to do at the front-line level of bringing the right people in.

“What we are bringing in now is not just to service what we are doing at present; we need to look at where the market has moved. The market has shifted, even in that sixmonth period where everything did drop off a cliff, from October 2008 to March this year, when things started to stabilise. Even then, the skills requirement has shifted, so those people who had some capability in terms of business development have now actually been outpaced by the market. So their skills were just about good enough when the market was booming, but now with the market being where it is, there is a

huge capability gap.” This is where ALR Learning and Development comes into the picture. “It is about developing people. Everything we do is tailor-made to what the client actually needs. It is practical; it is not about telling people they have done well, so go and have a day off and learn some skills we have absolutely no intention of allowing you to apply in this organisation.

“We do not do that. Everything is about what the need is; how does it link in with what you are trying to achieve. Thus we work back from the deliverables,” says Redgrave. A concrete example is the company supporting a major multidisciplinary consultancy with its restructuring process. “We have done a lot of coaching support and training with management to help them understand how to go about that effectively, so they do not make the same mistakes they made when they hired people. They hired in haste, and now they are in the situation of having to downsize.”

Morris adds: “We have just come from negotiation skills training with a key partner of ours, and what we focused on is that there is a significant job for a number of towers. Today we focused on a negotiating strategy to secure this particular work at the right price. So we have a clear outcome from this that they are going to go out and start implementing tomorrow.”

A highly-qualified and experienced tri-chartered engineer, Morris was the youngest Fellow of the Institute of Mechanical Engineers.

He has degrees in mechanical engineering, building services (MEP).

His career included a stint as regional director for Halcrow, heading up project management and site

supervision for the Middle East.

Redgrave has been involved in the human resources development (HRD) field for the past 11 years.

“I started out as a sales person, worked my way up to sales management, operations and director. The further I progressed, the further and further away I got from my core skills. So I was successful, but not happy. My true success has come on the back of building up the capability of other people.”

Together Redgrave and Morris, each with their own unique experience and skills set, are hoping to transform the company into the premier HRD specialist in the region.

Established in Dubai for the last four years, it also has an office in the UK, but about half its work is from the Middle East at present – and that figure is growing, despite the downturn.

“It is an extremely important market for us, and it has been even in this difficult time,” says Redgrave.

“I think there is a growing realisation now that there are significant issues with how things have been done in the past in terms of recruiting, managing and retaining staff, and bigger business issues as well. When I first came out here four years ago to talk about what we did, nobody was interested. It was very difficult for them to see that there was actually a need or a long-term benefit.

“Why would we want more work when we cannot cope with the work we have already got? Which in itself says something, I think: if you cannot cope with the work, then you have not planned it effectively.

If you have not anticipated it effectively either, then at some point that is going to cause a problem regardless of what happens in the marketplace,” warns Redgrave.

I think there is a growing realisation now that there are significant issues with how things have been done in the past in terms of recruiting, managing and retaining staff, and bigger business issues as well.“ Alistair Redgrave, MD, ALR Learning and Development Ltd. www.constructionweekonline.com

A Brand like a Friend – This claim underlines our vision to make people’s lives easier, better and more beautiful with our brands and technologies.

Henkel, headquartered in Düsseldorf / Germany, has about 52,000 employees worldwide and counts among the most internationally aligned German-based companies in the global marketplace.

People in approximately 125 countries around the world trust in brands and technologies from Henkel.

Our Brands TANGIT

METYLAN

SEALANTS & PUFOAMS

CONSTRUCTION ADHESIVES

PRODUCT CATEGORIES PRODUCT CATEGORIES

PRODUCT CATEGORIES

• Pipe Adhesives + Cleaner • Thread Sealants

• Wallpaper paste • Wall covering adhesives

• Fire Protection APPLICATION • Pipe Installation & Fire Protection For the connection of pipes made of

• Fillers •Paint strippers APPLICATIONS • Wallpapering

PVC-U, PVC-C and ABS one needs to use a special pipe cement to fulfil a

We are offering adhesives for fixing wallpapers and wall coverings, supported

tensile and stable connection. www.Tangit.com

by auxiliary products for wall preparation.

PRODUCT CATEGORIES

• PU-foams • Cleaners/Guns/Primers • Window Sealing System APPLICATIONS • Sealants & PU-Foams Sealants are defined as sealing masses applied between joints to connect and seal two parts together.

•Construction Adhesives •Chemical Anchoring •Contact Adhesives •Wood Glues APPLICATIONS • Construction Adhesives Construction Adhesives are used to bond or repair two items in the home & construction site, replacing traditional adhesives such as contact cements and wood glues, and traditional physical fixings such as nails and screws.

www.henkel.com

PO BOX 61341 DUBAI, UAE

TEL: +971 4 4308940 FAX: +971 4 4308946