SOLUTIONS ISSUE 39 • 2016 • FGOULD.COM
A WINNING STADIUM The USTA, America’s largest tennis organisation, is transforming the USTA Billie Jean King National Tennis Center – page 14
SNFCC, ATHENS Building Awards 2016 winner – page 4
DOHA FESTIVAL CITY Reshaping retail and entertainment – page 10
IKEA, ASIA PACIFIC Global retail – page 18 SOLUTIONS
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ISSUE 39
CONTENTS 4 Stavros Niarchos Foundation Cultural Center, Athens Award-wining SNFCC to reshape public sector construction in Greece 6 Colombo Port City, Sri Lanka Seabed reclamation and optimum real estate development 8 The road ahead Automotive manufacturing facilities in the age of intelligent mobility 10 Doha Festival City Reshaping retail and entertainment in Qatar
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12 Rio’s Olympic Park Hotel Marriott International debuts dual-branded property in Brazil
20 Congress Theatre Challenges of conserving modernist buildings
14 A winning stadium for the US Open Transforming the USTA Billie Jean King National Tennis Center
22 PPP in the Middle East GCC governments adopt publicprivate partnership finance structures
16 BIM in digital environments Digital engineering technology will soon be used in every country
24 Australian Embassy, Bangkok Emblematic presence for Australia in Thailand
18 Adapting to the market IKEA finds new ways of building in Asia Pacific
26 Pharma’s corporate real estate High-performance spaces for high-performance organisations
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VIEWPOINT
elcome to this new-look edition of Solutions, reflecting our refreshed brand identity, while continuing to demonstrate our constructive expertise and thought leadership. As we go to press, the US election result is still big news, and Brexit Article 50 is yet to be triggered. It’s a changing world and I feel it would be unwise to issue predictions on the year ahead. At this early stage, the financial markets have been less affected than predicted and we’ll all be hoping for continued stability. For Faithful+Gould, it’s business as usual while maintaining a state of agility and readiness for the opportunities, wherever they may lie. In the US there are promises of infrastructure investment, and the UK has seen positive decisions on the Hinkley Point nuclear project and the third runway at Heathrow Airport – good news for the construction industry. Our own multi-sector experience continues to flourish, with many notable projects spanning our global markets. In the US, these include the transformation of the Billie Jean King National Tennis Center (NTC), home of the US Open. Read more on page 14. In Asia Pacific, our business is thriving across many sectors. Retail is an especially significant growth area for the region, and our work with IKEA is going from strength to strength, with projects in China and Malaysia (see page 18) now augmented by a win in India. The Middle East is also seeing retail growth and we are delighted to be working on our first retail project in Qatar, Doha Festival City, outlined on page 10. We are drawing on the skills we provide globally as advisors to new retail owners as well as experienced developers. On page 16 we consider the benefits of a mature digital economy for the global built environment. Investment in technology is very important to us at Faithful+Gould, as is furthering the digital agenda. Alongside our parent company Atkins, we are supporting research and policymaking, with key representation and leadership on the Digital Built Britain steering group, UK BIM Task Group, Building Smart International, and BSI and ISO committees. Our back cover features the industry awards we won in 2016, for our work on some stunning projects: Stavros Niarchos Foundation Cultural Center in Athens (SNFCC), Doha Festival City in Qatar, and Porcelanosa in New York. Page 4 profiles the SNFCC project, for which we won the prestigious International Project of the Year at the Building Awards 2016.
WINNER
Our chief strength is our amazing people, and I’m delighted to have secured some of the best in the business to enhance our real estate team and build on our sector strengths. A warm welcome to Kevin Chrisp, Worldwide Head of Corporate Real Estate; Andrew Prickett, UK & Europe Head of Residential; Kieran Mulhern (Director), and Chris Read (Director). I appreciate your interest in Faithful+Gould and I hope you’ll enjoy this edition of Solutions. To find out more, please visit our website.
Donald Lawson, CEO Worldwide Operations
For more information, contact Donald Lawson at: +44 (0) 207 121 2121 donald.lawson@fgould.com
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IT’S A TRUE
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e are delighted that one of our most exciting projects is the 2016 winner of three prestigious industry awards. The Stavros Niarchos Foundation Cultural Center (SNFCC), Athens, won International Project of the Year at the UK’s Building Awards, Best Project in the cultural/worship category at the US’s Engineering News-Record Awards, and a structural award in the arts and entertainment category at the UK’s Institute of Structural Engineers Awards. One of the biggest construction projects in Greece’s recent history, SNFCC’s
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vision is to provide Greece and Athens with institutional foundations that move the country forward and form a framework for the future. The centre’s three main elements – education, culture and sustainability – will enhance opportunities for the city and its people. This is a complex multi-stakeholder project which includes new facilities for the National Library of Greece and the Greek National Opera as well as the creation of the 170,000 m² Stavros Niarchos Park. Construction ran from autumn 2012 to July 2016. In January 2017, the Stavros Niarchos Foundation will offer the privatelyfunded facility as a gift to the Greek state.
The centre is expected to open fully soon afterwards, following the occupancy phase. For Greece, currently at a critical economic juncture, restructuring of its economic fabric is a priority. Construction has an important part to play and public sector projects will continue to be scrutinised for best value. The SNFCC leaves a legacy of exemplary construction practice, having met its progress milestones and reached successful conclusion. Although the SNFCC is unique in its funding structure, the local construction market can benefit from using the same project management principles. Faithful+Gould has provided the Stavros
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WINNER The multiple award-winning Stavros Niarchos Foundation Cultural Center leaves a legacy that will reshape public sector construction in Greece
Niarchos Foundation with independent project management consultancy from the outset. Beginning during the concept design phase, several years prior to construction, our services included consultant and contractor procurement, programme management, cost management, LEED certification coordination (Platinum was awarded), and support for procurement of facilities management and other operational issues. We used private sector global bestpractice methods, applying these through the design phase and into procurement. Our early involvement enabled us to influence the design, providing value-added solutions
to ensure that costs were contained. Selection of the procurement route and the best team was especially important. As independent consultants, we were able to challenge the local construction culture, and were mindful of, but not bound by, local influences and networks. A clear approach, adopted from project inception, gave the selected contractor consistent aims and boundaries, achievable expectations, and provided our client with confidence in the contract. Although the full facilities will not be launched until 2017, the centre has been hosting events and attracting large crowds throughout 2016. More than 1000 school
children visit every day in addition to local visitors and tourists from around the globe. It has become a source of pride for the people of Greece, and will remain a sustainable focal point for the foreseeable future, playing its part in both national and international events. In November 2016, the SNFCC hosted Barack Obama, who travelled to Athens to meet government officials during his last trip to Europe as US President. For more information, contact Martin Hirko at: +1 212 252 7070 martin.hirko@fgould.com
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COLOMBO PORT CITY
SRI LANKA Sri Lanka’s largest private sector project requires seabed reclamation and optimum real estate development
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olombo is Sri Lanka’s commercial capital and largest city. Its large harbour and strategic position along the East-West sea trade routes made it a historically important location, known to ancient traders 2000 years ago. Today it’s home to a major property development undertaking, as Sri Lanka plans a new urban conurbation and central business district (CBD) as an extension of the existing city of Colombo. This is the single largest private sector development project in Sri Lanka, and is intended to boost the economy alongside the country’s existing development plans. Through sustainable urban development, the country hopes to promote itself as a significant business and tourist destination. The Colombo Port City project requires seabed reclamation of approximately 269 hectares, producing land connected to the Fort district and existing CBD area in central Colombo, and adjacent to Colombo International Container Terminal. This will create 5.65 million m² of gross developable area, to be used for commercial, residential, marina, office, retail, education, medical, hospitality, leisure, cultural, exhibitions and conventions, public parks and beaches. The private investment for Colombo Port City has come from China, with the China Harbour Engineering Company (CHEC) entering into a tripartite agreement with the Ministry of Megapolis and Western Development and Urban Development Authority, to form CHEC Port City Colombo (Private) Limited (CPCC). As master developer, CHEC will undertake all land reclamation and infrastructure works. The project is benefiting from a multidisciplinary team of economists, urban planners, urban designers,
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marina designers and water and coastal engineers from our parent company Atkins. Faithful+Gould is using our development advisory expertise to ensure the plot division and real estate development are strategically planned, designed, phased and delivered to maximise returns. We are addressing the significant commercial questions associated with masterplanned communities. There is, of course, pressure for each asset to earn
its keep. When forecasting community needs, additional business elements will ideally be embedded within the development mix, to generate further revenue streams. Residential components will benefit from community shopping and healthcare facilities, for example. Our team is leading the establishment of project development strategies that consider the master plan composition, the return on investment objectives and the investment constraints. The focus
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is on achieving the optimum mix of real estate land parcels, in order that sound commercial propositions can be brought to market. It’s also essential that the overall product mix produces a positive lived experience for residents, businesses and tourists, and exists alongside suitable infrastructure and sustainable plans for the future. There are some key signature projects and we are preparing feasibility studies for these.
Development phasing is especially important to investment returns. Masterplanned communities are often delivered in phases as a result of funding constraints and geo-political drivers, and to progressively respond to market sales. Development sales strategies can be modelled in detail, determining which facilities should be completed first. We are modelling infrastructure strategies, together with establishing costs for the various options. This will
be followed by a fast-track phased programme that allows infrastructure construction to commence closely behind the reclamation works, improving our client’s cashflow by giving early access to sellable land. CHEC may directly undertake some development, but most plots will be sold to third-party developers. Part of our role is to compile development guidelines for the sale of the plots, balancing best value with the overall sustainable development strategy. Attracting foreign direct investment is crucial, so it’s important that the plots and subsequent developments are aligned with the needs of global equity funders, end-user occupiers and developers. We are identifying and negotiating with third-party developers, partners and investors, and already there has been significant investor interest from China and India. Guiding our client into a new business stream is also part of our role, as this is CHEC’s first venture in Sri Lanka. We are using our expertise to ensure they benefit from global best practice in masterplanning and project management, while also eventually achieving the best results from the local construction market. Faithful+Gould offers comprehensive support to private sector and public sector real estate developers and funds, supporting masterplanning schemes across Asia Pacific and in other parts of the world. We bring a sound understanding of business case planning, programme management, urban planning, design and engineering to our clients’ development planning. For more information, contact Rick Hancock at: +65 6227 6144 rick.hancock@fgould.com
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ROAD AHEAD Automotive manufacturing facilities and the age of intelligent mobility
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he automotive industry is in the midst of exciting changes, with connectivity and digitisation disrupting vehicle design, manufacture and consumer experience. Tomorrow’s car ownership looks set to change, with new ideas about how cars should be owned and driven. The basic concept of a car’s purpose is being challenged, set in a wider context of intelligent mobility. Intelligent mobility is an approach to connecting people, places and services,
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encompassing all transport modes and enabled by data, technology and innovation. The aim is to transform the transport of both people and goods, maintaining a focus on efficiency, sustainability and safety of our transport systems and cities worldwide. Technology has a major part to play, both in improving efficiency in current transport systems and in creating alternative transport opportunities (for example, Uber or self-service city bike schemes). Integrating cars into the sharing economy, via car clubs,
could also be an important part of intelligent mobility. All large vehicle manufacturers and many of the automotive supply chain are making substantial investments in connected and autonomous vehicle technology. Fully autonomous technology remains some way ahead, but partly automated cars are likely to form the majority of new vehicles on the road over the next ten years, alongside the deeper integration of technology into all car systems. Investment in connectivity is also a
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priority. Vehicles are becoming connected through mobile data networks and other dedicated communications protocols that facilitate connections with other vehicles, with other devices or machines, or with wider transport infrastructure. The connected car of the future is not one product, however, but a set of technologies that will change manufacturers’ core business models. It’s likely that manufacturers will seek to add value in three main areas: safety electronics (for example, assistance and lane management), autonomous driving (including adaptive cruise control and self-parking), and connected services (such as integration with wearables and the home). The industry’s supply chain is changing, as the connected vehicle space attracts providers of new digital technologies alongside automotive manufacturers and OEMs. Manufacturers are increasingly forming partnerships with technology firms or investing in acquisitions, to build
new capabilities and innovate ahead of the competition. Behind the scenes of efficient automotive production lie facilities that capture the most efficient technologies and processes. Future-proofing is a key concern for owners of these facilities. Continuing agility, and the need for responsiveness and flexibility, is creating demand for reconfigurable facilities, and this is set to intensify. Faithful+Gould helps clients define a longer-term strategy around their property portfolios, creating masterplans that prepare for an uncertain future. Ideally, flexibility is incorporated into facility design from the outset, while maintaining the principles of resilience without redundancy. We begin by understanding the condition of the existing facilities, assessing the lifespan of the building stock and taking account of planned maintenance requirements. We support our clients’ decision-making
processes, challenging the linear norms of the production process to explore layouts and specifications that support future flexibility. Whatever the manufacturing process, positioning supporting infrastructure – energy centres, for example – in optimum locations will allow maximum space and reconfiguring potential for the manufacturing facilities. Efficient flow of product around the site, from raw materials to finished goods storage and distribution, is crucial to ensure consistently high levels of productivity, better returns on investment and adaptability for the future. Not all site developments are new facilities, and planning around existing operations and site constraints are challenges with which we frequently support clients. For more information, contact Mark Grayson at: +44 (0) 1133 066 600 mark.grayson@fgould.com
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DOHA F E S T I VA L C I T Y Poised to reshape retail and entertainment in Qatar
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oha Festival City is a mixeduse retail, entertainment, leisure and hospitality development. Located in the north of Doha, 20km from the city centre and with bespoke transport links, the mall provides Qatar with an iconic and easily accessible leisure destination. Many firsts are being achieved here. Doha Festival City is by far the largest retail mall in Qatar, and the largest under construction at present in the Middle East. It’s also the largest single
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private sector investment in retail in the MENA region. Doha Festival City is owned and developed by Bawabat Al-Shamal Real Estate Company W.L.L. (BASREC). BASREC comprises four shareholders: Dubai-based Al-Futtaim Real Estate Services, Qatar Islamic Bank (QIB), Aqar Real Estate Investment Company and a private Qatari investor. With over 245,000m2 of gross leasable area, the mall joins the ‘super-regional’ retail category, considerably expanding the options
for Qatar’s fast-growing resident and visitor population. A balanced range of international and local brands are included among the 500 stores and dining options. Qatar’s first IKEA store has been operating here since the mall’s first phase was completed in 2013 (read more about global retailer IKEA on page 18). The country’s first full-sized Monoprix hypermarket, first Ace hardware big-box outlet, and the luxury department store Harvey Nichols are also on the way. The project demonstrates the continuing development of Qatar’s property market,
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“We are drawing on the skills we provide globally as advisors to new retail owners as well as experienced developers�
which is geared towards delivering the National 2030 Vision. The mall is intended as an integral part of the community, in a country where the climate often dictates indoor activities. The overall development design aims to be a neutral canvas, flexible and adaptable to accommodate a variety of exhibitions and shows. Entertainment and leisure provision focuses on family activities, aligned with Qatari culture and values. The indoor and outdoor entertainment zones include a snow park, Angry Birds, Juniverse and Virtuocity theme parks, and an 18-screen VOX 4D cinema complex. The 8000 parking spaces illustrate the scale of the development and the numbers of families expected to visit. This second phase of development is nearing completion, with anticipated opening in February 2017. Plans are also under way for a third phase, to add a 350-key five-star hotel and convention centre, with direct access to the mall. A design and build contract will shortly be awarded for these facilities. The project has been ongoing since 2010, first breaking ground in 2011, with Faithful+Gould providing commercial management services to BASREC. As part of our integrated approach, we implemented systems to provide detailed and summary financial reporting. Our client now has robust management information that recognises current trending and provides an accurate
assessment of out-turn costs. Our role focused on transforming data into sound commercial recommendations. This meant promoting value-conscious principles, keeping the required returns for equity funders at the forefront. Close monitoring of the design/budget interface has proved successful. Moving the project forward has been challenging in a changing construction climate, seeking both value and quality initially in a buoyant market and latterly in a quieter market. Navigating the safety standards to be met via an international workforce, together with the sheer scale of the project, has demanded stringent project management and commercial management from the outset.
Procurement challenges have included the changing authorities’ approvals process, which required updating to accommodate a project of this size. Collaborative working with contractors, and early award of some of the construction works as enabling packages, has facilitated a smoother and speedier route to market. This is the first retail project for Faithful+Gould in Qatar. We are drawing on the skills we provide globally as advisors to new retail owners as well as experienced developers. We also work with retail groups, often managing enhancements to meet corporate global brand standards, in smaller units as well as large department stores. In the Middle East region, our retail portfolio includes Al Maryah Central and Reem Mall, Abu Dhabi; City Walk and My City Centre Al Barsha, Dubai: Al Zahia, Sharjah, and Qurum and Muscat City Centres, Oman. For more information, contact Michael Connor at: +974 4424 5840 michael.connor@fgould.com
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Welcome to Rio’s...
OLYMPIC PARK H T Marriott International debuts its first dual-branded property in Brazil
“This is Marriott’s first owned and operated property in Brazil and it was important to get every detail of the construction and dual branding operations just right” 12
he Rio 2016 Olympic and Paralympic Games acted as a catalyst for projects in infrastructure, the environment, sports facilities and hospitality. These now leave a legacy for the city, in terms of urban planning and sustainability. Among the new hospitality projects is Marriott International’s first dual-branded property in Brazil, the Courtyard by Marriott and the Residence Inn by Marriott, Barra da Tijuca, Rio de Janeiro. The property comprises two buildings in one, with the Courtyard on one side and the Residence Inn on the other, joined by “back of house” and public spaces. The Courtyard brand aims to be smart and dynamic, helping business travellers make the most of their time on the road. The Residence Inn brand makes longer stays comfortable with upscale design, spacious suites with full kitchens and separate living and sleeping areas, and an in-room grocery delivery service. The dual-branded hotel features common areas that include a state-ofthe-art fitness centre, an outdoor pool, self-service laundry centre and multiple meeting spaces. Each hotel has an independent entrance, and its own lobby and public spaces. A relatively new suburb, Barra da Tijuca has scenic mountain vistas and the city’s longest stretch of beach. Of the city’s four main districts that hosted a part of the Games, Barra was the home of the athletes’ village, Olympic Park and Olympic golf course, and saw the most development, with construction of several hotels, and leisure and retail outlets lining the revamped beachfront. The neighbourhood offers good space, a secure location for residents and businesses and is near Riocentro, Brazil’s largest exhibition and conference centre. The 21-storey Courtyard-Residence Inn
is the only hotel located within the 2016 Olympic Park footprint, and guests can enjoy views overlooking the park’s grounds and lagoon. Marriott operates several hotels in Brazil, but this is its first owned and operated property in the country. It was important to get every detail of the construction and dual-branding operations just right, in anticipation of a fully-occupied first two months’ trading. The nonnegotiable Olympics deadline brought extra pressures, with the 404-room hotel accommodating international media covering the Olympic and Paralympic Games, alongside VIP guests. In Brazil, an independent perspective is especially useful, in what can be a challenging construction environment. Areas where owners typically ask for support include cost certainty assessment, prudent contract management, and procurement free from conflict of interest. Marriott International has been a Faithful+Gould client for more than 15 years, and we were confident that we could help the company bridge its global standards, industry’s best practices, and Brazil’s local construction practices and governance requirements. We began working on the new hotel in 2013, providing owner’s representation and project management services. Faced with a tight schedule, a high-profile firm deadline, and different branding requirements for the two segments of the hotel, there were plenty of challenges. The Rio Olympics heralded a construction boom, and all projects competed for a skilled workforce, which wasn’t always available locally in Rio de Janeiro. In addition, given the proximity to Olympic venues, the project team had to plan and manage security/access control constraints, which could have impacted supply of material and personnel access into the work site. However, the project was
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K HOTEL
successfully delivered on schedule, ready for Rio 2016. Faithful+Gould has a strong global relationship with Marriott International, supporting the company in the UK and Europe, the Middle East, and the Americas. We have worked on a variety of projects including the New York EDITION, the iconic New York City landmark formerly named the Metropolitan Life Clock Tower. In addition to Marriott International, our global hotel clients include Wyndham, Crown Plaza, DisneyÂŽ, Ritz-Carlton, Jumeirah Group, Shangri-La Group, Hilton Hotels, Hyatt, Intercontinental Hotel Group, Mandarin Oriental Hotel Group, Marina Bay Sands, Ascott, Carlson Hotels, FRHI Hotels & Resorts, and The Hong Kong and Shanghai Hotels Limited (The Peninsula Hotels). For more information, contact Carlos Nazarios at: +55 (115) 503 6650 carlos.nazarios@fgould.com
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A winning stadium for...
THE US OPEN The USTA, America’s largest tennis organisation, is transforming the USTA Billie Jean King National Tennis Center
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he United States Tennis Association (USTA) is the notfor-profit national governing body for tennis and the recognised leader in developing the sport’s growth on every level in the US, from local communities to the highest point of
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the professional game, the US Open. The USTA has embarked on a Strategic Transformation programme that will assure the world-class status of the Billie Jean King National Tennis Center (NTC), located in Queens, New York City. During the past two years, Faithful+Gould has supported USTA
on critical elements of the NTC programme. The centrepiece of the redevelopment is the construction of two new stadiums. One is already completed: the replacement 8,000-seat Grandstand Stadium. The Grandstand’s structure has 486 panels that surround the stadium, and upper walkways
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“This mixed-use planned community has 102 courts and will house the USTA’s Player Development Community Tennis divisions” that allow for expansive views of the NTC campus. It became the first US Open stadium with LEED certification. The southern area of the campus has been extended to provide ten new tournament courts. To improve crowd distribution, the south border between the courts and the rest of the park has been expanded by 30 feet. A 40-foot-wide pedestrian thoroughfare and an enlarged central plaza were added, and an elevated walkway behind the seating allows visitors to move from court to court and watch multiple matches. This phase of the programme also included creation of the long-anticipated retractable roof over the 23,000-seat Arthur Ashe Stadium (the world’s largest-capacity tennis venue). The roof was operational at the recent 2016 US Open, alleviating the tournament’s long history of rain delays and postponements. The NTC is situated in the Flushing Meadows-Corona public park, formerly the 1964 World’s Fair site and part of the Corona Ash Dumps characterised as the Valley of Ashes in F Scott Fitzgerald’s The Great Gatsby. The site’s history brought poor soil conditions, requiring deep foundations and a complex building structure for the Arthur Ashe roof, independent of the existing stadium. We’re now working on the remaining elements of the programme, which has passed the halfway mark. The old Grandstand and Louis Armstrong Stadium structure began demolition plans after the 2016 US Open. The development’s second new stadium will be the larger, retractable roof 14,000-seat replacement Louis Armstrong Stadium, launching in 2018. The new Armstrong has an open-air design, allowing natural ventilation, and is the programme’s single highest value element. Faithful+Gould was appointed by
Above: view over new Grandstand towards Ashe Stadium Below: new Grandstand Stadium as seen from the Ashe Promenade the USTA in 2013 to provide project management and cost management services on the programme. Our role involves managing the day-to-day activities of contractor Hunt Construction Group, design review of Rossetti Architects and liaison with all stakeholders, including the NYC Parks Department (who lease the land), and local utility companies. Logistically this is a constrained site, calling for careful orchestration of deliveries and workflow during the construction works. There are often restrictions on works due to other events taking place in the park or nearby Citi Field. Schedule management and stakeholder co-ordination is therefore an important part of our role. Simultaneous completion of several NTC projects makes for a very busy construction environment, requiring more than 500 site workers. Our scheduling also has to take
account of the non-negotiable US Open dates. The site must be available two months in advance, to prepare for 100,000 daily visitors, broadcast media requirements and visitor facilities, in addition to the stadium and athletes’ needs. The NTC is operated by the USTA, who are self-financing the transformation programme, with no public contribution. Our cost management services are ensuring that the programme remains within budget and that best value is achieved. We are also performing project management services on the USTA National Campus in Orlando, Florida. Set to open in 2017, the campus has 102 courts and will house the USTA’s Player Development and Community Tennis divisions. The facility will host the University of Central Florida teams, as well as local players and families from the Orlando community, and will provide the venue for national, individual and collegiate events. Our global sports and events portfolio continues to grow. Notable projects have included the new Yankee Stadium, NYC; the Minnesota Vikings’ US Bank Stadium, Minneapolis; Singapore Sports Hub; Singapore Grand Prix; Kuala Lumpur Grand Prix, and support for our parent company Atkins on the London 2012 Olympics and Paralympic Games. For more information, contact Tom Jaske at: +1 212 252 7070 tom.jaske@fgould.com
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BIM IN DIGITAL ENVIRONMENTS BIM is the first truly global digital engineering and construction technology and will soon be used in every country
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he information economy is transforming the way we live and work. It’s bringing new ways of achieving economic efficiency and productivity, as well as social and personal outcomes across areas as diverse as healthcare, education and communications. The construction industry has a critical opportunity to contribute, harnessing technology to address the challenges of urbanisation and globalisation. By
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creating a mature digital economy for the built environment, capable of delivering high-performing assets, we can achieve greater efficiency and reduce pressure on social and services infrastructure. A digitally-led construction industry makes it easier to determine and measure the social benefits of good asset performance. It focuses on how asset performance influences the value that stakeholders experience through changes in their lives. To meet these challenges and to match the efficiencies
achieved in industries such as aerospace, manufacturing and automotive, the construction sector required a new approach. Significant change began when the UK mandated Level 2 BIM in 2011, and the process has since gained momentum in its global adoption. The UK government’s Department for Business, Innovation and Skills subsequently launched a strategic plan for Level 3 BIM, referred to as Digital Built Britain. The plan suggests that over the next decade BIM will combine with
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“We are developing industry-leading practice in digital model development, within both new-build and existing asset environments”
the internet of things, advanced data analytics and the digital economy, allowing us to plan more effectively, build assets at a lower cost, and operate them more efficiently. The aspirational strategy describes the next steps in defining standards, creating new commercial models and identifying technologies to transform our approach to social infrastructure development and construction. Similar progress is under way in other countries, as BIM and digital ways of
working become a driver for change across the world’s construction markets. Fifteen EU member states (including the UK) have formed an EU BIM Task Group, to align procurement practices, technical standards and skills for asset delivery within a digital environment. Asia, Singapore, Hong Kong and China are also sharing common experiences of BIM and digital working. In the Middle East region, BIM is increasingly a requirement at procurement stage, referencing both UK and US standards and capabilities. North America has long-established experience of BIM and digital engineering implementation, and parts of South America are now exploring the UK BIM strategy to inform its digital asset delivery plans. This is a time of rapid change for everyone working with BIM, and each country will seek to implement new disruptive approaches to achieve its digital built environment aims. Many will now progress to BIM Level 3, which builds on the Level 2 foundations of working in 3D data-rich collaborative environments, promoting the exploitation of data to make better decisions. This improves capital delivery and asset operational outcomes, and develops new digital contracting and purchasing strategies. However, Level 3 and Level 4 also invoke change in every part of the asset lifecycle, performance and management, going well beyond the asset itself and into the way we engage with public services, live our lives and feel about our environment. The UK government, for example, has emphasised the embedding of data and digital modelling beyond the design and construction phase of assets and into the operational phase. The Digital Built Britain strategy is the catalyst for
the UK’s 2025 targets for 50 per cent faster delivery, 33 per cent reduction in whole life costs and 50 per cent carbon reduction. As we move into the age of smart and sustainable cities, BIM will be an integral part of digitally-led urban innovation, ensuring that buildings respond to a changing environment and user requirements. We can expect emerging sensor technology, faster and more complex data analysis capabilities and the expanding of technology markets and products to capitalise on this new data-rich world. Greater asset operational efficiency will follow, facilitating accurate and real-time asset maintenance and management planning.This will improve uninterrupted asset utilisation, increasing financial returns and social/business-led outcomes. Alongside our parent company Atkins, Faithful+Gould has growing global expertise in operating in a collaborative, digital engineering environment. We are developing industry-leading practice in digital model development, within both new-build and existing asset environments. We are driving efficiencies in design, delivery and operational management, and asset maintenance programming. Faithful+Gould and Atkins are also supporting research and policymaking, with key representation and leadership on the Digital Built Britain steering group, UK BIM Task Group, Building Smart International, and BSI and ISO committees. For more information, contact Terry Stocks at: +44 (0)20 7121 2121 terry.stocks@fgould.com
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GLOBAL RETAIL Supporting IKEA’s growth in Asia Pacific
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growing middle class with greater home ownership has provided an ideal market for Swedish furniture giant IKEA in Asia Pacific.The retailer has been steadily growing its market share in Southeast Asia, having conducted hundreds of home visits to meet customers and see how people live in each market. IKEA uses that detailed knowledge of life at home to present its range in a locally relevant way, focusing on living with children, small space living and storage. Low price offers are key to IKEA’s success in the region, where high levels of brand awareness have been achieved, particularly in Malaysia and Singapore. Expansion continues in China and Southeast Asia, where IKEA now has two distinct products: traditional blue-box IKEA stores that stand alone, and IKEA stores
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“Our first IKEA project was in the Baoshan District of Shanghai, where we delivered Asia’s first multi-level steel structure” that are fully integrated into shopping centres as an anchor to a vibrant retail destination. IKEA also uses this model successfully in its Russian markets. Finding the right location is key. In Europe and the US, where most customers use cars, IKEA stores are usually located in the suburbs. In China, where most customers use public transport, stores are largely located on city outskirts and connected by rail and metro networks.
Ensuring a safe, efficient and costeffective construction process is inevitably challenging in less mature markets with a lack of experience of high quality westernstandard construction. Faithful+Gould is providing IKEA with integrated services in China, Malaysia and India. Our team comprises project managers, engineers, cost estimators, contract and procurement managers, permitting specialists, construction managers and health and safety specialists. Our first IKEA project was in the Baoshan District of Shanghai, where we delivered Asia’s first multi-level steel structure, comprising four sales floors, marketing hall, showrooms, café, offices and a five-level car park. Following successful completion, we were appointed to lead the construction of IKEA Hangzhou, a green-field project located in the Yuhang District of Hangzhou City.
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We are also working on store projects in Foshan, Harbin and Zhengzhou. Work is under way on the first IKEA store in Southern Malaysia. Opening at the end of 2017, the store is located at Jalan Desa Tebrau in Johor Bahru. A shopping centre will be added, scheduled for completion in 2019. Again we are leading the project management and bringing global best practice. Implementing global brand standards is challenging and, with these ambitious plans, a tightly controlled procurement process on each project is vital. For example, China stipulates the use of local design institutes, which have evolved from previously state-owned design firms. While standards have improved considerably over recent years, there are still limitations, with systems such as BIM not yet widely implemented. The design and construction teams
selected must be capable of providing high standards of quality, efficiency and cost-effectiveness. Where locations are more remote, there may be a more limited supply of contractors with relevant international experience. This can be overcome with engagement of the region’s largest and most cosmopolitan contractors, but the challenges of an unskilled local labour force remain. Our global best practice is aligned to the IKEA code of conduct, and we ensure
“Our global best practice is aligned to the IKEA code of conduct, and we ensure this is properly implemented”
this is properly implemented. The code specifies the requirements placed on suppliers, including compliance with pay rates, working hours and minimum working age, as well as environmentally-sound sourcing and procurement practices free from conflict of interest. IKEA suppliers are also responsible for communicating the code to their sub-contractors. Faithful+Gould has extensive global retail experience, including major new developments, refurbishments and individual retail units. In addition to IKEA, we have successfully implemented global brand standards for clients in many countries. For more information, contact Justin Hotton at: + 60 17 808 2806 justin.hotton@fgould.com
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THE CONGRESS THEATRE, EASTBOURNE
MODERNIST GEM The conservation of buildings constructed with reinforced concrete is evolving but still at an early stage. This presents challenges for conservation specialists and building owners
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“The project exemplifies the high-quality conservation leadership Faithful+Gould brings to a wide range of projects”
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s modernist buildings join the ranks of our built heritage, we need new approaches. Building conservation has traditionally focused on protection of historic and architecturally important fabric and adoption of minimal intervention approaches. What happens when a more intrusive approach is needed? Will this be detrimental and can it be justified? These were the questions faced by Historic England, The Twentieth Century Society and the design team working on the Grade II* listed Congress Theatre, Eastbourne. The Congress is one of only a handful of UK post-war listed theatres, and an excellent example of a modernist building of national importance becoming a heritage asset. Its architectural merit puts it on the same level as the National Theatre, Royal Festival Hall, Nottingham Playhouse and Chichester Festival Theatres. Built in 1963, the 1,689-seat Congress is the largest theatre on the south coast. Modernist architecture makes notable use of reinforced concrete as sculptural forms and as artistic elements. The Congress had a reinforced concrete-framed structure with concrete mullions and transoms on the glazed façade. In 2010, a section of concrete fell from the front of the theatre, signalling the need for major repairs. A harsh chloriderich marine environment and poor technical detailing had led to the gradual degradation of the concrete and corrosion of the metal reinforcement, making the concrete unstable. The owner, Eastbourne Borough Council, erected protective scaffolding
around the building to ensure safety while seeking advice from structural engineers on the best way to restore the theatre to its former glory. This project was at the forefront of concrete conservation, a specialism with which the industry will become more familiar as 20th-century buildings continue to age. In 2014, Faithful+Gould was appointed to undertake the restoration, which was closely monitored throughout by Historic England. Our role comprised lead consultant, project management, cost management and heritage consultancy. The £1.65m project began with identification of the building’s importance and significance. We concluded that, like many modernist buildings, the theatre was important not because of the age of its materials, but by virtue of its aesthetic value and architectural design. Our aim was therefore to conserve aesthetics, retaining the façade’s original appearance, as well as making the building sound. Heritage impact assessments were carried out, to explore whether minimal intervention would be sufficient. Previous repairs had failed as the theatre continued to deteriorate and, following robust exploration, we determined that further repair would detract from the building’s appearance. In a departure from traditional conservation approaches, we proposed removal of sections of the building’s fabric, stripping it back to the principal structure, and replacing it with modern materials. These offered a robust solution to the hostile conditions of the local marine environment. The decision to select an intrusive methodology was not undertaken lightly,
as respecting the appearance, restoring the materials and preserving the unique details have long been the drivers for heritage projects. The Congress’s challenges certainly highlighted the dilemmas posed by conservation of these 20th-century structures. However, with strong support from Historic England, the team was able to justify the plan to maintain the aesthetics of the façade by wholesale replacement. Where applicable, we expect to see this approach become more common as 20th-century buildings require increasing repairs and maintenance. Much has been achieved with the use of contemporary techniques and materials, successfully matching the original features and protecting and preserving unique modernist heritage. The eight supporting concrete columns were repaired, using the latest technologies, such as impressed cathodic protection, where an electrical current is pumped through the structure to prevent corrosion. At the Congress Theatre, this was an appropriate solution and a relatively less invasive process, minimising physical impact on the structure. To avoid a patchwork of finishes, all the original decorative concrete panels were replaced, using modern techniques to match the original features accurately. The slate cladding also needed attention to detail and we tracked down the original quarries, enabling accurate replication. Sensitive installation of specialist glazing and replacement of window frames has contributed to both the aesthetics and the performance of the building. The theatre remained open during the repairs, which precedes an exciting £8m internal refurbishment, commencing in early 2017. The project exemplifies the high-quality conservation leadership Faithful+Gould brings to a wide range of projects. For more information, contact Richard Stocking at: +44 (0) 20 7121 2121 richard.stocking@fgould.com
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PPP IN THE
ighter government budgets and growing infrastructure needs have brought the public-private partnership (PPP) methodology under the spotlight in the Gulf Cooperation Council (GCC) countries. Regional governments are now seeking private sector involvement for sectors that were once exclusively state-funded. The region’s sizable infrastructure investment gap is driving the PPP interest, as governments work towards honouring their publicised visions for their peoples’ futures. Infrastructure is at the forefront of each country’s development plans, but the public sector can’t do it alone. Sectors such as water, power, transport, education, telecommunications and healthcare are ripe for transformation, with PPP providing a potential solution. PPP can harness private sector
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GCC governments turn to public-private partnership financing structures, as oil revenues decline efficiencies, bringing levels of financial, administrative, technical and technological expertise that may be lacking in government agencies. The mechanism provides a comprehensive transfer of risk and responsibility for delivering and maintaining the asset, optimising capital and whole life costs. Public sector borrowing is reduced, inward investment may be easier to attract, and there may also be economic diversification benefits. PPP remains under-utilised and less understood here than in more mature markets such as Australia, Canada and the UK. The GCC countries are drawing on PPP principles honed in these more
mature markets, but country-specific models are expected to evolve. A comprehensive PPP landscape includes national legislative, regulatory and process frameworks, and this will take time to embed in each country. Until recently, most Middle East PPP has been undertaken without specific PPP law or government policy underpinning the project. Dubai and Kuwait have surged ahead, with Kuwait expanding its PPP law in 2014 and 2015, and Dubai introducing its PPP law in 2015. Elsewhere, Saudi Arabia and Oman have indicated that they are actively exploring PPP frameworks. In project terms, Kuwait is leading
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MIDDLE EAST the way with just under $49bn worth of projects under its PPP programme. The UAE is a close second, with approximately $35bn of projects planned or under way since introducing its PPP legislation. PPP success depends on establishing a greater understanding of the challenges, benefits and risks. Historically, the region’s procurement approach has loaded project risk on to the private sector and this has been reflected in higher construction costs. Governments now need to demonstrate their commitment to PPP, to attract private sector investors and project operating companies. Transparent policy frameworks, with fair allocation and acceptance of appropriate levels of risk, will be expected. Attractive deal structures, with properly defined project scope and adequate guarantees over the likely
revenues to be generated, will do much to encourage participation. Bidding for PPP projects can be timeconsuming, complex, and expensive, but sufficient interest must be generated to attract a competitive range of bidders. Governments will need to consider ways of making the opportunities attractive and viable, ensuring that the private sector can have confidence in the schemes. New PPP programmes typically bring an initial learning curve, as laws and procurement procedures are tested for the first time. Efficiency gains may not be fully realised until several projects have been delivered and the laws tested. However, the region has the advantage of the lessons learned from mature PPP countries, with the opportunity to benefit from global best practice. Thus far, large complex projects in
the power and water sectors, and, to a lesser extent, transport, have been the main users of PPP, but there are many untapped opportunities. Healthcare, education, waste management and street lighting are likely to be explored, as PPP matures in the region. The recent PPP legislation enacted in Kuwait and Dubai has been welcomed by the private sector, with local and international consultants, contractors and operators interested in helping develop the methodology in the region. Faithful+Gould has global experience of PPP and we are currently advising clients on schemes in the UAE. For more information, contact Ian Tempest at: +974 4424 5840 ian.tempest@fgould.com
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AUSTRALIAN EMBASSY BANGKOK The new embassy is designed as an emblematic presence for Australia in Thailand
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ustralia’s embassy in Bangkok represents a significant overseas mission and acts as a hub for other Australian missions in the region. The current chancery building was constructed in 1979 and is now being replaced by an iconic new complex on a larger site. The Australian government has leased a new site in the Pathum Wan district of Bangkok, adjacent to the Embassy of Japan, to create office accommodation for all embassy agencies and for the ambassador’s residence. The 16,000m2 facility will provide public spaces, conference rooms and outdoor areas, accommodating official receptions, exhibitions and trade displays, meetings, lectures and business missions. As well as meeting the Department of Foreign Affairs and Trade’s physical security requirements for the protection of staff and visitors, the new chancery has been planned to meet current and future tenancy operational and technological requirements. The building configuration facilitates future expansion space if required. The design is intended to reflect a cross-cultural presence, referencing the landforms of the Australian desert alongside Bangkok’s network of khlongs (canals). Water is a recurrent theme,
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“Construction safety standards are high, as the project complies with Australian standards as well as local Thai building codes” with a lagoon designed to re-house the carp and turtles from the existing Australian embassy. There are three buildings: the chancery, ambassador’s residence and the entry and guardhouse pavilion. Three brick colours signify the different functions of the buildings, with Australian brick and craftspeople used to achieve the required intricacies of the design. An interesting curved design has been used for the chancery, with the interior created around a central atrium. The secure compound also includes all infrastructure to provide full support facilities, such as emergency power, sewerage treatment, drinking water and fire-fighting water storage, drinking water treatment and basement car parking. Quality is a priority as, unlike many buildings locally, the new embassy is designed to last for 60 years. Construction safety standards are high, as the project
complies with Australian standards as well as local Thai building codes. In addition to the physical perimeter security, required building setbacks, and threat-resistant materials, stringent construction site security measures are needed to meet the risk classification. Construction started in 2014 and is due for completion in 2017, followed by three months of internal fit-out works. Faithful+Gould has been involved since tender stage, representing the Australian government’s Department of Foreign Affairs & Trade, as project managers. We are guiding our client through the challenges of a less mature local construction environment, ensuring that quality, safety standards and scheduling are kept on track. Issues to be overcome include the competition for skilled construction workforce resource, the lengthy lead times for specialist materials from Australia and elsewhere, and the lengthy approvals process. Throughout, we are drawing on our longstanding expertise in embassy buildings, having successfully delivered these facilities in countries including Sri Lanka, Cambodia and India. For more information, contact Reece Barker at: +66 9 0915 6652 reece.barker@fgould.com
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PHARMA’S CORPORATE REAL ESTATE Putting high-performance organisations in high-performance spaces
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he global real estate market is steadily recovering from the difficult recessionary environment. For pharma companies, this has led to increased investment in emerging markets, together with continuous improvement of global facility efficiency. While corporate real estate (CRE) spend may be increasing, pharma companies are also seeking value for money and, increasingly, flexible facilities that offer better futureproofing. We’re seeing greater corporate awareness of the CRE portfolio as an asset, potentially reshaped and sometimes reduced by the consolidation and rationalisation of mergers and acquisitions. The drive for overall business agility has brought CRE into the core business strategy spotlight, aligning it more closely with wider business functions such as HR, IT, finance and engineering. Corporate governance is now likely to include a CRE focus, often via a sustainability perspective. The estate is also affected by changing
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workspace solutions and work/life balance expectations, with initiatives such as flexible working influencing organisational culture and the associated space provision. When it works well, a company’s CRE may become a factor in staff recruitment and retention. Pharma companies are under pressure to reduce their portfolio operating costs. The expectation that CRE strategies should deliver cost savings is now part of the mainstream agenda in mature markets, and sets expectations for any future investment in emerging markets. To
“Transition of ownership to end-users should be smooth and on-time, and clients need a clear understanding of what will be handed over at each stage in the plan”
support this changed focus, we’re seeing a new set of priorities: • Reduce portfolio operating expenses • Enhance portfolio productivity • Increase portfolio flexibility, density and agility • Dispose of redundant assets • Align portfolio with corporate sustainability agenda • Meet corporate standards when mergers and acquisitions occur • Enable flexible working. In our experience, the lack of an effective overview of the portfolio is a common barrier to success. Many companies don’t yet have the best technology to create an effective CRE database, or the meaningful populating data required. In the absence of proper records, it’s easy to miss key events such as lease renewal dates, reducing the potential for commercial negotiation. Similarly, companies may also struggle to measure individual properties’ benefit to the business. This is a missed opportunity to generate insights into the global portfolio,
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allowing better alignment with business drivers and effective lessons learned transference between global regions. Decentralised and fragmented real estate teams are another common problem, with lack of consistent direction in the team, and often a lack of consistent internal skillset and knowledge. The impetus to integrate with the wider business strategy and functions may suffer when estate teams have unclear goals, or are struggling with financial decision-making. Defining a simplified and standardised global approach to building and operating facilities more efficiently may be the aim, but in practice this can be especially challenging.
Many of Faithful+Gould’s pharma clients are currently implementing transformational processes and our role is to help them identify optimal portfolio strategies to meet changing business needs. We focus on creating maximum value in the CRE arena, typically addressing the challenges outlined above, and promoting more efficient procurement of real estate services. Our global pharma and biotechnology group has many years’ experience, with operations in the Americas, UK and continental Europe, and Asia Pacific. We offer effective delivery strategies and methodologies tailored to
our clients’ risk profiles, budgets, and quality and time objectives. Our client portfolio includes Amgen, Bristol-Myers Squibb, GSK, Roche, Johnson & Johnson, AstraZeneca, Merck, Novartis, Pfizer and Sanofi. Our expertise spans research facilities, development laboratories and pilot plants, primary and secondary manufacturing units, biotech and sterile facilities, offices, warehouses and associated infrastructure. For more information, contact John MacDonald at: +44 (0)1782 222233 john.macdonald@fgould.com
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AWARD-WINNING BUSINESS
Top left: Building Awards, SNFCC Bottom left: ENR Awards, SNFCC Middle: Len Barone, ENR Awards, Porcelanosa Top right: Martin Hirko and Girish Mehta, ENR Awards, SNFCC Bottom right: Michael Connor and Mark Ainger, Construction Week Qatar Awards
Our teams across the globe have been honoured for their work
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his has been another excellent year for Faithful+Gould, and we’re especially proud to have achieved industry recognition in the form of awards in three of our key business locations. We were delighted to win the International Project of the Year at the Building Awards 2016 for the Stavros Niarchos Foundation Cultural Center (SNFCC), Athens. Our multinational, multi-disciplinary team worked from initial concept to financial close on the Renzo Piano-designed scheme. Read more on page 4. In the Middle East, we saw success at the 2016 Construction Week
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Qatar awards held in Doha. We won Commercial Project of the Year for our work on Al Futtaim’s Doha Festival City (described on page 10) and we were also shortlisted for Consultant of the Year, and for Hospitality Project of the Year, for our work on Shaza Doha. In addition, Campbell Gray secured Executive of the Year in the Middle East Consultant awards. Our Americas team was twice honoured at the 2016 Engineering NewsRecord awards, held in New York City. The SNFCC won the ENR Global Best Project in the cultural/worship category. Porcelanosa’s US flagship store, New York City, where we provided
project management services, won an award of merit in the Office/Retail/ Mixed-Use Category for the New York Regional awards. More good news for our Americas business – we were once again included in the Engineering News-Record 2016 Top 100 Service Professional Firms list, for the tenth consecutive year. Submitting in conjunction with our parent company Atkins, we ranked 11th on the top Project Management Firms list. We also jumped to 13th place in the Top Construction Management-for-Fee list. These are just a selection of our recent award successes. Check out our website to see more.
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