ME Consultant April 2017

For the construction specialist

Business Building Ermis Marques outlines his plans for the future of Aurecon in the Middle East ON TOPIC

What can D&E firms do to cope with tech disruptions?

IN PRACTICE

Mission critical - the ever growing importance of QS

ON SITE

The UAE can learn from the UK on fire and life safety

ISSUE 036

April 2017 Publication licensed by Dubai Production City A product of Big Project Middle East

© 2017 LACASA Architects & Engineering Consultants All Rights Reserved

MEP DIRECTOR I’m Reem Dayoub and I am an

www.lacasa.ae

I am constantly advocating for efficient MEP systems As an MEP Design professional I enjoy the challenging aspects of my role; Finding the balance between efficiency, sustainability, and cost-effectiveness. I am constantly advocating for efficient MEP systems to ensure that we not only meet our clients’ expectations, but also exceed them every chance we can.

At LACASA, these values are shared across every team; each doing their best to create quality-driven, sustainable, efficient, and elegant buildings.

Reem Dayoub MEP DIRECTOR

LACASA is committed to providing quality-driven designs within a multidisciplinary environment.

Established in 2006, the firm has grown significantly over the past eleven years. Today, LACASA boasts a diverse portfolio encompassing all types of developments and across the entire MENA region.

While it is said that perfection doesn’t exist, we believe that perfecting design can be achieved by cultivating extraordinary talent.

CONTENTS

On topic IndustRy VIEWs fROm AcROss thE mIddLE EAst

06

09

14

18

22

30

34

36

37

40

09 AnALysIs

Residential real estate is big business in Qatar, and Anum Hasan takes a critical look at how the market is shaping up in current times 12 OPInIOn

Regional Design and Engineering firms must evolve and work to their strengths if they want to overcome technological disruptions

In practice AnALysIs, InsIghts And IntERVIEWs

14 IntERVIEW

We caught up with Bentley Systems’ Santanu Das to discuss how technology is changing the way professionals create and collaborate 18 InsIght

Quantity surveyors play a critical part in the construction industry; we examine what they do today and look at the challenges they face 22 IntERVIEW

Middle East Consultant sits down with Ermis Marques, regional director for the Middle East at Aurecon, to discuss his organisation’s recent successes and his plans for future growth

On site cAsE studIEs, OPInIOns And snAPshOts

30 On sItE

The UAE’s fire safety industry could learn from the UK, says Paul Madden, senior project manager of fire and rescue services, Restrata 37 nEWs

Hill International in $3.3m deal to manage project in Masdar City 40 thE bAck PAgE

Differentiating between cost and value is critical in today’s world

2 APRIL 2017

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WELCOME

Group EDITOR’S NOTE

The Times They are a-Changin’ Hello and welcome! I’m pleased to welcome you to this, my very first issue of Middle East Consultant. I’ve just taken the reins of this fine magazine, and I look forward to working with you in the coming weeks, to give the industry and your collective efforts the attention they so richly deserve.

The construction industry has always fascinated me. It’s one where a lot of different elements must come together, in order for a project to go from an idea in someone’s head to fruition in the real world. Consultants obviously play a big role in that process, and what struck me – as I was working on the stories for this issue – was just how much technology is changing the game for some of the specialists out there.

Chatting with Bentley Systems’ Santanu Das (page 14), it was obvious that technology and innovations such as the cloud offer tremendous potential. The fact that you can now create dozens of virtual models relatively quickly – and without spending a small fortune – to figure out exactly what works and what doesn’t is nothing short of amazing.

Similarly, we’re seeing the unsung heroes of the industry (quantity surveyors) ditching pen and paper in favour of technology that not only lowers their costs but also provides increased opportunities (page 18). BIM technology has already made an impact here, and as more and more professionals come to rely on it, I’m confident the advantages will grow.

Of course, technology is only one part of the construction puzzle. Growing a business amidst tepid market conditions requires planning, commitment and the ability to adapt to prevalent market requirements. It’s also a good idea to look at how successful firms, such as Aurecon (page 22) are addressing the market, and how they approach growth. These are interesting times and I look forward to finding out what consultancies have in store for the future.

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ON TOPIC

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CONSTRUCTION

IS HyPERLOOP HyPE gOINg IN CIRCLES?

Carillion venture contractor for Dubai Expo project

INFRASTRUCTURE

Minister tours UAE’s first nuclear power plant

In pictures: Nakheel’s Deira Islands megaproject in Dubai

CONSTRUCTION

Work starts on Dubai’s Meydan One Mall

CONSTRUCTION

Al Futtaim breaks ground on 78,000sqm site in Dubai

CONSTRUCTION

RAK Properties signs $3m works contract for resort

6 APRIL 2017

In pictures: Riyadh Metro carriages roll off production line at Alstom plant

We hear announcement after announcement about the ‘Hyperloop’ coming to the UAE. As your report (Hyperloop ‘aims to start UAE works by 2019’, March 8) said, the US company is looking to secure regulatory approval that will allow it to start production in the UAE within the next three years. While this would undoubtedly bring opportunities for one or two contractors in the UAE, let’s be realistic about this.

There has for years been speculation that such a system will come to the UAE, but it is yet to arrive. And it has never been tested with reallife passengers.

Don’t jump on board just yet.

Name withheld, Abu Dhabi, via email

7 November 2017 RIT Z CARLTON JBR / DUBAI / UAE

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ON TOPIC

ANALYSIS

Rich Real Estate Anum Hasan, a market research analyst at ValuStrat, examines the state of play of residential real estate in one of the world’s richest countries, Qatar

L

ike other GCC countries, Qatar’s economic growth is forecast to decelerate in 2017, to approximately 3.9%, mirroring the fall in oil prices. Despite the instability in oil prices, however, the real estate sector has remained resilient and is deemed one of Qatar’s most important economic barometers.

The government of Qatar is committed to adhering to its spending in capital projects – forecast to account for 47% of total expenditure in 2017 (a 2% increase from 2016) – to not only support the 2022 World Cup, but also to provide a buffer against the regional and economic challenges the country is facing.

During 2017, the country will also sign new construction contracts worth QR 46.1 billion. Consequently, due to a steady rise in

supply, Qatar will likely transform into a buyer’s market. Per ValuStrat research, this is reflected by the increasing gap between listed and transaction prices of residential properties in favour of buyers.

Doha, Qatar’s most populous municipality, has the highest number of total sales transactions and prices for residential properties, per data from the Ministry of Justice (MOJ). Currently three out of four freehold zone properties (Pearl Qatar, Lusail and West Bay Lagoon) are in Doha, and it also has the highest number of leasehold properties, where foreigners can lease property for 99 years.

In 2016, 50% of the sales transactions recorded in Doha were in residential properties. The majority were residential units (villas and bungalows), followed by land plots. Compared to 2015, there was a APRIL 2017 9

ON TOPIC

“Lusail City is an estimated QR 160 billion planned development that is already under construction. It will add to the real estate landscape of Qatar, and is expected to provide housing to 200,000 residents” decline in price per sqm of residential units by approximately 10% y-o-y, except for Madinat Khalifa South, where the price of residential units remained stable. The Al Thumama area had the highest number of transactions for residential land plots, whereas in the Al Sadd area, there was an increase in the sale of residential buildings, though the price per sqm declined by at least 10% y-o-y. In Old Al Ghanim there has been a fall in price per sqm for residential buildings since 2015; however, price per sqm for mixed used buildings has increased by approximately 5% y-o-y. In The Pearl and West Bay Lagoon area, the price per sqm for residential villas and bungalows sold remained stable.

In 2016, the most popular area in Al Rayyan Municipality – with the highest sales transactions – was Muaither, followed by New Al Rayyan, Al Gharafa, Muraikh and Ain Khalid. Since 2015 in Muaither, there has been a steady decline in average price per sqm, mostly for residential units. The number of transactions for villas and bungalows remained static in Al Gharafa, though there was an increase in the average price per sqm of approximately 5% y-o-y. In Al Waab in 2016, the number of residential units sold remained the same as in 2015, with the price per sqm for residential houses declining by approximately 10%.

Lusail City is an estimated QR 160 billion planned development 10 APRIL 2017

that is already under construction. It will add to the real estate landscape of Qatar, and is expected to provide housing to 200,000 residents. It is located to the north of Doha.

For those considering an investment in Qatar, it is advisable to be vigilant regarding the current rental trends, as well as the price.

In the past year, there has been declining demand for high-end residential units, due to a fall in white-collar workers reducing rents.

ValuStrat research shows that, on average in the past year, rent per sqm has decreased by approximately 8-10% in areas such as Al Sadd, Bin Mahmoud, Abu Hamour, Ain Khalid and The Pearl. Property yields will be more attractive, so long as prices fall at a faster pace compared to rents. In Qatar, the rate of return is an important factor, as approximately 60% of residential properties are rented, reflected by a high number of expatriates in the country.

However, rent is expected to remain stable throughout 2017, especially for mid-income housing. This can be attributed to the predicted gradual rise in demand, as a result of changing demographics, the rise of middle- and low-income segments, and stabilisation of oil prices. In the longer term, falling prices and stable rents make a good case for tenants to consider home ownership and for some investors to seek out properties with attractive yields.

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ON tOpic

01

OPINION

Fadi Majdalani, partner, Strategy& .

02 Marwan Bejjani, principal, Strategy& .

03 Tarek Khalifa, manager, Strategy&.

How Design and Engineering firms can cope with disruption In an era of disruption brought about by technological advances, design and engineering firms have to evolve and work to their strengths

01

D

esign and engineering (D&E) firms need to build their capabilities if they are to navigate through an economic climate in which margins are under pressure and technology is disrupting their industry.

This is particularly important in the Middle East, where low oil prices have led to a slowdown in the market for D&E services.

To do this, firms need a strategic plan based on building scale in areas in which they 12 APRIL 2017

excel, to invest in an operating model for segments in which they want to succeed, and to have an approach to deal with technology and innovation.

Profit margins for D&E firms are in decline despite a recovery in revenues following the great recession, and the financial crisis of 2008-9. Few major companies have generated large amounts of turnover with consistent profits, despite recent global construction sector expansion of around 3-4% per annum. Customers are also preferring to have one company complete all aspects of a design and build contract, rather than break it down into the discrete design and construction elements that used to be so lucrative for D&E firms.

Meanwhile, technology has started eroding the role of D&E firms, though it reduces design costs. Today, D&E is no longer overwhelmingly about new designs and technical mastery. New technologies such as BIM (business information modelling, which digitally captures plans and functions) have made designs simpler, modular and repeatable. The internet also enables firms to have design work performed cheaply and remotely.

The result is pressure on fees and a trend

toward making D&E services a commodity.

Instead of trying to win business primarily because of their value-add and skill, as was previously the case, many firms now seek business by offering a lower price than their competitors. As a result, the standardisation of work and customers’ focus on price has allowed inexperienced firms to challenge reputable firms on large and complex projects.

These developments are not cyclical.

They are part of a fundamental change in the global D&E industry. Some firms have sought unsuccessfully to respond by consolidating to build scale. However, this has not led to improved profit margins or productivity – indeed, productivity has declined in D&E firms since a decade ago.

Nor are clients enticed by scale alone.

To gain true competitive advantage, firms instead need an integrated operating model based on fortifying their most important capabilities. Once they have done this, firms can have a coherent business in which each segment – be it a sector, a market or even an office – is part of an overarching corporate strategy. That would represent an important shift from today. Too many international D&E companies are a collection of local enterprises operating

ON TOPIc

in silos, and too few have integrated either client delivery functions or important back office functions.

To achieve competitive advantage and the requisite scale and efficiency, firms should put money only into investments that reinforce their strengths, so that they can succeed in carefully chosen target markets. This means a strategic plan based on three building blocks.

The first is to create scale in precisely those areas of company expertise or areas where the company wants to excel. This involves identifying which services client are willing to buy regularly for top fees, and in which markets firms can book orders for less cost than competitors. Once firms know their own strengths, they can invest in the right assets and acquisitions while reducing spending on other categories.

The areas in which firms can win will vary of cuourse. Some will succeed by basing their business model on scale to achieve high turnover at low cost. Others may focus on differentiating capabilities such as their ability to handle massive projects, while others still may specialise in very specific

sectors or service offerings.

The second is to put money into operating models connected to where the firm wants to win. This means improving the operating models to get them right, as a means to grow and perform better. Having one coherent overall operating model can provide scale, economic advantage and the possibility for functional optimisation and ongoing improvement. However, this must be done with care to avoid an inflexible uniformity that prevents competitiveness in any particular line of business.

Some firms will want to succeed in a technical segment, which requires an operating model linked to technical centres of excellence. Firms that want to win because of lean costs need an operating model built around efficient use of assets and low-cost operations.

The third is to have a technology and innovation strategy. New technologies can enable firms to become more efficient and to deliver services more effectively.

Such a strategy must be aligned with a firm’s capabilities. Some firms may need to acquire technology capabilities through partnerships, including from outside the D&E industry, if they lack an internal innovation culture or the resources to create their own innovation arm. The ability to manage technology will be an important aspect of controlling costs and improving productivity. Already architecture, engineering, construction and

03

operations companies spent over $5-billion on technology in 2016.

Technology is an enabler and a threat.

There is tremendous potential to improve quality thanks to the Internet of Things (connected devices and sensors), drones, augmented reality, 3D printing and smart materials, yet emerging start-ups could disrupt some of the foundations of the industry. For example, there are start-ups working on time saving, low-cost approaches to designs and assembling historic data on bids that will make pricing more transparent.

The D&E industry has changed for good. It is only by looking inside to build their capabilities that D&E firms can hope to win in an era of disruption.

“To achieve competitive advantage and the requisite scale and efficiency, firms should put money only into investments that reinforce their strengths so that they can succeed in carefully chosen target markets�

02

APRIL 2017 13

IN PRACTICE

“I’m not a big five-year planner; I like to plan short and be nimble, and I believe the Middle East, Southeast Asia, India and China are poised for some pretty rapid growth”

14 APRIL 2017

IN PRACTICE

INTERVIEW

Connected Future

Middle East Consultant caught up with Santanu Das, senior vice president of design modelling at Bentley Systems, to discuss how technology is changing the way professionals around the world create and collaborate engineers every year. That’s about six times more than the United States produces, and these are the young leaders of tomorrow, they are going to decide what tools we use, what processes we use and how we work together. As workforces and projects get more global, it’s important we better understand how global work-sharing works, because our tool needs to be the lifeline between our customers’ facilities as well.

Tell us a little bit about Bentley Systems. What is your focus within the organisation?

Bentley Systems is now a 33-year-old company, and our core focus is software development. We develop solutions that support the professional needs that arise from people who are involved in creating infrastructure, whether it’s skyscrapers, roadways, railways, power plants or utility networks.

My portfolio of products is called Desktop Application Solutions, so they include BIM (Building Information Modelling) for plant, for normal buildings, for civil transportation, for electrical and structural solutions. I run the MicroStation business too, which is still Bentley’s biggest business, it’s where we started everything from, and what most of our products are based on.

You’re usually based in the United States. What’s the focus of your trip to the Middle East?

I like to look at my high-growth areas, where I believe our market will be healthy in the next year to three years. I’m not a big five-year planner; I like to plan short and be nimble, and I believe the Middle East, Southeast Asia, India and China are poised for rapid growth. I’m also keen to get up close with engineers from this region – if you put the Middle East and India together, you produce about 350,000 graduate

The construction industry is evolving. What’s holding 01

the industry’s interest at the moment?

The biggest trend right now is cloud. Everybody is talking about the cloud and mobile devices, and people want to be able to work, because what’s happening today is that a lot of the software is getting more complex. Engineers are no longer coming up with one or two versions of a model – they want a thousand versions so they can see what looks best, what can help them save time or money, etc. The problem is to go through all those iterations requires a lot of man hours and a lot of computing time.

With cloud solutions you have unlimited power, so we now go to the engineers and say, “You no longer have that limitation, go ahead and run a thousand operations, come back in the morning and I’ll tell you which one is the optimal one for you to use.” The industry went from 2D CAD to BIM, and now it’s going from BIM to cloud-based processes, and Bentley’s connecting the process.

APRIL 2017 15

IN PRACTICE

01 A detailed 3D model of Helsinki in Finland.

02 Cloud technology gives professionals the ability to generate several different iterations of a building model in a relatively quick time.

Bentley Systems specialises in 3D reality modelling. Talk to us about that.

Before we had drones, we had LIDAR laser scanning. These machines shot out lasers, the lasers would bounce off the object and come back to the source, which allowed us to create a point cloud which resembled the object. The LIDAR model could then be imported into software, which enabled us to detect walls, floors, a room, etc. It allowed you to establish a reference point for your model, but the challenge is that point clouds are expensive to produce, and more so if you’re using them to monitor the progress of construction. The other limitation is that it would take a while for a LIDAR to get to a remote location. Now we rely on drones – they’re sent out on a flight path, they take thousands of images in a matter of minutes, and we can then take these pictures and stitch them into a 3D reality model using our ContextCapture solution. You can then navigate through this 3D model, you can measure it, mesh it and add extensions to it instantly. This solution can help construction companies make sure that whatever it is they are building is exactly what they designed.

That’s very important because if there’s a mistake on the construction site, you typically don’t find out about it until it’s too late. With this solution, however, you can inexpensively and quickly get a fresh 3D model update every day to check against your design plans.

What are the challenges you see to the adoption of BIM software?

Everyone has been doing engineering design for so long using existing tools and processes that we might have to wait for people to retire, so the new guys can take advantage of the modern solutions and processes. It’s a massive change in process, and as the newer guys take 16 APRIL 2017

02

IN PRACTICE

“We want to get all our users connected – we want to get their projects connected, their workflows connected, their data connected – and the cloud is going to be the backbone of that” more leadership roles, they’re going to look for these efficiencies. New guys don’t want to take a job that requires writing on paper or working in 2D, they want to advance their field. They don’t want to do a half-akilometre-tall building, they want to do a three-kilometre-tall building.

If the world wants to advance its infrastructure with water treatment plants that can handle tens of millions of people, road infrastructure that’s designed for driverless cars – these are all things that will require the use of new tools and solutions.

What’s your vision for Bentley Systems’ BIM software?

We want to get all our users connected – we want to get their projects

connected, their workflows connected, their data connected – and the cloud is going to be the backbone of that. We honestly believe that is the vision that we want to get to. It’s absolutely doable, and one of the benefits is that BIM software is creating a massive data repository. Clients don’t know how to mine this data, but we do, and we’re going back to them with useful information.

We can go back to clients and say, “Sir, your last ten projects took you 77 hours, we think it should take you 45 hours because that’s the average industry standard.” We can help our users improve their workflow purely by digesting their data. We call it our Connected Project Analysis.

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IN PRACTICE

INSIghT

Skilled Surveyors Quantity surveyors play a crucial role in the construction industry. Middle East Consultant examines how their role has changed over the years, and looks at the opportunities and challenges these specialists face in the modern marketplace here’s no denying the importance of quantity surveyors (QS) in the construction industry. They are a critical part of the project team and provide a wide array of services to clients. In some instances, clients ultimately make them responsible for managing all the commercial and contractual aspects of a project from start to finish.

Due to the nature of their work, quantity surveyors work closely with developers, architects, engineers and contractors to ensure that their clients receive maximum value for money. Perhaps more importantly, they also ensure that the finished project mirrors the original design plans.

Emma Woods, associate director at integrated project and programme management consultancy Faithful+Gould, explains, “Quantity surveyors monitor and control the cost of the project throughout the pre- and post-contract phases. The key to the success of this is a proactive, client-centric approach to cost management, combined with an early appointment at the feasibility stage of the project. The benefit of this is the ability to provide invaluable cost advice from day one, and establish what the client’s main objectives are for the project – essentially driving value. Regular engagement should continue throughout the pre-construction phase, managing a robust value management strategy, challenging any design deviations and ensuring the client’s budget is maintained.”

Steve Gee, vice president, programme cost consultancy, Middle East at AECOM, adds, “There will always be a verification function whereby an independent party manages and signs off on the project construction expenditures on behalf of a client. Outside of this role, the QS who has broadened his or her expertise to encompass cost expertise across the whole lifecycle of a construction project becomes a trusted advisor of the client, and can enable smart decisions to be made at a time when they matter the most.”

The way quantity surveyors do business is changing, thanks to technological advancements and client demands. “The growing needs of clients and technological advancements require the QS to develop new skills. Although basic bill of quantity applications (Masterbill, Buildsoft, Coins) are still utilised, modern tools such as SAP, BIM, AutoCAD and Primavera are being widely used by QS in their ever-growing role on projects,” explains Philip Cronin, managing consultant at HKA. “New technologies have the potential to provide competitive advantages by increasing opportunities and lowering costs. Most predominant are the advancements in Building Information Modelling (BIM) technology. The use of BIM can speed up the estimating process and provides a more efficient operational solution when cost estimating.

However, its success depends on establishing a predetermined set of requirements and the standardisation of drawings,” says Woods.

“Social infrastructure, transport infrastructure and industrial/ manufacturing will remain the key areas for investment over the next three years. government budgets will be focused around these areas, along with alternative finance options such as PPP” APRIL 2017 19

IN PRACTICE

01 Emma Woods, associate director, Faithful+gould.

02

Challenging Times Despite the wealth of projects spread across the region, quantity surveyors face a competitive and challenging market. At present there are hundreds of QS firms spread across the GCC countries and wider Middle East, and in 01 recent times firms have noted reduced project budgets owing to factors such as a lack of confidence in the market and strained access to finances.

“Over the last 18 months, the industry has become ever more competitive as project budgets have been reduced. We have had to adapt and align our business model to the fee levels available in the market. It is relatively stable at present but that can easily change depending on the volume of new work and the stability of ongoing projects,” explains Gee. 02 Consultancies that have been quick to adapt have fared well in recent times, but the looming introduction of VAT across the GCC may put additional pressure on clients and project budgets.

“It is presumed that the introduction will have an inflationary impact; however, this will not be sustained yearly. All companies in the construction industry will bear additional administration costs, yet in terms of the added tax, this will be imposed at all stages of construction, with each provider passing the additional cost to the next, and consequently it is the end user or 03 customer who will ultimately pay the VAT,” comments Cronin.

Woods also points out that since the region imports a large portion of materials from overseas, it is subject to global market volatility. “Production and shipping costs are also a factor that have been impacted by oil price volatility. Further, with KSA increasing import taxes, we will see further impact on material inflation this year. For services there is less impact, partly because labour and services costs make up a smaller proportion of the construction cost in this region, and partly because the competitiveness in the market limits the escalation in rates for professional services.”

20 APRIL 2017

Philip Cronin, managing consultant at hKA. 03 Steve gee, vice president, programme cost consultancy, Middle East, AECOM.

Bright Future In the mid- to long term, though, the prospects for quantity surveyors appear healthy. “Social infrastructure, transport infrastructure and industrial/ manufacturing will remain the key areas for investment over the next three years. Government budgets will be focused around these areas, along with alternative finance options such as PPP. The consultants that have a diverse business aligned to these growth markets will be best placed to capitalise on these opportunities,” says Gee. Cronin adds, “Most of the region’s construction industry is focused on Expo 2020, the 2022 World Cup, KSA & UAE rail, the widely anticipated Hyperloop and other such infrastructure projects. However, the region’s leaders’ continued interest in innovative technology and appreciation to develop renewable energy resources is sure to result in new projects, and further opportunities for the firms who are best positioned to undertake such expert work.”

Woods has a similar view. “The upcoming Expo 2020 and Qatar 2022, along with an increase in long-term large infrastructure developments such as roads, rail, aviation and energy projects, will require significant levels of investment. The continued push for social infrastructure in KSA and the drive to alternative financing – such as PPP, BOO and IWPP – represent a real opportunity to differentiate and add value, and Faithful+Gould have a long history of advising in the alternative financing space. The region’s ongoing efforts to diversify its economy away from fossil fuels and into tourism and commerce will provide opportunities, albeit at a lower level than previously witnessed due to greater caution by local developers as a result of global uncertainties.”

www.hillintl.com

IN PRACTICE

INTERVIEW

Making a Mark Middle East Consultant talks to Ermis Marques, regional director for the Middle East at Aurecon, to discuss his company’s recent successes and his plans for measured expansion hat do the Motiongate Dubai theme park and Gabbro Terminal in Mesaieed, Qatar have in common? They’re obviously very different projects, but the common factor is that both were worked on by specialist Aurecon. This immediately gives you a sense of the consultancy’s broad range of expertise.

Aurecon has been extremely busy in recent times. It has made a name for itself within the construction industry by simplifying complexity and bringing ideas full circle. Its area of expertise is wide, and it has leveraged its substantial in-house talent to work on – and deliver – projects in different categories. Thanks to this, the consultancy has been able to sink its teeth into some truly prestigious and important projects.

“We were fortunate to get involved in the Gabbro Terminal in Qatar, it’s a project that we worked very closely on with the client. One of the things we always look at is designing solutions for the client – we look at the feasibility and come up with the right solutions for that facility, and optimise the throughput,” explains Ermis Marques, regional director – Middle East at Aurecon.

“It’s a fantastic project, we had a nice team that we mobilised from our offices in Brisbane, and then we set about working closely with the clients and contractors. To date the project has won several awards in the region, and it has also been recognised globally (within the ports sector) for a lot of awards. It’s a key project for Qatar, and another significant project for Aurecon,” continues Marques.

22 APRIL 2017

Big Business

In the UAE, Aurecon has enjoyed significant success in terms of the scale and diversity of projects it has worked on. The organisation is responsible for the Al Merief Masterplan and the Dubai Creek Harbour Transport Masterplan, provided building services for the internationally recognised Madinat Jumeirah Resort, and has most recently been appointed to design and supervise the construction of a new road interchange in Mirdif, a popular residential area in Dubai. The company also worked with Gensler Architects on the recently opened

“For us, it’s about being recognised as leaders in the way we innovate with solutions and the way we design solutions. We want to be known for the quality of the people that we bring onboard – the talent – and the values. That’s more important to us than the numbers game”

IN PRACTICE

APRIL 2017 23

IN PRACTICE

Motiongate Dubai theme park, and is currently engaged on multiple developments within the country.

“We’re working on a variety of projects in Dubai, we’re involved in the transport master plan for Dubai Creek Harbour, and we’re working on The Tower in Dubai Creek Harbour. Calatrava is the architect and engineer for The Tower and they’re based out of Dubai, so we’re working very 01 closely with the Calatrava team.

That’s a project with very nice challenges,” says Marques, who has led Aurecon’s Middle East arm for over 10 years.

Although Aurecon is already entrenched in a handful of in-process projects, Marques has one eye fixed on the future. He has identified several segments of potential interest, noting, “We are keen to focus on the entertainment space and add value to the retail, hospitality and education spaces. There are a lot of opportunities in the health space as well, and our expertise covers all those sectors. We’ve also got great expertise around transport planning and infrastructure, smart transportation and driverless vehicles. Those are the areas that I’d be keen for us to get even more involved in, and add value.”

Priority Focus

Aurecon intends to expand in countries or cities where it already

has an established presence, and Marques is keen on following his firm’s clients into the wider Middle East region.

“We would like to expand in certain areas in Dubai, into select service areas, and in certain markets in the city. The priority is where we already have a presence, which is Dubai, Abu Dhabi and Doha.

We would also like to follow clients that expand into the region, and continue those relationships into neighbouring countries. The region is pretty wide – there are enough countries that are stable, and as commodity prices change and economies diversify away from largely oil-based, it will help our clients add value in their investment decisions.”

While Marques is keen on growing Aurecon’s business footprint, he’s not interested in turning his organisation into the biggest consultancy on the market. He remains focused on following 02 01 Marques has over 30 years of international experience in the built environment space.

02 Aurecon worked closely with Gensler Architects on MotionGate Dubai.

03 As regional director, Marques is responsible for the strategic direction and growth of Aurecon’s business in the Middle East.

24 APRIL 2017

IN PRACTICE

“We would like to follow clients that expand into the region, and continue those relationships into the neighbouring countries. The region is pretty wide – there are enough countries that are stable, and as commodity prices change and economies diversify, that will help our clients add value in their investment decisions” through with the Aurecon Blueprint, basically the company’s plan and strategy for the future. A key part of that plan is to continue working with the best clients, identifying their problem areas and providing solutions that add value.

A focus on quality and the delivery of clever and innovative solutions are distinctions that Marques wants his organisation to be recognised for within the region and beyond. He explains, “For us, it’s about being recognised as leaders in the way we innovate with solutions, and the way we design solutions. We want to be known for the quality of the people that we bring onboard, and the values.

That’s more important to us than the numbers game. At the end of the day we are a business, so it’s also about keeping a sustainable

business model, but part of that is having strong relationships with our clients.”

As far as obstacles to his firm’s success, Marques is well aware of the current challenges, particularly with regards to securing finance.

He explains that there has already been consolidation within the markets, due to tighter access to finance and therefore smaller client budgets, and he is keen on finding sustainable workarounds.

“It’s a question of identifying the challenges and what we can do, so in terms of finance, there are discussions around PPP options, and how the private sector can get more involved with coming up with the finance solution. We’re also trying to assist finance houses with regards to assessing the risks.”

03

APRIL 2017 25

IN PRACTICE

04 Aurecon has enjoyed tremendous success in the UAE. 05 Motiongate Dubai opened for business on December 16, 2016.

Marques is also cognisant of the intense focus on innovation and the use of technology and digital spaces in the region. He’s focused on integrating those offerings 04 into his firm’s solutions, saying that although there has been consolidation within the market, competition within the industry in the region is still fierce.

“There’s a lot of thought going into innovation and design-led thinking. This is where we sit with clients and try to unpack problems that they may know of, as well as problems that they may not yet know of.

There will always be competition, and that’s healthy, a lack of competition would lead to complacency. For us drawing talent is key, because we are a professional services company, so it’s all about the talent.”

On the whole, Marques is bullish about Aurecon’s future. He concludes, “The Middle East continues to be an exciting region. It’s a challenging region because that’s how it puts itself at the forefront of development. Dubai probably leads that space, and that’s about being innovative and using new technology, it’s about partnering with complementary companies and delivering good products. To us, it’s also about the values and ethics of doing business, and the way we look after our people and add value to clients – those are fundamentals to us.”

“One of the things we look at is trying to design solutions for the client; we look at the feasibility and come up with the right solutions for that facility, and optimise the throughput” 05

26 APRIL 2017

ON SITE

OPINION

01 Craig Gibson is senior managing consultant at Berkeley Research Group.

The pizza took longer and cost more money…

Craig Gibson of Berkeley Research Group (thinkBRG.com) discusses how professionals can demonstrate disruption on construction projects

01

I

offered to make dinner for my fiancée last night. I asked her what she would like, and we both agreed on something simple. I started to prepare dinner as she hovered around the kitchen, stopping me from accessing the condiments, impeding my progress at the chopping board, etc. Then she told me she would rather have the salmon instead of the chicken.

Ultimately we ordered a pizza, which took longer and cost more money. In my defence, her involvement was very disruptive. I could demonstrate this by linking her causation to 28 APRIL 2017

my failed deliverables, but I should think you would rather read about construction…

The recipe for disputes in construction projects is remarkably similar. This article is geared towards complementing your knowledge of quantifying, and demonstrating, disruption suffered on a project, in two parts. In Part 1, we will consider the basis of formulating a disruption claim, and in Part 2 we will consider different ways of measuring disruption, including the advantages and disadvantages of different methodologies.

A 2012 study1 set out that 80% of projects in the Gulf suffer delayed completion, with almost 50% of projects delayed by more than six months. On mega projects, it’s more of the same, project delays of three or more years are not uncommon at all. Compared to other industries, this is hardly surprising when you consider that, generally, every project is unique: the multi-party organisation that delivers the project will not have worked together before; the parties will have competing aims and objectives, and in most instances, the design is incomplete at the time it is priced, inevitably leading to price variations.

In the GCC, almost all projects are procured on a lump sum fixed price contract, with the building contractor often expected to fill in the gaps in design, in the name of design development, and much of this sits within

a foggy horizon of mistrust and unrealistic expectations. There is also a regional habit of not raising or recognising delay for fear of negatively impacting the working relationship, or the common commercial strategy of considering all project delay to be concurrent, and then looking to compromise on the client giving the contractor more time, but not money.

In the words of Max Abrahamson2: “A party to a dispute, particularly if there is arbitration, will learn three lessons (often too late): the importance of records, the importance of records and the importance of records.” This is common preaching of practitioners from many different professions, and I highly recommend such advice be heeded right from the outset. This includes overcoming one’s reluctance to share tender build-ups and rate breakdowns at the beginning of a project, and the corresponding laissez-faire approach to investigating and understanding such tender build-ups.

The foregoing paragraph sets a recurring theme for this article, but let us first consider the ingredients of a successful disruption claim, presuming you are the side looking to pursue such a claim. Start with the following five steps: 1. Identify the events that are complained of as having caused disruption, 2. Establish that the event(s) complained

1. PWC GCC 2012 Capital Projects and Infrastructure Survey 2. Engineering Law and the ICE Contracts, London and New York, Elsevier Applied Science (4th Ed., 1979, p.442)

of having caused disruption are the responsibility of the other party, 3. Establish that the event(s) complained of did change the conditions under which your party carried out the works, 4. Establish that the changed conditions did change the works in such a way that the progress was disrupted and less productivity was achieved, 5. Evaluate the actual financial effect of the lost productivity.

In the above, steps one, three and four regard causation, step two addresses liability, and step five regards quantification.

These steps demonstrate that x happened, that x did impact your deliverables and that x was not your fault. The final step then helps you work out what x cost you. Picking up on the importance of records from the outset, the five steps essentially show what happened, but you need to be able to compare that to what you had planned at the beginning of the project too, because it is the difference between the planned and actual that equates to your productivity loss/disruption claim.

Manhours

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Months Actual manhours

Planned manhours

As a result of a lack of records, many parties compile disruption claims based on common complaints, along the lines of the contractor’s access being impeded, daily activities being de-prioritised, variation orders resulting in more work, and so on. The assertion is that such actions caused delay and disruption. This is then brought forward to a summary based on perceived man hours lost, multiplied by an hourly rate to give a claimed amount. This is a global claim which does not demonstrate causation and seeks a total cost recovery which is unreasonable. This is

Disruption claim/loss of productivity

essentially an inaccurate valuation, and also a claim that is likely to fall away should it actually go to arbitration.

Global claims are premised on a collection of events being claimed under a global banner.

This means there is no direct link between individual events and the amount claimed.

Should the liability for an event fail to be proven because there is no causative link to it, there is no way to reduce the corresponding amount from the global amount claimed. This is why such an approach is considered a highrisk strategy for contractors.

The best tool a contractor has to avoid submitting a global claim, in case the proverbial coin has yet to drop, is to keep bullet-proof records. This allows causation to be established more readily.

As we touched upon earlier, disruption is successfully established when compared against a proper benchmark. Typically, that benchmark is the baseline programme and the contracted scope of works, from which an overall project method statement can be produced. This is essentially a list of instructions that explains the approach to construction, including constraints, client inputs and deliverables and so on, which allows a working method statement furnished with the knowledge of events that caused disruption to be produced. In turn, an opinion can be formed as to which were the most significant events, which provides an understanding of how an event impacted the planned approach.

Thereafter, the real business actually starts: Quantification.

To be continued‌ APRIL 2017 29

ON SITE

FIRE SAFETY

Lessons from the UK

Paul Madden, the senior project manager of Fire and Rescue Services for Restrata, explains what lessons the UAE can learn from the UK’s introduction of the Regulatory Reform Order 2005 ith the release of the 2016 UAE Fire and Life Safety Code at Intersec 2017, Dubai Civil Defence (DCD) Lieutenant Colonel Jamal Ahmad Ibrahim states, “Dubai is not just a city. It is a brand that means value for investors and residents alike. This is the reason why we need to create a safe emirate.

Not just in terms of saving lives, but securing properties as well.”

The DCD launched the highly anticipated 2016 UAE Fire and Life Safety Code at Intersec 2017, as the UAE seeks to reduce fire incidents in the country. Built on the 2011 version, the updated code prescribes guidelines for builders and consultants to ensure a fire-safe environment.

With a new chapter dedicated to responsibility in the 2016 UAE Fire and Life Safety Code, the DCD now aims to hold people accountable for fire accidents in the future. This means that owners, builders and even occupants will all be answerable to the DCD. “The 30 APRIL 2017

ON SITE

“The new legislation will put the burden of responsibility for fire safety on a named individual, the building owner or occupier, and require them to carry out a Fire Risk Assessment (FRA). This presents a number of difficulties for the responsible person, mainly due to the fact that most building owners or occupiers have little or no experience with fire safety issues�

APRIL 2017 31

ON SITE 01 Paul Madden is a senior project manager of fire and rescue at solutions provider Restrata.

biggest responsibility will rest with consultants who approve faulty structures. There is a legal requirement to carry out a fire risk assessment in almost all workplaces in the country,” warned Lt Col Ibrahim.

The refreshed code has been designed in cooperation with contractors, construction 01 equipment manufacturers and building experts within the region. The DCD has also said that it plans to take tough measures, including levying fines on those who fail to comply with fire safety standards.

New clauses and amendments that will be included in the updated version of the UAE Fire and Life Safety Code will have a similar impact to that of the Regulatory Reform Order 2005 when it was introduced in the UK. The new legislation will put the burden of responsibility for fire safety on a named individual, the building owner or occupier, and require them to carry out a Fire Risk Assessment (FRA). This presents a number of difficulties for the responsible person, mainly due to the fact that most building owners or occupiers have little or no experience with fire safety issues.

To ensure compliance with legislation, and avoid fines and damage to reputation, the responsible person will need some professional assistance. This will guarantee that hazards and people at risk have been identified, and solutions to remove or reduce the risks are recommended.

High-profile cases from the UK suggest that if building owners do not

“To ensure compliance with legislation, the responsible person will need some professional assistance. This will guarantee that hazards and people at risk have been identified, and solutions to remove or reduce the risks are recommended” 32 APRIL 2017

take their responsibility seriously they will face prosecution.

New Look Retailers Ltd – which has more than 600 stores in Britain and abroad, 20,000 employees, and is 30th in the Sunday Times 100 Top Track list of private companies – pleaded guilty to two counts in 2010. It was fined £250,000 for failing to provide a “suitable and sufficient” fire risk assessment for the premises, and a further £150,000 for inadequate staff safety training.

The £400,000 total is not only the largest imposed on a company in Britain for fire safety contraventions since new legislation came into force in 2006, but is thought to be the biggest ever financial penalty for such breaches.

Following the conviction, Councillor Brian Coleman AM FRSA, chairman of the London Fire and Emergency Planning Authority, commented: “Good business management includes taking responsibility for fire safety, knowing the law and acting on it. This conviction shows that large companies are not exempt from prosecution and that the London Fire Brigade will take action when businesses do not take their fire safety responsibilities seriously. Failure to comply with the law can, as this case has shown, result in a substantial fine.”

Previously, the Co-operative Group – the UK’s largest mutual retailer – was fined £210,000 after pleading guilty to six breaches of fire safety legislation at Southampton Crown Court.

The 2010 prosecution was the result of a 2007 investigation at one of the Co-op’s Southampton branches. Officers from Hampshire Fire and Rescue found that the store had failed to keep the rear emergency exit doors unlocked, and that it had fitted a lock on the exit doors that required a security code – making the exit harder to open in the event of an emergency.

In addition, the fire alarm call point was found to be obstructed and the alarm had not been tested regularly, while the store’s manager was not instructed in fire safety.

A spokeswoman for the Co-operative Group said: “As a responsible retailer, the Co-operative Group takes health and safety issues very seriously. At the time of these incidents, the Group was introducing substantially more stringent health and safety procedures, investing heavily, both in time and money, in all aspects of fire safety.”

“The Co-operative Group deeply regrets the breaches but reiterates that its rigorous measures, now established and continually reviewed in conjunction with fire authorities across the country, ensure the safety of its valued customers and staff.”

Under the patronage of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces

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OPINION

01 Rajat Kharbanda is a senior consultant at global market research and consulting firm 6Wresearch. The firm specialises in niche and emerging markets.

Regional fire safety industry burns bright Rajat Kharbanda, senior consultant, 6Wresearch, outlines how rising infrastructure investments, government regulations and upcoming mega events are driving the GCC fire safety market

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ire safety equipment is the core building block in modern building infrastructure. The rapidly growing number of high-rise buildings, the increasing number of fire incidents, stringent government regulations, and the rise in public and private building infrastructures have spurred the market for fire safety equipment across the Gulf Cooperation Council (GCC).

According to 6Wresearch, the GCC Fire Safety Market touched an impressive $1.1-billion in 2015. This was a slight improvement compared to 2014, due to 34 APRIL 2017

a decline recorded primarily in the Saudi Arabian market.

The market growth previously estimated in 2015 was in the double digits, but that was significantly downgraded to single digits, due to weak economic conditions. Various projects have been halted in Saudi Arabia, and there was a sharp decline in new construction contracts in the first half of 2016.

This factor has had a significant impact on the growth of he entire GCC fire safety market. The market is forecast to grow at a compound annual growth rate (CAGR) of around 8% between 2016 to 2022.

Saudi Arabia will maintain its market leadership, followed by the UAE, over the next six years. The UAE and Qatar are anticipated to be the key driving countries for the growth of the GCC region overall, due to upcoming mega events such as Dubai Expo 2020 and the 2022 World Cup in Qatar.

More than $350-billion will be invested to build the supporting infrastructure for these upcoming events.

Apart from infrastructure development activities, the rising number of fire incidents in various chemical plants and residential

complexes has led governments to revise the existing fire safety regulations. Significant changes in fire safety norms are expected, especially in the UAE, to replace outdated fire safety equipment.

In the GCC fire safety market, fire protection systems are the leading revenue generating segment, led by fire extinguishers, fire suppression systems and fire pumps and controllers. However, key growth is exhibited in the fire detection segment – smoke detectors, gas detectors, heat detectors and so on.

Among all applications, the residential and industrial sectors have captured the majority of the pie in the overall market.

In the coming years, the growth of the fire safety systems market will depend on the construction industry, investment, government regulations and replacement of existing infrastructure.

Iran, meanwhile, is one of the largest untapped markets in the entire Middle East region. The country is the second largest economy in the Middle East and North Africa (MENA) after Saudi Arabia, and has the second largest population.

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“In the coming years, the growth of the fire safety systems market will depend on the construction industry, investment, government regulations and replacement of existing infrastructure” Iran’s fire safety market is projected to grow at a CAGR of more than 10% during 201622. Over the next six years, with the growth in the construction market, demand for fire safety equipment will increase. Iran’s construction market is forecast to grow at a CAGR of 5.9% during the same period.

The rising number of fire incidents in the country is driving the need for the installation of fire detection and suppression equipment.

Oil & gas is one of the major sectors where key deployment of these will registered in the coming years. The recent fire incident at a petrochemical facility in the province of

Khuzestan is also expected to influence safety measures in all major petrochemical facilities across the country.

The growth of the fire safety market depends on new construction within countries, with fire detection equipment emerging as the key growth segment. The replacement of old fire safety equipment in existing infrastructure will be led by stringent government rules and regulations.

In the coming years, many new players are expected to enter Iran’s fire safety market; competition will surge, leading to a decline in the price of fire safety equipment.

Borna Ghasemi/ISNA

Over the years, the Iranian economy has been adversely affected due to UN sanctions.

Further, since the country’s economy depends on the export of hydrocarbons, with the recent oil price turmoil market conditions are expected to remain challenging. However, with the easing of sanctions, the country anticipates new business opportunities due to a flow of fresh investment.

These developments will spur the construction industry in Iran, primarily driving expansion activities in the transportation, energy, residential and hospitality sectors. According to 6Wresearch,

APRIL 2017 35

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SHOW PREVIEW

Cityscape Abu Dhabi Regional property show comes to ADNEC from 18-20 April with hundreds of developments ready to be showcased

M

arking its 11th edition this year, Cityscape Abu Dhabi is the UAE capital’s largest and most influential property show which gathers local, regional and international exhibitors alongside a range of high-profile speakers.

Over the past decade, the three-day exhibition has showcased hundreds of private and public projects, which have helped shape the emirate into a regional hub for tourism and commerce.

Running 18-20 April at the Abu Dhabi National Exhibition Centre, Cityscape Abu Dhabi will host major developers such as Aldar Properties, Eagle Hills Properties, Tourism Development & Investment Company (TDIC), Bloom Properties, Tamouh, Manazel, Eshraq, Wahat al Zaweya and Mubadala. New participants to the show floor this year include Abu Dhabi Capital Group, Aabar, Hydra, RAK Properties, Tiger Properties, Dubai Investment Real Estate Company (DIRC) and Al Hamad.

The Abu Dhabi Conference runs on day one of the event, and will feature prominent speakers and regional experts in the real estate development and property investment industry. Also new to the show this year are the free-to-attend Cityscape Talks, which will offer live 36 APRIL 2017

content direct from the show floor, covering a range of themes for visitors, including how to maximise real estate investment, discussing market trends, important information before finalising a purchase and networking with potential business contacts. The industry sessions will focus on key themes for real estate brokers, architects, engineers and other professionals.

Notable participants at the show include David Dudley, international director at JLL MENA; Omar Al Busaidy, Abu Dhabi experience development unit head, Tourism & Culture Authority Abu Dhabi; Maan Al Awlaqi, director, Aldar Properties; Ann Boothello, senior marketing manager, Dubizzle; Craig Plumb, head of Research, JLL; Mohammed Al Fardan, director of Masdar City Free Zone; and Sean Magee, senior legal counsel.

Topics to be discussed include ‘Destination Abu Dhabi: establishing an attractive hub for local and international real estate investors’, and how free zones are fostering the investment environment.

Investors visiting the show floor will have the opportunity to purchase property from exhibitors who have undergone a rigorous approval process put in place by Abu Dhabi Urban Planning Council (UPC).

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Draw Link Group expands into Europe with Athens launch

Hill wins $3.3m contract to manage project in Masdar Hill International has been awarded a $3.3m contract to provide project management services during the construction of the Masdar Institute Neighbourhood, a development in Masdar City in Abu Dhabi.

Masdar, Abu Dhabi’s renewable energy company, is developing Masdar City to be a global hub for renewable energy and clean technologies. The free zone also offers benefits to registered companies, such as 100% foreign ownership, zero tax and zero import tariffs.

“Masdar City is a model for sustainable urban development not just regionally but globally,” said Mohammed Al Rais, regional president (Middle East) for Hill’s Project Management Group, about the three-year contract win. “We are extremely proud to have been selected to help Masdar deliver this important project.”

Spread across more than 103,000sqm, Masdar Institute Neighbourhood is a mixed-use development that will provide residential and commercial resources to people and companies in Masdar City. The development will feature a commercial office building, two residential buildings, underground parking and a plaza. It has been designed to achieve a three-pearl Estidama rating and LEED Gold certification.

Last year, Masdar City outlined a five-year expansion plan which included the construction of 2,000 homes and a research hub. Anthony Mallows, executive director of Masdar City, said at the time that all available space within existing and under-construction buildings was fully leased.

As part of its expansion strategy, Draw Link Group has expanded into Europe, with the launch of operations in Athens, Greece. The newly established office could pave the way for new hospitality ventures in the region, and will also support projects that are already underway in the UAE. “As we make our ten-year mark in 2018, we are keen on establishing our presence in Europe, to develop and expand our design capacity and capabilities in the region,” said Daousser Chennoufi, founder and key architect of the Draw Link Group. “The Greek market has been home to high-quality design and architecture in recent times, and we look forward to pursuing the market and bringing its diverse influence to our projects in the UAE.” The new office will be staffed by eight employees supporting various projects in Dubai, and future goals include increasing prospects of hospitality ventures in the region.

The firm specialises in design and architecture for hospitality and luxury residences, and offers services from concept creation up to fit-out and management support.

APRIL2017 37

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India’s L&T wins $76m Doha Metro contract L&T Electrical & Automation (L&T) has won an order worth $76 million from Qatar Rail Company (QRAIL) for Phase 1 of the Doha Metro. The scope of the order encompasses supply, installation, testing, integration, commissioning and five years’ maintenance of network-wide building automation and control systems (BACS) for 37 stations.

The agreement awarded by QRAIL to the company is through nine contracts with design and build contractors for the stations and tunnels under multiple lines (Red line, Green line and Gold Line), and a five-year maintenance contract directly with Qatar Rail.

S.C. Bhargava, senior vice president & head of E&A Business, said, “Our core strengths for project management, domain knowledge and application engineering will enable us to offer distinctly superior and proven system integration solutions by leveraging the capabilities we’ve been able to build over four decades. Backed by a pool of experienced engineers, L&T has the competency to provide preventive and corrective maintenance services to maximise the performance and uptime of its automation systems and control equipment.”

38 APRIL 2017

Cayan signs up Nikken Sekki for Jeddah project Saudi property developer Cayan Group has signed a contract with Japanese architectural firm Nikken Sekki for its upcoming $320m mixeduse waterfront project in Obhur, Jeddah. It will have a built-up area of 140,000sqm that will contain two towers – a five-star hotel, and a branded residential tower offering high-end living.

“This is another foray for us into the hospitality sector in the Middle East, signalling our commitment to investing in the growing sector in Jeddah and elsewhere,” said Ahmed Alhatti, chairman of the Cayan Group, during the unveiling of the group’s massive Obhur waterfront project at the MIPIM property show in Cannes, France.

The mixed-use project being developed in Jeddah is taking advantage of the city’s growing prominence among visitors and residents – the success of Jeddah Economic City has seen the city’s real estate and hospitality sectors gather pace over the last few years, the statement from Cayan added.

The hospitality sector in Jeddah is influenced by local demand, as well as from pilgrims coming on Hajj. Thus the city’s hospitality sector appears resilient, with good ROI potential, Alhatti said.

Nikken Sekkei offers a range of comprehensive professional services across the real estate and construction industries. It has worked on several high-profile projects around the world, including the Yamaha Ginza, the Hoki Museum and Guangzhou Library. It is currently involved on projects in the UAE and Saudi Arabia, the statement said.

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Pininfarina enters Middle East market

Parsons bags lucrative Sharjah International Airport contract Parsons has been awarded the project management services contract for the Sharjah International Airport. The project covers numerous airport facilities and includes increasing the size of the passenger building – the latter will help increase the airport’s capacity to 25-million travellers a year.

“The Sharjah International Airport expansion programme will dramatically improve travel options to and from Sharjah, as well as promote economic growth and job creation,” explained Gary Adams, Parsons Group President. “Parsons is honoured to have been selected.”

Under the terms of the contract, Parsons will have oversight of the planning, design, construction and commissioning of the airport’s expansion. The project also includes expanding the roads to and from the airport, and the expansion is expected to improve airport services, while also creating new job opportunities within the emirate.

Sharjah International Airport was opened in January 1977, and has become an important stop for both airlines and cargo shipment thanks to its location within the UAE.

Pininfarina has made its Middle Eastern debut with its first large-scale project in the region - the interior design of the Innovation Centre in Dubai’s Sustainable City.

The company says that its arrival in the Middle East underlines its commitment to exploring dynamic new markets, and is part of a strategy to build a long-term base in the region.

Pininfarina Extra is said to have developed more than 600 projects under the direction of its president and CEO, Paolo Pininfarina, who is now chairman of the Pininfarina Group. The design house’s unique architectural style contributes to the development of the first operational Net Zero Energy city in Dubai, conceived to become an international showcase for sustainable living, work, education and recreation. The firm has other active projects in the Middle East in the fields of private architecture and offices.

“We are delighted to expand our global reach into the Middle East, a region that truly represents what significant design achievements can be realised in a short space of time, given ambition, vision, passion and technical skill,” said Paolo Pininfarina, chairman of the group.

APRIL 2017 39

THE BACK PAGE

01 Hrvoje Cindrić is an urban

LAST WORD

planner and designer at Arup Gulf Limited.

Of Value and Values Differentiating between cost and value is very important, and the time for consultants to start educating clients is now

01

W

e’re living in a time of rapid change, where we are questioning every aspect of our lives. The question we face is: what is the remaining constant that drives us? I believe it should be the seeking of quality in everything that we do.

Often, when thinking about value, cost and quality are mistaken for one another.

We have a duty as an industry to ensure this difference between cost and value is openly discussed and appreciated as part of the client consultant relationship. As consultants, we need to advise our clients on the best solution, not the cheapest.

40 APRIL 2017

When I joined Arup in the UAE almost five years ago, I quickly noticed what many do when they first interact with Arup, which is that it is different. An open discussion about what our values are, and our commitment to delivering quality projects, is key to any new relationship we embark on. We believe in creating value for clients and society as a whole – to us, it is about being better, not cheaper.

Sir Ove Arup was a pioneer of integrating design disciplines, and the Arup philosophy of ‘total design’ was celebrated at an exhibition in the Victoria and Albert Museum in London last year. Arup’s vision was based around the principle of combining philosophy and engineering to create a holistic approach to design. He redefined the way architects, designers and engineers work together by joining all professions right from the start.

In July 1970, Sir Ove Arup delivered a speech (known internally as the ‘key speech’) where he set out the firm’s core values and commitment to quality. He said: “Only a job done well, as well as we can do it – and as well as it can be done – is that. We must therefore strive for quality in what we do, and never be satisfied with the second-rate.”

When striving for quality, the differences between cost and value can be confusing, but knowing the distinction ultimately improves the quality. The cost is the financial investment,

but the value is how much the client/end user believes the product or service is worth.

For example, a common mistake is to compare the cost of a public transport system with its revenue, rather than to capture the value it brings to society. And while it is often difficult to capture the tangible financial returns of sustainability, we all understand the value of responsible actions and behaviour.

Recently in the Middle East, by using total design, Arup led the redesign of a master plan that challenged the client’s approach with regard to an adjacent, environmentally sensitive and unique natural habitat. Initially, this was met with surprise, but by ensuring all disciplines worked together, we created an innovative solution that turned the habitat into a natural asset to benefit the client’s development, and the city as a whole.

We also demonstrated that the proposed solution will reduce construction costs and generate higher property values in the long term. I believe that in many cases a focus on quality will outperform the short-term need to reduce costs, and the more such examples consultants can share with clients, the stronger the argument in favour of value will be.

For us, the enduring strength in Sir Ove’s philosophy lies in its simplicity – bring people and ideas together and let technically robust creativity develop quality solutions.

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