016 june 2015
InsIght and analysIs for constructIon specIalIsts
the man wh o sav e d mouchel Grant Rumbles tells the tale of how he brought Mouchel back from the brink
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CONTENTS
June 2015
04 04
On topic news and analysis acrOss the Middle east Online news
CPI’s digital platform for construction news
09
14 14
On tOpic
Should you pay for the training and development of staff?
09
in practice
20
14
cOMpany prOfiles, OpiniOns and interviews interview
With a $406m buyout by Kier set to be confirmed this month, Grant Rumbles relates the tale of Mouchel's survival
20
insiGht
Should fire and life safety consultants be involved with project development right from the beginning?
24
prOfile
ME Consultant talks to Greg Parry and Shanna Mack about what it takes to build a school in Palestine
30 30
40
On site BUildinG reviews, case stUdies and snapshOts review
ME Consultant reports from the Leaders in Architecture summit
36
24
30
specify Me
Why you should use the Krystol Internal Membrane
38
cOMpany news
Hyder to design metro and transport systems for Jeddah
40
final wOrd
Michael Conner explains why GCC governments are looking to boost interest in public-private partnerships
38 June 2015 Middle East Consultant 3
on ToPIC roundup
Online L AU N C H PA R T N E R
Middle East Consultant’s home on the web MOST POPULAR
EDITOR'S CHOICE
READERS' COMMENTS
1
Egyptian national killed in Qatar crane collapse At least three others were injured in fatal incident on busy highway in Doha.
2
Atkins makes key appointments in Middle East property division British consultancy announces senior architectural roles for Janus Rostock, David Tripney and Mark Kelly.
PHOTO GALLERIES
Dubai’s theme-park megaproject under construction MEConstructionNews.com paid a visit to the Dubai Parks and Resorts project near Jebel Ali. See photo galleries at: meconstructionnews.com/photos
3
Ramsey Meyer, via email, ‘New UAE property regulations “prevent overheating in Dubai”’
Futuristic bridge to Dubai’s Bluewaters Island gets green light A $130m contract has been awarded for bridge linking $1.6bn island that is set to become home to world’s largest Ferris wheel.
READER POLL Should contractors be obliged to provide mentalhealth support for workers?
4
Dubai outlines tender timeline for Route 2020 metro line Construction of 15km route serving Expo 2020 site is scheduled to begin early next year, the Roads and Transport Authority said.
5
Chinese construction firm builds 57-storey skyscraper… in 19 days Broad Sustainable Building Company says it also wants to build world’s tallest skyscraper in just three months.
It is probably true that the UAE mortgage cap and registration fees have had a limited impact on the Dubai property market. But what is really causing prices to come down is fear of another property downturn and negative sentiment in the market. I’d characterise it as a ‘decline’ rather than a limit on the market ‘overheating’.
77% 11% VIDEO
Volvo Trucks launches auto traction control in FMX System will be standard on all FMX trucks sold in the Middle East with front-wheel drive capability. See videos at: meconstructionnews.com/videos
Yes: All firms should provide access to psychiatrists
No: Firms could voluntarily do so, but not forced to
5%
5%
No: Addressing such issues is up to the local government
No: This isn’t a major problem, there are more pressing issues
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com
4 Middle East Consultant June 2015
Straight Access
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Editor’s note Group GROUP CHAIRMAN AND FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD
Rumbling on
I
f I’m allowed to be honest (and this is my column, so why wouldn’t I be?), when I scheduled the interview with Grant Rumbles for this month’s cover issue, I honestly didn’t expect it to go the way it did. Most CEO interviews tend to follow fairly set guidelines – you ask your questions, you get your answers and if you’re lucky, a bit of exposition. They’re certainly not going to sit down and have a long, free-wheeling chat with you about the weather, at least not in my experience. Which is completely understandable, these are extremely busy men after all. So it was an unexpected pleasure to be able to get a solid block of time with the outgoing group chief executive of Mouchel, and even more surprisingly, have an actual conversation with him, that allowed for off-the-cuff questions to be asked, and topics to be discussed at length. What that resulted in, and what I hope has been translated on to the page, was an interview that highlighted just what an impressive individual Grant Rumbles is. It takes a special kind of man to walk into a struggling company and stop the rot, but it takes an extraordinary leader to be able to turn the tide and create a business that is one of the most admired engineering consultancies in the world today. As we go to print, the deal with Kier has been all but confirmed and the Mouchel Group will be bought out in a $406 million cash deal. This just highlights what a fantastic job Rumbles has done, and why his achievements should be celebrated. While he says that he hasn’t really planned what lies ahead for him, I think it’s safe to say that whatever it is, it’ll be a tremendous success.
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6 Middle East Consultant June 2015
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OCCUPANCY/ DAYLIGHT SENSORS AND DIMMERS
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MEP
09
trAining Should you pay for the training and development of staff?
On topic A
trAining
Catch the silver bullet Training and professional development sound great, but do they pay back the investment of time and money they command? ‘Yes’ is the answer investors gamble on, but find hard to measure By Stuart Matthews
well-trained employee is a boon to any organisation. Valuable and usually hard to find, hiring one can be an expensive process, whether because of package demands or recruitment costs. Getting anyone to the point where they are this valuable requires investment, whether that’s the cold hard currency that pays for training, or the time put in by the individuals and the business that employs them. More often than not, it’s both. No matter how you look at it, it’s a commitment, but one question haunts many: is it worth it? The answer depends on individual circumstances, and the reasons something is worthwhile vary, going beyond simple return on investment or the idea of cementing loyalty. For Tom Bell-Wright, who heads a testing consultancy that bears his name in Dubai’s Ras Al Khor, the value of investing in his team is a reward gathered over many years. In one instance, the investment was made in a young engineer some 17 years ago, who showed great potential but had a limited amount of English. “We sent him for language training, because if you don’t speak English adequately, you won’t get off the bottom rung of the ladder,” explains Bell-Wright. “It wasn’t a calculated move, we did it because we liked the guy and wanted him to have an opportunity, which he wouldn't if he didn't improve his English.” This ad-hoc career boost gave one person a leg up, but the nature of Bell-Wright’s business, which is heavily tied to standards and quality management systems, means that regular training and refreshers are an essential part of his specialist testing operation. With about 60 employees currently on the books, BellWright has to ensure that quality management systems are maintained and are fit to be audited. “That includes mandatory training,” he says. “For us, it is an obligation that we do about 90% of it inhouse. It’s in our quality manual and it has to be there, June 2015 Middle East Consultant 9
on topic TRAINING
David Cockerton warns that making CPD mandatory risks making it just a "tick-box exercise".
and when the auditors come, they have to see records that show we are actually doing it.” Keeping up can be demanding, and Bell-Wright notes that it takes discipline not to let the day-today tasks stand in the way. With training having such value to the business, it has been put in the hands of a dedicated quality manager, who takes charge of some of the training but also keeps the systems paperwork up to date. “There’s a lot of documentation that has to be maintained,” says Bell-Wright. “It is quite a lot of work.” The same is true for any individual engineer or consultant who wants to keep a steady stream of knowledge up to date. However, for some it is not a question of 'want', with chartered memberships of professional organisations usually demanding regular training under the banner of continuing professional development (CPD). This mandatory requirement is not always seen as having a positive outcome.
Guy Arguin says that Atkins' graduate programme has been critical in attracting the best talent.
“For many, CPD is now a requirement in order to maintain membership of a professional body,” explains David Cockerton, a fellow of the Royal Institution of Chartered Surveyors (RICS). “Sadly, the move by professional bodies to make CPD mandatory, rather than undertaken voluntarily, makes this more of a tickbox exercise, thereby missing the real opportunity for self-development.” The real opportunity, as Cockerton sees it, is for an individual to enhance their marketability and the opportunity to secure promotion. Cockerton believes that companies who endorse or encourage this benefit not only from enhanced staff retention, but also from a more satisfied and productive workforce who feel they work in a nurturing environment. As a board member on the RICS Middle East & Africa Regional Education & Standards Board and a member of the RICS Global Training & Education Faculty, Cockerton has been involved in developing
“It wasn’t a calculated move, we did it because we liked the guy and wanted him to have an opportunity, which he wouldn't if he didn't improve his English” Tom BEll-WrIghT, BEll-WrIghT 10 Middle East Consultant March 2015
the recently launched RICS Executive Education Programme, including the forthcoming roll-out of the International Certificate in Leadership for Real Estate Development. He believes the best way an individual and a company can work together to get a result both need is through the mutual identification of training and development needs. However, although companies should provide a framework for training and development, Cockerton is clear that individuals must "take ownership and responsibility" for their needs, especially those starting out in their careers. “During the early stages in an individual’s career, it is essential to work for a company that recognises and supports the professional development needs of its staff,” says Cockerton. “Ideally, an individual should seek an employer that has a recognisable, structured training programme.” This is a point larger consultancies are readily aware of, and one they see as an added attraction in recruitment and all-important talent retention. For UK-headquartered Atkins, graduate programmes are key to getting the right candidates into its Middle East and global businesses. “The graduate programme is something we’re quite proud of,” explains Guy Arguin, Middle East human resources director, Atkins. “It’s critical from a career perspective, and as an employer of choice, it’s critical for us to attract some of the best young talent.” At Atkins, graduates are expected to progress and evolve through a three-year programme, where
on topic TRAINING
there are specific assignments across the business. These ensure some on-the-job learning and provide a path to some level of chartership by the end of the programme. The company doesn’t stop the training with graduates, with Arguin estimating that some 6080% of staff in the Middle East have some contact with a development programme every year. “There’s definitely an element of developing your talent in terms of having a strong technical side to the business,” says Arguin. “We always want to be up to date and making sure our people facing the client have all of the right capabilities, the right technical capacity and the latest thinking in their different fields. The other side of it is management and leadership capabilities as well, so we also work to develop those kind of skills across the business.” The company claims an extensive portfolio of programmes – nearly 700, from the most basic to most complex – from junior to senior in level, with a mix of local, regional and global offers. The aim is to make sure leaders across the business are all exposed to the same types of programme and development opportunities. With the opportunity there, it remains up to the individuals to seize it. “One of our key working principles is for each individual to take accountability for their own development,” says Arguin. “We try to provide the right framework around that mix of different learning mechanisms, and we let them – with their managers – drive their own development.”
Miguel Lobo highlights a lack of management training amongst engineering professionals.
“We try to provide the right framework around that mix of different learning mechanisms, and we let them – with their managers – drive their own development” guy ArguIn, ATkIns A programme on the scale of that of Atkins represents a significant investment, with employees the key beneficiaries. Not only does it cost money, it also has a cost in time away from work, whether that’s a day, a week or longer. It’s the kind of investment that demands a measured return, but while improving the skill set of employees should have an obvious impact on the performance of the business, making a precise account of that impact can prove elusive. “I would say that’s the silver bullet right there,” says Erin Laxson, talent management and development consultant, MENAI region, for CH2MHill. “It’s so difficult to determine return on investment for learning and professional development, because of the way it gives back to the company.” The American engineering consultancy manages in-house professional development initiatives as part of its global talent management strategy, a strategy which over the last 12-18 months has
seen huge push for retention. This is where the measurement of impact gets easier. “When we look at retention, we look at employee engagement as a very important metric in driving whether or not someone will stay in the organisation, or choose to leave,” says Laxson. “Research shows that individuals who are engaged are less likely to leave the organisation, and we know that hiring individuals is a really expensive exercise to go through." “If we have an engaged workforce, we know we won’t have to hire as many people, and to us that has a pretty large price tag. Getting people who are engaged and giving back to the company to stay is a really good investment for us.” The company puts global resources into the business of retention and learning, with the aim of supporting its employees in their development goals. Centralised subject matter experts create formal programmes to meet the needs of
Tom Bell-Wright has set up his firm to ensure that quality management systems are maintained and fit to be audited.
June 2015 Middle East Consultant 11
on topiC training
“sadly, the move by professional bodies to make CPD mandatory, rather than undertaken voluntarily, makes this more of a tick-box exercise, thereby missing the real opportunity for self-development” DAvID CoCkErTon, royAl InsTITuTIon of ChArTErED survEyors (rICs)
C
M
Y
CM
MY
CY
CMY
K
employees, which are then deployed throughout the company’s locations. “It’s left up to us how beneficial some of those programmes will be and how to be flexible with them or evolve them to be more meaningful,” says Laxson, who describes the system as a great partnership between local offices and the company’s HQ in Denver, Colorado. “Culture plays a huge part in people’s learning, so we have to be sensitive to the fact that if we’re going to be operating around the globe, then we must have learning programmes that are meaningful and appeal around the globe.” While firms like CH2MHill and Atkins can draw on significant reserves of experience and technical expertise to provide education internally, they also know when to seek out external partners for help. It's an approach seen in many industries, and one that has created fertile ground for business schools, who can help experienced technical talent add management and leadership to their skill set. “When people come from specific areas – you see it a lot in large industrial organisations – you have people who have moved up the ranks from 12 Middle East Consultant June 2015
an engineering or technical background,” explains Miguel Lobo, associate professor of Decision Sciences and director of the Abu Dhabi Campus for INSEAD, a business school. “They are very smart, but they sort of take management on the fly because they got promoted from an engineering function, and they have all sorts of blind spots in their development.” INSEAD’s core business is its MBA programmes, but like other business schools, it also runs open enrolment programmes and customises courses for specific businesses. People who make the considerable personal investment to go on the courses tend to be exposed to a diverse set of fellow students and new experiences, part of giving executives the skills they need. “Interpersonal issues really matter in leadership, organisation behaviour and change management,” says Lobo. “These things are really critical in whether a company succeeds or fails, and someone who has been promoted may have the instincts, but needs to take a step back to think about those issues of organisational behaviour and leadership in a more systematic way.”
Business school development is about creating more effective executives and putting them on a path to take the next step in their career progress, and this holds true for those with an engineering background. Demand for such skills in the Middle East is strong, with Lobo noting a greater focus on more broad spectrum training, as local organisations invest to develop deeper talent pools. The cost of programmes with a good reputation is an indicator of the level of investment companies put into developing their people, with full MBA costs often topping the $100,000 mark. However, the price tag doesn’t make the measurement of success any easier. “It’s really challenging, but what we can show is that people who go through the programmes do succeed,” says Lobo. It’s this promise of success that will keep motivated individuals and far-sighted companies investing in their mutually dependent futures. There are plenty of positive outcomes on record, but there’s no silver bullet to achieving them quickly. Effective personal and professional development just comes down to hard work, commitment and cash.
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IN PRACTICE Grant rumbles
Interview
14 Middle East Consultant June 2015
IN PRACTICE Grant rumbles
The Man Who Saved Mouchel
ME Consultant sits down for an exclusive chat with Grant Rumbles, the group chief executive of Mouchel, who will step down from his post once its $406 million buyout by Kier is confirmed this month
B ack
in
2011,
Mouchel,
a
uk-BaSed
engineering consultancy, was in desperate straits. From being a business that turned over $1.22 billion a year just three years prior, it now faced debts of $245.3 million, while shares traded as low as 10 pence and its market capitalisation was just $30.6 million. With the global construction industry booming in the early 2000s, the consultancy, like many construction giants around the world, decided to adopt a strategy of aggressive expansion. By buying up the competition, Mouchel managed to not only expand its footprint across the globe, but also build up a sizeable amount of debt. The situation was dire and it seemed like a company that had been around for some 125 years was staring its demise in the face. Given the situation, it’s with some surprise that we find that in 2015, Mouchel is a thriving engineering consultancy running successful operations in the UK, the Middle East and Australia. According to financial results for the year ending 30 September 2014, the company had underlying operating profits of $48.95 million and an order book of $4.75 billion. Not only is the consultancy a resurgent business entity, but in April 2015, it announced that it had been bought out for $406.5 million by international contractor Kier, marking a significant step forward for the firm.
How, then, did Mouchel turn itself around? The answer seems to lie with one man – Grant Rumbles, the outgoing group chief executive of the consultancy. Once the deal with Kier goes through, Rumbles will be stepping down from his role and moving on to new things, with a well-earned break high on the agenda, he tells Middle East Consultant during a recent visit to Dubai. To say that he deserves that break is putting it mildly. From the moment he stepped into Mouchel’s headquarters in Woking, Surrey, as group chief executive in late 2011, Rumbles was preoccupied with one single task – bringing Mouchel back from the brink. “I think that due to a range of different factors, Mouchel had got themselves into an awful lot of financial difficulty. They had done a range of different acquisitions and that meant that they had built up debt. The whole world then experienced – in 2008 and moving on from there – the economic recession. It was like a perfect storm: the combination of all the debt and not integrating all the acquisitions maybe as well as they should have, and then a real downturn in terms of the marketplace that Mouchel played in. “All those things came together, and I arrived when, frankly speaking, the business was badly loss-making. We owed over $245 million and we had the banks, who were June 2015 Middle East Consultant 15
IN PRACTICE Grant rumbles
clearly very concerned about their debt, and we had our shareholders [to worry about]. The share price was 10 pence the day that I arrived! The market capitalisation was about $30 million and we owed $245 million. The business was losing money, so it was a bit of a problem!” Rumbles says as he recollects his first day on the job. Given the situation Mouchel was in, no one would have blamed him if he’d turned around and walked out the door. Luckily for the engineering consultancy, their new group chief executive was made of stern stuff. “When I spoke to some of my senior colleagues to get their advice as to what I might do before I came in, they certainly suggested to leave it alone!” he laughs. “But for me, I had known the Mouchel name for many years and I thought it was going to be a real challenge to see [what would happen]. I didn’t know what the outcome would be, I had no idea! But what I knew was that because of the way I work, I could do whatever was required in a controlled way, and that we’d also be able to find the best way, and it was quite possible, at that stage, that maybe Mouchel would not have survived at all.” The first thing Rumbles did was go to the banks and ask for 90 days leeway for himself and his team, so they could review the business properly and come back with some thoughts on how to save it. “As it was, during that period we were able to devise a plan that actually said that not only could Mouchel be saved, but also that it could become a very successful business. But to do that, we needed to do an awful lot of things and do them very quickly.” At the top of the list was resolving the debt situation. To do that, Rumbles and his team needed to bring in some additional capital, to pay off some of the debt and ease the burdens on the company. Initially, the plan was to appoint Goldman Sachs to take them to the City and raise the additional money they so desperately needed. Given the hits Mouchel’s shareholders had been taking, this proved to be easier said than done. The years of strife came back to haunt Mouchel, with shareholders and new investors alike wary about investing into it, new chief executive or not. Disheartening as this was, Rumbles refused to give up, ultimately settling upon a debt-for-equity swap with the banks, resolving the debt situation in a manner that satisfied all parties. With that pressing issue taken care of, he then turned his attention to the operational side of the business. “In terms of returning Mouchel to profitability, the company was in disarray. That meant resetting the vision for the company, resetting the strategy and resetting the way the company works,” he explains. “I had 22 operation reports the day I arrived at Mouchel! We had to set up a divisional structure with a very clear strategy that said that we would focus on the markets that Mouchel was already leading in, or could be, in a short 16 Middle East Consultant June 2015
Rumbles says that Kier's willingness to allow Mouchel to continue along its own growth path was a key factor in selling the consultancy to the contractor.
IN PRACTICE Grant rumbles
“In terms of returning Mouchel to profitability, the company was in disarray. That meant resetting the vision for the company, resetting the strategy and resetting the way the company works” period of time, a leader in those markets. We focused on that, and the creation of four divisions, which is the way we operate today. “We then set off on this path and used that strategy to take our business forwards. That meant creating a very strong team of people. Mouchel is not run just by me. I’ve got 65 people who sit in on the group leadership team. Three quarters of them didn’t exist when I arrived. Many of the people who now sit on the leadership team are the same people who were with Mouchel before, but they have a different role today. We completely reformed, over a period of two years, the whole of the leadership team and that’s been a key driver.” While confidence in Mouchel’s engineering prowess was never in doubt, Rumbles did have to address the issues around the business side of the operation. A clear strategy – what they would and wouldn’t do in terms of projects – and the creation of a strong team of people were just the first steps. The company also needed to get the right kind of business minds on board. “We needed business people who would be able to provide not just engineering solutions, but also be profitable and be able to manage the risks associated with that. We do that very well today,” he asserts. Given the amount of work that Rumbles and his team have put into turning Mouchel around, it’s only natural to wonder why they’d decide to sell up now, given that they have no real need to. The consultancy is doing as well as it ever has, with revenues up by 45% from 2014 and profits seeing a near 50% increase during the same period. In fact, things are going so well that Rumbles concedes that if the offer from Kier hadn’t come along, they would have probably gone back to the market for a relisting. “You know, we did go out and appoint Rothschild last summer, to prepare the business to be relisted. We had done about 75% of the work to get the business ready. We were then waiting for the opportune time, in terms of the market. Meanwhile, we were having conversations with a number of businesses who had approached us about potentially acquiring Mouchel. “One of those companies was Kier. We had conversations with other companies about potentially being acquired, but we couldn’t see a fit with them. But with Kier, we actually saw a very good fit. Our shareholders have been very supportive
of us, but ideally, they would like an exit. So I said to them, ‘If we can find an exit, but only with the right company, then we will do that. Otherwise, we’ll list.’ They bought into that strategy, and now with Kier, I think we’ve found a really good new owner for the business,” Rumbles explains, exuding confidence about the company he’s handing the reins over to. Although he readily admits that selling Mouchel wasn’t an easy decision for him personally, Rumbles says that what convinced him Kier was the right choice was not just the similarities between it and Mouchel, but also the differences. “I think that if you look at the market, you’ll see a lot of mergers and acquisitions taking place. It is just businesses doing more of the same. Recently, we have seen several high-profile acquisitions with two consulting engineering businesses coming together. Why would you do that? I’m not quite sure actually. It’s just more of the same! “With Kier, it’s very different. If you look at the places in which Mouchel plays, it’s at the top end – you’ve got consulting work and design and advisory elements – these are not things that Kier does today. “But when you look further down the pyramid and see the actual delivery of those services, we outsource something like $459 million to $535 million-worth of revenue to a whole range of other people to go and do the work. Kier could easily be doing, I don’t know, half to two-thirds of that work. That’s Kier’s core business,” he points out as the picture becomes a lot clearer. “For us, it’s about providing complementary services, that’s one side, and we absolutely complement each other. Kier works with a whole range of consulting engineering groups – a whole range of our competitors. That’s a whole range of things that we could be doing instead of those competitors. So it’s a complementary fit. “In terms of markets, again, it’s complementary. At the moment, we don’t play in any of Kier’s spaces, so by bringing both together, it gives us an automatic way into Kier’s markets that we don’t have at the moment. And also, it allows Kier to offer additional services to the clients that we have.” While being complementary in terms of services and operations is undoubtedly a good thing, the key to any successful acquisition or merger is having an overlap in corporate culture. When two companies have very different styles of operating, it can lead to conflict and confusion
Grant Rumbles – A career retrospective Prior to taking over as group chief executive at Mouchel in October 2011, Grant Rumbles served as the chief executive officer of Exova Group Limited from joining in October 2008. Before that, he was the chief operating officer of Serco Group until March 2008, and also served as group operations director for Worldwide. Over the course of a 25-year career at Serco Group, Rumbles operated in a variety of roles, including chief executive of the Continental Europe and the Middle East division. From 2001, he served as a member of the Global Management Board of Serco. Having joined Serco in 1992, he served in a range of air traffic and general management positions, and before that he was a senior air traffic control officer of International Aeradio.
June 2015 Middle East Consultant 17
IN PRACTICE Grant rumbles
Business as usual We spoke to andrew Body, managing director of Mouchel Middle east, to find out how the news of
between staff, costing time, money and, in extreme cases, even contracts. “We actually think that we’re quite similar. We think that the way Kier thinks about their people, and the way they behave, is very similar to the way we behave. Of course, you’re never sure until you go and do it, but time will tell whether this is going to work or not, but from what we can see, we think it’s going to be a complementary fit,” Rumbles enthuses.
the acquisition has been received in the region.
“Recently, we have seen several high-profile acquisitions with two consulting engineering businesses coming together. Why would you do that? I’m not quite sure actually. It’s just more of the same!”
this, we foresee lots of opportunities for our team
how do you feel about the news? I think this is very positive news for the Mouchel Group and for Mouchel Middle East. We are really excited about the acquisition and about what the future holds. Kier have made it clear they want us to continue to provide high-quality engineering consultancy services. In addition to to develop and grow, and that we will be able to offer clients a broader range of solutions. What is happening in your business at the moment? It is very much business as usual. We have client expectations to meet and projects to deliver. We are continuing to deliver winning bids and are continuing to grow in our core markets. This will not change. how have your clients received the news? We have been having really positive conversations with our clients. They understand that this will not change the design and engineering services they
“The other thing is that for Kier, and for us, is that they recognise that our business is different. If you look at all the other acquisitions that have happened recently, they want to take all these different things that people do and stick it all in one bucket and say, ‘Oh, we’re all the same.’ “Kier isn’t saying that. What they’re saying is, ‘You’ve got this great consulting engineering business and we love that. But we’re not expecting it to look like Kier in the future.' They want that piece that gives them thought leadership around a whole range of projects that they might otherwise not be involved with,” Rumbles insists. The outgoing CEO is clearly quite content with the way things have worked out. Having taken Mouchel through its worst times and emerged stronger and better prepared for the modern era, Rumbles is adamant that the time is right for the changeover. Not only is it good for the company’s future, but it also offers major opportunities to Mouchel’s staff of 6,500, he says. With both organisations on the rise, and with Kier determined to let Mouchel continue along its own path for now, Rumbles predicts that there will be a number of positions opening up with the new organisation that will allow employees to chart their own professional growth. With the future of his company and employees now secure, the next question that arises is what Grant Rumbles does with himself now. With the last three years of his life consumed by saving Mouchel, it’s quite understandable that he wants to take some time off. 18 Middle East Consultant June 2015
currently receive from our Middle East team. They also see that there are clear synergies between Mouchel and Kier and that we offer complementary services that can add value to them. We are looking forward to exploring how we will be able to work together in the Middle East and to being able to offer our clients a very powerful and fully encompassing proposition, from planning right the way through to project completion. Mouchel Middle East currently employs over 350 staff spread across three countries – Kuwait, KSA and the UAE. They provide design, engineering, managerial and operational services that have been supporting communities and keeping traffic moving in the region for 40 years.
“I’m not really sure what’s next for me!” he laughs when the question is put to him. “Mouchel has been all-consuming for me since I arrived. Until recently, my focus has been around listing the company, so for my own mind-set, it’s all been about that, it’s been much longer term." “Then we agreed the transaction with Kier, and I’m very comfortable with that. Mouchel has got a very good fit in that organisation. Personally, though, I need to sit back now and give some time to myself and think about what comes next, but it’ll definitely start with a break!”
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IN PRACTICE FIRE & LIFE SAFETY
Insight
With a spate of fires in high-rises around the Middle East in recent years, there has been debate as to whether the involvement of Fire & Life Safety Consultants in the early planning stages should be made compulsory. Hannah Kassam explores 20 Middle East Consultant June 2015
IN PRACTICE FIRE & LIFE SAFETY
June 2015 Middle East Consultant 21
IN PRACTICE FIRE & LIFE SAFETY
E
arlier this year, a fire in an 87-f loor building in Dubai prompted the evacuation of hundreds of residents and gripped headlines globally.
ThE blAzE, whICh PolICE hAvE dEEmEd AN
Key tech in fire prevention Sprinklers – to ensure that if a fire breaks out it is contained and controlled Detection and alarm – to make sure occupants and authorities are aware and can respond quickly
accident, started on the 50th floor of the Dubai Marina Torch building in the early hours of February 21. It's unclear how the fire started, but more than 100 apartments have been condemned, one of them worth $1.4m. Questions have naturally arisen, including how the fire managed to rip through the building so quickly. And with the tower only completed in 2011, wasn't it equipped with the latest in fire prevention technologies? It's not the first time the UAE has seen such a disaster. In 2012, the 34-storey Tamweel Tower in Jumeirah Lakes Towers was gutted by a fire. In April 2013, Sharjah's Al Hafeet Tower went up in flames after three residents allegedly tried to make a hookah fire. And last February, Qatar's Al Bidda Tower was evacuated due to a fire resulting from an electrical short circuit. The disasters have prompted calls to change regulation regarding fire and life safety consultants when it comes to building design. In the GCC, it is currently not compulsory to have a fire and life safety consultant involved at the planning stages of a construction project. It is about time the GCC clued up on the need for one, argues Garald Todd, head of fire and life safety at WSP Parsons Brinckerhoff in the Middle East. "Many jurisdictions around the world have mandatory requirements for licensed and
accredited fire consultancies to be appointed on every stage of a project, from concept design throughout construction. Some, like Sweden, require a fire consultant on virtually every type and size of project, whereas others only require a consultant on the larger and more complex projects." Fires happen and fires will keep on happening, say industry experts, whether through human error or faulty appliances and cable installations. The Middle East is no exception. But it is possible, with the intervention of a fire and life safety consultant at the early planning stages of a building, that the number of fires can be reduced, or at least their impact minimised. "The role of a fire and life safety consultant is to ensure that the design of the project complies with the applicable fire and life safety codes and standards, in order to reduce the impact on life and safety of occupants during a fire," says Afschin Soleimani, director Fire and Risk Engineering, Ramboll Middle East. Todd says where a "good fire consultancy shines" is in driving coordination throughout the project. "It isn't enough to develop a strategy and toss the report over the contractual wall and hope for the best; we are proactive and truly integrate with the design team to enforce that strategy through virtually every discipline associated with the project. This is where, I believe, the true value is added from a fire consultancy." But a fire consultancy team cannot be the start and end of
Compartmentation – to mitigate the spread of smoke through the building Egress, harden and protect stairs – to ensure resilience of the egress for occupants in the building Firefighting access and internal water provisions – to allow firefighters to safely access the floor of incident and provide any mop-up of the controlled fire.
Afschin Soleimani says that both occupants and building staff bear responsibility for fire and life safety.
22 Middle East Consultant June 2015
A good fire consultancy drives coordination throughout a project, says Garald Todd.
IN PRACTICE FIRE & LIFE SAFETY
The key tasks of a fire and life safety consultant 1. Ensure adequate exit facilities are provided, and ensure the spread of fire is limited and confined to the area of origin. 2. Assist design team and architect to fulfil their vision and create flexibility in the design. 3. Be aware of the intent of the applicable code requirements, in order to propose alternate or equivalent solutions when the building does not or cannot fully comply with applicable codes. 4. Be the interface between the approval authority and design team by being the ambassador of the project to the local civil defence agencies; and work with them to ensure not only compliance to their requirements, but compliance while also looking after the objectives and aspirations of the project stake holders.
preventing a fire; that is a team effort. For a start, there is the role played by the building management team. "Fire and life safety does not end when the building has been completed, it continues throughout the design life of a building," says Soleimani. Fire safety systems, such as sprinkler systems, fire alarm systems and pressurisation and extraction systems, need to be regularly inspected, tested and maintained. Other routine checks also need to be regularly carried out by the building's management team. These include the inspection of fire doors and their hardware, ensuring combustibles are not in areas where they could cause a fire, and the removal of obstructions and potential tripping hazards from exit routes. Exit and emergency lights should also be routinely checked. "There are a number of actions that the building staff as well as occupants can take to reduce the likelihood of the start of a fire or the spread of a fire, and also to provide effective evacuation in case of a fire," adds Soleimani. With many fires resulting from human involvement, whether from candles, smoking or leaving electrical appliances on, another question is whether residents are educated enough in fire prevention. Todd says awareness among residents is low. "There seems to be a trust and belief among the general public that the system in place that assures their building is safe will work, and everything will be OK. Thankfully, most of the time this is true; however, it isn't always. At the very least, occupants need to understand what they should do, where they should go and when they should do it." Soleimani adds that occupants should be equipped with literature that describes in more detail how to reduce the likelihood of a fire or what to do in the event of an outbreak. Of course, local governments and councils play a role here too. While in the UAE the government is deemed to be doing a good job – especially in a country which is developing so quickly – the consensus among industry experts is that more needs to be done to educate citizens on fire safety.
In Harlow, England, the local council has set out a fire safety plan for residents in towers which includes a general assessment of the main hazards and details of the control measures put in place to minimise risk in the event of a fire. Soleimani says that in the Middle East, the local civil defence authorities do a "remarkable job" but could go further in educating residents on "dos and don'ts". "One idea is to go to schools and educate children on what should be done in case of fires. Educating children on how to behave in case they are confronted with smoke or flames if they are alone in their rooms would raise the awareness. This is evident in some countries, where fire brigades visit schools to educate children in this matter." The Middle East – particularly the UAE and Qatar – is different in one sense, and that's the number of high-rises in comparison to one-storey buildings. But, says Todd, a "properly designed, constructed and maintained high-rise is one of the safest building types these days, due to the numerous protective features included in them, as mandated by building codes".
“Fire and life safety does not end when the building has been completed, it continues throughout the design life of a building” AFschin soleimAni, RAmboll middle eAst So what went wrong when it came to the recent tower fires across the GCC? Well, once again, it comes down to the inevitability of fire. However, one thing vibrant countries like the UAE boast is a lot more high-rises. One of the biggest risks within a tower is the number of people dependent on the same stairs/core, and general inaccessibility due to the height. These issues drive the numerous requirements that need to be built into the overall fire strategy. A separate issue, however, is the suitability of the cladding materials used in the region. Ideally, says Todd, compliance of materials needs to be checked during the tendering process. When it is overlooked, it is likely due to the lack of knowledge, awareness, scope and oversight in the design and construction teams working on a project. "The difficulty in this region is that it is a community of people from all over the world, working with codes and standards which aren't familiar to them. This makes it even more vital to have competent consultants with a long and successful history with these codes and standards, to ensure things don't get missed." June 2015 Middle East Consultant 23
IN PRACTICE Global ServiceS education
24 Middle East Consultant June 2015
IN PRACTICE Global ServiceS education
Profile
“We really believe that the young people in our schools certainly are tomorrow's future.” Global Services Education is about to embark on its latest school project, in Palestine. Greg Parry and Shanna Mack talk to Hannah Kassam about what they hope to achieve and what obstacles they foresee on the Lacasa project
T
ell me a little about the business rationale of Global Services Education. How does the model work? Greg Parry, international education leader and project manager, Global Services Education: Basically, we work
Your latest venture is Middle East-based, and not your first in the region either. What would you say is unique about the Middle East experience? GP: We've set up a school in India and then went to China.
in partnership with developers and architects. We are not necessarily investors, we haven't been investors at this point in time, we've been partners that basically do the set-up then manage and operate the schools independently.
China has been good to us, it really has, and it continues to expand for us. We are still in talks for new projects in China. But I'll be honest, even the visit in the Middle East last week; it's cleaner, it's a simpler culture. I guess we are really interested in moving to the Middle East.
Shanna Mack, international education leader and project manager, Global Services Education: Our company
had a really unique beginning. When we were in India, we started getting companies reaching out to us from China – investors and developers saying, "Hey, we've heard about your backgrounds, can you come and help us?" So our company actually started on its own. We moved to China and worked on one project and then another company contacted us right away, so we really did begin by people reaching out to us. Greg and I with our education background, both as teachers and as principals, we filled the gap that wasn't necessarily there.
You've already spent some time in the Middle East. What would you say are some of the biggest challenges of working in this region? GP: I don't think this is a massive deficit, but if you ask me
what is lacking in the region in terms of physical infrastructure, I think it is that connection between the vision of the school and the facility design. You can jump on a website and see very fancy things, fancy vision statements, but it doesn't connect truly with the architectural design. For example, we did a big June 2015 Middle East Consultant 25
IN PRACTICE Global ServiceS education
Shanna Mack says that working on humanitarian projects is a key part of GSE's vision.
project here in China, its vision was a focus on innovation. If you think about the product of an educational system that has a vision for innovation, it's to create the next Steve Jobs, Bill Gates or the next fashion designer. Da Vinci was a person that connected science with the arts. That might sound very lovely, but it's all very fluffy until you put it into practice. A facility that's designed to match that vision is different. It has lots of breakout spaces, lots of flexible use of spaces. I'm sure there are a lot of beautiful schools and buildings in Dubai, but at the end of the day, you don't build rectangular boxes when you want to create learning environments that foster those innovations, so it's an architectural design matching vision. What's your involvement in LACASA? SM: We started from the ground up. What's been great about
Biography: Shanna Mack Shanna Mack, international education leader and project manager, Global Services Education: Shanna has served as a director in higher education, headmaster of a secondary school and a consultant at K12. She has had extensive international experience in the US, Middle East and China, leading curriculum design and administration of all major curricula including American K-12, American AP, International Baccalaureate, UK IGCSE and A-Levels. She is also a specialist in language programmes (EAP, TOEFL, IELTS and General English), SAT and university preparation. 26 Middle East Consultant June 2015
the LACASA project is they're wonderful architects but they've never built a school before. So we've helped them design a school where the space actually feeds, enhances and supports the curriculum. Now we're developing the curriculum. We've visited Palestine so we could have an idea of what that needed to look like for the Palestine community. We'll be running an American curriculum but will also be making sure we have a lot of those cultural connections that are so important to the community. Then moving forward, just getting it staffed and then doing the managing of the school. You talk about equipping the school; hiring is obviously a big part of that. What's the plan here? SM: We'll have 50% expat foreign teachers and 50% Palestinian. We're actually working with one of the leading universities in Palestine to create a teacher training programme, so we are meeting with them next week to help them so they can develop the Palestine [project] teachers. Some of the current political challenges in Palestine could surely present an obstacle. GP: All the schools we have worked at, we've been involved
in a lot of community leadership projects, from setting up an orphanage in Nairobi, Kenya, for children whose parents were victims of AIDS. When we were in Dubai, we worked with Palestinian families who certainly were very upset and aggravated by the conflict in Gaza. So to us, academic achievement and high standards are very important, but we are also very internationally minded. In Palestine, we personally don't have a political position on the conflict. We really believe that the young people in our schools certainly are tomorrow's future. We need to help challenge them, help them to think critically and be the leaders for the future. There seems to be a humanitarian element to what you do at GSE. How much of the business is driven by giving back?
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IN PRACTICE Global ServiceS education
GSE are operators and supporters rather than direct investors in their schools, says Greg Parry.
Biography: Greg Parry Greg Parry, international education leader and project manager, Global Services Education: Greg's vast experience includes high-level positions with secondary and vocational institutions throughout Australia, the Middle East, the US, India and China. Greg’s various positions at these institutes include director, headmaster and consultant. Greg has trained teachers and principals throughout the world in areas such as critical thinking, language development and leadership. Greg has led curriculum design and administration of all major curricula, including Australian K-12, US Diploma, International Baccalaureate, UK IGCSE and A-Levels. 28 Middle East Consultant June 2015
SM: We like to give back and do – to the UN project and
things like that – that's something we are very passionate about. But what we are also passionate about is helping the average student get into a top 50 or top 100 university. We want to help all the students in as many different markets as we can get in. GP: It's very easy to hand over money, but that doesn't necessarily change the world. Bill Gates knows that, Bill Gates has a lot of money but he's created a foundation that changes behaviours. What we are passionate about is building environments that change people's behaviours. That's why we are so excited about Palestine, because we potentially have the opportunity to shape behaviours or allow them to shape themselves. When we get involved in humanitarian projects, it's about helping inspire the children to use their own hands, to use their own minds and hearts to make changes, rather than just charitable donations, which short-term are fine but long-term are not sustainable. You're competing with some fairly large players. What sets you apart? GP: There are some big players in the market, the big
school groups, they're owners and investors. There are a lot of businessmen and developers that would like to have their own schools, but they would remain the investor. The analogy I like to use is I love to eat beautiful foods, I love to go to restaurants, maybe I'd like to own one, but it would be silly for me to pretend I can actually run and operate it. We are different to Gems and the others, because we are the operators and support rather than the direct investors. Also, I guess we are brand creators. If you want a brand, you can go with Gems. If you want to create your own brand and create a legacy that's your own, and have your name on it, then that's us. We don't plan to have 150 schools like Gems do, but we want to help create brands that people are proud of. SM: I don't think we necessarily compete with them, I think that we are very different. We're a smaller company, so a bit more boutique and don't have a cookie-cutter plan. We go into communities, see what they need and make adjustments in that way. We're not investors, we don't own the school, we help investors to be able to have their dream of the school, we just do the management side. What are your hopes for GSE over the next five years? GP: Our priority is Asia and the Middle East. We would like
to be leading and operating five schools in Dubai and five in the Middle East region. We want to continue expanding in China also. We are looking at Malaysia too. We expect to be operating at least 12 schools across those two regions in the next 10-12 years. We are also currently in negotiations to set up a school in Arizona in the US, so we are in the feasibility study stage at the moment but certainly looking to operate in the US and Australia as well.
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IN PRACTICE LEADERS IN ARCHITECTURE
30 Middle East Consultant June 2015
IN PRACTICE LEADERS IN ARCHITECTURE
Insight
TALK OF THE TOWN
The region’s top designers met to exchange ideas at the Leaders in Architecture summit in Dubai
O
ne thing is certain: architects like to talk. And once they start, it’s difficult to get them to stop. It was hardly a surprise, therefore, that most of the panel sessions at Leaders in Architecture MENA over-ran their allocated 45-minute slots. Perhaps more unexpected was the quality of speakers for an inaugural event in the region; almost every major architecture firm was represented, often by the principal, managing director or founder. June 2015 Middle East Consultant 31
IN PRACTICE LEADERS IN ARCHITECTURE
Avoid nostalgia when designing new buildings, warned Daniel Hajjar.
ORgANIsEd by THE PRAguE-bAsEd International Business Council and chaired by former Middle East Consultant editor Oliver Ephgrave, the event took place from 20-21 April at the Sheraton Jumeirah Beach Residence. Kicking off the summit, the opening session asked panellists to discuss the future of architecture across the MENA region. Featuring Ian Apsley, main board director of Broadway Malyan, and Michael Fowler, managing director Middle East of Aedas, the speakers pointed to the standout nature of Dubai for architecture and urban development. The other panellist, Mufadhal Abbas Shkara, senior vice president and board member of Zuhair Fayez Partnership, highlighted voids elsewhere in the region, such as a lack of developed public space in Saudi Arabia. Shkara also suggested that the reluctance of expatriates to learn Arabic could be contributing to cultural divisions within the industry. This was followed by a talk on regional hospitality design, currently a hot topic. Shawn Basler, principal and executive director for Perkins Eastman, explained how hotel guests are looking for personalisation, authenticity and uniqueness. At the same time, Ralf Steinhauer, VP hospitality MENA for RSP Architects, stated that many operators place more emphasis on the interior design than the exterior architecture of hotels. Steinhauer, Basler and the other panellists – Jahya Jan, design director of Norr, and Pedram Rad, managing director of U+A – all agreed that technology plays a crucial role in hotel design, particularly for the guest check-in experience. ‘Secrets Behind Building a Successful Architecture’ was the
32 Middle East Consultant June 2015
subject of the next session. Panellists stressed the importance of aligning with the right clients as well as looking after staff. They also discussed how firms should focus on core disciplines rather than offering multidisciplinary services for the sake of appearance. The speakers highlighted the changing focus of architecture firms. Charles Dalluge, president of DLR Group, stated: “The pendulum has swung from the need to deliver design excellence towards the necessity to manage firms in a better way. [Yet] sound project management can give you time to focus on the incredible.” Another business talk followed, entitled ‘How to Thrive in a Post-Recession World’. Professor Shams Eldien Naga, principal and managing director of Naga Architects, explained how his firm has set up bases just outside Dubai to gain an edge. Brian Johnson, principal of GAJ, suggested that client contracts are not improving; instead they have become “more ridiculous”. Dr Naga offered another word of warning: “We should look at post-recession as pre-recession” and therefore think carefully before making key business decisions. The subject moved onto urban planning with the talk ‘Future Cities: From the City Expansion to New Cities’. Panellists questioned the emotional investment of the expatriate architects and residents of the region. They noted how new schemes must take heed of the tried and tested, traditional methodologies. However, Daniel Hajjar, senior vice president and managing principal for HOK, asserted: “Don’t look at pastiche and don’t look at nostalgia.”
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IN PRACTICE LEADERS IN ARCHITECTURE
The concept of instant cities was also discussed in the same session. Tim Makower, founder of Makower Architects, stated that large master-planned projects are not doomed to fail, as long as they pay special attention to the spaces in between buildings.
“The pendulum has swung from the need to deliver design excellence towards the necessity to manage firms in a better way” Charles Dalluge, Dlr group
Large master-planned projects need to pay attention to the spaces between buildings, says Tim Makower.
In the following session, ‘Reconnecting Culture through Contemporary Architecture’, the identity of regional cities was scrutinised. Panellists, included Marwan Zgheib, founding principal of MZ Architects, noted how the vast material palette available to architects offers complete freedom and therefore limits the development of a unique style. Furthermore, the large scale of certain developments was described as damaging the urban grain and character of old cities. The speakers concluded that tall buildings are unable to successfully incorporate historic elements, and therefore it is preferable to build them outside heritage areas. The second day of the event was notable for an even livelier dialogue with the audience. A panel on the role of women in architecture was particularly memorable, with a heated disagreement between panellist Raya Ani, founder of RWA-
34 Middle East Consultant June 2015
NYC, and a female member of the audience, after the latter asserted that women do not face any real difficulties in the modern-day workplace. Sustainability is a prerequisite subject for any construction conference, and the challenges of implementing green architecture were discussed in the following panel talk. The panellists – including Stefan Frantzen, group director of P&T Group – advocated the use of recycled materials as well as re-using materials wherever possible and minimising waste. They also stated that green materials can augment, rather than stifle, the design process. The final session of the event centred on the role of boutique architecture firms, posing the question ‘Does Size Matter?' The panellists, which included Nasser AbulHassan, principal of AGi architects, and Ahmed Al Ali, executive chairman of X Architects, answered yes and no. They agreed that the size of a firm is no impediment to quality design; however, it can be an issue when pitching for work with government clients. The speakers concurred that the industry is now based around collaboration, and that the skillset of the consultancy team – rather than the individual firm – is what really matters. As a whole, the event’s main successes were the quality of the speakers and the involvement of the audience. Unlike many regional conferences, it had the true feel of a forum, with every session generating a flurry of questions from the floor. One slight disappointment was the turnout, partly due to a scheduling clash with Cityscape Abu Dhabi. However, with a follow-up event already planned for 2016, Leaders in Architecture MENA is set to become a staple event in the regional architectural calendar.
CONSULTANTS & ARCHITECTS CUP 2015 Not only is the Golf Day a great day out, it also represents an ideal opportunity to network with potential clients and entertain existing ones, while giving you a chance to get to know the people who make up the consultant and architect industry. Whether you’re part of the industry or if you provide services to it, it’s an opportunity not to be missed! The 2015 Consultants & Architects Cup is an invite-only, free-to-attend event for consultants and architects. We offer various sponsorship opportunities for those companies that provide services to the construction industry. All sponsorship opportunities include a free day on the golf course - you might even call it working!
29 OCTOBER 2015 EMIR ATES GOLF CLUB
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www.kryton.com
“KIM’s ability to turn the concrete into a waterproof barrier lessens the risk of early concrete deterioration, and saves time and money by avoiding costly repairs throughout the life of the structure” benefit projects here?
The GCC market is one with which Kryton and KIM thrives. This is a region that our waterproofing system was built for. Some may believe a concrete waterproofing system isn’t needed in an arid region where the chance of rain is slim. However, many of the GCC major cities are on the coastline, which means they will be facing high hydrostatic pressure below ground. According to statistics worldwide, the ingress of water and water-borne chemicals is the greatest threat to early concrete deterioration. In the GCC, which needs to protect concrete against below grade high hydrostatic pressure, KIM’s PRAH capabilities and green characteristics prove invaluable in keeping concrete structures watertight. KIM’s ability to turn the concrete into a waterproof barrier lessens the risk of early concrete deterioration, and saves time and money by avoiding costly repairs throughout the life of the structure.
The expected lifespan of a concrete structure is growing every year, especially as buildings grow higher and higher, and cost more and more. With that in mind, the infiltration of water is well documented as being the leading cause of concrete deterioration. Kryton has 42 years of concrete protection, coating and corrosion-inhibiting technological expertise that we bring to every project throughout the Middle East. Our expertise in the industry is what has become more noticed.
best practices are realised is a must. Our belief is that we are not just selling a product, a simple waterproofing material that you can grab off a shelf and institute. We are selling a full waterproofing system, which includes technical support in reviewing project requirements and concrete mix design with the consultants, engineers, architects, owner and developer. During application we have someone on-site to supervise KIM’s use with the general contractors, and even give after-sale service to ensure the system is working as specified. We provide an overall solution to concrete waterproofing projects.
How do you work with clients or project teams to ensure that best performances and practices are achieved?
What projects have used Krystol Internal Membrane in the Middle East’s unique environment?
Working with clients and project teams to ensure
Yes, we have been throughout the Middle East since 2001 and have waterproofed many highprofile projects with great success in the region despite the harsh environment. Recently, our KIM waterproofing admixture was specified for the Juma Al Majid Tower in Dubai, where we waterproofed four basements and a car park structure, as well as the foundation of the main tower. Further, in Abu Dhabi KIM was specified to waterproof the basement level and all wet areas of the Rotana Resort on Saadiya Island, which sits in the Marina facing hydrostatic pressure that an external membrane would be at risk of punctures or tears. KIM, on the other hand, didn’t come with those risks and continues to waterproof as intended. These are just two of the recent projects we’ve been on, but have been specified many more and are growing every single year. To date, Kryton has been used on hundreds of projects throughout the Middle East, which should catapult ever higher with the economy in Dubai and Qatar continuing to grow, and more global business arriving in the Middle East.
over 42 years in the industry), how can you change the mindset of contractors/ specifiers here?
Is there an understanding of long-term value in the market?
The long-term value in the Middle East is great, the market is certainly booming. Most of the countries in the Middle East are developing and doing so at a furious rate. This means the building of infrastructure, tall buildings and residential developments, all of which we provide the concrete waterproofing for. With the World Cup on its way to Qatar and Expo 2020 coming to the region, the economic wave will bring more and more development for the developing and maturing region. With construction continuing to grow, as well as the knowledge in using innovative technologies to create sustainable structures, our KIM waterproofing admixture will prove its value. Given KIM’s history and knowledge (built
KIM waterproofing admixture was specified for the Juma Al Majid Tower in Dubai
June 2015 Middle East Consultant 37
on site roundup
Project update
Hyder to design metro, transport systems for Jeddah The plan includes the design
strength and technical expertise
to develop the architectural design
of metro stations and branding,
of Hyder and Arcadis, which has
for a public transport system in
Arcadis said in a statement.
fortified our position in infrastructure
Hyder Consulting has been appointed
the Saudi city of Jeddah.
“Over the last two years, our railway
design in the Middle East." Only 12% of Jeddah’s population
The plan for the transport
team has invested time and effort in
network includes metro, ferry,
helping Metro Jeddah Company set
currently live within a ten-minute walk of
bus and cycle services, as well as
up and move this project forward,
public transport, it has been reported.
public spaces and retail areas.
underlining our commitment to
The contract signing ceremony with
Jeddah and the wider Saudi market,”
the client, Jeddah Metro Company,
firm Arcadis, will work as a part
said Sameer Daoud, Infrastructure
was held in Jeddah on 31 March 2015.
of the Foster + Partners team to
Global Business Leader of Arcadis in
The contract was signed by Prince
“develop the architectural vision”
the Middle East. “This is yet another
Khalid bin Faisal bin Abdulaziz Al Saud,
for the public transport system.
example of the combined multinational
the governor of Makkah Province.
Hyder, a subsidiary of consultancy
Gulf construction CEOs now paid up to $1.2 million a year Construction bosses in the Gulf are now raking in up to $1.2 million a year in basic pay, making it the region’s best-paying sector for senior managers, according to an executive-search firm. Average income across all sectors was up 7% at the beginning of the year, with toptier executive salaries increasing by 39% in some businesses, according to Rasd. “The construction and real-estate industries have experienced exponential growth in the last year. This is especially the case in Dubai, KSA and Qatar, where multiple new projects are materialising. Top-level executives within these sectors are now in a position to 38 Middle East Consultant June 2015
reap the benefits of this momentum,” said Mohamad El Turk, a partner at Rasd. Across all sectors, Saudi Arabia and Qatar remain the highest-paying regions within the Gulf region, especially for senior professionals in CEO-level roles. Middle East Consultant’s own salary survey, conducted at the end of 2014, also pointed to rising salaries in the construction sector. The Construction Intelligence Report, released in January 2015, found that 75.1% of all respondents reported some movement in their salary, with 21% reporting a salary rise of more than 10% over the course of 12 months.
on site roundup
MidEast hospital design should account for cultural factors
Dubai plans tenDer timeline for route 2020 Dubai’s transport authority has outlined the timeline for tenders for construction of the Route 2020 metro line, which is scheduled to begin early next year. The Roads and Transport Authority (RTA) said more than 100 rail contractors attended a gathering to discuss the new line, which will extend 15km between the Nakheel Harbour and Tower station and the Expo 2020 site. “The RTA will start receiving requests for pre-qualification as of May 31 this year, and the shortlist of consortiums qualified to undertake the project will be selected on June 30 this year,” said Mattar Al Tayer, chairman and executive director of the RTA. On July 2, the RTA will release the tender documents and on December 6 will start receiving proposals, Al Tayer added. The winning consortium is set to be announced on January 28. Construction on the Route 2020 project will start once the contract is awarded in Q1 2016.
Healthcare design in the Middle East needs to take into account cultural factors, such as higher numbers of people visiting patients compared with in other parts of the world, experts say. Although many aspects of hospital design, such as the size of operating theatres or diagnostic spaces, do not differ much across countries, this isn’t the case for patient bedrooms and some other areas, says Simon Bourke, director of healthcare at BuroHappold, an engineering consultancy. “As an international engineer, you have to be very attuned to specific cultural requirements,” he told ME Consultant. “In the Middle East and India and quite a lot of other cultures, the idea of the extended family… is extremely important.” This means that what may be considered the norm in one part of the world when designing hospitals doesn’t necessarily lend itself to other countries or cultures, he added. If higher numbers of visitors on
average are expected, this affects aspects of the hospital design such as the size of bedrooms or elevators. “You could get it badly wrong if you're only expecting two or three visitors per day and actually you might be getting eight. It could end up with big queues in the lobbies to get through up to the inpatient areas, so things like that you have to be very sensitive to,” Bourke said. Dr Nasser B Abdulhasan, principal of Kuwait-based AGi Architects, echoes Bourke’s comments about the importance of factoring in culture when building hospitals in the region. “If someone is [having] surgery, there's a much larger number of family members waiting outside for as many hours as needed because the society functions in that fashion, and that has to be addressed in any design.” Hospital design guidelines, which have been extensively developed in countries like the US and UK, do not factor in cultural requirements, Abdulhasan and Bourke concluded.
June 2015 Middle East Consultant 39
IN PRACTICE MiChaEl ConnEr
Final word
Michael Conner is an associate director at Faithful+Gould’s Qatar office. He can be reached at Michael.Conner@FGould.com
PPP market on the upswing PPPs are an important funding mechanism to achieve infrastructure investment, says Michael Conner, associate director at Faithful+Gould The Gulf Cooperation Council (GCC) region’s sizeable infrastructure investment gap is driving increased interest in public-private partnership (PPP). Infrastructure is at the forefront of each country’s development plans, but the public sector alone cannot fulfil every need in sectors such as water, power, transport, education, telecommunications and healthcare. The speed and volume of proposed development also brings challenges. The need to diversify its economies, through a combination of government investment and increased private sector participation, has intensified the region’s interest in alternative project finance. This has the potential to bring important benefits and may be crucial to the region’s ability to deliver projects. PPP is seen as a way of bringing in specialist private sector expertise and efficiency, as well as attracting international inward investment and local private sector involvement. The region’s thirst for ambitious developments has triggered a range of PPP deals, securing buy-in and long-term commitment from the private sector to deliver nationally important projects such as Expo 2020 and the World Cup in Qatar. Other countries have used PPP arrangements to construct airports and shopping malls. We can expect to see growing commitment to PPP 40 Middle East Consultant June 2015
implementation, with models becoming more diverse and robust. The UK pioneered the PPP framework through its Private Finance Initiative (PFI), whereby the private sector designs, builds and maintains infrastructure and other capital assets, then operates those assets to sell services to the public sector. PFI gives the private operator strong incentives to deliver the project on cost and on time, and enables the government to spread the cost of investment over, for example, 25-30 years. Although the GCC countries are using the UK framework principles, it’s important to note that PPP cannot simply be imported from a global template. A comprehensive PPP programme framework includes legislative, regulatory and process framework, which is vital for success. To attract appropriate private sector investment requires high-level government commitment to PPP, with a clear and transparent PPP policy framework. With these frameworks in place, PPP provides a very comprehensive transfer of risk and responsibility for delivering and maintaining the building or asset, providing the optimum cost for the building over its life. Public sector borrowing is reduced, private sector skills are unlocked and new technologies are potentially introduced. The increased engagement with global best practice concepts is a major benefit, helping secure a lasting legacy. Operational benefits are also possible. Governments can focus their resources on delivering strategy and policy, while outsourcing operational delivery to the private sector. If operated properly, this secures better overall value without affecting the delivery of front-line public services.
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