ME Consultant October 2017

For the construction specialist

Going Global Peyman Mohajer reveals WME Consultants’ ambitions for global expansion ON TOPIC

Aligning with the Kingdom’s move towards PMOs

IN PRACTICE

Addressing construction disputes in the ME region

ON SITE

Master-planning Sharjah’s Aljada mega-project

ISSUE 041

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CONTENTS

On topic INduSTRy VIEWS fROm aCROSS ThE mIddLE EaST

04

07 07 aNaLySIS

Cavendish Maxwell’s Manika Dhama weighs in on how Dubai’s residential market performed in Q2 and Q3 of this year 14 OpINION

Boris Ritter, general manager of Sesam Business Consultants shares his views on 3D printing technology and its potential impact on the construction industry

10

16

In practice aNaLySIS, INSIghTS aNd INTERVIEWS

26 INTERVIEW

Middle East Consultant speaks to WME Consultants’ Peyman Mohajer about his firm’s business, projects in the region and expanding into other markets 32 INTERVIEW

20

26

We catch up with Craig Gibson ahead of BRG’s one-year anniversary in Dubai, for chat about construction disputes in the current market landscape 36 INTERVIEW

ARADA’s Ibrahim Al Nemeh discusses the design and thinking behind the master-planned Aljada megaproject in Sharjah

On site CaSE STudIES, OpINIONS aNd SNapShOTS

32

36

42 OpINION

HKA’s Jeffrey Badman details the mechanics and scenarios relating to contractor claims 51 NEWS

Perkins+Will appoints new associate principal 56 ThE BaCk pagE

Muhammad Obaid explains how efficient building design and passive cooling can be used to create cooler indoor and outdoor spaces

46

51

OCTOBER 2017 1

WELCOME

Group EDITOR’S NOTE

PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713

Editorial

District 2020 Rises According to officials, post-Expo planning began the moment the city was announced as the host for the Expo 2020 extravaganza.

That’s probably why the post-Expo plans are as impressive as those for the Expo itself, particularly from a sustainability standpoint.

The name to remember is District 2020 - that’s what the site will be known as, and the transformation from Expo 2020 is expected to begin on April 11, 2021. Officials shared several figures and stats when talking about the post-Expo site strategy but what jumped out is that as much as 80% of the site’s infrastructure will be reused. That’s very impressive and the transformation will no doubt pose an interesting challenge for those working on the project. I, for one, will be following the transformation very closely.

That’s not the end of the site’s sustainability story however.

The new district is to have residential and business communities, community parks and a host of other attractions and amenities, and authorities say that all of District 2020’s buildings will meet or exceed LEED Gold standards. This, again, demonstrates the government’s commitment to sustainability. In fact, I’m hoping that this announcement will inspire developers, consultants and contractors to further up their focus on sustainability on projects throughout the rest of the city, and the wider Middle East.

District 2020 will also look to reduce resident’s dependence on combustion-based transport, through the provision of pedestrian walkways and 10km of bike paths. Public shading solutions will also feature prominently and these elements combined should make it possible for people to get around the district in relative comfort, even when the temperature creeps-up.

Plans for the district include the world’s first 5G mobile network as well, which will enable the use of sophisticated video conferencing systems. This, I’m told, could make certain in-person meetings obsolete. Whatever your views are on that last point, one thing is for certain, things will change once Expo 2020 has been and gone. Enjoy the issue.

EDITOR JASoN SAuNdALkAR jason.s@cpimediagroup.com +971 4 375 5475 SUB EDITOR AELREd doYLE aelred.doyle@cpimediagroup.com

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Jason Saundalkar Editor, Middle East Consultant 2 OCTOBER 2017

© Copyright 2017 CPI. All rights reserved. while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

Bringing the latest

construction news from across the GCC

www.meconstructionnews.com

ON TOPIC

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

TIME FOR A REACTION

Kleindienst ‘to unveil Dubai megaproject worth $680m’

CONSTRUCTION

Six Construct wins contract for Masdar City project

In pictures: First floating homes on way to Dubai’s Marasi Business Bay

INTERVIEWS

Arcon: Building concrete relationships in the UAE

CONSTRUCTION

Majid Al Futtaim in talks over ‘flagship’ Dubai project

MACHINERY

Doosan to merge divisions for EMEA expansion

4 OCTOBER 2017

Video: JLL explores ‘what makes Dubai so ambitious’

I’m glad that this is finally being addressed (“Move to replace Dubai building facades after series of fires”, September 24).

After the Torch tower catching fire twice, one begins to think why they didn’t react the first time round? Fire-proof cladding is a good start, albeit a late one. Developers need to stop being cheap, and start valuing the lives of the people that live in these majestic buildings that make up the stunning skyline of Dubai.

If something as small as a cigarette butt can set off a fire large enough to engulf a skyscraper, someone cheaped out somewhere. Perhaps future property buyers should try lighting a match when they’re called for snagging.

Otherwise, quite literally, they’re letting their money go up in flames. Fun times for the insurers, who will now try and make the most of this opportunity to sell home insurance to property buyers.

I’d like to know what further steps will be taken by the government to curb these issues.

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DUBAI

ABU DHABI

HONGKONG

BANGKOK

SINGAPORE

SHANGHAI

BEIJING

HANOI

ON TOPIC

ANALYSIS

Dubai Market Report Manika Dhama, senior consultant at Cavendish Maxwell, comments on how Dubai’s residential market fared during Q2 and Q3 of this year

T

he number of transactions for off-plan properties on the first day of Cityscape in 2017 increased three times, from 37 to 106, year-on-year. This is a significant leap in activity compared to previous years.

This wasn’t the only record that was shattered; July 2017 was the most active month for off-plan sales since 2008, when the Dubai Land Department (DLD) began recording data online. The month had over 2,200 under-construction units sold and this trend set by off-plan sales continued into August. The second month of the quarter usually records lower activity than the first half of the year, given the spate of holidays.

This year, however, August activity also surpassed historical numbers with off-plan sales touching the 2,100-unit mark.

Price Performance

Average apartment prices across Dubai have continued to trade within a close range of $327-381m over the last twelve months. For apartments, starting prices of $136,000 in emerging locations such as Dubai South and Sports City are driving demand from first-time buyers. In comparison, average prices for villas/townhouses have moved down from $1m in Q3 2016 to $599,000 this quarter. Lowerpriced villa/townhouse inventory continues to enter the market in locations such as Dubailand, which is having an impact on price dynamics for existing communities.

Price declines continued during the last twelve months, averaging more than 1% y-o-y for apartments and villas/townhouses.

OCTOBER 2017 7

ON TOPIC

Communities with existing infrastructure and amenities continue to fare better than outlying areas, which have limited facilities and where the majority of the projects are still under construction. Prices for properties in established communities with limited upcoming supply, such as Dubai Marina and DIFC, have held stronger than emerging neighbourhoods with significant upcoming supply, such as Dubai Sports City and Jumeirah Village Circle.

Market Activity

Current price levels have encouraged buyer activity, especially from end users, with year-to-date transactions surpassing 2016 levels, in particular for under-construction properties. DLD data puts the total off-plan transactions for apartments and villas between January and August of this year at 16,173, versus 9,878 transactions over the same period in 2016.

Off-plan sales account for the majority of total transactions between January and August 2017. As stated earlier, July 2017 was a highly active month for off-plan apartment transactions, with a total of 2,220 transfers. February 2017 was also particularly active for off-plan

villa/townhouse transactions, with new launches in Dubailand and communities in Reem Mira accounting for the majority of transactions that were recorded.

The current momentum in sales activity is driven by a larger proportion of end users than ever before, particularly first-time buyers, who are entering the market enthused by low prices and encouraged by attractive payment plans offered by certain developers.

Additionally, the value of mortgage transactions has increased from $13.1m during the first half of 2016 to $16.3m over the same period this year. Newer banking products and incentives such as fee waivers have also helped a new set of buyers enter the property market. Prices and accessibility criteria for home mortgage, traditionally the two biggest barriers for such new entrants, have been lowered, resulting in an uptick in market activity.

Rent Performance

Another continuing trend has been declining rents for residential properties in Dubai, with 12-month declines averaging 3.4% for apartments and 4.7% for villas/townhouses. Rental declines have

Dubai Land Department Off-Plan Analysis

Villa/Townhouse

Apartment

2,000

Source: PropertyMonitor.ae

1,500

1,000

500

Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16

8 OCTOBER 2017

Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17

Jul 17

Aug 17 Sep 17

ON TOPIC

Dubai Villa/Townhouse Sales Volume – Secondary Market Transfers vs Off-plan

Secondary Market Transfers

Off-plan

1,000

750

500

250

Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16

Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17

been more pronounced in larger units such as villas/townhouses than in apartments over the last twelve months.

The introduction of lower-priced villa inventory in the market through communities such as Reem Mira and offerings in Dubailand is expected to put pressure on larger apartment units, as softening rents could fuel migration to these new villa communities. Additionally, a sizable volume of new supply currently under construction in freehold locations such as Al Barsha 2 & 3, Al Barsha South and Al Warqa’a will put further pressure on the declining villa rentals. Meanwhile, larger villa units will continue to face occupancy pressure. This pressure comes primarily from the relocation of senior executives, who historically occupied these units, as they are now opting for smaller units due to reduced housing allowances.

To avoid long vacancy periods, landlords have been offering incentives such as payment through multiple cheques and first month rent-free. The average payment structure has now become four cheques annually, against the typical one-cheque payment in previous years. The scheduled upcoming supply is also expected to continue affecting rents in the emirate. Alongside this, the upcoming

Jul 17

Aug 17 Sep 17

introduction of VAT is expected to affect household income levels and hence rent contributions.

Upcoming Supply

As of August 2017, approximately 24,400 units are scheduled to be handed over during the remainder of the year, though actual completions may vary significantly. Historically, there has been a considerable gap between the number of units announced for completion and actual handovers. Some projects are delayed as a result of financing issues, contractual disputes, and licensing and approval delays. Some developers are also adopting staggered delivery schedules, to align handovers with demand and project sales potential and to avoid flooding the market with units that cannot be absorbed. Developers are expected to continue phasing the delivery of projects by focusing on absorption of limited released units before more supply is brought to market.

The key locations for upcoming supply this year are Dubai Marina, Damac Hills, Jumeirah Village Circle, Dubai Sports City, Al Qouz and Business Bay, which all have over 2,000 units expected to be handed over by the end of 2017.

Dubai Apartment Sales Volume – Secondary Market Transfers vs Off-plan

Secondary Market Transfers

Off-plan

2,000

1,500

1,000

500

Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16

Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17

Jul 17

Aug 17 Sep 17

OCTOBER 2017 9

ON TOPIC

ANALYSIS

Residential Sentiment Survey Core Savills reveals market sentiment and trends in Dubai’s residential property market in 2017

I

n 2016, a convincing 50% of respondents believed that Dubai’s residential market was showing signs of recovery. This figure has decreased to 34% this year, with half of the difference explained by the shift of positive responses in 2016 to the ‘indecisive category’ of having no opinion in 2017, translating an increasingly hesitant state of mind shared by market players.

While we continue to be cautiously optimistic about overall market fundamentals, we interpret the divergence between market reality and dominant sentiment, as stemming from higher expectations of growth deceived by a mature and gradual recovery. As Dubai was an emerging economy two decades ago, and before the global financial crisis, it was a given for many players that double-digit growth figures were the norm. As the market has shown signs of recovery over the past 18 months, a portion of respondents to our survey last year may have anticipated faster upward market movement in prices.

Dubai’s residential market is now better regulated and more mature than ten years ago. It is also more nuanced, rarely reacting as one single entity, and the gradual recovery is a natural consequence of the structural positive changes that have marked the past seven years. But it takes time, 10 OCTOBER 2017

and sometimes a few real estate cycles, to influence sentiment drivers and set expectations to realistic levels as emerging economies mature.

Nonetheless, sentiment remains a key element of Dubai’s property market, and even healthier fundamentals can potentially be threatened by effects we have seen in the past of self-fulfilling sentiment downturn – although we do not believe responses translate into an overall negative perception, but rather into an uncertain one, lacking direction.

Confirming this hypothesis, 82% of those who responded that “lack of market knowledge” was a deterrent to their buying decision, also responded negatively or neutrally to the market recovery question, representing one out of five potential buyers in the price segment below $272,000. This seems to confirm the above hypothesis about uncertainty.

The most difficult purchase, and sometimes the least informed one, is typically the first leap of faith, often in the lowest price brackets – even more so when almost a third of respondents declare having no opinion.

Reaffirming this effect, 52% of those who already own at least one property in Dubai are considering purchasing additional properties, and 92% of those intend to do so in the run-up to 2020. This translates into a more nuanced sentiment reality than initially displayed, where two

ON TOPIC

Lack of funds/inability to secure finance as a deterrent

Mortgage as a preferred means over cash, by unit price

Below $272K

65%

Below $272K

87%

$272K-545K

55%

$272K-545K

85%

$545K-$1.1M

43%

$545K-$1.1M

79%

$1.1M and above

45%

$1.1M and above

67%

Do you think the mortgage regulations need to be relaxed to make ownership more accessible?

Strongly Agree

No Opinion

26%

2016 2017

Agree

16%

Strongly Disagree

45% 39%

sections of market players have opposite views on the market. Sentiment is going up for those that already own property in Dubai or are considering acquisitions in the higher price brackets – a gap that may be reduced by further efforts on educating and communicating market data to end users.

Rental Market Trends

While we hear a lot about tenants moving or upgrading, 80% of respondents chose to remain in their existing units. This reflects a natural tenant mentality to choose stability over the inconvenience of moving home only for marginal rental savings, encouraging occupiers to try and renegotiate with their current landlords.

The figures also reveal that three out of four tenants who stayed in their existing properties, did not benefit from a rent reduction. This confirms our previous findings, highlighting the friction witnessed on the rental market, with a lower elasticity of offer to demand. Among the 74% of tenants who have not yet seen their rent decrease, we expect further negotiations with landlords to bring the overall market average down over the next 12-24 months, although more as a volume effect that should not be misinterpreted as a further decrease in amplitude.

Balancing End User and Investor Demand

The survey confirms that off-plan products continue to experience increasing traction and is particularly appealing to investors. As anticipated, off-plan apartments (especially below the $545,000 price Sources: Core Savills Research

Disagree

17% 24%

10% 15%

2% 7%

point) largely remain investor products, attracting twice as many buyers in this group (65%) as end users (35%).

Some developers have tried to reverse this trend and increase the ratio of end users in the total pool of buyers. As a result, more attractive payment plans have flourished over the past 12 months, demonstrating a willingness to make products accessible to more end users.

This effort has been welcomed by the market, with 64% believing that incentivised payment plans encourage buyers to favour off-plan over ready property purchases. Nonetheless, of those 64% who agree to lucrative payment plans aiding off-plan absorption, only 35% actually consider buying an off-plan property, while 46% want to buy a ready unit and 19% remain undecided. This suggests a nuanced understanding of the actual buying intentions of potential occupiers, compared to the general sentiment towards attractiveness of flexible payment plans.

Indeed, as successful as this initiative has been, payment plans have not completely addressed the bottom end user market segment, with access to finance remaining the biggest hindrance in the secondary market.

65% of the buyers considering purchases below $272,000 declare that access to mortgage is a deterrent to their buying decision. This effect is further amplified by 87% of these buyers primarily relying on mortgages as a mean to finance their purchase – creating a double negative effect.

However, the survey results highlight an improving situation, probably as lucrative payment plans marginally ease pressure on

“Strikingly, instead of higher job security or a rise in household income (which comes in second place), flexible payment plans are reported as the most important catalyst to turn renters and investors to ownership” OCTOBER 2017 11

IN PRACTICE

Potential deterrents from buying property in Dubai Lack of funds for down payment Geopoloitical/Macro-economic uncertainty Investing in home country No long term plans to stay in Dubai Prefer the flexibility of renting Fear of defaulting on mortgage Limited knowledge of Dubai’s real estate market Anticipation of increasing interest rates 0%

5%

10%

15%

reliance on mortgage finance. While our 2016 survey revealed that 71% of respondents believed mortgage regulations should be relaxed, this year only 55% do. Exploring these responses in further detail, 62% of potential buyers who state that mortgage regulations should be relaxed are end users – largely outnumbering investors (38%) and reinforcing the stronger reliance of end user buyers on mortgage finance.

However, it would be an oversimplification to assert that inability to amass a downpayment and secure finance are the only deterrents, as several other factors have had a combined effect, potentially averting occupiers from making a purchase.

Other Deterrents

After “lack of funds for down payment”, the main deterrent for buying decisions reported by 41% of respondents, “macroeconomic uncertainty” comes second at 36%. This translates to other prominent factors for expats, such as investing in their home country (31%).

Interestingly, more than one out of five potential buyers in the affordable sector report that “limited knowledge of the market” is a deterrent to buying a property in Dubai – twice as many in the bottom segment as in the prime market.

Overall, of the respondents who disagree on visible price recovery, a substantial 74% believe that Dubai’s residential market is expected to be oversupplied by Expo 2020. This comes as an interesting divergence between market sentiment and data, as similarly observed at the outset. Since 2010, the shortfall between the number of announced and delivered units has consistently averaged 40-50%, amounting to 15,000-18,000 units handed over every year. This only adds 3-4% to the existing stock, a moderate amount to be absorbed even in the current market economic conditions.

20%

25%

30%

35%

40%

45%

Delving deeper, it appears that almost half (48%) of those who do not have a positive opinion on market recovery are still considering purchasing a property in Dubai, 55% as end users. This tends to demonstrate the resilience of renters’ willingness to shift to ownership, even in the context of softening rental rates. This move to ownership continues to make significant economic sense for most of them, explained by the relatively high yield levels and low level of compression witnessed to date – albeit for those who can afford to secure a mortgage.

Decision Drivers

Strikingly, instead of higher job security or a rise in household income (which comes in second place), flexible payment plans are reported as the most important catalyst to turn renters and investors to ownership, in line with the biggest potential deterrent being access to finance.

When asked to rank the most important parameters in the buying decision, budget comes first by far, with almost 80% choosing this factor as their most important criteria; one potential buyer out of two even considers this to be the most important principle.

Location comes second, with 69% considering it one of the three most important parameters in their buying decision, and 24% asserting it as the most important factor. 54% of potential buyers then consider the developer’s reputation as one of the three most important parameters, with 11% judging reputation to be the most important.

Paradoxically, build quality came fourth with only 26% of votes and 6.5% considering it the most important parameter. This, however, is only a paradox in disguise; we do not interpret this as a factor diverting buyers’ attention away from quality but rather as a different assessment tool for them to measure quality through the developer’s reputation and track record, another sign of the market maturing.

The residential real estate market in Dubai has displayed signs of recovery, in terms of prices Strongly Agree 12%

2016 2017

5%

12 OCTOBER 2017

Agree

No Opinion

38% 29%

Disagree

Strongly Disagree

22% 28%

25% 30%

2% 8%

ON TOPIC

OPINION 01 Boris Ritter is the general manager of Sesam Business Consultants.

3D Printing in Construction Boris Ritter outlines his views on 3D printing technology and its adoption in the construction industry as a whole

01

3

D printing has been the subject of debate for many years, but few seem to have a clear understanding of how it will affect their specific industry. It has recently been discussed intensively in construction circles.

Dubai is firmly at the forefront of this trend, with the emirate a leading hub of 3D printing technology. It is anticipated that 25% of new building plans will be 3D printed in the next decade. The Dubai Future website explains that the overarching strategy is to adopt the emerging technology in order to cut costs, with a focus on the medical and construction sectors in particular. The technology has the potential to restructure 14 OCTOBER 2017

economies and labour markets, and to redefine productivity.

I particularly see the MEP sector benefiting from 3D printing technology, which will change our lives and the cities we live in. I am not going to argue here that conventional construction practices will become obsolete, as buildings can now be essentially manufactured from scratch with a big 3D printer that can mix cement, steel and plastics. There is still a long way to go before we reach that stage! Nonetheless, incremental improvements will be achieved through the adoption of 3D printing and related technologies such as BIM. 3D printing for modelling and planning needs should be distinguished from adopting it for building construction per se. With all due respect for everything one reads about innovation such as BIM and smart cities, a truth that is often neglected is that there has been much less innovation and development in the construction sector than in industry in general.

It could even be argued that, over the years, technology has hampered efficiency in construction. Particularly in the US and Europe, it can often seem that the more resources and technology that are engaged in any given construction project, the greater the delays and the more problems.

The more people and stakeholders

involved in a project there are, the greater the complexity – and the inevitable risk associated with increased mistakes. There is no shortage of examples of the dire consequences of this. Berlin Brandenburg Airport, for instance, shows that not even the Germans are immune to human error.

The Economist reported this year that the snagging list was seemingly never-ending, from missing check-in counters and luggage conveyor belts to ill-fitted and malfunctioning fire-safety walls, pipes and cables. The current delay is clocking in at nearly a decade. The cost overrun to date is a staggering $4.8bn, double the original budget.

How has it become a seemingly impossible task to build something as straightforward as an airport? In theory, construction projects should be rather simple. You gather the information about the scope of work, price it correctly and then deliver the project. However, when projects do not happen according to plan, whatever the reasons or inevitable excuses, it is all mostly down to human error.

Herein lies the real and immediate promise of employing new technologies such as 3D printing. They are better tools to expose flaws in the planning process, before these escalate into problems that have to be dealt with on the construction site.

In other words, they cut down on delays.

ON TOPIC

More creative solutions to design problems can be achieved when we work in a virtual environment that is manifested physically.

This is because it allows us to test different ideas, and even make mistakes, without there being any associated cost.

Beyond visualising a building project and how the different parts all fit together, the next step in 3D printing is using it to manufacture entire prefabricated sections that simply slot together, without the possibility of humans misinterpreting the drawings. Again, this is not a new approach or methodology. Off-site factory-based manufacturing techniques have been common in construction for a long time.

Pre-manufactured formwork ramps up efficiency, but does not really help

much in planning the MEP fit-out. There has been a significant limit to the levels of intricacy and customisation achievable up to now. The latest developments use laser measurements fed into a BIM model and exported to a 3D printer, so that separate customised components can be composited layer by layer.

This means perfect incorporation of the MEP architecture into the layout of the panels and walls, with ducting and wiring planned and controlled precisely. For example, a section of a building can be premanufactured in a single unit that caters for all the service requirements of a building.

Customised design and delivery not only render the construction process more efficient than traditional techniques, but also create an architecture that is integrated

fully with the engineering function in order to make buildings perform better.

All this results in productivity gains, reduced labour costs and safer working environments. In the coming decades, there is reason to believe that construction will move more and more into a controlled factory environment, for stricter quality control and more rapid production and efficient utilisation of resources. I foresee 3D printing used on-site mostly on largescale and specialised projects with a high proportion of unique components.

Finally, realising the full potential of 3D printing will enable construction in remote locations where access to building materials is restricted. One idea currently on the table is even using 3D printing to build a village on the moon, using lunar soil!

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IN PRACTICE

16 OCTOBER 2017

IN PRACTICE

INTERVIEW

Kingdom Focus Faithful+Gould’s Spencer Wylie talks to Middle East Consultant about the move to PMOs in Saudi Arabia, and explains how his firm has aligned with the market ith over 20 years of Middle East experience under its belt, Faithful+Gould (F+G) is an active participant in the region’s construction industry. The firm has offices and staff on the ground in Abu Dhabi, Doha, Dubai, Muscat, Jeddah, Riyadh and Al-Khobar, and is involved in sectors including hospitality, industry, property, retail and transport.

In recent years, Saudi Arabia has become one of the firm’s key markets in the region. As a result, F+G has invested heavily in its Saudi operations, having opened its first office in Riyadh in 2009. In 2010 and 2016, the consultancy opened additional offices in Jeddah and Al-Khobar and now has 160 staff in the Kingdom.

Over the years, the integrated project and programme management consultancy has worked on multiple prestigious projects, including the Aldara Medical Centre, Ambulatory Care Centre and Multi-Specialty Facility in Riyadh, The Avenues and Mall of Saudi shopping malls in Riyadh, and the King Abdulaziz International Airport in Jeddah.

Lately, the firm has been busy aligning itself with the evolving Saudi market, which included an addition to its headcount in the Kingdom.

Paul Sweeney was appointed head of Programme Management earlier this year, and is expected to support the firm’s growth, as the Saudi government moves towards alternative financing solutions.

“The last 12 months have been busy, and we had two major parts to the year. Early on we focused on consolidation around what we do as a business and how we continue to deliver service excellence, as well as the continued development of our staff. The second part of the year was spent around management of our significant, existing client base, combined with a period of further growth,” explains Spencer Wylie, KSA country director at Faithful+Gould.

“As for the future, over the next 12 to 24 months we again predict a period of growth, where we see a considerable pipeline of opportunities across several locations and sectors. Going forward, we shall continue to focus on working with existing clients and key new clients, with the goal of developing those relationships into generating revenue.”

As the Saudi market continues to develop, Wylie, who has been with the firm since 2014, expects growth to come from three main areas in the coming months.

“The government move towards programme management offices (PMOs) and the demand for services by KSA ministries, where the government has been mandated to have PMOs in place to deliver their pipeline of work and projects, is one work stream that we’re focusing on. The second is our core business, which is our leisure sector which covers hospitality, residential and retail development. We have a number of key projects within that sector that we shall continue to develop. The last is the movement towards mega mixed-use master-plans, which will either be governmental or privately-led developments across the whole country. Some of those projects include Pulse, Edge and Pristine.”

PMO Movement

Current market realities within the Kingdom and beyond have no doubt acted as a catalyst for government authorities to draw up plans and call for PMOs, in an effort to diversify and strengthen the economy.

Wylie explains: “Authorities have unveiled Vision 2030 and the National Transformation Plan (NTP), which is now being revised to NTP 2.0. The Ministry of Planning and Economy through the National PMO (NPMO) is driving government entities to develop PMOs for governance, transparency and capacity-building. In needing to build capacity, the Kingdom is looking to international consultants to develop best practice tailored to the requirements of Saudi Arabia.”

“Furthermore, while developing PMOs, the government is reprioritising its project pipeline to align to the needs of the Kingdom.

This, combined with establishing PMOs and looking to private sector OCTOBER 2017 17

IN PRACTICE

01 The consultancy provided cost management services throughout the design and construction phase on Mall of Saudi in Riyadh.

02 Faithful+Gould is working on The Avenues mall project in Riyadh and is bringing cost management and retail experience to the development.

01

finance and ownership of government entities through the National Privatisation Office, are core pillars of economic diversification. There is still a lack of regional liquidity, but the government is able to attract international funds through a variety of instruments, as seen with the recent bond issuances that have been four times or more over-subscribed.”

F+G has in fact been part of the drive towards PMO for some time and has worked directly with government bodies on the initiative.

“Probably two years ago now, we sat down with Saudi Arabia’s Minister of National Economy and Planning and we worked in collaboration to issue a royal decree – and that was the mandated PMO regulation. As that’s moved forward, the government has implemented that strategy and appointed international consultants. This will then start to cascade down to further PMOs and project management consultancies.”

F+G has significant PMO experience in the region, with the Ministry of Public Works in Kuwait and the National Water Company in Saudi Arabia. As a result, the firm has been able to secure significant projects within the Kingdom.

“As a direct result of the experience we’ve gained delivering these services, we’ve been appointed to two new PMO offerings in the country.

One is the roll-out of a fibre optic network across the whole of Saudi Arabia, which consists of multiple sites and multiple locations. The second is a mega, mixed-use privately-led development with quasi-government backing across a significant plot of land, combining multiple asset types,” comments Wylie.

While the move towards PMOs has begun in earnest, the Saudi market has yet to settle, he says.

“The market is still in a period of flux and consolidation, with a level of uncertainty around what schemes are to move forward and when. We have seen contractor awards pick up this year from last, but that was from a low baseline. The government is clearly prioritising social infrastructure projects and schemes that can accelerate economic diversification.”

He adds, “They are also looking at the value chain throughout the project lifecycle, to build capacity for delivery internally and reduce the dependence on imports. The period of consolidation and slowdown may 18 OCTOBER 2017

continue for some months, as PMOs are set up and schemes reprioritised.

But moving forward, with diversified funding sources, it is hoped that the market will become more sustainable in the long term, with less peaks and troughs. We expect awards in KSA to be in the order of $27bn, although there is significant pressure on backlogs, with over $60bn being the regional shortfall to maintain the industry at the size it was.”

Another potential challenge to market stability comes in the form of changing legislation; however, Wylie reckons there will be benefits in the long run.

“I think continued changes in legislation will remain a challenge for any business operating in KSA. But change always presents opportunities, where the government’s move away from having to fully fund programmes

“In needing to build capacity, the Kingdom is looking to international consultants to develop best practice tailored to the requirements of Saudi Arabia. Furthermore, while developing PMOs, the government is reprioritising its project pipeline to align to the needs of the Kingdom”

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themselves will support their planned move toward public-private partnerships (PPP). They will align PPP models with key ministries and ensure the private sector helps fund and develop key infrastructure.”

Project Focus

Vision 2030 and the National Transformation Plan for 2020 will remain a key focus for Saudi Arabia, and are expected to bring new large-scale projects to the market.

“Both of those documentations outline how the government is going to develop the country, and part of that is decentralisation from the traditional hubs such as Riyadh, Jeddah and the Eastern Province.

So the plan is to continue to develop cities outside of the main cities, and that’s already starting to happen – there have already been announcements around an entertainment and sports city outside Riyadh, which is being developed by the Public Investment Fund (PIF). This trend will continue as these mega developments are announced into the market.”

F+G expects its order book to grow by 15% in 2018 on the back of new projects but it has also been working on several key projects over the last few years.

“I touched on the mixed-use programme in Riyadh earlier, it’s a mega development by a private developer which includes all asset types. It will provide a significant destination within Riyadh and an enhancement to

the services and social infrastructure that are already in the city. Our single biggest mainstay project, however, is the King Abdul Aziz International Airport in Jeddah. We’ve been working on that project for seven years, and that is transformational to the transportation hub in Jeddah, which will increase annual passenger capacity to 30m during this first phase of work.”

“That will allow a significant increase in the number of religious tourists to that part of KSA. We’ve been integral to making sure that project gets finished. We’re also delivering cost and commercial services on a mega mall in Riyadh which includes significant leisure destination features, with an existing UAE client.”

Wylie is also proud of the fact that the majority of F+G’s new contracts in the Kingdom are from existing clients. He notes that the firm enjoys 80% repeat business, as a result of previous client relationships.

“It’s testament to our client-centricity that we service clients not just in their home market, but that we look after them as they move beyond their core markets. We remain as their trusted advisors throughout.”

Looking ahead, Wylie is confident about business prospects in Saudi, and reckons his organisation is perfectly set up to capitalise.

“Over the last few months, we’ve put in place significant infrastructure to help support our growth ambitions. The challenge will always be to maintain forward momentum, but I believe we have both an excellent team and a stable business platform to positively react in the future.”

02

OCTOBER 2017 19

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INTERVIEW

Opportunities on the Horizon

Middle East Consultant caught up with Tabanlıoglu Architects’ Melkan Gürsel at Cityscape Global to discuss regional opportunities and its Crystal Towers project in Dubai’s Jumeirah Beach Residence abanlıoğlu Architects was established in 1990 by Murat Tabanlıoğlu and his father Hayati Tabanlıoğlu, with Melkan Gürsel joining the company as a partner in 1995.

Gürsel studied Architecture at Istanbul Technical University and graduated in 1993. She then attended the Polytechnic University of Metropolitan Catalonia for her Master of Architecture degree.

At the firm she splits her time between managing business and exercising her architectural skills. “I’m a partner in the company, but first and foremost I am an architect. Right now we are two main partners, we are both architects and get involved with a lot of projects.

Of course, management is also important and this is something we look at closely as well,” she says.

The Istanbul-based architectural firm has significant experience in planning and designing residential and office buildings, stand-alone offices, industrial facilities and shopping malls, and in undertaking transformational projects. The firm currently has offices in Dubai, Doha, London and New York, and has won several awards for its work in recent years.

Across Turkey and the MENASA and CIS regions, the firm has hundreds of projects in its portfolio, including the first lofts of Turkey, the Levent Loft and Loft Gardens; the Kanyon mixed-use urban complex; the tallest high-rise building in Istanbul, the 64-floor Istanbul Sapphire; and the Zorlu Centre urban complex.

Looking beyond Turkey, the firm is also responsible for the Expo 2020 Turkey Pavilion in Hanover, the Miami Collectors Lounge in the US, the Dakar Congress Centre in Senegal, the Libertas Rixos Hotel in Croatia and the Tripoli Congress Centre in Tripoli.

20 OCTOBER 2017

Bullish about Dubai

The firm made its 14th appearance at Cityscape Global in Dubai, and is confident of the city’s long-term opportunities. “Dubai is like our second home, and if we look at Dubai as a market, I think it offers a lot of value and investment opportunities. There are ongoing challenges in the city and around the world but the market here is healthy and hard to disrupt,” comments Gürsel.

“During the 2008-2009 global crisis, things were tough and some people exited the market but even at this time we were exhibiting at Cityscape. We always believed in Dubai, and I think to be sustainable in terms of business, having relationships is very important. You have to believe in the people, the country and the opportunities.”

In fact, Gürsel is quite confident about near-term project opportunities in Dubai, as a result of what she has observed in the last few months. “The market changed quite a lot after 2008, budgets decreased after that year, but in 2012 and 2013 we noticed they increased again slightly. This year, in the last six months we feel they are increasing yet again and we are receiving many enquiries for concept designs. This tells us that projects are coming online again.”

Looking beyond the UAE, Gürsel says opportunities have come knocking from neighbouring countries. “We work across the Middle East, and in Saudi Arabia we are going to start working on two big projects in the near future. In Tehran, Iran we are also on track to start a big project, so on the whole we are receiving more enquiries and are also working on more projects, which is a very good sign.”

The firm opened its office in Dubai in 2012 and works closely with its Turkish office. “In Turkey, we have 200 architects for design works and they work with our staff of 15 in Dubai for coordination with the design and engineering disciplines and site supervision. Thanks to our

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“We always believed in Dubai, and I think to be sustainable in terms of business, having relationships is very important. You have to believe in the people, the country and the opportunities�

OCTOBER 2017 21

IN PRACTICE 01 Crystal Towers is a high-end mixed-use development in Dubai’s

in-house team, we are able to offer all the engineering disciplines including civil, mechanical and electrical engineering, in addition to architecture work.”

Gürsel points out that her firm works very closely with clients through the entire construction process, right from day one. “Mustafa Alper Alhan is the head of the Middle East region, and he is always involved on sites and in the construction process. For us, it’s important to be with the clients from the first day until the time that you open the building and enter it.”

Crystal Towers

Jumeirah Beach Residence. The project features a podium of three floors, high-end retail outlets and two towers.

01

Tabanlıoğlu Architects has been working with Al Fattan Properties on Crystal Towers in Dubai’s Jumeirah Beach Residence ( JBR) since 2012. The mixed-use project comprises two towers: tower one is a 35-floor apartment block, while the 30-floor tower two hosts the Rixos Premium Dubai Hotel. The Rixos opened for

“Many different reflections and lighting displays can be seen on the building’s glass skin at the same time – you have the reflection of the ocean, of the city and other buildings. I think it joins the existing cityscape in harmony and contributes to the silhouette of the shoreline” 22 OCTOBER 2017

business in July of this year, and the architecture firm says it is currently doing testing and commissioning on the residential block.

Speaking about the project’s location and its design, Gürsel says: “Crystal Towers is located in a vibrant quarter of the city and is a transparent, multifaceted structural form that will attract people visually, as well as with the urban facilities that have been planned at the lower levels of the two towers, such as restaurants, high-end shops, spas, etc.”

She adds, “The form is like the crystal, which is in line with the project’s name. Thanks to its design, many different reflections and lighting displays can be seen on the building’s glass skin at the same time – you have the reflection of the ocean, of the city and other buildings. I think it joins the existing cityscape in harmony and contributes to the silhouette of the shoreline.”

As a result of its location and its mainly glass facade, the firm says a number of elements had to be taken into account when designing the building and specifying materials. “Since it’s a full-glass building facade that’s in the beach area, we had to be careful about the sea and hot weather because beach sand reflects a lot of sunlight. So the glass on the building is special, and the external lighting is completely new for the region as well. The interior design, along with all the engineering work, was also done by us. With the interior design, we worked to make sure that you can enjoy a nice view from every room in both towers. So, depending on which tower you are in, you can see the ocean, the Dubai Eye and even the surrounding areas of the city.”

Gürsel says the firm is increasingly taking on engineering work in Dubai and that being a full solution firm has put clients more at ease. “At Tabanlıoğlu Architects, our design capabilities are very clear. All of our clients know what we’ve done in the past and know that we understand their expectations. We are doing design very well, and other than this, the engineering part of projects is now what we are also focusing on. We

IN PRACTICE

02 Bodrum Loft comprises 38 longterm residential units in Torba, a village on the Aegean coast. The project is on a sloping topography towards the sea, with a greater than 50% inclination angle.

03 Tobb Zeytinburnu (Yedi Mavi) is planned around three main public piazzas and offers a mix of housing units. The project is located by the shoreline on the west end of the Bosphorus.

02

are engaged on several big projects in terms of engineering design and manage that part of the project fully. We also started site supervision with the Al Fattan project, so we are covering all their requirements, not only architectural design.”

“Offering a full solution is important and it works better, because you are reducing the client’s responsibilities. They feel more safe, so if you solve everything through one office and coordinate all the disciplines, it is better for them,” she elaborates.

Due to its location on JBR’s The Walk, which sees significant foot traffic, Gürsel highlights that the project was designed not to impede access to and from the beach. “You can always see a lot of people walking around on JBR, and so we wanted to make sure that people could actually pass through the building without any difficulty. The 03

24 OCTOBER 2017

atrium enables people to go from the street to the beach side and vice versa with ease. We did not want to disrupt how people moved around in this area of the city.”

In fact, designing projects that enrich people’s lives is one of Gürsel’s key concerns, and it’s something that pervades her firm. “It’s important to understand a number of things before you start working on a project – what is the purpose, who are the people who will use it, what are their habits and their likes and dislikes? It is important because the goal should be to create a nice space and environment, one that is futuristic but which people can connect with. Again, it comes back to understanding people and human mentality, and having an idea about the people who will use the building, following which you can create a space which matches their ideas, desires and attitudes.”

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INTERVIEW

Titan of Engineering Middle East Consultant sits down with WME Consultants’ Peyman Mohajer to discuss engineering excellence and his ambitions for global expansion ME Consultants (WME) is an independent multidisciplinary consultancy that was founded in 2010.

The consultancy was first registered in Abu Dhabi, following which an office was set up in Dubai about a year later. Since then, the company has opened two additional offices, one in London and the other in Bangalore, and today the firm has a headcount of 260 professionals, led by managing director Peyman Mohajer.

The firm’s growth has been spurred on by its ability to offer topnotch engineering services for built environments. But despite its already impressive gamut of expertise, the company is keen on growing its service offering further.

“We offer a variety of engineering services including structural, mechanical and electrical engineering, as well as plumbing, infrastructure and security. We are trying to expand the range of engineering disciplines that we offer, so we can become a one-stop shop to architects and clients. We have an unlimited licence from Dubai Municipality and so we can offer all the engineering services, plus AOR – Architect of Record. We have architects in-house as well, who assist us in delivering or defending projects in front of stakeholders – this is what we are in a nutshell,” explains Peyman Mohajer, managing director at WME Consultants.

In terms of business and despite challenging market conditions regionally and around the world, WME Consultants has enjoyed steady growth across its core disciplines.

26 OCTOBER 2017

“All of our core disciplines are solid. We are growing across sectors but predominately on the MEP and structures’ fronts. What we’ve noticed is that after clients have worked with us on one project and get a feel for our capabilities, they ultimately come back to us and even refer us to other clients. That’s part of the reason we’ve enjoyed growth in our business, even outside of Dubai.”

He adds: “Another reason clients come back to work with us is because of the personal touch that we offer. I’m accessible 24/7 and clients feel they can call me no matter where I am in the world – they see that as an advantage. At the same time, our engineers are also very accessible – they make it a point to consistently meet and fully understand client concerns and aspirations, their challenges, and try to support them as much as possible.”

“Dubai is the centre of excellence. We built our experience here and now we’ve started to export that experience overseas.

We’re bidding for projects in Kazakhstan, Uzbekistan, India, and are expanding our field of operation”

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OCTOBER 2017 27

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01 WME is providing full engineering delivery, including sustainable design to LEED Platinum status, on the UAE Pavilion at Expo 2020.

02 The firm delivered the detailed design of the Fountain Views.

03 On the Gate Avenue, the firm is delivering several services and is also the AOR. 04 WME’s staff are diverse and share a passion for innovative

01

and sustainable construction.

Packed Portfolio

Since its inception, WME Consultants has worked on a variety of high-profile projects within the UAE and beyond, including the King’s College Hospital Clinic 1 in Dubai, the Dubai World Central Executive Jet Terminal and the Oberoi Mulund residential development in Mumbai. It has also worked on the recent remodel and expansion of Dubai Festival City Mall, and has numerous other projects in the design and on-site phase.

“One project that we are very proud of is the UAE Pavilion at Expo 2020. It is our crowning project and we’re working with Santiago Calatrava - it has been a great journey so far. As a project, it is challenging and exciting, and it’s a pleasure for us to work with such iconic architects. This project in particular has really boosted our confidence. We’re also in the detailed design stage of a 105-storey tower on Sheikh Zayed Road, and it is one of the most slender towers you’ll 02 find in the Middle East. Here, WME is working with North American wind tunnel engineers to mitigate wind impact on this building, since this is one of the main factors that governs the design of very tall buildings. It’s innovative in terms of its structural system and slenderness, and that’s what excites our engineers.

“The Fountain Views is another important project that we’re working on – it’s a huge project with four towers and a large podium. It’s actually the first project that we worked with Emaar on and it’s close to completion now. This is the project that allowed Emaar to discover our capabilities, 28 OCTOBER 2017

and led them to work with us on other projects. Personally, I’m very happy with what we have achieved in such a short period of time,” says Mohajer with a smile.

Outside the UAE, the firm has replicated its success in Dubai, particularly in India, working with Oberoi Realty.

“In Mumbai, we have quite a few projects with Oberoi Realty, which is one of the blue-chip developers in India. They are costconscious and like the way we design and value engineer our designs.

They also like that, as a company, we sympathise with clients and understand their aspirations and restrictions with regard to budget, etc. Basically, we take on the project from an ownership standpoint and they appreciate it,” comments Mohajer.

With regard to the Indian market, he notes that WME had an interesting entry into the subcontinent.

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“Oberoi ran a competition for the structural design of 12 70-storey towers in Mumbai. The competition was about three years ago and there were three international structural engineering consultants invited to participate – one from the US, one from Singapore and we were the third, from Dubai.

We participated and won the competition, so that’s how we entered the Indian market with Oberoi. Since then, they have been very happy with our services.”

Mohajer, who has 15 years of Middle East experience and previously worked for firms such as Whitby & Bird and 03 Ramboll, says his firm has also worked on infrastructure projects in Saudi Arabia recently.

“We support the master-planners with infrastructure and we’ve also designed a couple of hotels in the Kingdom.”

“What we’ve noticed is that after clients have worked with us on one project and get a feel for our capabilities, they ultimately come back to us and even refer us to other clients. That’s part of the reason we’ve enjoyed growth in our business, even outside of Dubai”

Expansion Ambitions

In an effort to further strengthen its business, the firm is eyeing expansion into several markets around the globe, and reckons it is already set up for success.

“We are looking farther east now, especially at the Southeast Asia region. We’d like to be in that particular market because some of the architects who we work with are based in Singapore and Hong Kong, and as we deliver projects together, they keep encouraging us to enter that part of the world.

We offer a very unique service, thanks to the quality of people we have – they are all handpicked,” explains Mohajer.

With regard to hiring and retaining the right talent, which can sometimes be a challenge in the region, he notes: “As a result of my work experience, I’ve made a lot of contacts, and over the years we’ve been able to hand pick the people that we think are able to offer unique value to the company and to this market. That’s paying dividends, and we’re now bringing in people to strengthen our MEP offering.”

He continues, “We’re patient as a company and we know who we want. Once we have recruited people, our goal then becomes to keep them as happy as possible. We want our staff to look forward to coming in to work and we have a lot of fun together. Our HR team plays a key role in making sure the right environment is created, through social events, through personal interactions and by making sure there are no grievances or, if there are any, that they are addressed quickly and to the satisfaction of staff.”

While expansion is on the table, Mohajer is quick to point out that Dubai is still the heart of WME’s business.

“Dubai is the centre of excellence. We built our experience here and now we’ve started to export that experience overseas. We’re bidding for projects in Kazakhstan, Uzbekistan, India, and are expanding our field of operation. I think this is what is going to ensure our sustainability – opportunities in Dubai mixed with international business.”

In terms of expansion, WME is eyeing North America and believes that out-of-the-box thinking will enable it to thrive.

OCTOBER 2017 29

IN PRACTICE

“We’re patient as a company and we know who we want. Once we have recruited people, our goal then becomes to keep them as happy as possible” “We’re looking at North America and, as I mentioned earlier, Southeast Asia. These are all on our radar, in line with our global ambitions. I think the service we offer to clients is unique in terms of quality and innovation, and we are really pushing the boundaries, especially when it comes to iconic structures. This, again, is thanks to our work in Dubai. The experience we gained in Dubai during the boom time and the projects that we have delivered are dream projects that any engineer would want to be a part of. This, I believe, makes our company unique in terms of collective experience. At the same time, we can be very competitive because we don’t have the overheads of the international companies.”

Leveraging Technology

Technology and innovations such as BIM have held the interest of the construction industry over the last couple of years, and WME was quick to adopt and integrate advancements into its workflow.

“As structures get more complicated, there’s a greater chance of human error. In the past, coordination and updates between 04

30 OCTOBER 2017

stakeholders could be missed and would only get picked up on-site. That could be very embarrassing for the consultant and for the client, but now what we’ve done is, we’ve implemented BIM360, which is a cloudbased design collaboration platform. This allows everyone (consultant, architect, client, etc.) to work together from different locations and interact directly with models and drawings, using a mobile device to review the building. So even at the early stages of the project, it’s possible to look at the interface between structure and MEP, for example.”

Mohajer expects BIM to evolve, and says his firm is committed to remaining on the forefront.

“As the technology evolves and new solutions come onto the market, WME will evaluate them and implement the ones that offer benefits. We are looking at apps now – our project managers use them so that, wherever they are, they can access drawings. These tools help us to work better with stakeholders, which will result in better projects. At the end of the day, everything we take on is something we are proud of, and we want other people to be proud of our work as well. That’s our culture.”

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32 OCTOBER 2017

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INTERVIEW

Legal Eagles Middle East Consultant speaks to Berkeley Research Group’s Craig Gibson about disputes in the construction sector, legal framework and the firm’s growth in the region he Berkeley Research Group (BRG) was founded in 2009 in Emeryville, California and today has over 1,000 employees spread across 41 cities and six continents.

The professional services firm offers economic and litigation consulting and advisory and strategy services, ranging from class action litigations to forensic accounting investigations. The firm also offers big data analytics across sectors including construction, healthcare, telecommunications, energy, natural resources, financial services and public policy.

In the Middle East, BRG mainly focuses on international and domestic arbitration in the construction sector, and offers strategic intelligence for the benefit of regional government authorities. Ahead of the first anniversary of the firm’s new office in Dubai, Middle East Consultant caught up with Craig Gibson, senior managing consultant, to talk about construction disputes and the state of the industry.

Talk to us in brief about the disputes you tend to get involved with, and your focus in the region.

Globally, we are involved in all manner of major disputes. Our focus in the region will be on supporting international and domestic arbitrations, and we’ll be leveraging the international reputation of Michael Kenyon (managing director, Dubai) as a leading quantum expert.

OCTOBER 2017 33

IN PRACTICE 01 In the Middle East, BRG is focused on international and domestic arbitration in the construction sector.

BRG recently set up a new office in Dubai.

What

prompted

02 BRG expects the backlog

the

of construction projects in

decision, and had the

the UAE to come online but

company been involved

with streamlined margins.

in disputes in the region prior to setting up an office in the city?

Our expansion in the region has been sustained over many years; in fact, BRG has an established office in Kuwait focusing on advising regional government strategies. The construction team in our Dubai office comprises professionals with many years of experience in the region, many of whom have worked together previously 01 on disputes in the UAE and beyond. This has expedited the formation process and quickly given our clients the confidence to engage us on complex, high-value disputes across the region.

What is the unique proposition you’re offering to the market and to regional clients?

BRG prides itself on being a professional services firm led by seasoned professionals. As a group of professionals and leading experts already established and recognised in the region, we are familiar with the practitioners, market and regional nuances. As a new company, we are in

“Generally, every construction project is unique and relies on a multi-party organisation that has never worked together before (and has competing aims and objectives) to deliver a large, complex product” 34 OCTOBER 2017

the unique position of being independent of many of the conflicts of interest found in a growing market.

What’s your take on the UAE construction sector at present, and how do you see it evolving in the next year?

The market is maturing, and that brings with it oscillations that seem to get more attention in the UAE than they perhaps would in other markets. The UAE construction sector still has a number of macro developments and flagship projects underway, and indications are that the backlog of construction projects are coming online again but with more streamlined margins. This is to be expected in a maturing market with more sophisticated monitoring, auditing and taxation procedures being introduced.

What are some of the key reasons disputes occur on projects in the UAE and wider GCC region?

Generally, every construction project is unique and relies on a multiparty organisation that has never worked together before (and has competing aims and objectives) to deliver a large, complex product.

Clients can further complicate this as design and requirements change, and a regional legacy from oil & gas projects is that design development is often carried out via shop drawings, which the client must approve, and acts as a vehicle for client re-engineering.

Other common factors include unrealistic project timetables, unrealistic and unachievable solutions and an unfortunate tendency to negotiate now, and worry about the details later. Most of these issues could be avoided if contracts were better administered onsite and if claims made on-site were better substantiated and explained.

How common are disputes in the construction sector in the current market? Has the volume of disputes changed recently for any particular reason?

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“Clients can further complicate this as design and requirements change, and a regional legacy from oil & gas projects is that design development is often carried out via shop drawings which the client must approve, and acts as a vehicle for client re-engineering” Disputes in the construction industry are common and there is a link between the economy and the amount of arbitration. By way of example, as the economic crisis caught up with the Middle East towards the end of the last decade, the Dubai International Arbitration Centre reported twice as many cases in 2009 as in 2008.

The regional economy has been investing heavily in infrastructure, power plants and construction projects over recent years. By virtue of the volume of large projects underway and a lower oil price than forecast at the outset of many of those projects, the market has a number of regional disputes to be resolved, and owing to the size and complexity of many of these projects, arbitration may be required.

What are the challenges your organisation and staff face when working on disputes in the Middle East?

A lack of records and data is a major inhibitor to demonstrating the position of disputing parties in construction. In-house, BRG has worldleading forensic software to liberate data and support class action litigations, which we regularly use in other sectors, but at present the construction industry is not sophisticated enough to benefit from this technology. This requires that we manually syphon through various sets of documents purportedly in support of the same claim, which through human error are sometimes contradictory to one another or simply not reliable enough to support a claim.

Are there any changes you would like to see made to the legal system in the GCC, from the perspective of the work that you do?

There has been much attention given to the amendment of Article 257 of the Penal Code by Federal Law No. 7 of 2016, which means arbitrators found to breach their duty of neutrality and integrity could potentially be punished by imprisonment. We understand this is in the process of amendment and repeal.

We also understand that the UAE is enacting a new federal arbitration law based on the UNCITRAL Model Law and associated international standards by the end of 2017. This is a strong step for the UAE and a testament to its leadership, and is expected to increase confidence in the arbitration process. This, in turn, will hopefully encourage further foreign investment and strengthen the UAE’s position as a regional arbitration hub.

What are BRG’s plans for the next two years? Is expansion into other countries in the region on the table?

Our focus is on attracting the best talent and growing a flat, lean team to serve our clients across the region. The quality, multi-faceted team that we are assembling in Dubai will bolster our established office in Kuwait. Should we open offices in other countries, it will be composed and necessary growth.

02

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“The idea was to create a self-sufficient, all-inclusive community where people can live, work and entertain themselves”

36 OCTOBER 2017

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INTERVIEW

Master-planning a Megaproject Middle East Consultant speaks to ARADA’s Ibrahim Al Nemeh about the design, inspiration and intent of the Aljada master-planned community in Sharjah nnounced on September 6 and highlighted at Cityscape Global Dubai, Aljada is a new $6.5bn megaproject taking shape in the heart of Sharjah.

The mixed-use, master-planned urban district was unveiled by Sheikh Dr Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, and is the second Sharjahbased project unveiled by developer ARADA. ARADA is a relatively new entity in the UAE, founded at the start of 2017 by the Basma Group and KBW Investments. In March, the developer launched its first project in Sharjah in the form of Nasma Residences, which is expected to be completed by 2025.

Construction on Aljada is expected to begin in 2018 and, like Nasma Residences, it has a projected completion date of 2025. However, while the two developments share the same year of completion, Aljada is a far larger project – it will be spread over 2.2sqkm and house as many as 70,000 residents. The project will boast a mix of residential structures, and a business park, along with significant retail, leisure and green spaces.

Aljada means ‘avenue’, and ARADA says it will be investing approximately $1.4bn into the project. The remaining funds are expected to come from syndicated loans, as well as the proceeds from off-plan sales.

With its latest project, the Sharjah-based developer says it was keen on establishing an urban development that would set the standards for future developments in the emirate.

“The idea was to create a self-sufficient, all-inclusive community where people can live, work and entertain themselves. In terms of our design approach, what we tried to do was create an environment that would encourage walkability and outdoor activities, with the aim of empowering and improving the well-being of residents. In addition,

we tried to reintroduce urban topologies that were found in traditional Emirati neighbourhoods but in a contemporary and modern way,” explains Ibrahim Al Nemeh, design director at ARADA. Nemeh joined ARADA in June 2017 and is the design leader on Aljada. Prior to joining the developer, he worked for Woods Bagot as an associate, where he first worked on the master-plan for Aljada. He is also known for his work on the Dubai Design District master-plan.

A native of Jordan, Nemeh graduated with distinction from the Cities, Design and Urban Cultures masters programme at London Metropolitan University, and from the Advanced Design and Digital Architecture masters programme in Barcelona.

Designing Aljada

With Aljada, Nemeh says he had a blank canvas, which proved to be both a benefit and a challenge. “The land was completely empty and we had a blank slate, which gave us endless design possibilities. As you know, people have different tastes and preferences, so we really needed to rationalise our approach since we wanted to attract residents and investors from around the globe. The way we did it was to try and create something that at one point addresses major issues in cities, and at the same time gives value and touches on traditional topologies in Sharjah and the UAE.” He elaborates: “One of the typical layouts you’d find in traditional Emirati topologies is the courtyard and the sikkas [alleyways]. In the past, people didn’t have air conditioners and the other technologies that we have today, yet they managed to establish environments that were comfortable.

They could do this because they knew how to work within context – they laid out their buildings and courtyards and created neighbourhoods in a specific way, which helped improve the outdoor urban comfort and create a well-integrated community. In short, the Aljada urban environment was influenced by typical Emirati topologies, while the building footprints and facades were based on the latest trends and the most efficient layouts. We OCTOBER 2017 37

IN PRACTICE

“Everything was rationalised, even the distances between buildings. We ensured that the minimum distance between buildings is 15m, to allow for privacy, wind channeling and better solar exposure” thought that while these are two different elements, they complemented each other very well.”

ARADA wanted to address common issues found in most modern mixed-use developments, and worked closely with government bodies in the emirate, including the Sharjah Urban Planning Council.

“We wanted to avoid issues found in most growing cities, such as accessibility and traffic flow. With the layout of buildings, we designed this based on the most efficient layout and relied on reverse engineering; we looked at what is the most efficient grid for basement parking and then defined our sub-division. That reflected on the layout of our buildings. So what is the most efficient between 18m to 21m in terms of building depth – everything was rationalised, even the distances between buildings. We ensured that the minimum distance between buildings is 15m, to allow for privacy, wind channeling and better solar exposure.”

Nemeh keenly points out that Aljada also compliments nearby developments. “We look at the whole thing as one big community – to the south there is the Mamsha Community, and to the east there is the University City expansion project. So although these projects are all being developed separately by different developers, they come together to create a large, integrated community. Even with our roads and access points, everything is based on understanding what the other projects offer and how we can benefit from them, while also adding value to them.”

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Encouraging Active Lifestyles

ARADA wanted to encourage active, healthy lifestyles within the confines of the development. To achieve that goal, Nemeh drew inspiration from his experiences living in Europe.

“I lived for a long time in Europe, and most European cities encourage you to walk and be active. When I came to the UAE and looked at projects in cities such as Dubai, they had the best buildings and advanced urban technologies but didn’t really cater towards walkability. There could be any number of reasons for this, but as a design lead I thought I could introduce new ideas that would encourage active lifestyles.”

The Aljada master-plan features an extensive cycle network, running paths and numerous green areas, including parks. With the parks in particular, the project set a new benchmark in the UAE according to Nemeh, as it features two 2.2km linear parks that stretch across the length of the development.

“The linear park proposal was to introduce a new concept that would add value to all the properties in the development. Normally, if you have a central park this adds value to the properties that are around it, but the further away you get from the park, the less value there is for those other properties. But when you introduce a linear park, all the properties can enjoy immediate access. So at one point you increase value and also give residents a better view that will positively reflect

IN PRACTICE

01 Located in the centre of Sharjah, Aljada will be spread over 2.2sqkm and offers top-notch connectivity to surrounding areas and neighbouring emirates.

02 The master-planned community will cost $6.5bn and, once completed, it is expected to accommodate 70,000 residents.

03 Aljada was designed to encourage active lifestyles and features numerous green spaces, along with walking paths and a cycle network.

02

on their well-being. In addition, it creates a safe environment that is walking-friendly and encourages outdoor activities.”

Beyond encouraging active lifestyles within the development, Aljada was also master-planned to international standards and best practices.

“We asked questions about how to give residents access to community facilities, how to have retail components within walking distance, and what is the right walking distance, taking into consideration the climate.

We also looked at parking standards and traffic since, as we know, traffic is a major issue. Even in terms of energy and consumption, we studied facade treatments and plot control regulations. Basically, we looked at the best international practices in all of the aspects of the master-planning.”

Pushing Sustainability

Sustainability and energy conservation are hot topics in the Middle East and it is also a significant to ARADA. “The way we oriented our buildings, the ratio between the building height and the courtyard depth, the distances between buildings – all of these factors were examined. By adjusting the ratio of building height in relation to the 03

40 OCTOBER 2017

courtyard and by aligning the buildings in relation to east/west, we maximised self-shading. In addition, when you allow for sufficient setbacks between buildings and combine it with the right angle, you maximise wind channelling and optimise overall thermal comfort.”

He adds, “When you start utilising materials that are not heatabsorbent, i.e. they are either reflective or of a lighter colour and include more vegetation in the project, all this helps to create the optimum thermal comfort, which has a positive impact on energy consumption as it means less dependence on cooling.”

At the same time, the project’s focus on sustainability also posed challenges, particularly with regard to the development’s many green areas and linear parks.

“We were pushing boundaries, which means pushing people out of their comfort zone. With this project, we proposed a number of things that are not common and getting approvals required a lot of people to believe and support the vision. Thankfully, once people started visualising it and saw the impact it could have on the community, it got the support it needed and things moved forward smoothly.”

ON SITE

OPINION

01 Jeffrey Badman is a partner at HKA.

Taking a Second Bite at the Cherry HKA’s Jeffrey Badman weighs in on the mechanics and scenarios relating to contractor claims

01

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ub-Clauses 8.4 [Extension of Time for Completion] and 20.1 [Contractor’s Claims] of the FIDIC 1999 suite of contracts set out the contractual mechanism for the contractor to claim its entitlement to an extension of time.

Sub-Clause 8.4 (Red Book) provides, inter alia: “The contractor shall be entitled subject to Sub-Clause 20.1 [Contractor’s Claims] to an extension of the time for completion if, and to the extent, that the completion for the purpose of Sub-Clause 42 OCTOBER 2017

10.1 [Taking Over the Works and Sections] is or will be delayed by any one of the following: (a) A variation (unless an adjustment to the time for completion has been agreed under Sub-Clause 13.3 [Variation Procedure]) or other substantial change in the quantity of an item of work included in the Contract, (b) A cause of delay giving an entitlement to extension of time under a Sub-Clause of these conditions, (c) Exceptionally adverse climatic conditions on-site, (d) Unforeseeable shortages in the availability of personnel or goods caused by epidemic or government actions, (e) Any delay, impediment or prevention caused by or attributable to the employer, the employer’s personnel, or the employer’s other contractors on the Site…”

From this provision, it is understood that the contractor is entitled to an extension of time if one or more of the prescribed events in Sub-Clause 8.4 arise, and the event causes or will cause a delay to the time for completion.

If neither of these criteria are satisfied, then the contractor has no entitlement to an extension of time.

With regard to the contractor’s provision of notice in relation to the occurrence of an event, Sub-Clause 8.4 continues, stating inter alia: “If the contractor considers himself to be entitled to an extension of the time for completion, the contractor shall give notice

to the engineer in accordance with SubClause 20.1 [Contractor’s Claims].”

Based on the drafting of Sub-Clause 8.4, it is understood that when the contractor considers it is entitled to an extension of time to the time for completion – i.e. the two criteria have been met – it is required to give notice in accordance with Sub-Clause 20.1.

Sub-Clause 20.1 expands upon the notice requirements and provides, inter alia: “If the contractor considers himself to be entitled to any extension of the time for completion and/or any additional payment, under any cause of these conditions or otherwise in connection with the contract, the contractor shall give notice to the engineer, describing the event or circumstance giving rise to the claim. The notice shall be given as soon as practicable, and not later than 28 days after the contractor becomes aware, or should have become aware of the event or circumstance.”

It is further understood that if an event arising under Sub-Clause 8.4 is causing or will cause a delay to the time for completion of a project, the contractor needs to submit a notice in accordance with Sub-Clause 20.1 within 28 days of becoming aware of the event, to pursue its entitlement.

The use of the word ‘will’ in Sub-Clause 8.4 seems to imply here that the contractor has sufficient knowledge that the event will cause a delay to the time for completion in the future, possibly because it is on the current critical path.

ON SITE

But, what happens if, at the time it arises, an event does not cause a delay to the time for completion, but due to a change in circumstances, later results in a delay? To understand the notice requirements in this scenario, it is not only necessary to examine the chronology of the event, but also how the effects of the event have changed over time, in terms of the time for completion.

When the event first arises, the contractor has no entitlement because in the circumstances the event has not or will not cause a delay to the time for completion. In this situation, no obligation arises to submit notice under Sub-Clauses 8.4 and 20.1 for delay. However, once it becomes apparent

that the event is causing or will cause a delay to the time for completion, an entitlement to an extension of time for completion may arise. When this occurs, an obligation arises and the contractor needs to submit notice in accordance with Sub-Clauses 8.4 and 20.1, to pursue its claim for an extension of time.

HKA considers that the relevant provisions of the FIDIC 1999 suite of contracts have been drafted sufficiently wide to provide for this very scenario. The introduction of the words ‘circumstance’ and ‘event’ also caters for the change in the criticality of an event with time – moving from non-critical when it initially arises, to later causing a critical delay to the time for

completion, due to a change in circumstances.

HKA concludes that there are at least two triggers for the submission of notice under Sub-Clauses 8.4 and 20.1: first in relation to the occurrence of a critical event and second pertaining to the change in circumstances, which results in a non-critical event becoming critical and delaying the time for completion.

For those reviewing contractors’ claims, when considering the effectiveness of the contractor’s notice under Sub-Clause 20.1 and the application of the relevant time-bar, it is necessary to review both the chronology of the event and how the effects of the event have changed over time, in terms of the time for completion.

“When the event first arises, the contractor has no entitlement because in the circumstances the event has not or will not cause a delay to the time for completion.

In this situation, no obligation arises to submit notice under Sub-Clauses 8.4 and 20.1 for delay” OCTOBER 2017 43

ON SITE

SHOW REVIEW

Cityscape enjoys 25% growth for visitors on first two days Major developers confirm a host of real estate sales

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oosted by a y-o-y increase of 25% for visitors during its first two days, Cityscape Global was the catalyst for a 186% increase in registered Dubai Land Department transactions of off-plan units. Big-name developers also recorded positive sentiment from investors, driven by on-site sales. The show hosted hundreds of prominent local and international companies, offering an array of exclusive deals on projects within the UAE. According to Cityscape Global data partner Property Monitor – the UAE’s leading real estate intelligence platform, offered by Cavendish Maxwell – comparing the number of transactions for off-plan properties during the first day of Cityscape Global in 2016 and 2017, the figure tripled, jumping from 37 to 106.

Lynnette Abad, partner and head of Property Monitor, says, “Looking back at the opening day for 2016’s edition compared to 2017, we can see a dramatic leap in the number of registered DLD transactions made for off-plan units. Permission to sell during the show has seemed to catalyse investors and buyers in the region, and has resulted in a noticeable increase of activity.”

Abad adds, “One of the reasons why off-plan has been so successful this year is because developers have found that winning combination 44 OCTOBER 2017

of a very good final price point coupled with attractive payment plans.”

Tom Rhodes, exhibition director for Cityscape Global, explains: “We’re seeing a new wave of investors, end users and home-owners attending this year, and with 25% more visitors than 2016, developers’ stands have been busy with activity. The atmosphere on the show floor has been great this year, and it’s encouraging to see investors eager to capitalise on attractive pricing by developers during the exhibition.”

Offering deals on one- and two-bedroom units in its Dubai Silicon Oasis project, Binghatti Holding showcased the Binghatti Stars development during the three-day property show. Muhammed Binghatti, CEO and head of Architecture, said: “As a result of the offers we had during the show, we were getting clients who were walking in and closing deals in a matter of minutes, for a total of well over $2.7m in sales. On-site sales have definitely impacted visitors’ engagement.”

As many as 40 new projects were also launched from developers such as Aldar Properties, Deyaar, Dubai Properties and Nakheel.

Cityscape Global is co-located with the Building Healthcare, Innovation and Design Show, the regional business platform for build, construction, design and innovation of healthcare facilities.

For more information about Cityscape, visit: www.cityscapeglobal.com.

ON SITE

SHOW PREVIEW

City Vision Expo 2017 to open in Saudi Arabia on October 31 $133bn projects to raise the number of participants at exhibition

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reparations are under way for the ninth session of the Jeddah Urban Development and Real Estate Investment Exhibition – City Vision Expo 2017. The exhibition is being held under the patronage of His Royal Highness Prince Mishaal bin Majid bin Abdul Aziz, Governor of Jeddah, and will run from 31 October to 2 November at the Jeddah Centre for Forums and Events. The show will host the leading real estate developers and finance agencies in the Kingdom and the Gulf region.

The exhibition is a high-profile platform for real estate developers, cities and local authorities, real estate investors, owners of real estate projects, providers of real estate solutions, consultants, engineering offices, city planners, contractors and construction companies, project management firms, and financers of real estate. Exhibitors will highlight their projects and investment opportunities, exchange experiences and enhance their knowledge of the latest developments in the sector through the diverse activities of the exhibition.

The mega projects adopted by the Kingdom’s Vision 2030, which exceed $133bn, will be the biggest incentive for participants. The

incentive comes at a time of great importance to the real estate sector, due to the fundamental changes being adopted by the Kingdom to stimulate development and investment. The event is expected to witness the launch and display of several mega projects that represent the cornerstone of a strong Saudi real estate sector.

Currently, the Kingdom of Saudi Arabia has the largest real estate market in the Middle East, and is estimated to exceed $533bn due to the high demand from consumers and investors looking for a market with high returns and a high level of capital growth.

Strongly established as the leading real estate event in the Kingdom of Saudi Arabia, City Vision Expo 2017 proudly supports the government’s vision for growth in the real estate industry. The event also highlights iconic architecture and innovative development in the region’s biggest real estate market, and will provide a platform for the regional and local real estate communities to come together to network, create partnerships and discuss the future of real estate in the Kingdom’s real estate sector.

Complete event details are available at www.jeddahurbandevelopment.com.sa

OCTOBER 2017 45

ON SITE

SHOW PREVIEW

Downtown Design 2017 to double in size Fifth edition runs 14-17 November and hosts 150 brands

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he 2017 edition of Downtown Design, the anchor event for Dubai Design Week, will be the largest and most significant to date, celebrating five years as the leading design trade fair for high-quality design in the Middle East. Taking place in partnership with Dubai Design District (d3) and the Dubai Culture & Arts Authority (DCAA), the show is set to enhance its position as the Middle East’s essential contemporary design event, providing industry and public audiences with new products, trends and inspiration.

The fair will present a range of carefully selected best-in-class established and emerging brands from all over the world to the design professionals drawn to Dubai from across the Middle East. The annual exhibition, held for the third time at d3, will provide the architecture and design industry with a unique blend of exhibitors, live events and installations, all within a purpose-built venue.

Downtown Design will present talent across 26 product categories and will feature reputed brands and showcase eight emerging regional design brands for the first time.

Rue Kothari, show director of Downtown Design, says, “We’re delighted to be marking five years with a show double the size of previous editions. Not only does this reflect the strength of the exhibition and 46 OCTOBER 2017

its reputation but also the growth in the lighting, furniture and textiles sectors. The show continues its rise, while focusing on connecting exhibitors to the region’s leading architects and interior designers.”

Mohammad Saeed Al Shehhi, d3 chief operating officer, comments: “We’re delighted to welcome Downtown Design again to d3 as part of this year’s Dubai Design Week. The success of the show is proof the design industry in Dubai and across the region is growing. Downtown Design alongside d3 during Dubai Design Week is a powerful combination, underpinning Dubai’s position as an essential and dynamic market for local, regional and international brands.”

Downtown Design maintains its renowned approach to detail, quality and relevance in selecting brands to exhibit. The 2017 edition sees an increase in the number of brands across all categories, with an outstanding 90% retention of key brands, each returning with fresh concepts for the market. The show’s commitment to its exhibitors includes bespoke marketing and public relations tailored to support each brand, and a dedicated buyers programme which matches commercial objectives with buyer profiles. The result is a trade audience unparalleled in terms of both quality and relevance.

Pre-register on www.downtowndesign.com.

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Educate ME How does KONE use BIM on projects?

We use BIM to enhance the understanding of our equipment throughout the lifecycle of a building. For designers, we have online tools and support them in making well-informed decisions earlier, to mitigate the cost of late changes. Builders use our BIM coordination capabilities to increase predictability on the construction site. This includes the 3D coordination of our equipment as well as 4D construction site planning, where we can communicate important logistics issues through images, animations and simulations. Finally, owners can leverage KONE expertise to extend the value of BIM on their project by integrating the COBie (construction-operations building information exchange) data schema for their specific facility management system.

What are some of the benefits of using BIM technology?

BIM technology is the medium of our customers and a key component to forging a new productivity frontier in construction, which has traditionally lagged behind other industries. It is very important to all of our work to use these paradigm-shifting technologies, along with our industry peers and partners.

When our design and build customers call us to play in their BIM coordination process, amazing things happen. We clear up major issues early on with meaningful communication, resulting in time savings later, during the construction process.

The BIM Benefit John Morada, design engineer at KONE Middle East, speaks to Middle East Consultant about the advantages BIM technology offers on projects 48 OCTOBER 2017

What part does BIM play in resolving conflicts on projects?

Communication is what actually resolves conflicts – we use BIM to improve that communication. When our customers can sit with our project managers and engineers and use BIM to look at the actual configured equipment model in the context of their structure, a shared understanding is reached and many conflicts can be avoided. If you’ve

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our equipment, it would be over 100 billion unique configurations, not including customengineered solutions. Even with that amount of variation, whatever we give to the project team to coordinate has to be right. The automation we developed to solve this is really important to make sure we are providing the value of BIM without adding major cost or effort.

Does KONE use any other new software or technology in conjunction with BIM? What are the benefits? Explain its place in your workflow

never seen BIM coordination work well, it is really something.

Are there any challenges when using BIM on projects?

Timing is critical. We can have the best BIM process in the world but if the structure is up and major procurements like steel have been made prior to our BIM coordination, then the project will suffer the same challenges with unpredictability/unforeseen costs.

Regionally, the proliferation of very aggressive guidelines for BIM has been a challenge. We are always balancing the value of what we show (geometry) versus what we know (data), and how that impacts the downstream stakeholders. Sometimes these guidelines force project contributors like KONE to go outside what is reasonable and efficient from a BIM perspective. Ultimately, this could be a high-cost add-on with a limited value. Our KONE BIM experts will work through any model use goal, as well as provide guidance to our customers toward the most cost-effective and highest-value BIM workflow.

BIM for the vertical transportation industry, and we believe that makes us stand out. Our combination of planning tools, in-house expertise, advanced coordination (3D and 4D) and BIM deliverables for owners is unique. These capabilities were developed as part of our customer co-creation process, where we immerse ourselves in the world of our customers’ BIM practitioners and staff our BIM team with industry experts.

How BIM-ready is KONE? Talk us through the steps the company took to adopt BIM

Globally, we are fully capable to deliver BIM on any size projects. This took several years of effort to develop the automation, the technical skill in engineering and the workflows to put the power of BIM in our frontline sales and project management resources. We did this through a global network of key users and the development of a global BIM team overseeing IT and R&D of our BIM offering. While this implementation work will never truly end, today we use a combination of in-person training, e-learning and documented workflows to further the saturation of BIM in KONE.

The Middle East is a competitive market.

Does BIM help KONE differentiate and

What were the key challenges KONE

stand out?

had to overcome in the adoption of BIM?

KONE is a world leader in how we apply

If you took all the possible combinations of

Our current BIM capabilities take advantage of all the latest BIM tools, from model authoring and coordination tools to cloud services for real-time collaboration. Outside of that, we have used augmented and mixed reality platforms with our BIM system that helps us understand the 3D model in a new way. I was an early naysayer of the value of a model in these platforms but it is really amazing when you can walk around a virtually scaled model of a building – the speed of comprehension of even a very large model is vastly improved.

While we have not taken this into practical application, it is a technology we will grow our BIM offering to take advantage of.

How do you see BIM evolving?

Prefabrication and BIM-enabled generative design are major shifts we see in the industry in the coming years. Our solutions already integrate with a few of the more forwardthinking construction stakeholders in these areas, and we expect that number and that integration to grow.

We want to continually learn from our customers on how best to improve project delivery at every phase through BIM. Partnership is a major theme in that process.

In the coming years, we will continue our customer co-creation process, bringing real practitioners into our road mapping and solution evaluation process.

OCTOBER 2017 49

ENERGISING THE INDUSTRY 6 - 8 MARCH 2018 I WORLD TRADE CENTRE, DUBAI, UAE

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oN SIte

emiratesGbc promotes green building in UAe with roundtable The Emirates Green Building Council (EmiratesGBC) organised its first Developers Forum in Dubai, to highlight green building practices in the UAE. The event promoted a vision of sustainable development and advancing green building practices, in an effort to achieve the goals of UAE Vision 2021. It also shared insights on market trends and focused on integrating developer perspectives into dialogues initiated

by EmiratesGBC. “The Developers Forum Roundtable was the first initiative of its kind that aims to bring one of the most important stakeholders in the construction sector to sustainable built environments. With hands-on experience in project development and management, the developers have strong insights on the practical challenges and concerns in promoting green buildings. They also have information on best practices that will benefit stakeholders, as well as the community. The recommendations of the roundtable will serve as guidelines for EmiratesGBC in advancing the UAE’s green agenda,” said Saeed Al Abbar, chairman of EmiratesGBC.

Perkins+Will appoints new associate principal Perkins+Will has grown its team in Dubai with the appointment of John Lister, associate principal, director of Architecture Mixed-use and Commercial.

Lister has over 25 years of commercial architectural experience, including three years working in the UAE on retail, leisure and hospitality developments. His recent portfolio of work includes the Kempinski Hotel Mall of the Emirates, Aldar’s Yas Mall Hotel, Emaar’s Signature Tower at Dubai Creek Harbour and Emaar South.

“I’m honoured to have joined Perkins+Will, which I see as a fantastic opportunity and the move I have been looking for since arriving in the UAE. The position is exactly where I want to be, and I am fully aligned with the direction the organisation is going. I first came into contact with Perkins+Will while working on the Vida Hotel Bahrain project, where I was very impressed with the open, flexible and efficient approach to problem-solving. The way the management team at Perkins+Will takes ownership and makes quick and smart decisions that move things forward in a way that’s entirely uncommon in the global workspace is fantastic,” commented Lister.

Perkins+Will principal Steven Charlton welcomed the appointment. “We are proud to make this important addition to Middle East operations. John is not only extremely well-qualified and experienced, but his personality will be the perfect fit for the team and I have no doubt he will prove to be an inspirational driving force for all that work with him.” october 2017 51

ON SITE

Atkins predicts future of Me built environment 85% of Atkins employees in the Middle East believe sustainability will be at the core of all future building developments. Atkins made several predictions on the future of the built environment space, based on research, which polled 126 of its design, engineering and project management experts in the Middle East. The study was released as part of the consultancy’s 50th anniversary in the Middle East.

Staff said that all buildings will be environmentally friendly/ sustainable (61%) and that there will be a greater focus on community living (49%). The poll also found that the innovations with the highest chance of coming to light in the infrastructure sector included extensions to existing metro lines and increases in speed, a greater focus on underground tunnel systems, and a network of driverless cars with dedicated lanes. The study also predicts more low-level buildings rather than skyscrapers (19%).

Employees also said that forward-thinking leaders and governments, leveraging events like Expo 2020 and the Middle East’s geographical location, will play a part in the future of the region’s built environment.

52 october 2017

ArAco wins contract for $44m residential tower in Dubai Abdul Rahim Architectural Consultants (ARACO) has been appointed lead consultant on a new residential project in the Majan master-development. The tower was first announced in July of this year and is expected to be completed in December 2019.

The firm will handle architectural work on the tower, along with MEP and structural design. The firm will also be responsible for the tendering process and construction supervision in line with the UAE’s regulations governing the safety and quality of built assets.

In addition, ARACO will manage securing approvals for building plans as well as the necessary licences from authorities.

“The project is designed to meet the needs of Dubai’s residents, who demand stylish homes with world-class facilities and excellent transport links to other parts of the emirate and the UAE. The 278 units in this tower will feature high-quality interior fit-out and finish and will offer basement parking, retail and fitness facilities including a community pool, shaded family and kids’ play area and gym,” said Rahim Banizaman Lari, general manager, ARACO.

ON SITE

benoy appoints Neil Kee as director and head of Design Studio Dubai

DIFc courts announces specialised division DIFC Courts has announced that construction and technology companies can now turn to a specialised division to tackle complicated commercial disputes. The new Technology and Construction Division (TCD) has specialised judges and industry-specific rules to solve disputes quickly.

The new division will only hear technically complex cases, including claims arising out of fires. Examples of technology cases include cybercrime incidents, disputes over the ownership and use of data, liability, and other issues relating to emerging technologies such as artificial intelligence and/or connected cars.

“The TCD has been designed around the particular characteristics of highly complex technology and construction disputes, which can be resolved much more speedily and efficiently with the oversight of specialist judicial expertise. This new division is another foundation stone in our work to build the courts of the future, and an important new service for businesses operating in two key sectors of the UAE economy,” said DIFC Courts’ chief justice Michael Hwang.

The TCD was set-up after a month-long consultation with the region’s legal community, and will be led by justice Sir Richard Field.

Commenting on his appointment, Field said: “It is a privilege to be chosen to lead the TCD, which represents an important addition to the UAE’s dispute resolution infrastructure. By forming a specialist division to handle complex disputes, the DIFC Courts are working to secure businesses both now and in the future.”

Neil Kee has joined Benoy as director and head of Design Studio Dubai. Kee was previously divisional director at Benoy Singapore, and has an international portfolio spanning the retail, commercial, aviation and residential sectors. Kee’s appointment coincides with Benoy’s tenth anniversary in the Middle East and North Africa.

Kee takes over from Paul Priest, and will be responsible for overseeing regional projects and spearheading growth across the MENA markets. Kee has experience in the MENA region, having previously worked on Ferrari World Abu Dhabi in 2010. He was most recently involved in the development of Terminal 4 at Singapore’s Changi Airport.

“It is with great pleasure that I accept my appointment at Benoy. I am honoured to have had the privilege of working on some of the company’s most notable projects in the far East, and I am incredibly excited to continue working on world-class projects, tailoring the experience to redefine and reinvent how space is used here in the region,” said Kee.

october 2017 53

ON SITE

JLL highlights healthcare opportunities in MeNA region JLL’s ‘Healthy Returns’ report has found that the MENA region is lagging behind other developed economies with regard to per capita spending on healthcare and the provision of hospital beds. The report notes that this shortfall will create opportunities in the healthcare market across the MENA region over the next five years.

The report forecasts that the number of people over 65 in the MENA region will increase by 4.4% per year, over the next five years and will hit 26 million by 2020. In line with these figures, the report states that an additional 10,500 hospital beds will be needed over the next five years in cities such as Dubai, Abu Dhabi, Riyadh, Jeddah and Cairo.

“With the current shortage of hospitals, clinics and other healthcare facilities, an ageing population and the rise of medical tourism, there is a pressing need for additional healthcare facilities in the region over the coming years. To merely keep pace with the forecast population growth will require investment in around 70 new hospitals in the five major cities across the region,” said Craig Plumb, head of research, MENA – JLL.

54 october 2017

ramboll appointed to Makers District project Ramboll has been appointed as lead consultant for the $544m Makers District project being developed by Abu Dhabi-based IMKAN. The win was announced during Cityscape Global in Dubai, and the $33m contract is said to be one of the largest awarded in the UAE in 2017.

The development is a waterfront community consisting of residential, hospitality, commercial and retail spaces, and will be spread across 18 hectares on Reem Island. Per the terms of the contract, Ramboll will provide lead consultancy services on the first phase of the project and will work with BIG and MVRDV architects.

“This is a significant win for our team in the UAE. Our multi-disciplinary buildings team is involved in several high-rises and mixed-use projects in the region, and this high-profile win cements our position as one of the leading engineering design companies. With the consultancy contract valued at $33m, the Makers District is a very challenging project, and we are excited to utilise our knowledge and expertise to deliver a project of this scale successfully,” said Soren Holm Johansen, group executive director at Ramboll.

The project is scheduled for completion in 2020 and will consist of 1,000 residential units and 11,000sqm of commercial and retail space.

The development is being billed as the first of its kind in the region and is being developed to respond to the maker movement and the requirements of highly networked creative workers.

ON SITE

cundall Middle east expands regional team

Macro grows FM consultancy headcount Macro has grown its regional team with the appointment of Emma Harvey. Harvey will join the firm’s FM consultancy team in the Middle East and will be based out of Dubai.

Harvey is said to have a strong background in FM operations in the region, managing projects on the client and contractor side.

Her recent experience includes managing the tender process for outsourced FM services at a large entertainment project in Dubai and managing a large commercial tower boasting one million sqft of total floor area.

“I am delighted to welcome Emma to the team. Her broad skill set, passion for the industry and focus on best practice made her the ideal candidate. I look forward to working with her to further expand Macro’s consultancy service offering,” said Chris Bond, director of Consultancy at Macro in the Middle East.

Harvey previously worked for JLL, Arabtec Holding, Serco and KPMG. Her expertise spans a wide range of sectors including commercial, residential and leisure.

The firm says Harvey will add to its talent pool and bring a wealth of experience in FM consultancy, asset management, real estate and contract management.

Cundall has appointed Olga Rowley as its business development and marketing manager for the MENA region. Her key responsibilities are to raise the multi-disciplinary engineering consultancy’s profile and connect with other leading companies in the region.

“Over the past few years I have been fortunate enough to work with many fantastic clients, talented engineers, architects and the creative community within the construction industry. It’s incredible to see how enthusiasm for engineering and clever solutions drive people in Cundall.

I have been inspired by the desire that every person in Cundall has for their role, from engineers to partners, who encourage a culture of innovation and development. People work hard and the results speak for themselves. By sharing our knowledge and best practices with each other, we can all build and live in a future-ready and sustainable environment,” explained Rowley.

Rowley is a member of the ACE Progress Network in the Middle East, through which she organises events for young industry experts to share knowledge and promote innovative thinking in the construction industry.

october 2017 55

THE BACK PAGE

LAST WORD

01 Muhammad Obaid is the founder of EMKAAN.

The Time is Now for Passive Cooling Muhammad Obaid believes that efficient building design is critical to creating cooler spaces

01

O

n a global scale, 2016 was officially the warmest year on record and 2017 isn’t expected to be much better.

This is according to the World Meteorological Organisation (WMO), which attributes the increase in temperatures to exceptionally low sea ice and a relentless rise in sea levels.

With temperatures increasing globally, the Middle East and the UAE have also been

experiencing blistering summers year after year. Up-to-date figures show that the highest maximum temperature ever recorded in the region was in June 2010 – a scorching 52 degrees Celsius. That figure was recorded again in 2015, and it is very likely that won’t be the last time we experience such high temperatures in the Middle East.

High temperatures make it challenging to go about your day-to-day business and have a detrimental impact on energy conservation, since more cooling is needed to keep internal temperatures in check. The good news is that there is a way to lessen the impact of rising temperatures and create cooler living and working spaces – and the key is efficient building design.

When designing buildings, it’s important to deliver something appealing and functional that complements the surrounding spaces.

In a place like the UAE, which experiences extreme temperatures for a large part of the year, one main consideration should be to make the space as comfortable as possible, but by using passive means. This is particularly important in modern homes and offices, which are effectively sanctuaries from the heat and humidity.

Implementing passive cooling in building design focuses primarily on heat gain control and heat dissipation, in order to improve indoor thermal comfort with little or no additional energy consumption. One approach is to use panels made of phenolic materials or to invest in nanotechnology paints, which reduce internal heat and therefore energy consumption. An added benefit of this solution is that they also purify the air naturally.

It’s also important to focus on the larger outdoor environment, which means reducing heat retention and radiation by structures.

Research by engineers at Stanford University led to the invention of a revolutionary coating material, which can help cool buildings even on very sunny days. Known as photonic radiative cooling, the ultra-thin, multi-layered material acts as a highly efficient mirror that reflects virtually all of the incoming sunlight.

This means that less heat is radiated into the surrounding environment.

Implementing innovative solutions such as photonic radiative cooling in the Middle East is one of the best ways to passively create a cooler environment, and it’s something the industry should start implementing as soon as possible.

“High temperatures make it challenging to go about your day-to-day business and have a detrimental impact on energy conservation, since more cooling is needed” 56 OCTOBER 2017

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