ME Consultant September 2016

For the construction specialist

the next Level

Martin Dufresne and Pedram Rad reveal U+A’s next step On tOpIc

Can construction take more oil price fluctuation?

In practIcE

Exploring the world of construction technology

On SItE

We profile the Regent Emirates Pearl in Abu Dhabi

ISSUE 029

September 2016 Publication licensed by International Media Production Zone, Dubai Technology and Media Free Zone Authority

CONTENTS

On topic NEwS aNd VIEwS fROM aCROSS ThE MIddLE EaST

07

10 07 aNaLySIS

Evaluating whether the Middle East construction industry is equipped to handle further fluctuations in oil prices 10 aNaLySIS

Analysing the long-term impact of Bahrain’s decision to allow 100% foreign ownership of business

12

14

In practice aNaLySIS, INSIghTS aNd INTERVIEwS

12 OPINION

Craig Ross at Cavendish Maxwell addresses why it’s important for developers to maintain reserve funds and how to avoid shortfall 14 INSIghT

The evolution of lighting design and where it is heading

20

28

20 INTERVIEw

Pedram Rad and Martin Dufresne discuss their plans for U+A 28 INSIghT

Assessing the future of construction technology 32 COMMENT

Mehdi Danesh of Hill International addresses the need to develop GCC guidelines for PPP projects

34

38

On site CaSE STudIES, OPINIONS aNd SNaPShOTS

40 SITE PROfILE

Ahmed Osman of DeSimone Consulting Engineers talks about the Regent Emirates Pearl development 46 NEwS

Dutch developer plans floating residences in Dubai

40

46

SEPTEMBER 2016 1

WELCOME

Group EDITOR’S NOTE

Back to the Future One of the key focus areas in this month’s issue of Middle East Consultant is technology of the future, and a quick read through the lighting consultants and construction technology features will give you a peek into what’s in store for us.

According to lighting consultants, the rapid pace at which LEDs have developed and the micronisation of electronics over the last few years has allowed lighting technology to turn smarter.

For instance, the introduction of sensors in luminaries can be used in retail to track the movement of individuals around a retail space, which gives critical feedback to retailers on how points of sale are doing and how long people spend shopping. It could even help in facilities management and cost-saving operations.

Construction technology has also seen tremendous progress, with Building Information Modelling (BIM) catching on, and the introduction of virtual and augmented reality has also opened up new possibilities.

But as our experts point out, there are other aspects to construction technology as well. Drones on construction sites help monitor progress, while the onset of cloud and mobile technologies enhance the connection and collaboration of those on-site and at the office.

We also had the opportunity to interview Pedram Rad and Martin Dufresne of U+A in Dubai and find out more about where they are steering the company. They are working on a number of interesting projects in the region, including Marasi Business Bay and Swiss International Scientific School in Dubai, and Jeddah Corniche in Saudi Arabia.

Among the excitement that picks up during this time of the year for the construction industry, I’d like to draw everyone’s attention to the Middle East Consultant Awards 2016, which will be held on 8 November. I’d like to encourage each of you to send in your nominations by 8 October. It would be great to have you all participate and meet each of you once again!

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ON TOPIC

MOST POPULAR

FEATURED

READERS’ COMMENTS

CONSTRUCTION

LESS TURbULENT

Habtoor Leighton Group CEO arrested in Dubai

TIMES FOR DUbAI PROPERTy MARkET

It makes sense that real estate values are back on the way up (Dubai property price rises ‘imminent’, August 22). The days of mass speculation are well and truly behind us and the market is much more mature. So the severe highs and lows are a thing of the past.

INFRASTRUCTURE

Muscat airport terminal works ‘on schedule’

In pictures: Emaar Act One | Act Two

Name withheld,

project in Dubai Opera District

online comment

CONSTRUCTION

Saudi Oger ‘faces $800m liabilities, bankruptcy’

HIgH-SPEED FUTURE FOR LOgISTICS

I am happy to see the hyperloop in the media again, given the DP World

CONSTRUCTION

study over its potential use

Workers evacuated in Viceroy Dubai tower fire

at Jebel Ali port (Dubai’s DP World to study ‘hyperloop’ container transport, August 17). It’s interesting to see how high-speed tube transport could work in logistics. Perhaps forwardthinking Dubai is where

CONSULTANT

RMJM appointed to work on The Tower in Dubai

4 SEPTEMBER 2016

Video: Ain Dubai, world’s largest observation wheel, takes shape in Dubai

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James Swift, online comment

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Ritz Carlton, Jumeirah Beach Residence, Dubai 8 November 2016 www.meconsultantawards.com Following its hugely successful debut last year, the Middle East Consultant Awards returns in November 2016 to celebrate the GCC’s leading construction specialists in its distinctive and engaging style. Reflecting the diversity of the consulting industry in the GCC, the awards recognise the region’s best multi-discipline construction consultants, architects and the multitude of specialists in structural engineering, MEP, urban design, sustainability, quantity surveyors and cost consultants and all the many other fields that make up all the facets of this wonderful industry. In addition we will be celebrating projects and individuals from junior to senior level, as well as introducing Workplace of the Year.

Nomination deadline: 8 October 2016 NOMINATION ENQUIRIES Davina Munro Deputy Editor +971 4 375 5475 davina.munro@ cpimediagroup.com SPONSORSHIP OPPORTUNITIES Michael Stansfield Commercial Director +971 4 375 5497 michael.stansfield@ cpimediagroup.com

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ON TOPIC

ANALYSIS

The Ripple Effect Middle East Consultant asks the experts where oil prices are headed in the months ahead and if the regional construction industry is equipped to handle further price fluctuations

O

ver the last year, one of the major concerns for businesses around the globe has been the fluctuating price of oil.

According to data from Bloomberg, the price of Brent crude roller coastered from a low of $27.88 per barrel in January up to $52.51 per barrel in June, only to dip once again in July to around $42.14 per barrel.

With the price of oil becoming harder to predict for the months ahead, what kind of ripple effect can we expect it to have on oildependent industries like construction, specifically in the Middle East?

Caroline Kehoe and Craig Shepherd, partners at Herbert Smith Freehills, say a fall in oil prices usually spurs economic activity and

stimulates construction spending. However, in this case the effect has been diluted by other macro-economic factors, such as Brexit, the US elections and continued monetary policy initiatives in major economies. This kind of global uncertainty in major markets means decisions on major capital projects may be postponed, which could dampen construction demand.

In the Middle East, however, considerations have been fiscal rather than monetary, they say. “The lower oil price has had major implications for governmental spending plans. In Saudi Arabia and the UAE, the impact of falling oil prices has been eased to some extent by their significant currency SEPTEMBER 2016 7

ON TOPIC

reserves, which will allow deficits to be run for several years if necessary.

“For other GCC countries without such reserves, such as Bahrain and Oman, the impact is more immediate. This has had a direct and negative impact on the construction industry, although the increase in prices since the beginning of 2016 may bring some good news.”

Agreeing, Craig Plumb, head of Research, MENA at Jones Lang LaSalle, points out that there has been a slowdown in construction activity not only in markets dominated by government sector spending like Abu Dhabi and Saudi Arabia, but also in Dubai.

“A number of the projects originally scheduled for completion before Expo 2020 have now been delayed until after the Expo. While others are still scheduled to meet the Expo deadline, progress on some is running behind schedule. This will require a major increase in spending and resources over the next three years, and the ability to do this will depend upon the level of funding available to developers, which itself will be influenced to some extent by the future level of oil prices.”

With OPEC not expected to change its stated quota, and Saudi Arabia and Iran – the two largest producers of oil – standing firm so far on their production goals, overproduction of oil is likely to continue. Like most experts across the world, Kehoe and Shepherd agree that predicting the price of oil is becoming more difficult. They say that even if oil recovers to $80 a barrel, all OPEC countries stand to lose billions of dollars.

“Reportedly, Iran needs a massive $140 oil price to break even. Saudi Arabia needs a price of just over $90 to balance its budget, Qatar over

$77 and the UAE around $70. Nonetheless, given the dramatic price falls up to January 2016, the industry should anticipate that if oil can hold onto this year’s gains and maintain a price in the $45-50 per barrel region through the second half of 2016, confidence levels will increase.

After all, at the beginning of the year, a $25 barrel price was considered likely by many observers.

“The construction industry in the Middle East can therefore prepare for a gradual increase in tender activity, but it must also brace itself for an increase in the cost of business as governments look to both direct and indirect taxes to recoup some of the lost revenue following oil’s fall in price,” they warn.

Despite the challenges and uncertainty ahead, Kehoe and Shepherd believe the construction industry in the region is better prepared to handle oil price fluctuations than earlier. Since there has already been considerable retrenchment in the industry, relative price stability should mean further cutbacks won’t be needed. However, it will be a long time before significant expansion is likely.

“The current downturn has forced the market to focus more on feasibility and planning, calming what was an overheated market and arguably creating greater stability and therefore market confidence.

Overall, the industry cannot avoid global and regional market conditions; but it can focus on the region’s must-deliver projects, which include the 2022 World Cup and 2020 Expo as well as some of the major social infrastructure projects, particularly affordable housing, now underway.”

Crude oil price, per barrel (September 2015 - August 2016)

Source: Bloomberg, August 2016

$50.00

$40.00

$30.00

Sept 15

Oct 15

8 SEPTEMBER 2016

Nov 15

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Jan 16

Feb 16

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Aug 16

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ON TOPIC

ANALYSIS

Taking Ownership Cluttons’ Faisal Durrani, international head of Research, and Harry Goodson-Wickes, head of Bahrain & Saudi Arabia, discuss the long-term impact of Bahrain’s decision to allow 100% foreign ownership of business

T

he decision by the Bahraini government to allow foreign investors 100% ownership in various sectors of the market is an important development for Bahrain and is likely to have a positive long-term impact on the Kingdom’s property markets. According to the government, the new law will allow 100% ownership in residency, real estate, administrative services, health and social work, information and communications, manufacturing and technical activities, among others.

In an economy such as Bahrain’s, still heavily reliant on hydrocarbon income, economic growth has been subdued ever since oil prices fell from record highs two years ago, resulting in the urgent need for additional revenue streams.

As a result of the need to diversify its economy away from oil, the Bahraini government has begun to follow in the footsteps of other GCC states such as the UAE, by committing to the introduction 10 SEPTEMBER 2016

of a value-added tax (VAT), removing fuel and utility subsidies and cutting public spending. These efforts have had a significant impact on sentiment, while also boosting inflation rapidly. This has, as expected, trickled through to the real estate market in the form of lower budgets, more cost-conscious behaviour and a flight towards what is perceived to be affordable residential and commercial property.

In the residential market, the removal of certain food, fuel and utility subsidies has of course seen an increase in costs for households, which is both continuing to dampen sentiment in the market and curbing household spending power. The ongoing consolidation activity by key economic pillars such as finance and banking and oil & gas is also trimming the rate of household creation, with demand waning and rental values gradually ebbing in the face of the uncertain economic climate.

ON TOPIC

“In the residential market, the removal of certain food, fuel and utility subsidies has of course seen an increase in costs for households, which is both continuing to dampen sentiment in the market and curbing household spending power”

The challenge for Bahrain is clear, and the government has recognised the need to revitalise the economy. One of the Kingdom’s key strengths is its geographic position in the central Gulf. Over the years, this has allowed Bahrain to emerge as an unchallenged logistics hub where rents are as low as a pound per square foot, among the most competitive in the region.

Furthermore, Bahrain’s position gives distributors easy access to all GCC ports. Efficient transport links by land and air also enable swift access to the broader Middle East region, and Bahrain’s proximity to Saudi Arabia, the Middle East’s largest economy, is of particular attraction to logistics, distribution and industrial companies.

The decision of the Bahraini government to extend the 100% ownership law to other markets in the industry sends a very positive message; however, there is still no clarity on the exact nature of the amended law, as 100% ownership of businesses in some industries

is already permitted. This appears to be an extension of the existing rules, which will no doubt deliver a welcome boost to economic activity in the short to medium term.

The Bahrain property market already has a competitive advantage over many other regional locations, as residential and commercial rents and values are yet to fully recover in the aftermath of the Great Recession of 2008, creating a strong pull for occupiers eyeing commercial operations in the Gulf. The decision is likely to attract companies to set up a Middle East foothold, and will for the first time put Bahrain on a competitive footing with some of the region’s mega free zones and business hubs.

There is unlikely to be an overnight boost to real estate values and rents, but it will certainly help to support long-term activity, and we will need to reassess our medium to long-term forecasts as a result of the announcement.

SEPTEMBER 2016 11

ON TOPIC

COMMENT

Understanding Reserve Funds and Avoiding a Shortfall RERA has recommended that 70% of service charge should come from revenue generated from a portion of the total built-up area

A

01

01 Craig Ross, Head of Project & Building Consultancy, Cavendish Maxwell.

02 The value of property in a market is inherently linked to its condition, location and neighbourhood.

12 SEPTEMBER 2016

ubiquitous feature in many buildings in Dubai is notices in the lobby and elevators reminding owners to pay their service charges. These charges make up a majority of the outlay towards the reserve funds for a building. They are funds that form the pool from which building repair and maintenance costs throughout its lifecycle are apportioned out.

In April this year, the chief of RERA suggested to developers that they should reduce service charges in projects by generating revenue from a portion of the total built-up area. He recommended that 70% of service charge amount should come from this revenue stream rather than being factored into the amount paid by buyers.

Until developers find a way to generate revenue for service charges in this manner, charging owners will continue to be the primary source of reserve funds.

For jointly owned properties, owner associations (OAs) act as property managers and are hence responsible for managing the general and reserve funds for a building. This was also highlighted in the 2015 directive from RERA, which required OAs to set up

two funds for facilities management – general and reserve. A requirement for annual budgets was also laid out, along with the need for an independent reserve fund to highlight monetary needs for the upkeep of a building during its entire lifecycle.

RERA requires these studies to be carried out by licensed consultants with expertise in this field.

The importance of these studies detailing reserve fund requirements cannot be stressed enough, with the key element being that no one size fits all. The reserve fund requirements for each building differ based on location, age, function (residential/hotel/office/retail) and the unique service requirement (for instance, number of lifts, chillers and amenities such as swimming pools).

By factoring financial considerations, such as the impact of inflation, specialists can forecast the amount that needs to be saved in order to pay for items that will reach expiry or require repair during the asset lifecycle. Since common area maintenance in strata-owned buildings is shared by owners in proportion to unit size, if there are any capital needs as a result of reserves being under-funded, then that

ON TOPIC

difference needs to be borne by owners in that proportion.

The value of a property in the market is inherently linked to its condition, along with other factors such as location and neighbourhood. Having adequate reserve funds ensures a well maintained property can become the building block for managing the asset. Inadequate funding often results from a lack of understanding in terms of specifics of the building, with the service charge fixed on the basis of rule of thumb rates rather than a detailed study of asset repair and capital expenditure requirements. This is when unwanted surprise levies are needed.

OAs may resort to a short-term approach of avoiding resistance from owners, and instead of meeting capital shortfall through levies may ignore urgent repairs needed in the building. This lowers the value of the building in the long run and also leads to

dissatisfaction among owners because of building appearance and performance, not to mention the increased chances of injury or damages that pose a safety hazard.

A reserve fund study conducted by professional building consultants helps avoid situations of inadequate fund reserves, as it identifies the operational impact on the lifecycle of the property and the performance of the various building elements. This in turn reduces the special levies from owners to make up the difference.

Given the forward estimates of maintenance and capital expenditure requirements, adequate funding can be maintained as a result of a detailed assessment for reserve fund purposes. It also allows regular record-keeping with all maintenance work well documented.

Ideally, a reserve fund study should be undertaken at the design stage so that

sustainable models of construction can be used in order to manage costs in the long run based on the most effective use of materials, using whole life costs rather than short sighted initial capital costs. While evaluating need for reserve funds among buildings in the UAE, we typically take into account a ten-year forecast and incorporate adjustments to assets on the basis of their remaining useful life.

In the past year, while developers have begun assigning professional consultants like us to undertake this exercise, it is common for many buildings to be under-funded in terms of reserve capital needs. American Investor Warren Buffet says, “Risk comes from not knowing what you’re doing,� and this is as true of building management as it is of stock investing. When you take the time to understand the physiology of a building and prepare for the future with adequate reserve funds, you are rewarded in times of crisis by having the wherewithal to set things right.

02

SEPTEMBER 2016 13

IN PRACTICE

INSIghT

Illuminating Spaces Lighting experts speak to Middle East Consultant about the evolution of lighting design and where lighting technology is heading ike most devices around us, the once simple light bulb has evolved into a more complex gadget. From being used to illuminate a room, lighting technology has become more multifunctional, and is now capable of speeding up the healing process, influencing our behaviour and even promoting connectivity to the internet, among other abilities.

But what exactly has led to lighting technology improving at such a rapid pace? Experts across the board believe that advancements in LED technology over the last couple of years are among the main reasons for this growth.

Mark Vowles, director at Nulty, points out that the industry is now dealing with electronic systems rather than the traditional filament lighting, which opens up endless possibilities to develop smart systems.

In fact, with the micronisation of electronics and LEDs, a number of elements can be encapsulated in LED products.

“You can have cameras, heat sensors, earthquake sensors, smoke detectors and speakers – the list is really endless, but it comes with a price tag. In principle, the clients in the Middle East like the concept of a smart system, but most of the time the initial capital expenditure outweighs the long-term repayments of the system, so it gets value engineered out.

“In fact, a company called Enlighted Inc has made some really interesting developments in smart systems. One such development is incorporating sensors within lighting that track the movement of individuals around a retail space, which gives critical feedback to retailers on how people move about the store, points of sale (POS) that are doing well and how long people spend shopping.”

Giving another practical example, Veit Müller, senior vice president MEIA at the Zumtobel Group, says today’s technology can ensure more user-focused and user-friendly operation of luminaires. For example, at Zumtobel’s office, every desk cluster is able to control its lighting individually. Employees can dim their cluster’s lights up or down by simply using their smartphones or computer desktops, and in some clusters they can even choose the colour temperature they prefer.

14 SEPTEMBER 2016

“The current setting in a cluster imitates the natural rhythm of daylight. The day starts with a very warm 2,700 Kelvin in the early morning, simulating the sunrise. From 7AM towards lunchtime, the colour temperature gradually adjusts to 4,000-5,000 Kelvin, synchronising people’s circadian rhythm and suppressing the melatonin release. And towards the end of the day, the lighting turns warmer again, allowing the release of melatonin and preparing the body for the rest phase.

“This is possible through intelligent lighting controls and sensors, which are furthermore crucial to maximise energy savings. Looking at the specs and designs of future projects, the Middle East is making progress on including intelligent sensors and controls, and we can finally see a larger shift towards using LED technology.”

Sergio Padula, technical director at iGuzzini, adds that it’s not just lighting that’s been getting more efficient but its fittings as well. In fact, fittings are now able to adapt to the harshest temperatures and conditions, as LED is a controllable and manageable component.

It allows the fitting to adapt to the surrounding environment and guarantees high performance.

“Lighting fittings react very well to different conditions and can tolerate adjustments in intensity, dimming without compromising the light quality. LEDs emit coloured light depending on the doping applied to its chip, without using external filters required by traditional sources. This improves the system’s efficiency, and the absence of ultraviolet and infrared light makes LEDs ideal for food and exhibition applications, where these radiations could be damaging.

“Now this new technology is extremely popular in the region. It’s interesting to note that in 2015, 70% of our company’s turnover was from LED fittings, but when our Middle East branch launched in 2008, LED represented only 20% of the overall turnover!”

IN PRACTICE

01 Image: Hormoz Nazari-Ali Daghigh- Hamed Badri Ahmadi

SEPTEMBER 2016 15

IN PRACTICE

Given this growth, Padula says the company has even increased the range of LED products in its portfolio, from 15% in 2008 to 80% in 2014.

Obviously, reducing energy costs is one of the most attractive benefits. In fact, experts suggest that with LEDs, it’s possible to save up to 70-80% of energy consumption.

Müller says it’s all about activity-based lighting, which means having light where it is actually required. Things like daylight sensors measure the actual daylight inside the room and then adjust the artificial light accordingly, to ensure excellent visibility.

“Additionally, these kind of multi-sensors are not only designed for detecting light but are also capable of detecting the presence of movement of people or even vehicles. As compared to conventional PIR (passive infrared sensor) and radar sensors, a contrast sensor system features intelligent detection of objects and operates with significantly higher precision, making it faster and considerably less prone to errors.

“These sensors can accurately monitor any walking or 02 driving motion with ceiling heights up to 20 metres, making it ideal for application-specific solutions in which high energy efficiency is of major importance.”

Lighting technology such as cloud-based lighting can help with maintenance as well. Shaw points out that remote centralised control systems open up an array of opportunities for facility management.

“For example, a typical hotel has thousands of light points. A two-way control system can tell the maintenance team if a downlight in a guest room toilet has failed, without the need to perform regular inspections.

Furthermore, it can predict the life span of a fixture, which can facilitate both improved inventory management of spare parts, as well as scheduling more effective re-lamping for conventional light sources.

“Most importantly, it can gather information on a user’s behaviour.

For example, a corridor that dims down after 10 minutes of inactivity could eventually be adjusted to five depending on the usage pattern, and at the end of the year, those five minutes represent hours of energy saving.”

Müller expands further. For example, if a single presence sensor is integrated into a luminaire, it can detect whether an office is occupied or not. This information can be sent to the cloud and stored on a server. The data can then be evaluated and sent not only to lighting control systems but also to HVAC systems and security management systems.

01 Dowlat Building in Tehran, Iran .

Lighting design by hoorshar Design.

02 Modern lighting technology can be used to speed up the healing process in hospitals.

03 Lighting technology is being used extensively in retail to influence the behaviour of shoppers.

16 SEPTEMBER 2016

03

IN PRACTICE

Technology like Li-Fi, a communication technology that uses visible light instead of radio frequency like Wi-Fi, is also slowly making its way into the Middle East market.

Alex Shaw, design director for UMAYA, notes that the main advantage of incorporating technology like this is that it is virtually limitless, since the visual light spectrum is much larger than radio frequency. He says it will also be much cheaper, since most of its components already exist in a building’s light fittings. Additionally, it doesn’t generate any electromagnetic interference, making it ideal for hospitals and aircraft too.

However, as a relatively new technology, it has a number of downsides at the moment, including short signal range and system reliability.

Vowels believes the introduction of Li-Fi will not have a big impact on lighting design.

“Primarily, lighting design is to design and improve the environment for the occupants, not enhance their access to the internet. I can see the benefits in an open plan office, but when you start configuring partitions and walls in a space, Li-Fi can’t pass through and it becomes redundant. I’ve also read that Li-Fi is affected by bright daylight, which as a designer, we try to encourage the use of as much as possible, as it’s a free, renewable source!”

In terms of challenges, the lighting experts believe that the biggest roadblock in the Middle East is the lack of understanding of the advantages of quality lighting.

“The initial investment cost of quality lighting versus the return of investment due to energy savings has historically not been a very strong argument, because of the low energy prices in the region”

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IN PRACTICE

04 Sergio Padula, technical director at iguzzini.

05 Alex Shaw, design director at UMAYA. 06

04

05

Veit Müller, senior vice president MEIA at the Zumtobel group.

07 Mark Vowles, director at Nulty.

Müller says this is mainly due to the lack of education among end users and a 06 lack of awareness from the authorities. “Lighting is the last piece considered on a project, and that’s normally when budgets have already been overshot and value engineering is carried out. The initial investment cost of quality lighting versus the return of investment due to energy savings has historically not been a very strong argument, because of the low energy prices in the region.”

“In principle, clients in the Middle East like the concept of a smart system, but most of the time the initial capital expenditure outweighs the long-term repayments of the system, so it gets value engineered out” 18 SEPTEMBER 2016

07

Despite the odds, lighting designers and manufacturers remain excited about the quick progress technology is making.

Padula reiterates his belief that lighting fittings will become ultra-compact, more efficient and integrate further with architectural structures and the environment. Both Shaw and Müller maintain that the development seen in the IoT and Li-Fi will revolutionise the industry, impacting both indoor and outdoor environments.

“For instance, presence sensors in car parks or street lights could indicate where free parking spaces are available, and pass this information on to a SatNav system. Indoor navigation could also be possible by using ‘beacons’ that act as small Bluetooth transmitters in luminaires. With the aid of these transmitters, anyone with an appropriate smartphone app will be able to pinpoint their location to within a few metres, which is ideal for finding your way around a shopping centre, hospital or airport.”

It’s safe to say that the industry is very excited about the technology we’re seeing today. What was once thought to be light years away is now at our doorstep.

“Nobody can really fathom how far we’ve come over the last 10 years, and therefore it would be hard to judge what the next 10 years hold. Rest assured, we will continue to support and encourage lighting manufacturers to invest in research and development and to continue pushing the boundaries,” Vowels concludes.

IN PRACTICE

INTERVIEW

Sketching the Future Davina Munro speaks to Pedram Rad and Martin Dufresne of U+A about where they’re steering the company and their projects in the Middle East or most ambitious design professionals, the dream is to not only create architectural wonders across the globe, but to someday build a business that will leave behind a legacy. It is this drive and common goal that brought together Pedram Rad and Martin Dufresne, two highly motivated construction professionals, to form architecture and design firm U+A in Dubai.

Coming from different schools of knowledge, Rad and Dufresne have brought together the best of architecture, design and business expertise. A chartered architect by training, Rad combines 10 years of experience in the field in the GCC with a sound knowledge of business development, while Dufresne boasts a wealth of knowledge in design, having spent over 20 years working with large multi-nationals and boutique design firms in Southeast Asia, Hong Kong and Dubai.

Middle East Consultant caught up with Rad and Dufresne to learn more about their plans for U+A in the region and the projects they’re working on.

“There’s quite a bit of a history behind this firm,” begins Dufresne.

“We both had our own initial ambitions in terms of starting a business and then almost 10 years ago, while we were working at the same office, we got together and decided to start something of our own.”

20 SEPTEMBER 2016

Location Courtesy: Arabian Ranches Golf Club

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SEPTEMBER 2016 21

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“The synergy between the two of us has always been quite good.

Pedram provides extensive knowledge on the business side of things and I provide expertise on the design side of things for U+A, and that works quite well together. Since then, it’s been quite a roller coaster ride but we’re very proud of what we’ve achieved.”

As a decade-old firm in the UAE that offers services in architecture, interior design, master planning and engineering, Dufresne says their philosophy is to make clients feel special by giving importance to quality and paying attention to detail, which ensures that every project is one of a kind.

So what kind of projects do they focus on?

“From my point of view, whenever a project or development comes to us as a company, it comes with its own uniqueness and has certain characteristics that excites us,” says Rad. “We tend to lean towards commercial projects like hotels, shopping malls and even residential projects for end users. While I know that all of these areas are our strengths, we also look for opportunities that you would otherwise not approach in a normal way.”

Dufresne says that the most important factor for him is having the right client and establishing a good rapport and relationship.

“If I meet a client that I’m comfortable with, that really gets me excited about the project and the work too. I’ve worked on many different scales, from large developments like airports all the way down to private villas. But no matter what kind of development it is or the size of it, it all really goes back to the kind of people we deal with.”

In terms of their portfolio of work, U+A is involved in a large number of projects across the Middle East, including developments such as an experience centre for Wasl Asset Management and Deyaar Development’s Midtown development. They’re developing a number

of projects with Emaar and the Zayed Advisory Group, and with Damac they’re working on its headquarters and a large residential development.

While all these developments are important in their own right, one project that particularly stands out is the Marasi Business Bay project, a master-planned 12km waterside development on the upcoming Dubai Canal project.

Dufresne says that when the client, Dubai Properties, approached them, they wanted U+A to have a look at the previous proposal for the project, which was done a couple of years ago. The client also specified that he wanted something more feasible, because the initial proposal was too elaborate.

“It was a commission that left us with a lot of leeway in terms of ideas. We had many discussions with Dubai Properties and their head of architecture, who also threw in some ideas and exchanged thoughts on what we could do. The design that then developed was just an evolution of all of these workshops.

“We wanted to make it unlike any other developments in Dubai like JBR, City Walk and The Beach, so we thought of mixing parks with retail and then taking advantage of the water. That’s when we thought of having these floating elements on the water. Dubai Properties really liked the idea too, and we think this will bring something very unique to Dubai and will be quite popular.”

Designed to be the region’s first yachting destination, Marasi Business Bay is divided into three themed areas – The Yacht Club, The Park and The Pier. It will feature floating restaurants and cafés, onshore boutique shopping centres and a range of leisure and entertainment facilities. The waterfront will host five palm tree-lined marinas with 1,250 berths, while residential units with boat access will be built on the water.

The Marasi Business Bay project is also an indicator of the growing 01

01 Marasi Business Bay in Dubai will host five palm tree-lined marinas with 1,250 berths, while residential units with boat acess will be built on water.

02 Marasi Business Bay is a master-planned 12km waterside development on the upcoming Dubai Canal project.

22 July-AuguST 2016

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02

popularity of low-rise developments in the UAE. Rad points out that while the whole attitude towards outdoor activity during the summer months may seem like a recent phenomenon among residents, it actually dates back many years.

“In the old days, people had the various souks and everyone would head to these places. This was almost equivalent to going to a shopping mall today. People would walk along the street, shop, be entertained on the side and have their F&B needs taken care of. So technically, this element of human nature in them hasn’t changed.

“Dubai is currently focused on showcasing its strength and power, and this can be seen in the form of its tall and mega-tall towers that decorate the city. But I believe that it’s the upcoming smaller developments that will add character to the city. When you look at Business Bay, all you see are large concrete buildings, but the Marasi

Business Bay project will add a lot of flavour and soul to the location.”

The Jeddah Corniche Towers in Saudi Arabia is another U+A project. With a gross floor area of 261,700sqm, the high-end residential development consists of two 56-storey towers and a retail podium on the seafront.

Explaining that this project has a bit of a history as well, Dufresne says that when U+A was approached by a private Saudi developer, this project had been previously designed. However, seeing the client was unhappy with the original design, they decided to tweak the design to encourage a more community feel.

“The client wanted our design expertise to bring this project to a more exciting level, and I think we have definitely succeeded in doing that. It’s been a long journey, but we’re quite pleased with where we are at the moment.

“I believe that it’s the upcoming smaller developments that will add character to the city.

When you look at Business Bay, all you see are large concrete buildings, but the Marasi Business Bay project will add a lot of flavour and soul to the location” SEPTEMBER 2016 23

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03 The Jeddah Corniche Towers in Saudi Arabia consists of two 56-storey towers and a retail podium on the waterfront.

“The original design included three towers, but it made the entire development look too dense and inappropriate for the site. We then reduced it to two towers and gave it more space for an outdoor element on top of the podium for family activities. We’ve actually completed the design development stage and are now going through the tender stage, so we will hopefully be on-site very soon.”

Another interesting project is the Swiss International Scientific School in Dubai (SISD), the Middle East’s first low-energy building in the education sector. The building, which has earned the Swiss MINERGIE certification, consumes one third the energy of standard buildings. Phase one of the school, the primary section, opened in 2015. Phase two has been finished as well, and phase three, the middlehigh school, boarding house and sports facilities, is being worked on.

“What’s exciting about this project is that we’ve tried to change the language of the school and break away from the traditional school design. We’re introducing elements like atriums for students, teachers and guests to interact in, and we’ve made the school’s design quite flexible as well,” says Rad. “It also has some interesting teachers’ lounges, an auditorium, canteen and sports facilities, plus the building is being built to meet MINERGIE requirements. I believe SISD will be a benchmark and other schools will soon follow this pattern where they ensure that future educational institutions save energy as well.

“It’s quite exciting being part of a project like this. The design and build system has sped things up, and we’re expecting the middle-high school to be completed by September next year.”

Again, Dufresne points out that the enthusiasm and interest of the client played a key role here. While most schools in Dubai run as just a business, the client in this case showed genuine interest in how the children study and live in the building, and how they interact with their surroundings.

24 SEPTEMBER 2016

“We came in with a passion for developing a product where the children would feel emancipated.

We studied how children would move from one 03 class to another, and how they would use break areas and other facilities to really make sure that we’re providing something fantastic.

“We also made sure to allow as much natural daylight in as possible without heating the building. Attention was paid to the outside areas as well, in terms of the courtyards and other elements.”

Talking about the sectors that interest them the most, the duo say healthcare is a space they are quite keen on venturing into, and they’re also keen to work on convention centres, airports and institutional buildings as well. This is because they believe the next five years will see Dubai lean towards infrastructure development and the construction of public buildings, rather than just hotels and residential.

“Cities like Dubai have a very defined vision, and this would require all of us to work towards bringing that vision to fruition. I think no matter the global situation, there will always be work in the Middle East. It may be challenging, but definitely always achievable”

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04 While working on Swiss International Scientific School in Dubai, attention was also given to the outside areas to ensure that it is exciting for students.

05 Swiss International Scientific School in Dubai is the Middle East’s first low energy building in the education sector.

04

In terms of the markets that interest them, Rad says they are closely monitoring Iran, Turkey, Saudi Arabia, Oman and Qatar for opportunities. In fact, in Iran, U+A is working on projects like shopping malls and resorts. With Iran slowly opening up, the vast variety of needs will present exciting prospects, they believe.

U+A also has a presence in Saudi Arabia and Iran in the form of representative offices that oversee ongoing projects there. They even have affiliates in South Africa and India as well, who occasionally share resources with them when necessary. With a tough macro-economic environment globally, there are difficulties as well, and one such challenge they face as a company is keeping their niche in the market.

“Every year there is new competition that’s entering the market, and everyone is eager to be part of the exciting projects going on here. We sense a bit of an influx of international companies coming into Dubai in particular, only due to the fact that other markets are struggling and so everyone is going to where the work is,” Dufresne explains.

05

26 SEPTEMBER 2016

“Our hard work and reputation has ensured that we have a bank of clients and potential clients that are very keen to work specifically with us. However, there are other aspects to what we do on the more commercial side of things that tends to be a little more cut-throat, and that’s where competition becomes a little bit more challenging.”

Reflecting on the year gone by and looking forward, Rad says that while 2016 started on a low point due to the drop in oil prices, U+A has managed to beat the odds and successfully expand its business and 100-member staff.

“We’re opening an independent interior design section next door and we’ve increased our staff by 30% because of requirements on-site or in sections where we believe that we need to add people. Cities like Dubai have a very defined vision, and this would require all of us to work towards bringing that vision to fruition. I think no matter the global situation, there will always be work in the Middle East. It may be challenging, but definitely always achievable.”

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The Tech Factor

Davina Munro speaks to the experts about the future of construction technology onstruction technology has seen tremendous progress over the years, with the introduction of Building Information Modelling (BIM), the steady integration of virtual and augmented reality, and the use of converged security systems and drones on construction sites.

In fact, the benefits of these new systems and devices have been so well received that governments and developers are now beginning to acknowledge the effectiveness of implementing them while working on a development.

The first big shift that happened in the industry was the move from using 2D drawings and models for projects to using 3D technologies, says Suhail Arfat, head of Autodesk Consulting Middle East.

“We’ve noticed that there is a dependence on the usage of BIM, where it becomes easy to visualise, simulate and plan a project from its conceptualisation to implementation phase.

BIM has also helped diverse project teams to collaborate on a real-time basis, minimising expensive reworks, significantly reducing project costs and improving efficiency.”

He says that he sees the onset of cloud and mobile technologies ushering in another disruption in the industry as it moves towards a new way of working and managing projects.

Speaking about the progress that BIM has seen, Charles Dunk, associate director of the Immersive Technology Group, UAE & Oman at AECOM, says that while it is well established in the architecture and building sectors, civil engineering is yet to fully embrace it across the construction lifecycle.

“Large infrastructure projects make use of geographic information systems (GIS) to collaborate with stakeholders and statutory authorities, so a GeoBIM approach needs to be

established for these projects. Work using GeoBIM has started and is expected to grow over the next 10 years.

“Traditional BIM reduces risk for all parties and makes prefabrication a viable option, further reducing time and costs while improving safety and quality. However, consultants, clients and contractors around the world still have many steps to take before realising the dream that is PAS-1192 and Virtual Design and Construction (VDC).”

But it’s not just the implementation of BIM that deserves attention. Nour Kassassir, CIO at Parsons MEA, addresses the other aspects of construction technology that are used to optimise the lifecycle management of projects through team collaboration.

These include requirement management systems, mobile field tools for facility condition assessment (FCA), and project management information systems to monitor, measure and manage project schedules, scopes and budgets.

“We have used these technologies on many roads, bridges, airports, land development, buildings and water projects in GCC countries. Such technologies have proven themselves cost-effective by allowing consultants, contractors and the supply chain to bring the work where the production staff is, instead of bringing the production staff to where the work is.

“Moreover, mobile technologies that are specific to the construction industry, such as the field defects tracking system, have allowed field staff to be more productive.

These technologies have made data available at the fingertips quite literally of project staff, which has enabled swift, fact-based decisions and has avoided unnecessary delays to project schedules.”

Mike Abrahim, buildings development director at Parsons MEA, also shares his thoughts on several other technologies that have been introduced in the last few years which he believes have been game changers for the industry.

“Technology like high definition surveying (HDS) SEPTEMBER 2016 29

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scanning systems are capable of performing 360-degree corridor surveys at more than 50 miles per hour. In fact, combining HDS technology and drone surveying could certainly enhance what these tools can accomplish for the architecture, engineering and construction industry.

“Even things like 3D concrete printing could reduce the time required to produce a critical construction component by several orders of magnitude, from weeks to mere hours. Dubai was actually one of the first cities to experience such a technology earlier this year with the launch of the first 3D printed building.”

While increasing efficiency is one of the main objectives of new construction technology, improving the connection and coordination between those in the field and in the office is another. Arfat notes that with the onset of cloud and mobile technologies, the entire construction process is slowly moving towards becoming more virtual. In fact, he points out that in most markets, construction workers use mobile devices on-site to implement real-time improvements.

Kassassir also agrees that remote or offline access to the same construction data that can be accessed from the office is paramount to improving collaboration on construction projects.

“Ubiquitous access to the internet, wireless email, field and material inspection apps, defects tracking and management apps, GPS and wayfinding apps, and other construction field-mobile apps for iPads and tablets have been designed to optimise the

collaboration process between construction field staff and the office staff.

“But the proper implementation of any technology requires the effective focus on the three Ps – people, process and platform. A mature, defined process, supported by well-trained people and enabled by a mature platform, will yield the inevitable result of effective connection and coordination between any collaborating parties, as well as construction field and office staff.”

Development of software and devices that could help improve health and safety on-site is another area of focus for specialists and developers. Arfat says that in addition to unmanned aerial vehicles becoming increasingly cheaper and easier to fly, they are now capable of carrying equipment ranging from small GoPros to more expensive digital SLRs and video cameras which help monitor construction sites.

“Autodesk is now utilising drones to help design and develop maps from an aerial perspective. In hindsight, a drone can capture an aerial perspective of a building, then Autodesk ReCap 360 can stitch the images together to form a 3D model, capturing the building’s exterior clearly,” he adds.

01 Charles Dunk, associate director, Immersive Technology group, UAE

01

02

03

04

& Oman at AECOM. 02 Suhail Arfat, head of Autodesk Consulting Middle East.

03 Mike Abrahim, buildings development director at Parsons MEA. 04 Nour Kassassir, CIO at Parsons MEA.

30 SEPTEMBER 2016

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05 Immersive technologies such as virtual reality and augmented reality can be used for construction training purposes.

05

“3D concrete printing could reduce the time required to produce a critical construction component by several orders of magnitude, from weeks to mere hours” Dunk, however, stresses that when it comes to health and safety, one must not solely rely on technology. For him, the golden rules have always been eliminate, reduce, isolate and control.

“The best way to reduce accidents is to eliminate hazards. If the hazard can’t be removed, then exposure to them should be reduced. Hazards are isolated and controlled using personal protective equipment (PPE) or other methods. So the best way to reduce accidents is better procedures rather than better technology.

“An example is roof construction, where falls from height pose a big risk. To eliminate fall hazards, roofs are constructed at ground level and craned into position. HSE is a very human issue and while technology can help, education and procedures will always be important.

“BIM and 4D technologies help contractors plan their work effectively, if involved early in the design process. Immersive technology such as virtual reality (VR) can also be used for training. Augmented Reality (AR) can overlay data to the real world, possibly providing HSE information for site workers. However, the distraction could cause more issues than it fixes.”

Despite the rapid evolution of these gadgets and applications,

construction technology faces a number of challenges. Kassassir says that perhaps one of the biggest roadblocks is that once an application is developed or launched, it takes a lot of time and effort to change.

“In today’s world, we need to be able to respond to changes in a timely manner and to provide solutions that suit our clients’ needs. By its very nature, construction technology requires time and financial resources to change; this might be one of the challenges that software developers need to take into account by always looking for ways to make technology respond quickly to customised needs.”

Adding to that point, Dunk says that open source software is putting pressure on software developers, which is why many companies are championing data storage and cloud computing, where the profits are high.

“Getting software developers to include features in their offerings that contradict their profitability is difficult. It is also challenging for software developers to work with their competitors, so communities that develop cross-platform file formats help bridge the gap.

“The bespoke nature of construction and projects makes it difficult for developers, consultants and software developers to predict future technology needs. BIM is a great tool for all players in the consultantcontractor-client-technology provider group to rally behind, and invent tools that drive innovation across the construction lifecycle.”

While the industry and developers need to find a way to iron out these issues, the expectations for future technology are exciting for construction professionals. The trio believe that the key is digitisation, and that in the near future the industry will see paper systems continue to be supplanted by digital systems.

“As computing power grows, we’ll see more complex structures and more efficient buildings. In the further future, use of carbon nanotubes, the Internet of Things, lightweight conducting polymers, quantum computing, meta-materials, artificial intelligence and autonomous vehicles will generally shape humanity and the construction industry in unforeseeable ways,” Dunk concludes.

SEPTEMBER 2016 31

IN PRACTICE

Specify ME problems. But sub-standard sealants and coatings are often substituted for high-quality weatherproofing materials to cut expenses. The costs of the potential consequences far exceed the original savings, because there is a clear and proven difference in material performance.

The Silicone Difference

On Target Dr Ing Stefan Dewald, global leader of Dow Corning’s Facade Engineering and Architectural Design team, explains how its silicone weatherproofing materials help with lifecycle savings

B

uilding construction is always an expensive proposition.

Renovations to existing structures are costly, disruptive and timeconsuming, so it’s only logical when building owners and facility managers insist that the materials used in new construction and renovation projects be the highest possible 32 SEPTEMBER 2016

Silicone construction materials from Dow Corning outperform and last longer than conventional organic alternatives because they provide a significant material difference, particularly for the harsh Middle East climate.

Unlike organic urethane sealants and epoxy coatings, silicones are inorganic materials with unique properties. They are inherently waterproof, remain flexible over a wide temperature range, are virtually unaffected by ultraviolet (UV) light and ozone and have a life expectancy that’s typically three times longer than organic materials used in the same applications.

Silicone superiority is proven in independent laboratory and field testing. The test results do not have to be read to be believed.

Their conclusions are evident in a comparison of product warranties. For example, Dow Corning silicone weatherproofing sealants are typically warranted for 20 years of leak-proof protection in the application of facades, while urethane alternatives are rarely warranted for as long as 10 years. Almost all iconic buildings, including the world’s tallest tower, Burj Khalifa, have used silicone sealants for the facades.

The Lifecycle Savings Case for Silicone Weatherproofing Materials

quality. But sometimes budgetary challenges arise and trade-offs are made. The results can be far costlier in the long term than the savings gained in the short term.

Consider building weatherproofing materials. Sealants may represent as little as a tenth of a percent of total construction costs, yet their failure causes 10% of building

Lifecycle savings are savings realised over the performance life of a product versus the costs of using another product. They include all the costs of a product, including applied costs and maintenance over time. Some people assume that silicone weatherproofing materials always cost more than organic alternatives. They can then logically assume that the cost of using

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For more information about Dow Corning silicone weatherproofing materials, please visit the Dow Corning construction website at www.dowcorning.com/construction

silicone sealants is greater than that of using urethane sealants.

But the following story illustrates a more important lesson.

When administrators of a municipal building in a southern US city requested bids to recaulk their facility when its urethane sealants failed after only seven years, four contractors bid on the project and all submitted bids featuring both urethane and Dow Corning silicone sealants.

The resulting competitive bids (see Table 1) are instructive, particularly when initial installation costs are compared with lifecycle savings that assume that replacement urethane sealants will last no longer than the originals.

The best case for urethanes saved $5,733 initially, but would cost taxpayers $30,191 extra over the next 14 years. In the unlikely event that the new urethanes performed for twice as long as the original sealants, the lifecycle advantage would still be with Dow Corning silicone sealants, which are warranted to perform for a minimum of 20 years.

Over the years, in case after case, silicone weatherproofing sealants from Dow Corning perform better and for longer than their

Corning silicone sealants may be less than that of urethanes, simply because less sealant may be required to produce a long-lasting seal – a 2:1 width-to-depth ratio for silicone versus a 1:1 ratio for urethanes.

For application versatility, durability and aesthetics silicones outperform organics, because organics typically have less resistance to UV, ozone and temperature extremes, which can result in hardening over time, cracking/chalking, alligator effect and loss of adhesion, leading to water/moisture ingress.

Choose the Best Solution

organic alternatives, providing significant lifecycle savings to building owners and facility managers that insist on the very best.

Silicone weatherproofing materials from Dow Corning may cost more than ‘economypriced’ products. However, they are typically very competitive with the best-performing organic products. In fact, it should be noted that, in the Figure 1 example, two silicone bids are lower than Contractor C’s urethane bid and three are lower than Contractor D’s.

Furthermore, the installed cost of Dow

New construction and building renovation projects are too expensive to repeat prematurely – and unnecessarily – because sub-standard materials are used. Dow Corning silicone weatherproofing materials provide lifecycle savings for decades to come.

When you work with Dow Corning, we offer you total building system solutions. You benefit from our 50+ years of construction industry expertise, our technical service and support resources, and customised construction services tailored to meet your needs.

Table 1: Cumulative Cost Savings Comparison of Renovation Project Using Silicone Sealants Versus Urethane Caulks Contractor

Urethane Bid

Silicone Bid

Initial Urethane Savings

Cumulative Lifecycle Silicone Savings Year 7*

Year 14

Silicone Lifecycle Advantage

A

$17,962

$23,695

$5,733

$12,229

$30,191

Urethanes cost 103% more

B

$21,480

$23,437

$1,957

$19,523

$41,003

Urethanes cost 166% more

C

$24,600

$29,974

$5,374

$19,226

$43,826

Urethanes cost 128% more

D

$40,918

$48,208

$7,290

$33,268

$74,546

Urethanes cost 139% more

*This figure deducts the initial urethane savings ($5,738) from the estimated cost of the needed urethane rehab project ($17,962).

For Year 14, the total amount of the urethane redo has been added. The figures are not adjusted for inflation or increased material and labour costs.

SEPTEMBER 2016 33

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COMMENT

Developing GCC Guidelines for PPP Projects While many GCC nations have established PPP legislation or are in the process of it, the procedural direction for each stage of a PPP procurement transaction is unclear

A

01

01 Mehdi Danesh, executive director, Programme & Corporate Advisory at Hill International.

02 PPP projects aim to deliver a set of defined social and/ or economic outcomes and benefits for the community.

03 PPP projects have the potential to make a valuable contribution to the delivery of infrastructure and services.

34 SEPTEMBER 2016

ll GCC governments have a strong commitment to infrastructure investment and social programmes, recognising their critical role in driving economic prosperity and social harmony.

The recent drop in oil prices, turbulence in global financial markets and low investment confidence have created a climate of economic uncertainty.

In this climate, a strategic approach has been adopted by GCC governments to achieve more with less direct government investment through the use of nontraditional, innovative commercial models for projects and programmes. One model gaining momentum across the GCC is Public Private Partnerships (PPPs).

PPPs aim to deliver a set of defined social and/or economic outcomes and benefits for the community, under a risksharing commercial arrangement between the government and the private sector.

In order to be commercially viable, PPPs must demonstrate value for money for the government. This is primarily achieved

through optimal risk transfer, leveraging synergies between the public and the private sector, encouraging innovation, efficient asset utilisation and integrated whole-oflife asset management. In addition, PPPs are often structured to moderate the significant initial capital outlay that traditional, selffunding delivery models require.

While PPPs have the potential to make a valuable contribution to the delivery of infrastructure and services, their procurement is costly and complex. Projects delivered via PPP often have a higher social or economic profile by virtue of their scale and scope.

Some of the challenges faced by GCC governments in delivering PPPs are: 1. Clear definition of social and economic outcomes and benefits expected from the project; 2. Determining the suitability of a PPP model to deliver these outcomes, through adequate investment appraisal; 3. Constructing the most effective and efficient PPP structure that can deliver these outcomes, while delivering value;

in practice

4. Attracting reputable private partners with the capacity, capability, technical and financial strength to commit to the project long-term; 5. Internal capacity and capability to manage these transactions with due diligence, transparency and integrity; 6. Management of the contract during the asset lifecycle, in order to ensure that the social and economic outcomes envisaged for the project are realised.

For the GCC, these challenges are compounded by the fact that the use of PPPs has historically not been as widespread as in other countries like the UK, US or Australia.

PPP expertise is therefore less domesticised in comparison, with fewer opportunities to establish a consistent approach at national or regional level to the procurement of PPPs. Over the years, many GCC countries have either established or are in the process

of establishing PPP legislation. However, there is little procedural direction to clearly outline each stage of a PPP procurement transaction.

Furthermore, PPP legislation in each country needs to be studied, with due consideration given to relevant legislation when it comes to specific aspects of PPP transactions, such as company ownership requirements under the law and their potential implications for establishment of the PPP project company, i.e. Special Purpose Vehicle (SPV).

Given the risk profile of these projects, a methodical, consistent approach is therefore required to assist PPP procurement practitioners in requesting and receiving the right information at the right time, with the view to enriching and informing their decision-making process.

On the other hand, the private sector,

including financiers, private equity investors and the contractors, needs to have a reasonable degree of confidence that these transactions are conducted by the public sector with a degree of rigour proportionate to the risks inherent to these projects.

Structure, transparency and sufficient procedural guidance remove risks associated with uncertainty that may arise from confusion surrounding the government’s approach to procuring PPPs. This in turn increases the private sector’s appetite for partaking and investing in a procurement process that often lasts several months, securing debt and equity funding, forming consortia and developing proposals.

The direct beneficiary of this will be governments, by: 1. Establishing a common platform for communicating project requirements, expected outputs, outcomes and 02

SEPTEMBER 2016 35

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03

2.

3.

4.

5.

6.

7.

8.

9.

10.

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processes associated with each stage of the transaction, including approval processes as well; A structured framework for PPP practitioners within the public sector to follow when required to deliver these transactions; Attracting a broader level of interest in the project, not only from the regional PPP market but also from recognised international PPP consortia. This potentially improves the quality of the socio-economic outcomes that are often the main drivers for delivering these projects in the first place; Increasing competitive tension within the market, potentially lowering the net cost at financial close; Increasing the government’s private partner options and ultimately bargaining power; Enabling government and the private sector to work together constructively and leverage opportunities where possible; Putting downward pressure on cost contingencies within the fee structure; Achieving uniformity and consistence in procurement of PPPs; Creating benefits of precedence; Enabling the governments to carefully consider progression during each stage, in a structured manner; Embedding common means of

36 SEPTEMBER 2016

“There is now a great opportunity in the GCC to develop national, and if possible regional, PPP guidelines to translate existing and forthcoming legal frameworks into actionable processes and procedures in each jurisdiction” continual improvement; 12. Reducing reliance on third-party advisors, and gradually localising PPP expertise; 13. Creating an auditable and traceable record for each transaction; 14. Demonstrating commitment to equity and transparency in dealing with the private sector; 15. Enabling standardised PPP documentation, where appropriate, to drive cross-sector consistency and best practice.

It must be noted that the PPP guidelines promoted in this article are different to legislation, which facilitates greater collaboration between the public sector and private sector but is not intended to provide procedural guidance.

PPP guidelines, on the other hand, describe a transparent mechanism to pursue opportunities that bring together the ideas, experience and skills of the public and private sector to develop innovative solutions to meet government needs, expectations and aspirations.

There is now a great opportunity in the GCC to develop national, and if possible regional, PPP guidelines to translate existing and forthcoming legal frameworks into actionable processes and procedures in each jurisdiction.

The proposed PPP guidelines will deliver the aforementioned benefits to individual GCC governments and will further boost the GCC’s commanding commercial position in the global infrastructure market.

IN PRACTICE

Educate ME Why is escalator modernisation important, and how does it benefit a building/project?

KONE escalator modernisation complements elevator modernisation capability, thus offering a full chain vertical transportation upgrade methodology. More specifically, escalators are often forgotten as a primary means of inter-floor travel, if we consider shopping malls and airports as a case in point of horizontal and inclined travel.

In most cases, the lifetime of a building or infrastructure long outlasts the lifetime of a machine, but here with an escalator we have an asset which is woven deep into the fabric of the building design and function. Replacing the escalator is not always a practical or economic solution; it can be costly, problematic and in some cases impossible to replace.

Passenger expectations, technological progress and standards of safety are forever changing. This does not mean you are required to replace your escalator asset; you have the option to make modular enhancements based on the needs of your passengers.

What escalator modernisation solutions does KONE offer its clients?

A Step Ahead Robert Reynolds, escalator specialist at KONE Middle East, speaks to Middle East Consultant about the importance of escalator modernisation and its financial benefits 38 SEPTEMBER 2016

The current KONE solutions are developed to raise escalator safety, reliability and efficiency to new levels. However, in modernisation, KONE does not take a one-size-fits-all approach. Each case is different in terms of expectations from the client and the user.

KONE takes a modular approach to tailor the modernisation offering to suit the budget and life expectancy of the building. Whether the requirement is simply an upgrade to the control system or a complete refurbishment to renew the lifetime of the escalator, KONE has the capability to deliver the solution the building needs.

How does escalator modernisation improve safety?

KONE is at the forefront of escalator research

IN PRACTICE

For further information, please contact: +971 (0)4 279 4500

+971 (0) 4 425 4394

and development and contributes to global safety standards. KONE has the ability to retrospectively upgrade existing escalators of any manufacturer to the latest global safety standards.

How can it increase energy efficiency and result in cost savings for the client?

There are two main areas in which energy efficiency and life expectancy can be improved.

The first is through intelligent control systems.

Features such as start on demand can be retrofitted to ensure the escalator only operates at times of pedestrian traffic.

The by-product of this technology is that the service life is extended because the escalator is not left running unnecessarily. Smarter management of the escalator asset will also add great value in regards to its whole-life cost.

www.kone.ae

modernisation solutions give it an edge over its competitors?

KONE’s edge over the competition comes from the scalability of its solutions, from a simple yet effective electrification and safety upgrade to a complete in-truss modernisation. In many cases, the cost of the replacement escalator unit is overshadowed by the civil and logistics cost, not to mention the impact on the surrounding businesses while this is being carried out, and that is something not easily predictable.

Upgrading an escalator in-situ is the most economical solution, and this is how KONE differentiates itself from the competition. It puts your business first!

What are the challenges involved with the process, and how do you overcome them?

How do KONE’s escalator

Once the client’s intended outcome has been

established, the biggest challenge faced is one of upgrading the unit in a live building.

Stakeholder collaboration is critical. From the escalator user, to the third-party certification, to the facility manager, to the building owner – all of these parties are involved. KONE overcomes these challenges with strong and clear communication during the execution of the works. This ultimately leads to the best passenger experience.

What escalator technology can the Middle East look forward to in years to come?

As mentioned above, KONE has the ability to apply the latest in world technology to escalators of any make and model in the current market. Upgrading of an existing escalator can be done with a modular approach, be that for reliability, energy efficiency or aesthetic appeal.

“Whether the requirement is simply an upgrade to the control system or a complete refurbishment to renew the lifetime of the escalator, KONE has the capability to deliver the solution the building needs”

SEPTEMBER 2016 39

ON SITE

SITE PrOfIlE

Pearl in the Making The inside story of the design and construction of a twisted high-rise building by Ahmed Osman, managing principal of DeSimone Consulting Engineers 40 SEPTEMBEr 2016

ON SITE

“The project is considered a major success in terms of structural engineering design, innovation and excellence in concrete construction” he 255m (840 feet) iconic seafront Regent Emirates Pearl development stakes its claim as one of Abu Dhabi’s newest and most recognisable structures in the city’s growing competitive list of notable highrise buildings. The mixed-use complex is located amid palaces and high-profile skyscrapers on the Corniche Street of Abu Dhabi. The vast plot area of 13,600sqm (146,500 square feet) provides top views of the capital city, private islands and yachts, along with the seven-star hotel, the Emirates Palace.

The Pearl’s signature feature is the 45-storey twisting elliptical floor plan and columns which contain 60 luxury serviced apartments occupying levels 1 through 10, and a five-star hotel with 437 keys, including presidential and royal suites occupying levels 11 through to the roof.

The expansive podium area includes five levels of restaurants, retail areas, spas, swimming pools, a gym and more, with another five levels of underground parking. The total project built-up area consists of 55 storeys and 130,600sqm.

The main structural challenge was to appropriately model, analyse and design the complicated twisting shape of the tower. The perimeter tower columns are inclined 7 degrees vertically and shift 48cm (19 inches) each level in the circumferential direction, a total of 21.60m (70.8 feet) from bottom to top. In plan, each floor rotates 0.56 degrees each level, with a total of 25 degrees of total rotation from level 1 to the roof.

The sloping columns cause the building to rotate at each level, inducing a torsional force in the elliptical concrete core wall, with the force accumulating over the height of the building. The structural engineer, DeSimone Consulting Engineers, carefully studied and analysed the effects of the torsional force, and formulated a structurally innovative solution to relieve the torsion from the core.

The tower columns and transfers play a major structural role in the SEPTEMBEr 2016 41

ON SITE

stability of the building. They are part of the lateral force resisting system and act as an outrigger to help the core wall resist the lateral loads.

The level 27 column transfer is structurally sensitive, as it was important to ensure the lateral 3-D model behaviour and the structural design assumptions were appropriately meant during construction. This resulted in the perimeter tower columns from level 26 to 27 not being poured until roof level concreting was complete.

Level 1 column transfer is also structurally sensitive, as well as very complicated from a constructability standpoint. The perimeter rectangular tower columns transfer to interior circular columns roughly 6m away in plan. In addition to the gravity transfer, the columns are also required to transfer lateral loads to and from the core.

All this has resulted in a V-shaped column detail at level 1. In order to confirm that this complicated joint detail was possible to build, actual-size reinforcement mock-ups were used. Due to the vast number of longitudinal bars, DeSimone detailed end anchorage plates in order to shorten the development length and help reduce congestion.

42 SEPTEMBEr 2016

Additionally, in order to ensure the angle of the transfer columns was 100% accurate, the general contractor, ACC, used custom-built circular steel formwork for all 16 locations.

The level 1 transfer also includes a post-tensioned beam as part of gravity and lateral transfer. The dead-end tensioned head of these 16 post-tensioned beams frames into the core walls occupying a large area of the core. In a joint effort between the design and construction teams, it was decided to increase the thickness of the core walls in specific locations by an additional 20cm to make up for the lost concrete core thickness.

The structural gravity framing system of the typical tower floor is composed of post-tensioned slabs supported by concrete perimeter columns and a central elliptical core wall. The slab is explicitly not considered part of the lateral design, in order to minimise reinforcement, particularly at the congested core wall interface. The 27cm (10.5 inch) PT-concrete flat plate slabs span more than 10.5m (35.0 feet) from the core wall to the perimeter tower columns. The flat plate design reduced the construction time significantly. This system also helps minimise the load to the 16 perimeter tower columns that 01 transfers at level 1 to 1,325mm (53-inch) diameter.

Since the slab and core wall are elliptical, a slip form was key to the success of the speed of construction and the project as a whole. These factors, and many other strategic components, helped keep delivery of the project below budget and within the construction schedule.

The podium levels consist of a cast-in-place concrete slab and beam gravity system. Pour strips were used throughout the podium levels in lieu of expansion joints, to eliminate complicated expansion joint detailing. The architect’s façade requirements at lobby level prevented the podium level north and south perimeter columns from continuing past podium 1.

In order to facilitate the architect’s needs, another unique structural solution was provided. Steel hangers from podium 1 to 3 were designed and installed as an attractive structural solution. The hangers are supported by a deep post-tensioned beam at the podium roof, where clear height is not a major issue.

The podium levels have a large column-free ballroom area at basement 1. The area consists of a long 25m (82 feet) by 33m (109 feet) span achieved with post-tensioned concrete transfer beams 2.3-2.8m (7.5 to 9 feet) in depth. The post-tensioned beams not only span these great distances but also support transfer columns carrying several floors of heavy podium loads from above.

The project also has five underground parking levels to accommodate the 679 parking spaces required by Abu Dhabi’s DOT. The 20.0m (66-feet) deep excavation was unearthed and sealed off using a temporary reinforced concrete diaphragm wall with tie-backs.

ON SITE

01 Every floor rotates 0.5 degrees at each level, with a total of 25 degrees total rotation from level 1 to the roof.

02 The tower columns and transfers are part of the lateral force resisting system and act as an outrigger to help the core wall resist the lateral loads.

02

Since Abu Dhabi is an island with the average water level at ground level, excavating that deep below the surface creates extremely high hydrostatic forces. As a result, the raft was poured in multiple stages, with the locations of the raft’s vertical constructions joints carefully analysed and detailed. Before construction began, a very detailed concrete sequencing pour plan was submitted and approved by the design and construction teams.

For construction in the Middle East, hot weather concrete construction practices are a must. As the raft foundation for the Pearl project reaches 3.0m (10 feet) underneath the tower area and elevator cores, there can be significant temperature deviations during concrete pours for thick elements.

During the concrete raft pours, the inside concrete versus the outer surface concrete heat of hydration (Delta t) needed to be maintained at 25°C or less. Several techniques were used to maintain and track this requirement, including mixing concrete with ice in

order to cool its temperature, using thermocouples to check the temperatures of concrete at various times and depths, and using foam surface insulation to avoid heat transfer.

The diaphragm wall provided a water-free environment to apply extensive water proofing and build the permanent foundation walls.

The foundations walls have an average thickness of 375mm (15 inches) and are designed to resist soil and tremendous water pressure.

The deep excavation and high hydrostatic pressure required water stops to be placed vertically and horizontally at the construction joint locations within the foundation walls, to prevent any leakage in the foundation walls. To date, all basement levels and foundation walls are free of leaks and water accumulation.

The Regent Emirates Pearl development is considered a major success in terms of its structural engineering design, and is a great example of successful collaboration between the engineer, DeSimone, and the contractor, ACC, to deliver it on time and below budget.

“Since Abu Dhabi is an island with the average water level at ground level, excavating that deep below the surface creates extremely high hydrostatic forces. As a result, the raft was poured in multiple stages, with the locations of the raft’s vertical construction joints carefully analysed and detailed” SEPTEMBEr 2016 43

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ON SITE

SHOW PREVIEW

Cityscape Global Dubai to be held 6-8 September

I

n its 15th edition this year and following the success of recent exhibitions, Cityscape Global is the Middle East’s largest property showcase, gathering local, regional and international exhibitors together alongside a range of high-profile speakers.

Running from 6-8 September at the Dubai World Trade Centre, Cityscape Global will host major developers such as Emaar, Dubai Holding, Nakheel, Meydan, Meraas, Dubai South, DAMAC and Al Marjan Islands, as well as international exhibitors from 30 countries.

The Cityscape Global Conference runs on the day preceding the show (5 September), and is expected to gather more than 1,200 delegates and speakers taking part in three dedicated sessions: Market Overview,

Architecture Programme and Real Estate Brokers Programme.

Prominent speakers include Rohit Talwar, CEO of Fast Future; Craig Plumb, head of Research at JLL MENA; and Ann Boothello, product marketing manager at dubizzle. It will also feature Cityscape Talks seminar theatre, which offers exhibitors dedicated space on the show floor to engage with visitors and host presentations.

The opening day of the show will feature the Cityscape Awards for Emerging Markets, an awards programme attracting entries from hundreds of developers and architects across emerging markets globally.

The winners, selected from submissions across 13 categories, will be announced at an award ceremony at Conrad Hotel Dubai.

SEPTEMBER 2016 45

ON SITE

Dutch developer plans floating homes in Dubai A Dutch developer intends to launch a range of floating residences in Dubai during the Cityscape Global property exhibition in September 2016. In a press statement, New Living on Water (NLW) said that it aims to generate sales of $50 million in the first 12 months, rising to $100 million per year after that. The homes will include an upper living area and an underwater sleeping area where owners can view marine life.

“The need for some privacy and the inner need of being connected to nature has always been with us,” NLW managing director and coowner Menno de Roos said. “Our newly-developed floating residences guarantee both the privacy and nature that people are looking for.”

In 2015, Kleindienst, a Dubai-based developer involved with projects on The World, announced that it was launching the Floating Seahorse range, a floating home concept of its own. Designed, engineered and built in the UAE, the Floating Seahorses are currently in production, priced at $3.2 million per unit. The first unit is expected to be complete in October 2016.

46 SEPTEMBER 2016

First high-voltage cable factory to be built at Saudi’s KAEC King Abdullah Economic City (KAEC) says it has signed a contract with the International Trade Gateway (ITG) for the purchase of 9,000sqm of land in phase one of the Industrial Valley at KAEC. KAEC says the land will be used to build a high-voltage cable factory, the first of its kind in the city.

No details were given regarding the value of the land transaction, the capacity of the factory or when construction is likely to begin. The company also noted that one of the strategic advantages of the Industrial Valley is its direct link to King Abdullah Port, which increases the efficiency of imports, exports and manufacturing.

“We are proud that KAEC, through the Industrial Valley and other components, is establishing itself as the go-to destination for national, regional and global investors who will enable us to move forward towards achieving the government’s strategic vision for the city,” said Fahd Al-Rasheed, group CEO and managing director of KAEC. King Abdullah Economic City covers an area of 181 sq km north of Jeddah.

ON SITE

Sheikh Mohammed reviews RTA projects for Dubai

Bloom appoints contractor for Saadiyat Island project Abu Dhabi-based Bloom Properties says it has awarded the main contracting works for its Park View mixed-use development on Saadiyat Island to a Tharwaa/Al Mansouri 3B joint venture.

Site mobilisation has commenced on the project, with enabling works now in the final stages of completion. Main works on the project are set for completion by late 2017, Bloom Properties, a subsidiary of Bloom Holding, said in a statement.

Park View, in the University district of Saadiyat Island in Abu Dhabi, was launched in 2015 at Cityscape Abu Dhabi. The plans include two buildings, one residential and another made up of serviced hotel apartments. The residential component is set to include a total of 207 units ranging from studios to two-bedroom apartments. The other building is expected to include 217 furnished hotel apartments featuring studios and one- and two-bedroom units.

Sameh Muhtadi, CEO of Bloom Holding, said: “Bloom Properties is delighted to appoint the Tharwaa/Al Mansouri 3B joint venture to carry out the main construction works of this strategically located project on Saadiyat. The development of Park View articulates our sustained efforts to provide investors with the best real estate products within prime locations. With the commencement of the main contracting works, we seek to fulfil our commitment in delivering the project on schedule and to the highest construction standards.”

Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has praised the infrastructure projects being implemented by the local Roads and Transport Authority (RTA) to achieve its 2030 strategy.

Speaking during a visit to the RTA’s head office, HH Sheikh Mohammed highlighted the efforts of the RTA’s engineers, technicians and managers as crucial to the Dubai Strategic Comprehensive Plan 2021, WAM reported.

With Mattar Al Tayer, chairman of the board and executive director of the Authority, and Saeed Suleiman, director-general of Protocol and Hospitality in Dubai, also in attendance, the RTA staff demonstrated the traffic and transport plan for Dubai until 2030.

It also touched on a number of key projects in Dubai, including the Shindagha Crossing.

Sheikh Mohammed was also briefed on the details of the RTA’s five-year plan (2017-2021) to pave internal roads for 16 residential districts in Dubai. The team also presented plans for entrances and exits for the Jewel of the Creek project among other planned projects.

SEPTEMBER 2016 47

THE BACK PAGE

LAST WORD

01 Salim Hussain, principal architect at Atkins.

The Design and Construct Architect A reponsible designer always considers the buildability of his design right at the early stages

01

A

s a young architect, I was fortunate to work on projects from design through to site.

This allowed me to develop design proposals in the office, followed by many hours spent on-site watching my drawings being transformed into reality. I learnt about the plethora of people required to make this transformation take place – specialists ranging from cladding to MEP suppliers and many more. Issues inevitably arose during the works, and standing on-site with the contractor resolving these taught me as much about 48 SEPTEMBER 2016

design as it did construction. It also taught me there is always an alternative solution to the quick fix, especially if you want to maintain the design intent.

An example of this experience is the case of a sports hall which was 10mm short of its required length. This was spotted when the structure, roof and internal floor slabs had been completed, with the client insistent it needed the exact length specified to achieve the appropriate accreditation. The solution was not to dismantle everything and start again; instead we removed the protruding face of the steel structure and formed a new column by bolting two angles to the web of the existing column. The simple and practical resolution of this issue maintained the project programme while incurring minimal cost. To me, it also demonstrated the difference between the precise nature of CAD and the context of site, where buildings are constructed around freshly cast concrete and piles of earth.

Such experiences inform my design process, but I do not obsess with construction practicalities when preparing concepts; rather, I consider buildability at an early stage. I consider how things will come together and so will not be shocked to learn my wafer-thin projections cannot be achieved as the design develops.

Windows are placed knowing that mullions cannot simply be overlapped with each other or floor slabs. These may sound like simple things

that can be fleshed out later, but they are issues that affect the design aesthetic.

As I work on projects now, two camps of design and site architects contrast with my experience of design to site continuity. The first rarely sees site, while the latter almost never partakes in the conceptualisation of a project. In this scenario, how does the site architect connect with the design narrative?

How does the design architect understand the determination required to maintain the design as various specialists have their input, which is not always sympathetic to the design intent?

People will argue that we have differing skill sets, so it is only natural that people fall into design or site camps. Is this really the case, though? As architects, we are generalists – we cannot do everything, but we know a little about everything. With this knowledge, we appreciate the different points of view and find a solution that best fits everyone’s requirements.

So why are architects not demanding this consistency throughout the process for individuals as well as practices? Why are young design architects not encouraged to gain site experience? If we design and do not build, are we truly architects – master builders?

We must therefore once again embrace the role of master builder and look for fuller and consistent ownership of both design and site stages, to ensure a vision is delivered in its best and fullest form.

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