Bigproject aug 2015

www.meconstructionnews.com

AUGUST 2015

ALSO INSIDE dr habib al mulla construction recruitment bringing best practice bim and sustainability

je w e l in t he c row n

ASGC takes on the challenge of delivering Ishraqah’s flagship development to the Dubai real estate market

113

M

CONTENTS

AUGUST 2015 09 the big picture construction industry to benefit from end of fuel subsidies Fall in the price of diesel will benefit construction firms

12 Q&A with mohAmed sheikh Al souk qatar’s construction concerns mohamed sheikh Al souk highlights the major issues currently facing the Qatari construction industry

14 in proFile building a legal framework gavin davids speaks to legal expert dr habib Al mulla about the need for a specialised construction law in the uAe

20 site visit - the onyx jewel in the crown big project me tours the construction site for the onyx mixeduse development, ishraqah’s flagship dubai real estate project

26 industry Focus - construction recruitment filling the gaP Jerusha sequeira examines the factors and trends driving construction recruitment and what gcc firms look for when hiring staff

32 in proFile best in class Ahmad Abdulrazaq in conversation with gavin davids about bringing the best of korea to the middle east construction sector

36 comment building a sustainable future with bim dr muhammad tariq shafiq explains how bim can help the uAe construction industry achieve its sustainability goals for vision 2021

42 tenders middle east tenders big project me lists the region’s top construction tenders for August

48 constructive criticism Big Project ME tours the $354mn Onyx mixed-use development in Dubai.

david kimmerly explains why buildings of the future will secretly make us all more sustainable, while meeting individual owners’ needs

AUGUST 2015

MIDDLE EAST

PAGE 20

the internet of everything leads to smart thinking

1

Al Garawi Group

Al Garawi Galleria, Al Orouba-King Fahad Highway Junction Olaya P.O. Box 41122, Riyadh 11521, Saudi Arabia Tel.+966 1 4196096 / 4195058 Fax. +966 1 4196101 / 4196103 Email: Info@algarawigroup.sa / www.algarawigroup.com

Al Garawi Group an authorized distributor of the following licensee for Saudi Arabia, U.A.E., Bahrain, Qatar, Oman, Jordan, Lebanon, Kuwait and Yemen.

Wolverine World Wide, the global footwear licensee for Caterpillar Inc.

P.O. Box: 17301, Jebel Ali, Dubai, U.A.E. Tel.: +971 4 881 8821 Fax: +971 4 8818944, Showroom: Al Kwakeb Building, (B-Block) Sheikh Zayed Road, P.O. Box: 2904, Dubai, U.A.E Tel.: +971 4 343 7400 / 343 7500 Fax: +971 4 3437600 Email: medco@algarawigroup.sa

Medco

www.cat.com / www.caterpillar.com © 2015 Wolverine World Wide. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, thier respective logos, “Caterpillar Yellow, ” the “Power Edge” trade dress as well as corporate and product identitiy used herein, are trademarks of Caterpillar and may not be used without permission.

Al Garawi Group, an authorized distributor of Cat Footwear for Wolverine World Wide, a global licensee of Caterpillat inc

INTRODUCTION

MEconstructionnEws.COm

Build the Law

Group Chairman and Founder Dominic De SouSa Group Ceo naDeem HooD

puBLiShinG direCtor RaZ iSLam raz.islam@cpimediagroup.com

The revelation that construction disputes in the Middle East saw an 88% rise in value in 2014 shouldn’t really be a surprise to interested observers of the industry.

Given the rise in construction activity in the last few years, it’s only natural that high-value claims should be initiated for projects undertaken in 2008 and 2009, given that money is now finally available to pursue them.

It will be fascinating to see how the UAE legal system copes with these claims. My conversation with Dr Habib Al Mulla, the distinguished chairman of Baker & McKenzie Habib Al Mulla, was quite eye-opening.

Hearing him speak about the disparities that exist within the current legal system reinforced my belief that the UAE needs to have a construction-specific law to help the industry become more efficient and streamlined.

Given the concerns floating around the regional real estate markets, having such a law would only be beneficial to the industry. No one wants to be caught out again, like people were in 2008 and 2009.

Has the industry learnt nothing since then?

Another interesting point raised by Dr Al Mulla was the role the UAE Contractors Association plays in developing and shaping the industry, or rather, the lack of it.

Given the influence that similar contractor associations have in the US and the UK, it surprises me that our regional chapters aren’t more proactive. These associations could be a vital link between industry and government, and to see them being under-utilised is quite disheartening.

We all want the best for the industry, so this isn’t meant to be a criticism; rather, I hope it comes across as encouragement and support, which is what it is meant to be.

Finally, I’d like to add another reminder to please nominate yourselves for the Big Project ME Awards 2015. The deadline is October 1, 2015, so do get nominating, as there’s not much time left!

+971 4 375 5471 editoriaL direCtor ViJaYa cHeRian vijaya.cherian@cpimediagroup.com +971 4 375 5472 eDiToRiaL editor GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 375 5480 reporter JeRuSHa SeQueiRa jerusha.sequeira@cpimediagroup.com +971 4 375 5477 SuB editor aeLReD DoYLe aDVeRTiSinG CommerCiaL direCtor micHaeL STanSFieLD michael.stansfield@cpimediagroup.com +971 4 375 5497 SaLeS manaGer FaaJu abDuLFaTaH faaju.abdulfatah@cpimediagroup.com +971 4 375 5495 maRKeTinG marKetinG manaGer LiSa JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 DeSiGn art direCtor Simon cobon ciRcuLaTion & PRoDucTion diStriBution manaGer SuniL KumaR sunil.kumar@cpimediagroup.com +971 4 375 5476 produCtion manaGer ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DiGiTaL WeB deveLoper moHammaD awaiS WeB deveLoper umaiR SHamim PubLiSHeD bY

Registered at imPZ Po box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com PRinTeD bY Printwell Printing Press LLc © copyright 2015 cPi all rights reserved

4

MIDDLE EAST

Gavin Davids Editor

AUGUST 2015

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

ON THE RIGHT TRACK?

Has your project budget and schedule derailed? Continuously backtracking? Steaming ahead or just blowing smoke? Climb aboard the CCS express train for a fast-track experience to project success.

For over 35 years, CCS software solutions have been developed by contractors for contractors. At the leading edge of industry trends, Candy and BuildSmart put you in complete control of your construction project – from depot to destination.

CCS proudly partnered with contractors involved in landmark rail projects worldwide including the Dubai, Riyadh and Doha Metros and Rapid, Underground and National rail networks and infrastructure across Europe, the Far East, UK, Australasia and South Africa.

“Their continuing commitment to upgrading and improvement has always maintained CCS as a contractor’s system at the leading edge of technology.”

Mike McAra, Head of Estimating - Concor Engineering, SA

Put your project on track and advance full steam ahead with CCS. Don’t miss the train, call us on +971 4 346 6456 or email info@ccsgulf.com

ONLINE

MEconstructionnEws.com

L AU N C H PA RT N ER

Big Project ME’s home on the web MOST POPULAR

EDITOR'S CHOICE

READERS' COMMENTS

1

Italian firm scores $852m deal to build Qatar World Cup stadium

Salini Impregilo set to build Al Bayt Stadium, scheduled for completion in September 2018

2

Three execs resign from Dubai-listed Arabtec,

PHOTO GALLERIES

Damac’s first UK property features Versace interiors

listed contractor continues

The Dubai-listed developer recently unveiled Aykon Nine Elms, its first development outside the Middle East.

with resignation of senior staff

See photo galleries at: meconstructionnews.com/photos

acting CFO appointed

Reorganisation of UAE’s largest

including chief financial officer

3

Saudi’s Kingdom Tower: How world’s tallest

building will benefit Jeddah

Name withheld, via email

Mounib Hammoud of the Jeddah Economic Company discusses

READER POLL

the impact of the 1km tower

4

Is the UAE’s summer midday work ban effective?

Germany’s Hochtief in $1.5bn deal for Riyadh

64% 14%

airport expansion International joint venture consists of Hochtief, Shapoorji Pallonji

VIDEO

MidEast and Nahdat Al Emaar

French architects plan 1,400-foot ‘vertical city’ in Sahara

$217.7m mixed-use development

OXO Architectes and Nicolas Laisné Associés have developed a concept for a sustainable tower in the Moroccan part of the Sahara.

along Dubai Creek

See videos at: meconstructionnews.com/videos

5

Site visit: Dubai Wharf project Gavin Davids visits the

“It was interesting to read that construction disputes in the region soared in value in 2014 (‘Middle East construction disputes rise in value by 88%’). Especially because one of the reasons behind this was said to be that the industry has recovered after the financial downturn, so contractors now have the funds to pursue legal claims. It seems it’s time to rejoice that the market is better, and then call in the lawyers…”

Yes: It is ensuring workers’ wellbeing

17% No: It is not enforced adequately

Yes: But the hours should be extended

5% No: It is too disruptive to the industry

6

MIDDLE EAST

Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com

AUGUST 2015

www.wspgroup.com I www.pbworld.com

#IamWSPPB

I AM WSP PARSONS BRINCKERHOFF

I AM SURROUNDED BY LEADING INDUSTRY EXPERTS

BLAINE CAMPBELL MORRISON GRADUATE GEOTECHNICAL CONSULTANT

THE BIG PICTURE

ConstruCtion fill-up The deregulation of fuel prices is expected to benefit the construction industry due to a drop in diesel prices.

ConstruCtion industry benefits from end of uAe fuel subsidies Deregulation of fuel prices on august 1 is expecteD to see Diesel costs fall ConstruCtion Companies in the uae stand to benefit from lower diesel prices, after the ministry of energy announced it was removing fuel subsidies from august 1.

While petrol prices are set to rise slightly because of the deregulation, the cost of diesel is expected to fall, ministry officials have said. this will provide a fillip to sectors that rely on diesel, said suhail al mazroui, the uae’s minister of energy, according to a notice on the ministry’s website. the construction uses diesel extensively to power vital machinery and equipment on-site.

“Considering the international prices of oil and petroleum derivatives, we expect diesel prices to go down. this will stimulate the economy as [a] lower diesel price would mean lower operating costs for a wide number of

Fuel prices For august (aeD) n 2.05 – diesel prices dropped by 29%

n 2.14 – special 95 saw a 24% increase

n 2.25 – super 98 prices for august

n 2.07 – e Plus 91 prices for august

vital sectors like industry, shipping and cargo, among many others.” al mazroui said he expected the move to end subsidies would help make the uae’s economy more competitive. “the decision to deregulate fuel prices has been taken based on indepth studies that fully demonstrate its long-term economic, social and environmental impact.” “the resolution is in line with the strategic vision of the uae government in diversifying sources of income, strengthening the economy and increasing its competitiveness, in addition to building a strong economy that is not dependent on government subsidies.” petrol prices are likely to rise, but with fuel representing 3% to 4% of average income in the uae – “a reasonable percentage compared to international

costs” – deregulating prices will not have a notable impact on individuals’ cost of living, said the minister, adding that the move will encourage individuals to adopt fuel-efficient vehicles like electric and hybrid cars, and encourage greater use of public transport. new pricing will be reviewed monthly, with uniform diesel prices in all emirates. according to matar al nyadi, undersecretary of the ministry of energy and Chairman of the Gasoline and Diesel prices Committee, the committee will announce the prices for the following month on the 28th of each month. in line with this decision, prices of gasoline and diesel for august were announced on tuesday 28 July. these prices were based on the average global price with the addition of operating costs.

AUGUST 2015

MIDDLE EAST

Big project me interviews dr habib al mulla about the uae’s construction laws – Page 14 9

THE BIG PICTURE

MEconstructionnEws.Com

trAditionAl inspirAtion The design of the Al Bayt stadium was inspired by the traditional tent used by Qatar’s nomadic people.

itAliAn firm sCores $852m deAl to build QAtAr World Cup stAdium salini impregilo jV to BuilD al Bayt staDium, completion in septemBer 2018 italian ConstruCtion firm salini impregilo has scored an $852.6 million contract to build a stadium in Qatar for the 2022 World Cup. the al Bayt stadium will be constructed in al Khor, 50km north of Doha. the contract – of which $792 million will be for construction and the rest for operation and maintenance – covers design and construction of the sports complex. salini impregilo, in a joint venture with Qatari firm Galfar al misnad and italy’s Cimolai, beat out competitors from france, austria, india and asia to win the contract. the project was awarded by government foundation aspire Zone, responsible for developing sports infrastructure in Qatar. the scope of the 200,000sqm project includes construction of a stadium, an auxiliary building for security and administration and a centre for electromechanical and distribution works.

set for delivery in september 2018, the stadium will be able to accommodate 70,000 spectators when complete.

Qatar’s supreme Committee for Delivery and legacy previously indicated that the al Bayt stadium will be built with demountable seating, which will allow it to reduce its capacity to 32,000 once the tournament is finished. according to a statement by salini impregilo, the stadium’s design is inspired by the Bayt al sha’ar, the black and white tent traditionally used by nomadic people in Qatar. the design is said to reflect Qatar’s cultural and historical heritage. the project will also use modern construction techniques and environment-friendly materials in a bid to be more sustainable.

When building the complex, particular attention will be paid to providing ideal climatic conditions for players and spectators at the 2022 World Cup, set to

al Bayt Details n $852 million – total value of contract

n $792 million – construction contract

n 200,000sqm – total area of the stadium project

n 70,000 – total number of spectators in stadium

be held in november and December as per a march announcement by fifa.

Qatar has confirmed the sites for eight World Cup stadiums so far – the minimum number required to host the 64 matches. the other venues confirmed are stadiums in al Wakrah, lusail City, al rayyan, Khalifa stadium, Qatar foundation, Qatar sports Club in Dafna/West Bay and one on a site near Doha’s international airport. al Wakrah was the first stadium to be constructed, and work has begun on the arena at Qatar foundation. meanwhile, British firm fosters + partners has won a design contest for the 80,000-seat flagship arena at lusail City, which will host both the opening ceremony and the World Cup final. Details of the design have yet to be revealed. reconstruction is also on going at the Khalifa and al rayyan stadiums, Doha News said.

10

MIDDLE EAST

Big project me tours the onyx construction site, ishraqah’s jewl in the crown – Page 20

AUGUST 2015

THE BIG PICTURE

NMDC CoMpleTeS $1.5bN CoNTRACT FoR New Suez CANAl vital infrastructure project tipped to transform tHe egyptian economy NatioNal MariNe DreDgiNg Company (NMDC), the Uae-owned dredging and marine construction company, has announced the completion of the New Suez Canal project, following a successful trial run on July 25, 2015. as part of the trial run requirements, six container ships from around the world navigated the canal so as to ensure its readiness for full-fledged operations. three ships navigated the canal from Suez in the south and moved northwards, while the other three sailed from Port Said in the north, towards the Mediterranean Sea in the south. the trial run was an important part of achieving the objectives of the massive expansion project, which is predicted to be a major boost to the egyptian economy. the project aims to enhance the operational capabilities of the Suez Canal so that it can cope with increasing traffic. the new canal will allow the passage of larger vessels, reduce waiting periods and open up new revenue streams for the egyptian economy.

new suez canal n 35km – Length of the New Suez Canal dredging works

n 317m – Width of the canal

n 24m – Depth of the canal

n $1.5bn – Cost of the project

n 1.5 million cubic metres – Amount of dredging required every day for duration of the project

NMDC was the leader of the Challenge Consortium which won the $1.5 billion contract for the New Suez Canal project. the consortium included three of the world’s largest marine dredging companies – Boskalis and Van oord from the Netherlands and Jan de Nul from Belgium. the construction works for the project included the digging of 35km of new waterway, to a depth of 24m and a width of 317m. Scheduling was further complicated by a directive from egyptian President abdel Fattah al-Sisi to reduce the implementation period of the project from three years to one. “to realise this formidable task in record time, we deployed 26 dredgers and 40 additional pieces of equipment – an unprecedented number to have been deployed in a single project within a tight schedule of less than 12 months,” said engineer Yasser Zaghloul, Ceo of NMDC and chairman of the Challenge Consortium. “the short duration of the project meant speeding up the ground

deployment and logistic works. the first dredgers arrived at the site and began work within two weeks after signing the contract, something unheard of in the history of deep excavation and dredging.

Within record time, we commenced the project work, which continued non-stop around the clock as we were racing against time to meet the deadline and leave our footprints in modern egypt’s history. “our biggest challenge was to implement the project in a short time frame of less than a year, that required dredging of 1.5 million cubic metres every day – a huge rate as per any industry norm. During some months, we even outpaced the highest global record of eight million cubic metres per month through dredging more than 40 million cubic metres. the total amount of sand dredged in the project reached more than 200 million cubic metres, a formidable number by any industry standards,” he said. the official inauguration of the New Suez Canal will be held on august 6, 2015.

AUGUST 2015

MIDDLE EAST

Big project me FINDS OUT WHAT CONSTRUCTION FIRMS LOOK FOR WHEN HIRING – Page 26 11

Q&A MohaMed Sheik al Souk

MECONSTRUCTIONNEWS.coM

Qatar’s ConstruCtion ConCerns

mohamed Sheikh al Souk, deputy general manager, conStruction and development contracting and trading Qatar, highlightS Some of the iSSueS facing the Qatari conStruction induStry Qatar is set to invest over $200 billion in construction projects by 2022. With construction booming, What are the difficulties that the country is facing?

Inflation is a serious issue in Qatar. Since there is so much demand and the infrastructure here has not quite caught up yet, there are always very high costs associated with the growth of any company, such as high rent and consequently high wages.

With the speed of progress, the reQuirement for manpoWer Will also rise. is hiring the right talent an issue, especially With the recent controversy around skilled labour in Qatar?

For all the companies which are wishing to grow in Qatar, it is becoming more difficult than ever because there are no visas that can be obtained from the government from the nationalities that are demanded here, such as India, Bangladesh and more.

There is also no proper system set up to test the capabilities of prospective engineers before they are assigned work.

The test performed by the Ministry of Municipality and Urban Planning (MMUP) to provide engineers’ classification is very generic and not sufficient to decide whether an engineer is sufficiently qualified or not.

mega projects such as these reQuire external funding as Well. hoW supportive are financial institutions toWards investing in these projects?

is current technical expertise in Qatar’s subcontracting sector up to the mark in terms of it solutions like bim and project management softWare?

It is extremely difficult to obtain banking services from local banks, because they have raised their requirement in such a way that it is now more difficult than ever before.

This directly affects the progress of work because the lack of banking facilities negatively impacts your cash flow, meaning that you are less able to maintain the momentum of your projects through timely payments, material sourcing, etc.

BIM is only as good as the information you put in it. If you put in high-quality design data, you get a good design as a result, and vice versa.

BIM will not resolve your problems unless the design criteria entered from the beginning are actually correct and accurate.

Thus whoever is using BIM must have a very good understanding of the design aspects of the project.

All the required tools for better collaboration on the construction site are relatively expensive and hard to obtain.

However, they represent a sound investment, as we believe that if the engineers have a good understanding of the project from the outset, then they will be able to learn these skills quickly and utilise these tools effectively.

What does cdct value most in a subcontractor?

The most critical priority for a subcontractor to get right is the ability to deliver a timely completion of the work that the contractor sets for them. Next would be a thorough and complete understanding of the engineering principles behind the work that is being set.

Personal experience has shown that many engineers in Qatar have very little engineering proficiency. Sub-quality engineers of this calibre are often employed by subcontractors in order to keep overheads down.

Another priority is being able to present the proper credentials when asked and being aware of the necessary financial regulations that they must comply with.

lastly, are there currently any areas of subcontractor services in Qatar in need of significant improvement?

There is currently a weakness in electromechanical subcontracting in Qatar, as the MEP companies are generally small and in significant need of improvement.

All content provided by IQPC as part of the buildup to the Qatar Contractor Forum & Awards.

12

MIDDLE EAST

Big project me talks to ahmad abdulrazaq from samsung C&t about best praCtiCes – Page 32

AUGUST 2015

CONSTRUCTION AND SUSTAINABILITY AWARDS OF EXCELLENCE NOVEMBER 24, 2015 JUMEIRAH EMIRATES TOWERS, DUBAI www.bigprojectmeawards.com

AWARDS 2015

THE INDUSTRY EVENT

THAT IS GROWING EVERY YEAR RECOGNISING INDUSTRY EXCELLENCE

FOR AWARD NOMINATION ENQUIRIES

FOR TABLE BOOKING & SPONSORSHIP OPPORTUNITIES

GAVIN DAVIDS EDITOR +971 4 375 5480 GAVIN.DAVIDS@CPIMEDIAGROUP.COM

RA Z ISL A M PUBLISHING DIRECTOR +971 4 375 5471 RA Z.ISL A M@CPIMEDIAGROUP.COM

GOLD SPONSORS

SILVER SPONSOR

SUPPORTING PARTNERS

CATEGORY SPONSORS

14

MIDDLE EAST

In ProfIle Dr Habib al Mulla

AUGUST 2015

MEconstructionnEws.coM

In ProfIle Dr Habib al Mulla

Building a LegaL Fr a mework

Gavin Davids sits down for an in-depth chat with one of the region’s foremost legal experts, Dr Habib Al Mulla, chairman of Baker & McKenzie Habib Al Mulla, to find out why the country’s legal framework needs a construction overhaul Habib Al Mulla, chairman of Baker & McKenzie Habib Al Mulla, to discuss construction law in the UAE and how to ensure the construction industry does not fall into the same legal pitfalls it encountered in the wake of the downturn.

With more than 29 years of experience in UAE law, Dr Al Mulla has been instrumental in shaping many of Dubai’s modern legislative structures. He is the chairman of the Dubai

“The issue comes noT when you have a classical dispuTe. The issue comes when you have a Technical or more specific dispuTe. ThaT’s where you’ll see The difficulTy of surviving wiThin The legislaTive framework ThaT exisTs Today”

International Arbitration Centre’s (DIAC) Board of Trustees and chairman of the Chartered Institute of Arbitrators’ UAE Committee.

He is often consulted to draft and offer advice on federal and emirate level laws, and perhaps most significantly for Dubai, is responsible for creating the concept of financial free zones in the UAE. He was also the architect of the legal framework establishing the Dubai International Financial Centre, and served as legislative committee chairman of the Dubai Financial Services Authority.

In addition to these achievements and successes, Dr Al Mulla also plays an active role in his practice, where he focuses on litigation and arbitration, serving as lead counsel on numerous UAE and international arbitrations across a variety of sectors, including construction, finance, commerce and maritime. Given the breadth of his knowledge, it is no surprise that he takes a keen and passionate interest in the UAE construction market, and specifically on the legal issues it faces.

“The UAE, when it comes to construction, is a very unique market,” he says, speaking in his offices at Business Bay in Dubai. “There’s a lot of construction going on, and all the big players are on the ground. [But ] construction is a very rigid industry, whereby there are certain rules that everyone who is involved in the construction industry – whether it’s an employer, a construction company, a subcontractor

AUGUST 2015

MIDDLE EAST

I

n 2014, disputes relating to major Middle East construction projects increased in value to $76.7 million, according to a report released by Arcadis in July of this year. This is the biggest value increase in Middle Eastern disputes since 2011 – value fell 31.8% from $112.5 million in 2011 to $76.7 million in 2014 – Arcadis said in the report, entitled: Global Construction Disputes: The Higher the Stakes, the Bigger the Risk.

Overall, the Middle East stood second in the annual report, which looks into the duration, value, common causes and methods of resolution of construction disputes across the globe. It came in just behind Asia, which stood at $85.6 million. In comparison, in North America and the UK, dispute values dipped to $29.6 million and $27 million respectively.

What this indicates is that with the Middle Eastern construction market in full swing and contractors and employers seeing more liquidity in the market, parties that initially parked their losses now have the funds to pursue claims they had put away, says Edward McCluskey, head of Alternative Dispute Resolutions – Middle East at Arcadis, in the report. He forecasts that this trend will continue into 2015, as more parties “have the required liquidity to pursue those claims that were put on ice”.

In light of the situation, Big Project ME sat down with one of the Middle East’s most prominent and preeminent legal experts, Dr

15

In ProfIle Dr Habib al Mulla

or a supplier – has to play within these rules worldwide. It’s a set of standard practices.”

“However, the UAE legal framework, when it comes to construction, has not developed at the same pace, depth and manner in which the construction industry has developed. While we have very advanced construction projects and practices applied in the market, the legal framework is still very basic when it comes to dealing with construction contracts, clauses and disputes.”

While there are provisions in the civil code that deal with construction, Dr Al Mulla points out that the civil code was introduced in 1985, a good 30 years ago, and was modelled on Jordanian and Egyptian civil codes, which themselves go back another 10 or 15 years. With the market having changed so much, it’s unreasonable to expect the civil code to address all aspects of disputes.

In order to compensate for this, the market has addressed the gap through contractual provisions. This is just a stopgap measure, Dr Al Mulla insists, explaining that there are certain mandatory provisions in the law that contractual provisions cannot overcome.

MEconstructionnEws.coM

“The issue comes not when you have a classical dispute. The issue comes when you have a technical or more specific dispute. That’s where you’ll see the difficulty of surviving within the legislative framework that exists today,” he asserts.

“I appear before courts and arbitrary tribunals as an expert in the field of construction claims, and I see how parties sometimes struggle to define what a particular clause or article in the law says. Particularly when there’s not much court practice to explain what the provision is, how it can be defined, what the right construction of it is, what are the limitations and how will it work within a contractual framework that the parties have agreed upon.”

While construction firms and developers may have been able to find a way around these obstacles, the rate at which the construction industry in the UAE is growing makes this unfeasible in the long term. Dr Al Mulla recognises this, and says it’s time for the UAE to develop specific construction law.

“I think the UAE, with the size and volume of the construction projects that are going on, would benefit a lot, as an industry and as a

16

MIDDLE EAST

specialised laws Given the number of construction projects in the UAE, having specialised construction laws would be beneficial to the industry.

AUGUST 2015

country, from having a specialised construction law enacted. If that happens, I think it will support the UAE’s position as a forum of choice for dispute resolution for construction disputes in the wider MENA region.”

Calling for a unified construction law is not new to the industry, with a number of legal experts and even construction industry professionals weighing in on the topic and arguing that it would be of considerable benefit for the industry and the country. However, concerns have been raised about the viability of a unified code, given the differences between emirates.

“That [concern] would have been accepted if it was a different field from construction,” says Dr Al Mullla. “Construction is kind of like a manual that every construction company, every contractor, consultant and supplier knows. The trick is to draft or issue and enact a law that has some flexibility, so that the parties within the application of that law have the ability to choose what suits them better in a particular situation.”

“But of course, if a law of this nature is going to be enacted, then it has to be based on the norms of industry. It has to be based on FDIC. Otherwise, you’re going to have to start from scratch and reinvent the wheel. Then I think it’s better to leave that ambiguity behind and have individual parties agree to fill in the gaps through their contractual arrangements, rather than trying to enforce something that will not be practical.”

Another major issue facing contractors is that when something goes wrong on a construction project, they are often the first ones to be blamed, irrespective of the circumstances. Ultimately, as the company on-site, they are responsible for schedules, processes and planning. When it comes to disputes and arbitration in construction, this often makes them the most vulnerable.

Of course, the major contractors take steps to insulate themselves against charges of this nature, while smaller contractors tend to be involved in projects that don’t expose them so much. Medium contractors, most often local firms, are thus the most exposed to claims and lawsuits on projects, especially larger ones which often have a bearing on the future of a company.

“One of the advantages, or possibly disadvantages, depending on how you look at it, is that it [the industry] isn’t really regulated.

So it’s left to parties’ contractual arrangements.

When the contractual arrangements are solid, sound and comprehensive, then I think that to a large extent, they’re on the safe side.

“The problem arises when two parties go

In ProfIle Dr Habib al Mulla

Design, Construct & Perform THE SOIL IMPROVEMENT SPECIALIST WHAT WE SOLVE Soil Bearing Capacity Settlements Liquefaction risk ADVANTAGES No deep foundation No soil replacement Fast & Economical Reliable OUR SOIL IMPROVEMENT SOLUTIONS ARE APPLICABLE FOR: Oil And Gas… Tank Farms…

Heavy Industry… New Cities…

Reclamations… Ports And Airports… Roads And Railways…

Platforms And Logistics UAE & GCC

P.O. Box 36750 Tel: + 971 4 29 25 700 Fax:+ 971 4 29 25 710

OUR SUSTAINABLE TECHNOLOGY…YOUR PEACE OF MIND ●MENARD VIBRO provide a comprehensive service: PDesign.

PConstruction.

PPost treatment control. ●A target driven solution and a global treatment. ●A guarantee to meet project milestones and technical specifications.

Kingdom of Saudi Arabia PO Box 1088, Riyadh 11431 Tel: +966 54 18 09 220

soil.improvement@menard-vibro.ae www.menard-vibro.ae

OUR TECHNIQUES Dynamic Compaction, Rapid Impact Compaction, Dynamic Replacement, Vibro Compaction, Stone Columns, Controlled Modulus Columns, Vertical Drains, Menard Vacuum

Turkey & Central Asia Islam Karimov Cad Marti Tower No:1 D1706 PK-35530 Bayrakli – Izmir Tel: +90 232 46 13 033

“The uae legal framework, when iT comes To consTrucTion, has noT developed aT The same pace, depTh and manner in which The consTrucTion indusTry has developed” fail to document everything, or to go through the processes in the contract. That’s where the bulk of these issues remain, it’s not whether the parties can or can’t claim, it is more about how they prove that they have the right to claim.”

Perhaps this rather surprising lack of awareness is due to a lack of information available to contractors and even to employers on projects. Dr Al Mulla certainly thinks so, and points a finger in the direction of the UAE Contractors Association for a lack of engagement with the industry.

“I think one of the tools that has not been fully utilised is the Contractors Association. There is an association for contractors, and there’s also one for engineers, but unfortunately, I’ve not seen either of them be active in a very active construction market. The UAE is one of the most

active construction markets since 2002, yet we have not seen that sort of role being played by the Contractors Association,” he emphasises.

“They should have done far more work.

Maybe because contractors are busy, that could be one reason [the Contractors Association has not taken an active role], but the problem is that if you’re busy and you fall into mistakes – these mistakes in construction cost millions, if not hundreds of millions!”

At present, there is ambiguity within the law and the civil code, which can cause problems for contractors down the line. Under the terms of the civil code, both the contractor and the consultant are automatically, jointly and separately, liable for any defect that affects the safety and stability of a building, for up to 10 years starting from the date of handover.

AUGUST 2015

MIDDLE EAST

into a construction project, especially when it’s a big project, with a two-page drafted contract, without any provisions or arrangements going into details. Then, of course, when a dispute arises, you’ll have all sorts of arguments floating between the two parties,” Dr Al Mulla says.

“However, in a scenario where the contractual arrangements are in place, then there should not be any difficulties in asking for work that goes beyond the initial scope of agreement, or if there are variations, for example. There should be a process in place that explains how to claim for these variations, if there’s an extension of time – all of that is properly regulated.

“The cases and issues that I’ve seen are not in fact whether a contractor is entitled to claim variations, or damages, or extension of time. In fact, it’s an issue of proof. That’s where the parties

17

In ProFILe dr haBiB al mulla

As clear as this may look, Dr Al Mulla explains that there can be disputes over when exactly handover took place, which can cause an issue.

Since there are not many precedents to clarify this, contractors are often left in the lurch.

“For the employer, both the contractor and the consultant are responsible. They have the choice of going after both or either. Now, between the contractor and the engineer, they have to sort out whether it was a defect in the design or if it was a defect in the construction itself. That doesn’t affect the employer. He has the right to expect that for 10 years, any defect that threatens the safety and reliability of the building, he will be compensated for, irrespective of who was at fault,” he says.

“Another tricky question here is that the warranty period is 10 years, but when can the employer bring that action? The employer can bring that action within a period of three years from the date he discovers the defect. But that also gives rise to other issues. For example, if you have an employer who notices a defect, then of course he has to go and appoint an expert, and the expert has to go and make a report. And then that report has to prove that the defect affects the safety and stability of the building.

“Now, within the three-year period, when does it click? Is it from the day that the defect was discovered? Some claim so. Or is it from the day that the expert hands in his report? There could be as much as one year between the two dates.

“That’s another issue, and it’s also been raised before tribunals, and it’s been disputed.

The prevailing opinion is that it is from the day that the employer knows or becomes aware of the defect, and that it threatens the safety and stability of the building.”

Another legal issue that surfaced in the wake of the downturn was the cancellation of construction contracts. Developers were often forced to halt or cancel projects that were underway, leaving the contractors involved in the project with not many options to recoup the time and money spent.

MEconstructionnEws.com

greaTer involvemenT Dr Habib Al Mulla says that the UAE Contractors Association should take on a more active role.

“The problem arises when you have unilateral or automatic termination. You have issues with both, because under unilateral termination, the law – although it gives effect to the parties’ right to have a contract terminated unilaterally – it makes it subject to the court’s review. So even when you serve notice of the termination, you need a tribunal or a court to confirm that. If the court finds that the termination is justified, it will confirm it from the day it was issued,” Dr Al Mulla explains.

“However, the court may find that it’ll give termination with effect from the date when the award was rendered. So we have a gap, and it depends on when the termination is taking place.

“Now, when it comes to automatic termination, although it says that it’s automatic termination, you still have to have it approved by the court or by an arbitration tribunal. You may include in your contract a clause that says the project will be automatically terminated

18

MIDDLE EAST

“i Think one of The Tools ThaT has noT been fully uTilised is The conTracTors associaTion.

There is an associaTion for conTracTors, and There’s also one for engineers, buT unforTunaTely, i’ve noT seen eiTher of Them be acTive in a very acTive consTrucTion markeT”

AUGUST 2015

without the need for a court or a tribunal review, but you still need to give notice.

“The highest level of termination is when you state that it’s an automatic termination, without the need for court approval, without the need to give notice. This is the highest, but it has to be included in the contract in a very explicit manner that is very clear and that there is no dispute about it.”

Despite the laborious and intensive process of going through these steps, the construction legal expert is quick to play down any sense of preference for fast-track courts or tribunals, like the ones seen during the Dubai World cases.

Instead, Dr Al Malla prefers to reiterate his call for a dedicated and focused construction legislation to support the industry.

“I am, in principle, against ad-hoc tribunals, because the problem with them is that they distract from the jurisdiction of the courts and from the jurisdiction of the general tribunals.

And also, they’re unpredictable and give a sort of uncertainty to all the parties involved. That’s because they don’t know whether their case will go to the original courts as planned, or if they’ll suddenly have a special tribunal that they’ll have to deal with, one that they don’t know what the precedents are or what the history is.”

He does believe, however, that the construction industry would benefit from a forum where they can have some sort of accelerated process to deal with certain issues until the original matter is resolved.

He cites the Singapore Arbitration Centre as an example that might work in the UAE. “I think that when it comes to matters related to payments pending for the contractor, or certain interim measures that need to be taken, instead of having that put in with the original claim and having the whole project on hold until the matter is decided, they can go with a very quick application to one arbitrator, and I think they have a limit of between 30 and 60 days, who can issue an order which is enforceable.

“Although the orders are enforceable, at the final claim all of that will be calculated and recalculated and decided. But at least the project is ongoing and the contractor is going to survive, while the employer can continue with the project. That way, the project is saved, and the parties can continue [working], and the dispute can take its normal course,” he concludes. “But to do that, you either need rules or you need specific litigation that allows this type of process to exist and to give it enforceability.”

CONSULTANTS & ARCHITECTS CUP 2015 Not only is the Golf Day a great day out, it also represents an ideal opportunity to network with potential clients and entertain existing ones, while giving you a chance to get to know the people who make up the consultant and architect industry. Whether you’re part of the industry or if you provide services to it, it’s an opportunity not to be missed!

The 2015 Consultants & Architects Cup is an invite-only, free-to-attend event for consultants and architects. We offer various sponsorship opportunities for those companies that provide services to the construction industry. All sponsorship opportunities include a free day on the golf course - you might even call it working!

29 OCTOBER 2015 EMIR ATES GOLF CLUB

For sponsorship opportunities please contact Raz Islam +971 50 451 8213 raz.islam@cpimediagroup.com

SPONSORS

PRIZE SPONSOR

Site ViSit The Onyx

MEconstructionnEws.cOm

Key Project The $354 million Onyx is Saudi developer Ishraqah’s flagship project in Dubai.

The Onyx

CliEnT

Ishraqah

Main COnTRaCTOR

Al Shafar General Contracting

PROJECT ValuE

$354 million

PROJECT TyPE

Mixed-Use Development

MIDDLE EAST

20

PROJECT

AUGUST 2015

Site ViSit The Onyx

Je wel in the Crown

AUGUST 2015

MIDDLE EAST

Big Project ME visits the Onyx construction site, an upcoming mixed-use development that is set to be the crown jewel for Saudi developer Ishraqah. Gavin Davids reports

21

Site ViSit The Onyx

D

ubai’s Sheikh Zayed Road has long been home to some of the city’s most visible and important architectural projects, starting from the now-iconic Dubai World Trade Centre, continuing past the gargantuan Mall of the Emirates, and through to the neck-craning heights of Dubai Marina and Jumeirah Lakes Towers as it stretches down all the way to Abu Dhabi.

Due to the nature of the buildings along its length, real estate along the highway is among the most valuable and sought-after in Dubai. Having a building, a showroom, a residence or a business along it is an easily acknowledged sign that you’re a pretty big deal.

This may be why there has been a spate of mixed-use developments coming up alongside it in recent years, with perhaps the most visible being the massive multi-billion-dollar Habtoor City, which consists of three hotels, a Las Vegas-inspired theatre complex and three residential towers. Other developers are also catching on, with a number of projects either under construction or in the planning stages.

One project that has consistently caught the eye since first announced is Saudi Arabianowned mixed-use development The Onyx.

Situated between the Greens residential community and Emaar Business Park on Sheikh Zayed Road, the plot covers a total area of 22,018sqm, with three towers that contain high-end offices, residences and a luxury hotel.

Developed by Ishraqah, the real estate developer formed through a partnership between the Saudi companies Zahran Group and Bin

MEconstructionnEws.cOm

“We’ve had to increase the WorKforce during the last feW months to counter the shortened WorKday. this Was done in a gradual manner so that the neW arrivals had time to adjust to the neW site”

Mahfouz Group, the $354 million flagship project is set to be a major hit on the Dubai real estate market, with properties going on sale in February this year to strong interest.

With main contractor Al Shafar General Contracting having announced the completion of structural works at the end of April 2015, Big Project ME was invited by the contractor to visit the Onyx construction site earlier this summer to get a first-hand look at this impressive development.

“The Onyx is a chance for our client to build its reputation in the UAE, as it is the first project of

22

MIDDLE EAST

three in one The mixed-use development consists of three towers on one plot – two office and residential towers and one hotel.

AUGUST 2015

this scale that they’ve undertaken,” says Makar Elia, ASGC construction manager for the Onyx project, in an interview at the site offices.

“This massive project broke ground in 2013 and it has been progressing on schedule, with planned completion in 2016. The three-building complex and associated facilities will showcase the uncompromising quality of ASGC work. With its prestigious location and high visibility along Sheikh Zayed Road, The Onyx is being built to the highest standards and quality of materials and finishing.”

Breaking down the project details reveals just how complex a task it was. The plot consists of two towers of 16 storeys and 25 storeys, and a third tower which is intended to be a 14-storey business hotel with 210 keys. The two office towers will also contain ground-floor retail units, while the 25-storey tower will also house residential units in its upper floors.

Not only did Elia’s team have to contend with managing the construction of what is essentially three construction sites in one, but they also had to deal with a number of constraints in terms of space and work timing, given the surrounding residential and commercial buildings. However, as Elia explains, the contractor’s expertise in urban construction meant that they were able to find ways to surmount the issues.

“The location of the site is within a very densely populated area. However, ASGC has extensive experience building in urban settings. We have successfully completed projects in Dubai Marina, Business Bay, Jumeirah and Bur Dubai and so on.

“As always, all necessary precautions were

Site ViSit The Onyx

close Proximity The Onyx site is surrounded by residential and commerical properties on both sides, limiting access and restricting operations.

Project StatS n Total Plot Area: 22,018sqm

n Total Builtup Area: 223,896sqm

n Ground Floor Area: 18,859sqm

n Tower 1: 16 storeys

n Tower 2: 25 storeys

n Tower 3: 14 storeys

n Hotel Rooms: 210 keys

n Basement: 2 levels n Podium: 3 levels

taken in order to minimise disruption to local residents, businesses and traffic. For The Onyx specifically, we had the site offices and materials storage site not directly adjacent to the main site, which created additional logistical challenges. We overcame those challenges by precisely utilising a just-in-time material delivery system, as well as carefully timed work shifts.

“For example, concrete pouring was always scheduled for low-traffic times and our work hours do not include night shifts so as to not disturb the residents living nearby.”

Yet another challenge facing the construction team from ASGC is the proximity of the Dubai Metro, which runs parallel to Sheikh Zayed Road and is a stone’s throw from the site. This obviously posed some taxing questions to the team.

“The proximity of the Dubai Metro added an additional layer of consideration for us when moving equipment, but we successfully and painlessly coordinated with the RTA,

AUGUST 2015

MIDDLE EAST

health and safety Priorities Contractor ASGC says that more than six million man hours have passed without any near misses.

23

Site ViSit The Onyx

24

MIDDLE EAST

explaining our logistical needs, so that there were no disruptions to either our schedule or to traffic in the vicinity of the project.”

Coupled with these in-built restrictions were the government-mandated reductions in working hours during the summer months of the year. In addition, the last two years have seen Ramadan occur during the summer, further complicating an already complicated work schedule. While one would assume that a contractor would struggle in this scenario, Elia is quick to highlight ASGC’s adaptability and resourcefulness.

“The summer season has always been a challenging period for construction. This, coupled with the Ramadan holidays, indeed shortened the work days. We were able to overcome this by smartly leveraging our assets from different construction sites in Dubai and slightly increasing the workforce employed on the Onyx site.

“In fact, the length of the work day has not been the only restriction we faced at the Onyx site. Environmental and air-quality guidance and regulations have been strictly followed during the construction phase. Noise and water pollution issues have been dealt with no compromise as well,” he adds.

Environmental considerations were a major focus for the ASGC team, with waste management on-site daily. The site had a dedicated area where the crews could shift all waste debris and ensure the separation of building materials so as to maximise the recycling value of project refuse. The separated waste material was then shifted to Dubai Municipality for treatment and/or recycling, ASGC says.

When asked how the other challenges facing the project were overcome, Elia doesn’t hesitate to praise the work done by all the stakeholders on the project. With as many as 40 specialised subcontractors used in total, the key theme running through the site was cooperation and accountability.

“A project of this scale necessitates the involvement of many specialised companies. As a main contractor, ASGC appointed and coordinated with around 40 subcontractors that were involved in different stages during the construction.

“In order to achieve the best quality possible, we subcontracted regional industry leaders for crucial aspects of the project – such as MEP, BMS, PMU, elevators, ceiling works and so on. The mix of subcontractors included well established local companies as well as international conglomerates,” the construction manager says. “For example, Kone was appointed for elevators, Johnson Controls for BMS and ALUMCO for façade works.”

AUGUST 2015

MEconstructionnEws.cOm

“environmental and air-quality guidance and regulations have been strictly folloWed during the construction Phase. noise and Water Pollution issues have been dealt With no comPromise as Well” sPecialised Partners More than 40 specialised subcontractors have been employed on the Onyx project.

Given the number of people involved in the construction process, Elia highlights simplicity as the key to the success of the project. “The coordination process was straightforward. We held technical meetings [regularly], and if there were any clarifications or corrections, we would hold meetings with the individual subcontractors, with the project management team and with the engineer to sort out and minimise any loss of time.

“We made sure that there was full cooperation with our technical teams, with the engineers and the management. There would be weekly

meetings with the subcontractors, the client and the management, so as to sort out any obstructions or circumstances that we faced,” he outlines.

In addition, the team worked closely with the developers of the project, taking care to ensure that all activities on-site were carefully coordinated, and that the rules and regulations were followed by all members of the build team, from workers through to supervisors and managers.

“We had a target programme and we saw to it that this target programme matched with our client’s programme, so as to achieve the project

Site ViSit The Onyx

n Consultant: Ayman Al Bayumi

n PMC: Morganti n MEP Contractor: Saifco Air Conditioning and electromechanical works

n Façade: ALUMCo n BMS: Johnson Controls

n Elevators: Kone

progress and to complete the project on time,” Elia says. “We’ve had to increase the workforce during the last few months to counter the shortened work day. This was done in a gradual manner so that the new arrivals had time to adjust to the new site.”

All told, at the peak of construction on the project, there were 1,500 workers on-site, from both the main contractor and subcontractors.

Managing the health and welfare of these individuals was a crucial aspect for ASGC, which has earned a reputation as an HSE leader in the UAE construction industry.

In order to manage HSE operations on the site, a senior HSE officer was appointed specifically to oversee the project-wide implementation of the various HSE rules and procedures, reporting directly to the Group HSE director.

Furthermore, all high-risk activities were only performed by certified personnel, with equipment used on-site third-party certified and checked for safety, the company tells BPME. This extended

to all rented equipment, such as the hoists.

“In terms of safety statistics, I can proudly declare that we have gone through six million man-hours without any near misses, let alone more serious accidents,” Makar Elia proudly states.

“We have strictly followed Dubai Municipality and RTA rules and regulations in all our activities.”

With nearly 80% of the project now completed and handover pencilled in for 2016, Elia and his team can look back with justifiable pride on the Onyx project, a landmark for both Ishraqah and ASGC. “ASGC has once more been tasked to deliver a signature project, and I could not be more proud to be part of it. The Onyx will become an integral part of the New Dubai landscape and it will inevitably increase the appeal of the Dubai Media City and TECOM area. The project itself is a work of art and I predict it will become a favourite place for residents and visitors of Dubai,” Makar Elia states confidently.

KeePing risKs doWn All high-risk activities on-site were only performed by certified personnel, ASGC says.

AUGUST 2015

MIDDLE EAST

Project team

25

INDUSTRY FOCUS RECRUITMENT

MEconstructionnEws.CoM

26

MIDDLE EAST

FIL L ING

AUGUST 2015

INDUSTRY FOCUS RECRUITMENT

T HE GAP

AUGUST 2015

MIDDLE EAST

Jerusha Sequeira examines the factors and trends driving recruitment in the GCC’s construction sector, and what companies are looking for when hiring

27

INDUSTRY FOCUS RECRUITMENT

MEconstructionnEws.CoM

R

ecruiting the right candidate for a vacant position is seldom an easy process.

In the GCC’s intensely competitive construction industry, it can be even more challenging, given that the high-profile construction and infrastructure projects coming up in the region will require skilled talent.

The GCC is investing heavily in infrastructure projects, with $172 billion worth of projects currently underway, according to a Deloitte report in May this year. The much-discussed Expo 2020 and World Cup 2022 will no doubt continue to drive growth in the UAE and Qatar, while Saudi Arabia appears set to maintain its position as the largest construction market in the Gulf, with a host of infrastructure projects in the pipeline for coming years.

It’s thus worth examining how large-scale projects are affecting recruitment activity in the construction industry in the region, and how companies are going about the hiring process.

Kieran Hinphey, director of Irish recruitment firm Reach Personnel, points out that the megaprojects coming up in the region mean a growing demand for certain skills and competencies.

“There are gargantuan projects happening presently, and a common thing among such projects is delays. So there’s certainly a trend towards a rise in disputes and increasingly for arbitration arising from contractual issues. There’s also an increased focus on risk management processes. Consultancies involved in that type of work, they’re very busy.”

Experience in arbitration and dispute resolution is therefore set to become increasingly valuable going forward, he notes. “There’s also an increased scrutiny on projects with regards to the safety and welfare of workers, and this will strongly influence skills requirement. We expect an increased consideration towards employee welfare with regards to skills and standards for candidates and people who are hired. All eyes are on certain countries with big events coming up, so that’s going

GrowinG demAnd Kieran Hinphey says that the demand for mega-projects means a spike in recruitment.

to be a massive influence going forward.”

After all, events as highly anticipated as the World Cup bring with them a fair amount of media scrutiny, as anybody following the news coverage on Qatar in recent months can testify to. Companies can thus no longer afford to take health and safety lightly, or sweep it under the rug, and this too will be a competency in demand over coming years, Hinphey notes.

EMERGING TRENds

While technical skills, qualifications and experience are definitely a must for those seeking to land or switch jobs in construction, is it enough for companies? Emma Davies, HR manager at ALEC, says soft skills are now just as important as an applicant’s technical background.

“It’s all about behaviours. Technical skills can absolutely be taught. For us, it’s about whether you’re an ALEC person or not,” she stresses.

“We’re very focused on delivery, so we can tell

28

MIDDLE EAST

“The Top-Tier cAndidATeS only wAnT To work for The more exclUSive, repUTAble employerS And compAnieS, And on The more preSTiGioUS projecTS. ThAT’S A reAlly biG driver wiTh reGArdS To decidinG Their nexT cAreer move”

AUGUST 2015

GeTTinG iT riGhT Emma Davies explains that ALEC always looks to hire the right person rather than the most qualified or technical.

an ALEC person straightaway. It doesn’t matter what their job role is, they’ll deliver. They’re part of the team, and that’s really important to us. So we go out, we look for those people who fit that profile rather than just someone with amazing qualifications and technical skills.”

Apart from new skills and competencies gaining importance, other trends are beginning to emerge in construction recruitment. For one, firms are now increasingly moving towards conducting recruitment in-house, rather than relying on external agencies, Hinphey and Davies both point out.

“We’re finding employers are highly selective presently, particularly with regards to agency recruitment, with an increase in clients in construction companies building their own inhouse recruitment infrastructure,” Hinphey says.

Davies agrees, noting that ALEC often uses online portals like LinkedIn for recruitment.

“We do everything in-house. We don’t need any agencies at all. Generally, most of our recruitment comes from people contacting us who want to come and work. The reputation of a business is really important to people. And ALEC’s reputation is quite good in the market, so people are keen to come and work with us.”

The downside of companies managing recruitment in-house is that specialised firms often have the resources and network to find better candidates, Hinphey says. “Companies leaning towards in-house infrastructure and recruitment to cut costs can often lead to

6 December 2015 The Terrace Between the Towers, Jumeirah Emirates Towers www.meconsultantawards.com The inaugural Middle East Consultant Awards will celebrate the GCC’s foremost construction specialists in a unique and engaging format. Reflecting the diversity of the monthly magazine by CPI Media Group, the awards will recognise the region’s best multi-disciplinary consultants as well as specialists in structural engineering, MEP, architecture, interior design, urban design, landscaping, project management, quantity surveying, cost consulting, construction law and other niche disciplines.

Sponsorship opportunities Michael Stansfield Commercial Director +971 4 375 5497 michael.stansfield@ cpimediagroup.com

SPONSORS

INDUSTRY FOCUS RECRUITMENT

MEconstructionnEws.CoM

UnderSTAndinG The cUlTUre Specialised recruitment firms work to understand the culture of their client firms so as to get the right candidates for them.

hiring lower-tier candidates, which can often be financially much more costly for them.”

Moreover, specialised recruitment firms work to understand the culture of their client’s firm and find employees who are the right fit for their company and projects, he says. “A partnership like this is priceless for employers who want to ensure projects are successful. And as the saying goes, ‘If you think hiring a professional for a job is expensive, wait until you hire an amateur.’”

Clients are using the services of recruitment firms, however, when hiring for senior management roles. For these positions, companies tend to look for candidates that are not only qualified but have relevant project-specific experience, Hinphey says.

There is certainly no shortage of available talent in the region for companies looking to hire, Davies notes. “We are not finding that we particularly have to go outside the Middle East to recruit at the moment, certainly not for senior or junior roles.”

THE flIP sIdE

30

MIDDLE EAST

As firms get more discerning when it comes to screening applicants, it’s important to consider the flip side of the equation and examine what candidates are looking for, apart from remuneration and benefits.

Hinphey points out that the reputation of a company is crucial to attract talent, particularly in the construction industry. “We often find it’s certainly not just a case of money and

AUGUST 2015

benefits. The top-tier candidates only want to work for the more exclusive, reputable employers and companies, and on the more prestigious projects. That’s a really big driver with regards to deciding their next career move.”

Davies agrees that reputation is important, and adds that long-term career growth is certainly becoming a motivating factor. “People certainly now feel they’re looking for longterm career prospects within businesses rather than just quick money, and I think that that’s driving people now. People will definitely look at where their career progression is going to go.”

Market trends seem to indicate that

professionals are indeed looking beyond the pay cheque when considering taking up a new job. According to a recent report on GCC salaries and employment by recruitment agency Hays, career development and a high salary are the most important contributing factors for professionals in the facilities and property sectors, when accepting a new job offer. Those in construction and architecture were more likely to seek challenging roles and generous benefits.

On the other hand, the aspect where respondents on the survey reported dissatisfaction with their current employers was a lack of training offered as part of the benefits package.

It’s easy to infer that professional development on the job is important to prospective candidates. So how do companies stay ahead of the game as far as talent development is concerned?

ALEC has a succession planning profile for employees and conducts a talent management program in-house. Under the programme, staff are assigned mentors in senior roles and given career coaching, all of which is carried out internally within the company. “We don’t need an external provider for training either. We have found that we’ve got the talent in-house, and we use that, we share that talent,” Davies notes.

Employees are also given support when pursuing other qualifications, though not financially, Davies says. Ensuring employee development, after all, is a company’s way of showing it values its workforce. “At ALEC, we’re a family business. We’re quite concerned about our people. ‘We value our people’ is one of our core values. And that’s really important to us.”

TalenT ReTenTion For most firms looking to expand, finding the right candidates can be a daunting task.

But for a company to continue to grow, retaining talent is also essential. Big Project ME wondered, therefore, how companies work towards ensuring workforce satisfaction.

According to Davies, ALEC runs a talent management programme called Evolve to ensure career development amongst its employees, by assigning mentors to staff and new hires. “All our senior managers are mentors, and they’re given mentor training. They generally have two or three mentees each.”

In addition to assigning mentors, the company employs an external career coach, who meets with staff periodically and is constantly available for coaching over the phone or Skype.

Employee satisfaction is also an important part of the programme. “Our employee turnover is very low, 3% at the moment, so that’s something that we look at. We like to stay on top of that. We make sure everybody has an exit interview if they’re leaving. If there’s a problem, we do find out about it very quickly.”

The company is also very hands-on with line managers and encourages employees to raise any issues they’re facing.

“People are encouraged across the board to come and talk to HR if they’ve got any problems, and we do look to how we can manage that and help them. I think we’ve progressed quite a lot in terms of making HR more operational, and that makes a massive difference to employee satisfaction.”

Industry Focus SamSung C&T

MEconstructionnEws.Com

Best in Class Big Project ME interviews Ahmad Abdulrazaq, executive vice-chairman of Samsung C&T’s High-Rise division, about bringing the best of Korea to the Middle East

A

32

MIDDLE EAST

s anyone who has visited the Burj Khalifa will tell you, being the best in the world is of vital importance to the owners of the building. What’s arguably more impressive than the towering height of the building is the thought and care that has gone into its design, construction and interior layout. Every inch of the building’s structure has been carefully considered and planned to fit in with the rest of the building, creating a harmonious whole.

It is inarguably one of the finest buildings ever constructed, anywhere in the world.

A large part of this excellence can be put down to the primary contractor of the building, Samsung C&T. As one of the foremost contractors of super-tall buildings, with extensive experience in high-rise capitals like Hong Kong and Singapore, it was an obvious choice for the Burj Khalifa.

However, when Big Project ME caught up with Ahmad Abdulrazaq, executive vice-chairman of Samsung C&T’s High-Rise division, it soon became apparent that this is not a company resting on its laurels. Having continued to cement its reputation in the region in the five years

AUGUST 2015

since the successful delivery of the Burj Khalifa, Abdulrazaq says the South Korean contractor is now focused on translating its experience and know-how into the regional construction industry and encouraging adoption of its best practices.

“We’re a global company and we work everywhere. We get exposed to all types of consultants, designers, contractors and technologies. Not only that, but we’re also doing the work ourselves, so we know what works and what doesn’t.

“For example, with the Burj Khalifa, if you think about how fast that project was built – we started in 2005, and by 2010 we were finished and the building was occupied. For a building of that height, that’s really good.

For this kind of project, we brought in a lot of technologies,” he relates during an interview on the sidelines of a conference in Dubai.

“Whether it was the way we built the project – we separated vertical construction from horizontal construction – before we came here, no one did that. Now, everyone is doing it. Using concrete with high flow and high strength, pumping it up 600 metres? Everyone looked at it

Industry Focus SamSung C&T

AUGUST 2015

MIDDLE EAST

reputation builder The success of the Burj Khalifa allowed Samsung C&T to bring in new technology and methodology into the Middle East construction sector.

33

Industry Focus SamSung C&T

MEconstructionnEws.Com

early engagement Ahmad Abdulrazaq is an advocate of early engagement for main contractors on major projects.

34

MIDDLE EAST

and said, ‘If Samsung can do it…’ We brought in new technology. The kind of lifting method that we used on the project, the way we managed the many construction techniques that we brought into the project, these are the kinds of things that we introduced. Now, if you look at the market, it’s got a lot of benefits out of it and many contractors are now utilising them.”

To some this may come across as being somewhat arrogant, but on the contrary, Abdulrazaq exudes nothing but a sense of wanting to improve both the industry and his company’s operations.

“In the civil sectors, we bring a lot of new ideas and machinery, a lot of construction methodology that is different [to what is practised here]. The idea is to engage some of the best people worldwide to come along with us. We have a lot of offices around the world, essentially Intellectual Property Offices where we can bring a high-quality product at a low cost for the client, without compromising on the quality,” he asserts.

“There are a lot of things that we can bring here, but also, some of the difficulties that we have in this market, with this harsh environment and the situations that we have to deal with, it’s also a recipe that we can bring to other places, so actually we’re transforming technology worldwide!”

As part of this drive to introduce best practices in the Middle East, Abdulrazaq is an advocate for allowing contractors access to a project a lot earlier than they are for most projects in the region. Citing operations in Singapore as an example, he highlights the benefits of such early involvement.

AUGUST 2015

“Many of the projects that are being proposed [in the Middle East] are definitely very challenging, and we definitely intend to follow these projects. These are the kinds of projects that we like. Ones that are challenging, projects that we feel we can bring new ideas and technologies to.

“But for many of these projects, a lot of the time, the way they’re being procured, since they’re public projects, a lot of times it’s an open bid. I feel that one of the things that can help expedite some of these projects is to do some of these projects as design build, which allows the contractor to use the best practices and the best technologies to realise the project in the most efficient manner.

“A company like Samsung C&T, considering our capacity, human resources and technical expertise, I think that if we were to engage early on with these projects, then we would bring a lot of value that goes beyond general contracting. We could become an integrator for these very large projects and we can put these projects on a fast track and bring a lot of added value that goes beyond construction, considering Samsung’s affiliates.

“There are many different technologies, including electronics, different mechanical devices and operations, there are a lot of things we can do to really contribute at an early stage.”

With the GCC continuing to invest heavily in major construction projects, Abdulrazaq adds that his division of Samsung C&T will continue to evolve and grow so as to better serve the demands of a market that will place more and more responsibilities on primary contractors.

“The division, when it came to overseas operations, was construction only. [But] right now, we’re taking on more projects and diversifying our business model. For example, in Korea, if it’s a Samsung-owned project [that we’re working on, then it’s a turnkey, design and build, integrated project delivery. We are the owner, the developer and the contractor.

We’re doing everything,” he explains.

“In another business model, we’re doing construction management. It’s not the core of our business, but if we have a client that trusts us and wants to work with us and has some limitations, then they ask us to do it. If it’s a longterm partner, then we’re willing to consider it.

“For some projects, in Singapore for example, we’re responsible for design and construction. There are some projects where we are the principal contractor, we’re doing the project as ‘CM at Risk’, more or less. So that means that we’re responsible for design and delivery of the project, for a certain fee.

“We’ve expanded our business model to more or less cover the full spectrum of what we have to do. The PM/CM business is a very important model [for us], because this is how we build our ‘soft competitiveness’ in terms of engineering and management.

“At the end of the day, in order to be able to cover the full spectrum, you have to be able to cover the front and the back end of construction,” he points out, highlighting just why Samsung C&T has grown into such a formidable global player on the contracting stage.

“We have a lot of offices around the World, essentially intellectual property offices Where We can bring a high-quality product at a loW cost for the client, Without compromising on the quality”

COMMENT Dr muhammaD Tariq shafiq

MECONSTRUCTIONNEWS.com

dr MUhaMMad tarIq shafIq

Building a sustainable future with BIM Dr Muhammad Tariq Shafiq, BIM manager at Imarati Engineering & Consultants, explains how BIM technology can help the UAE construction industry achieve the country's sustainability goals for Vision 2021

B

36

MIDDLE EAST

“BIM can delIver IMMense BenefIts to the Uae, especIally By cUttIng capItal cost on constrUctIon projects and delIverIng sUstaInaBle constrUctIon projects In lIne wIth the Uae’s vIsIon 2021“

AUGUST 2015

uilding Information Modelling (BIM) is a revolutionary technology and coordinated process to create intelligent and information-rich 3D representations for stakeholders to cost-effectively design, construct, operate and manage construction projects. BIM has been proven to significantly reduce construction cost (10-40% of total project cost) and improve project delivery. For example, BIM assisted the UK Government in saving approximately $1.7bn in construction costs in 2013-2014, paving the way for the Digital Built Britain strategy for fully BIM-driven construction and procurement in the UK. Another inherent potential of BIM is its capability to lower the environmental impact of the construction sector, by reducing waste, cutting carbon footprint, and improving energy performance and lifecycle management of built assets. BIM is a key enabler for the technology step change towards achieving smarter cities and sustainable developments, for example in energy management, waste reduction, sustainable design and better management of infrastructure and environment.

In the UAE, the construction industry is a key contributor to the economy and environment.

According to a report published by Deloitte in 2013, new contracts awarded in 2012 were worth about $24bn and are expected to go up to $52bn in 2015, about 10% of UAE GDP. However, construction is one of the main contributors to environmental pollution, both in waste generation and carbon emission.

According to market research, 75% of waste in the UAE comes from construction, and buildings are responsible for 40% of carbon emissions. Therefore, a slight improvement to this sector could have a considerable impact on capital expenditure and environment.

For example, a 10% saving on contracts could

save $5bn a year, resulting in more energyefficient projects. This is where BIM can deliver immense benefits to the UAE, especially by cutting capital cost on construction projects and delivering sustainable construction projects in line with the UAE’s Vision 2021 for sustainable infrastructure and environment.

There is a history of plans and efforts for sustainable development in the UAE. Dubai is aiming to host the most sustainable World Expo in 2020 by transforming Dubai into a smart and sustainable city. Government-led initiatives such as Estidama in Abu Dhabi are leading the charge to improve handling and selection of materials to achieve the sustainable development goals.

But the biggest challenge in realising these efforts is the nature of the construction industry and its traditional non-collaborative work practices. Sustainable development and smart cities are not possible without significant multidisciplinary efforts from the construction industry. Even the legislation stipulating sustainable design and development is perceived as secondary by project teams, in comparison to the primary goals of time and budget in construction projects. Old construction practices based on competition only promote self-interest, forcing stakeholders to make decisions that reflect their own interests and adopt methods that offer the best solution to their organisational business stability instead of energy performance and environment sustainability.

In order to translate sustainable concepts into sustainable infrastructure, there is a need for innovative technology and collaborative working, such as BIM, to connect the different levels of the industry (decision-makers, urban planners, economists, architects, contractors and construction supply chain), from strategic urban and infrastructure planning to maintenance and operation of the built assets.

COMMENT Dr muhammaD tariq shafiq

IMproved econoMy By using BIM, the UAE economy could be better off by as much as $5bn to $10bn.

BIM’s potential for sustainable development and infrastructure hinges on collaboration and integration of reliable, up-to-date, research-based information and accurate, reusable data. BIM can be used as a decisionmaking tool to visualise and optimise multiple design options early in a project stage. A fully coordinated BIM model stores information

about components and materials of a project, which can be used to select the most appropriate materials and check compliance against sustainable ratings and grades.

Visualisation is a key strength of BIM which helps stakeholders see in a virtual environment how a particular development will fit within the surrounding environment, evaluating

its interaction with and impact on people, culture and the existing urban landscape. BIM captures accurate design and construction data which is useful throughout the lifecycle of a project, enabling faster, safer, less wasteful construction and more cost-effective, sustainable operation and maintenance of building and infrastructure projects.

By using BIM, the UAE’s economy could be better off by as much as $5-10bn (a 1020% saving on construction projects) and have a digitally empowered sustainable infrastructure and environment. Can we chose to ignore this and not take any action?

The key to making the most of BIM remains the government leading the way on its implementation; the availability of well-trained, knowledgeable professionals (including client organisations, government departments and municipalities); and the resolve to effectively use the available technology and innovation to improve the construction industry, and hence the environment in the UAE. n Dr Muhammad Tariq Shafiq can be reached at: muhammad.tariq@iengcon.com

Global water, wastewater and processing storage solutions Epoxy coated steel tanks

Concrete tanks

Cylindrical steel tanks

Hot press GRP tanks

Hot press steel tanks

Roof structures

Tank installation

Technical services

Balmoral Tanks When this is supported by unrivalled engineering design experience and industry-leading customer service, installation, maintenance and repair services, why consider going anywhere else?

Balmoral Tanks: Not just another tank company

+44 (0)208 665 4100 watertanksales@balmoral.co.uk

www.balmoraltanks.com AUGUST 2015

MIDDLE EAST

Providing turnkey services to the water, wastewater and processing sectors, Balmoral Tanks offers what is potentially the widest range of accredited tanks from a single supplier in the world.

37

Case study cooling

MEconstructionnEws.com

Noriel oNg

Is Data Centre Free Cooling Feasible in the Middle East?

Noriel Ong, from Syska Hennessy Group, examines the feasibility of data centre free cooling in the Middle East, using indirect evaporative cooling

T

his case study will evaluate the feasibility of data centre free cooling in the Middle East using indirect evaporative cooling (IEC).

General Assumptions: • 1MW data centre IT LOAD • Cooling demand at 100% IT LOAD • The data centre is pressurised, with no infiltration of outside air into the white space • The analysis focuses on the white space only • Energy consumption of cooling requirements of other spaces is not part of this case study • Data centre cabinets are in hot and cold aisle configuration with containment Secondary/Scavenger Air (Exhaust Air)

Water Spray

Condenser Coil

Compressor

Primary Air (Data Center Return Air)

INDIRECT Evaporative Cooler

Evaporator Coil

Primary Fans

Secondary/Scavenger Fans

Primary Air (Data Center Supply Air) Secondary/Scavenger Air (Intake Air)

38

MIDDLE EAST

Figure 1. This illustration shows a typical packaged ieC unit for data centres.

AUGUST 2015

EvaporativE Cooling

Evaporative cooling uses water as a medium to cool the air through its evaporation. The adiabatic evaporation of water provides the cooling effect, which requires less energy than the typical vapour compression system used for air conditioning.

There are two types of evaporative cooling: direct and indirect. According to ASHRAE HVAC Systems and Equipment Handbook, “With direct evaporative cooling, water evaporates directly into the airstream, reducing the air’s dry-bulb temperature and raising its humidity. Direct evaporative equipment cools air by direct contact with the water, either by an extended wetted-surface material (e.g., packaged air coolers) or with a series of sprays (e.g., an air washer).” On the other hand, according to ASHRAE: “With indirect evaporative cooling, secondary air removes heat from primary air using a heat exchanger. The water does not make any contact with the primary air, in this case, the data centre air.” See Figure 1. opEration ModEs

Dry Operations: When the ambient (secondary/scavenger) air dry-bulb temperature is cold enough to cool the primary (data centre supply) air, the water sprayer can be switched off to save water, and the primary air (completely isolated from secondary air) is recirculated, passing through the cooling process in the heat exchanger.

Wet Operations: When the ambient (secondary/scavenger)

Case study cooling 56

55

57

58

54

Figure 2. riyadh’s Weather Bin Data on a Psychrometric Chart

0.20

53

0.25 0.30 SENSIBLE HEAT rATIO = Qs / Qt 60 90

55

52 51

°F EAT UR PER

OR S ULB TB WE

15.2

90

%

15.0

70 60

E- C

LUM

50

T. P

40

Er LB.

30

DrY AIr

Class A1

20

20%

DITY TIVE HUMI 10% rELA

45

50

55

60

65

59

57

0.55

75

75

80

85

90

95

100

105

110

115

120

56

55

0.60

54

70

0.65 0.70

65

0.75 0.80 0.85

60

0.90 1.00

6

7

8

9

10

11

12

13

14

15

16

17

52 51

50 49 48 47

45

55

44 43

50

42

45

41

40

40

39

35

38

30 25 20

37

10 0

35

36

34

125

33

DRY BULB TEMPERATURE - °F 5

53

46

0.95

10

70

60

58

U.F

40

%

40

30%

80

VO

35

Recommended 14.4

14.2

14.0

30

5

13.8

25

30

13.6

20

0%

40

13.4

15

25

13.2

5

20

50

35

25 20

60

45

35

32

30

100

60

14.6

45 40

110

90

0% 575

%

16

11

80

50

17

12

8

6

120

14.8

19

130

65

%

55

21

18

14

7

140

75

60

23

13

9

26

80 0.50

150

65

24

20

170 °F

70

29

22

E-

75

31

28

15

10

80

27

25

Ur

160

32

30

AT

15.4

Weather Hours 14 to 1 28 to 15 42 to 29 56 to 43 70 to 57 84 to 71 98 to 85 112 to 99 126 to 113

80

0.45

180 TEM

70

33

Weather Data Location: RIYADH, ALL REGIONS, SAUDI_ARABIA

LB

TEM AT UR

EN

35 34

BU

15.6

36

BArOMETrIC PrESSUrE: 27.814 INCHES OF MErCUrY

ET

PEr

AT IO N

TH ALP

Y-

40

37

2008 FEET

W

ENTHALPY - Btu per lb. of dry air and associated moisture

ass nd ir a ry a fd .o r lb pe Btu

41

38

I-P Units

85

45 44

DEW POINT TEMPErATUrE - °F

ocia

47

43

85

190

HUMIDITY rATIO - GrAINS OF MOISTUrE PEr POUND OF DrY AIr

istu mo ted

48

42

0.40

200

15.8

PSYCHROMETRIC CHART NORMAL TEMPERATURE

85

49

46

39

210

SENSIBLE HEAT rATIO = Qs / Qt

re

50

0.35

32 18

19

20

21

22

23

24

25

26

27

28

29

30

31

ENTHALPY - Btu per lb. of dry air and associated moisture

Wet Operation supported by Mechanical Cooling: When the ambient wet-bulb temperature is not low enough to achieve the required primary (data centre supply) air temperature set point, the mechanical cooling system (direct expansion, in this case) will be operated to work in tandem with the wet operations of the evaporative cooler to achieve the required primary air temperature set point.

FrEE Cooling Hours

For the purpose of this case study, we will start in the Kingdom of Saudi Arabia (KSA),

particularly in the city of Riyadh, as KSA has the biggest market share in the Middle East, where the data centre industry is starting to mature.

The first step in evaluating the free cooling potential is to understand the weather condition of the city and how it coincides with the ASHRAE TC 9.9 Thermal Guidelines.

Psychrometric software was used to plot International Weather for Energy Calculation (IWEC) Bin Weather Data of Riyadh, KSA. Overlaid on that data is the ASHRAE TC 9.9 Thermal Guidelines Class A1 recommended and allowable limits. See Figure 2.

Figure 2. Shows the weather bin data plotted on the psychrometric chart. This refers to the hourly weather data sorted into discrete groups, or 'bins'. Each bin contains the number of average hours of occurrence during a year of a particular range of weather conditions, aka the weather conditions in Riyadh, KSA. The red solid lines from the centre are the ASHRAE TC 9.9 class A1 recommended and allowable limits, respectively. The solid vertical black line is the constant dry-bulb temperature line

of 48°F [9°C] and the diagonal black line is the constant wet-bulb temperature line of 61°F [16°C]. The colours in the chart represent the frequency of hours within the specified dry bulb and wet bulb temperature bins in the year, with red representing higher frequency and blue representing lower frequency (see legend).

The area to the left of the constant dry-bulb temperature line, 48°F (9°C), shows the free cooling potential hours of a dry operation of IEC. Between the constant dry-bulb line, 48°F (9°C), and the constant wet-bulb line, 61°F (16°C), are the free cooling potential hours of wet operation of IEC. The hours above the constant wet-bulb line of 66°F (19°C) of the psychrometric chart depict the hours of mechanical cooling required. During these hours, evaporative cooling continues while the mechanical system supplements cooling to deliver the design supply air temperature.

The constant dry-bulb and wet-bulb temperatures shown in the psychrometric chart were calculated using the equation and following assumptions in order

AUGUST 2015

MIDDLE EAST

dry-bulb temperature is not cold enough for dry operations, but the wet-bulb temperature is low enough for IEC without the support of the mechanical cooling, the evaporative cooler switches to wet operation. In this process, the primary air (again, completely isolated from secondary air) is recirculated by the primary fans and passes through the cooling process in the heat exchanger.

39

Case study cooling

to estimate the free cooling hours of the indirect evaporative cooler:

For the purpose of this case study, t1 = 100°F (38°C), t2 = 77°F (25°C), WBDE = 60% and the ambient wet-bulb temperature of each time of the year were considered to further validate the results of Figures 2 & 3. In addition, it was assumed that the efficiency of the heat exchanger will be less efficient during dry operations giving an efficiency of 45%, as provided by the manufacturer.

The ambient dry-bulb temperature will have to be calculated for dry operations instead of the wet-bulb temperature during wet operations.

Figure 3 shows the annual hours of different operating modes in percentage, while Figure 4 shows a stacked area chart that represents the hours of operational modes per month. Based on these, a substantial reduction in power consumption was realised – approximately 82% of the year requires no mechanical cooling.

3.1%

18.0%

78.9% Dry operation Air to Air Heat exchange Wet operation Air to Air Heat exchange with evaporative Cooling Mechanical Cooling

Figure 3. indirect evaporative Cooler Annual operation mode contributions

MIDDLE EAST

800HrS

700HrS

Where: WBDE = wet-bulb depression efficiency, % t1 = dry-bulb temperature of entering primary air (data centre return air temperature), °F (°C) t2 = dry-bulb temperature of leaving primary air (data centre supply air temperature), °F (°C) ts’ = wet-bulb temperature of entering secondary air (outside ambient air temperature), °F (°C)

40

MEconstructionnEws.com

AUGUST 2015

600HrS

500HrS

400HrS

300HrS

200HrS

100HrS

JAN

FeB

MAr

Dry operation Air to Air Heat exchange

APr

MAY

JUN

JUl

AUg

SeP

oCT

Wet operation Air to Air Heat exchange with evaporative Cooling

NoV

DeC

Mechanical Cooling

Figure 4. indirect evaporative Cooler Monthly operation modes

FrEE Cooling Hours CHECking – CalCulation oF tHE priMary (data CEntrE supply) air tEMpEraturE

In Figure 5, the temperature limits for both recommended and allowable supply air temperature limits of ASHRAE TC 9.9 Class A1 is shown in red dashed and solid lines respectively. The gold straight line is the target supply air temperature; the blue spiked line depicts the hourly supply air temperatures produced by the IEC unit.

These were calculated using the same equation and assumptions that were used in calculating the constant dry-bulb and wet-build temperatures in Figure 2 and the hourly dry and wet-bulb temperatures of Riyadh, in lieu of the target supply air temperature considerations in Figure 2.

The results in Figure 5 show fluctuations of supply air temperatures as a result of the varying capacity available through the heat exchanger. Additionally, the calculation has only considered the air volume of the primary and secondary air to be constant.

In actuality, the secondary air volume is modulated to achieve the target supply air temperature in the primary air flow.

Figure 6 shows the total hours of the calculated supply air temperatures throughout the year as a percentage within a range. The target supply air temperature, t2 = 77°F (25°C), is achievable 82% of the year without mechanical cooling. Roughly 18% would exceed the desired supply air temperature which would

then require mechanical cooling in order to meet the target supply air temperature. Same as Figure 5, the results in this figure assumed the primary and secondary air volume ratio is 1, so the energy savings of modulating the secondary fan is not covered in this case study. opErating Cost iMpaCt

The basic operational cost of maintaining a 1MW data centre environment using a traditional chilled water system and an IEC unit were compared and analysed.

To offer a comparison, the annual power consumption of a chilled water system composed of an air-cooled chiller, chilled water pump and computer room air handling units were compared with the IEC system.

The data centre is assumed to be fully loaded and static. The redundant units and ancillary equipment supporting the data centre were neglected and only the active components supporting the cooling of the white space were accounted for. The operation of the mechanical cooling unit of the indirect evaporative coolers were assumed to operate when the wetbulb temperature exceeded 61°F (16°C).

For both systems being compared, a dedicated outdoor air system (DOAS) was assumed to provide humidity control and room pressurisation when supplying the code minimum of outside air. Therefore, the energy associated with the DOAS of each cancels each other out and need not be considered in this study.

Hourly Supply Air Tempearatures Produced by IEC 100.0

100.0

Case study cooling

90.0

80.0

80.0

80.0

80.0

70.0

70.0

70.0

70.0

60.0

60.0

60.0

60.0

50.0

50.0

50.0

1 164 327 490 653 816 979 1142 1305 1468 1631 1794 1957 2120 2283 2446 2609 2772 2935 3098 3261 3424 3587 3750 3913 4076 4239 4402 4565 4728 4891 5054 5217 5380 5543 5706 5869 6032 6195 6358 6521 6684 6847 7010 7173 7336 7499 7662 7825 7988 8151 8314 8477 8640

90.0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

ASHRAE ASHRAE TC 9.9 LIMITS TC 9.9 LIMITS

90.0

1 164 327 490 653 816 979 1142 1305 1468 1631 1794 1957 2120 2283 2446 2609 2772 2935 3098 3261 3424 3587 3750 3913 4076 4239 4402 4565 4728 4891 5054 5217 5380 5543 5706 5869 6032 6195 6358 6521 6684 6847 7010 7173 7336 7499 7662 7825 7988 8151 8314 8477 8640

SUPPLY A SIURPTPELM YA PIERRTAETM URPEESRAT URES

90.0

50.0

ANNUAL OPERATING HOURS, 8760 HRS

DCJan DB SUPPLY Feb AIR t2, °F

Mar Apr Recommended Low limit °F

DC DB SUPPLY AIR t2, °F

Recommended Low limit °F

ConClusion

This case study has analysed the available free cooling hours in Riyadh, Kingdom of Saudi Arabia using its bin weather data.

Results: Increasing the target supply air temperature limit will increase the number of hours of free cooling, allowing mechanical cooling to be reduced or eliminated. Selecting a higher supply air temperature, i.e. 77°F (25°C), will improve the economics of the economiser without even considering the option of using the allowable range.

May Recommended Jun High Jul limit °F

ANNUAL OPERATING HOURS,

AugAllowableSep A1 Low limit 8760 HRS °F

Figure 5. Hourly Supply Air Temperature Recommended High limit A1 Allowable °F Low limit °F

The supply air temperature results and the water consumption of the IEC may vary depending on the efficiencies of the heat exchangers as selected by the IEC manufacturer.

However, it is expected that the performance of IEC units, as provided by several manufacturers, would be similar in performance to each other, and all would show significant improvements and cost savings when compared to the traditional air-cooled or water-cooled chilled water systems.

This case study has revealed that free cooling in Riyadh is feasible. Although not included in this report, the bin weather data of the other Middle East countries and cities

2.0%

Oct A1 Allowable High limit °F

NovTarget SAT DecTemperature

A1 Allowable High limit °F

Target SAT Temperature

has also revealed that free cooling may be feasible. Although the results seem favourable, data centre free cooling is still at its infancy in the region. In the long run, free cooling strategies such as IEC should be considered because they make good economic sense, even in the relative heat of the Middle East. n Noriel Ong, ASEAN Eng., PMP, ATD, PQP References 1. 2008 ASHRAE Handbook HVAC Systems and Equipment.

2. Thermal Guidelines for Data Processing Environment 3rd Edition, ASHRAE Datacom Series 1.

3. Green Tips for Data Centre, ASHRAE Datacom Series 10.

4. Emerson EFC and Munters Oasis Indirect Evaporative Cooler.

$296,780 $350,000

$300,000

16.0% $250,000

$200,000

$148,456

$150,000

82.0% 77°F [25°C] and <

$100,000

$50,000

> 77°F [25°C] and < 80°F [27°C] > 80°F [27°C]

Figure 7. Annual power and water consumption cost comparison

AUGUST 2015

MIDDLE EAST

Figure 6. Annual supply air temperature contribution.

41

TENDERS

MEconstructionnEws.com

tOP teNdeRS

including several facilities for residents such as separate swimming pools and gymnasiums for men and women, a football field, tennis court, child care zone, children’s park, an entertainment centre, multi-use cinema hall, mini market and a coffee shop PerIod 2017 status Current Project

Project industrial Gas cOmPlex PrOJect Budget $2,000,000,000 Project Number WPR716-SA reGIoN Saudi Arabia clIeNt Saudi Arabian Oil

reGIoN Cairo, egypt clIeNt Ministry of Housing & Infrastructure address 1, Ismael Abadha Avenue descrIPtIoN development of a

Project Jabal Omar HOtel tOwers PrOJect – PHase 5 Budget $500,000,000 Project Number WPR683-SA reGIoN Makkah, Saudi Arabia clIeNt Jabal Omar development Company Postal/ZIP code 56968 PhoNe (+966-12) 547 8888 WebsIte www.jabalomar.com.sa descrIPtIoN Construction of (6 Nos.) 3-5-star hotel towers comprising six podium levels and 19 additional floors PerIod 2017 status New tender

PrOJect – 6tH Of OctOber city

Project Number WPR685-e

Project dar al Zain residential develOPment PrOJect – PHase 5 Budget $15,000,000 Project Number WPR720-O reGIoN Muscat 100, Oman clIeNt Zain Property development (Oman) address Moosa Abdulrahman Building,

Project mixed-use develOPment

Budget $4,600,000,000

mixed-use scheme comprising hotels, medical facilities and schools status Current Project

2nd Floor, Al Noor Street, Ruwi Postal/ZIP code 669 PhoNe (+968) 2478 0202/ 20 emaIl info@zainoman.com WebsIte www.zainoman.com descrIPtIoN development of a residential scheme involving construction of 21 villas,

Company (Saudi Aramco) Postal/ZIP code 5000 PhoNe (+966-13) 872 0115 WebsIte www.aramco.com descrIPtIoN Construction of an industrial gas complex which will supply 75,000 metric tonnes per day (20,000 oxygen and 55,000 nitrogen) to a 400,000 barrels per day refinery status Current Project

Project mutHanna cement Plant cOnstructiOn PrOJect Budget $165,000,000 Project Number ZPR1304-IQ reGIoN Baghdad, Iraq clIeNt Ministry of Industry & Minerals (Iraq) address Nidhal Street Postal/ZIP code 5815 PhoNe (+964-1) 816 6040 emaIl invest@industry.gov.iq WebsIte www.industry.gov.iq descrIPtIoN engineering, procurement and construction (ePC) of a cement plant with a total production capacity of 1,000,000 tonnes per year PerIod 2017 status Current Project

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

42

MIDDLE EAST

www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

AUGUST 2015

Oman’s 5th International Exhibition for Infrastructure and Industrial Projects Expo Highlights Construction Requirements Green & Future Buildings Heavy Equipment & Technology Hotel & Tourism Projects Industrial Free Zones Industry & Manufacturing Infrastructure Projects - Roads, Airports, Railway & Ports - Build & Supply Power & Water Technologies Renewable Energy & Environment Tools & Equipment Transportation & Logistics

Power packed Networking Opportunity with Government Officials and Key Decision Makers Oman International Exhibition Centre Sultanate of Oman October 2015

05 - 07

Media Partners

www.alnimrexpo.com/infraoman

TENDERS

MEconstructionnEws.com

middle east teNdeRS sPoNsored by

ProvIded by

tel +9712-6348495 Web www.middleeasttenders.com email sales@middleeasttenders.com

tel +9714 346 6456 Web www.ccsgulf.com email info@ccsgulf.com

uae dyNasty toWer Project – al-reem IslaNd

budGet $75,000,000 Project Number SPR735-u reGIoN Abu dhabi, uAe clIeNt Rakaa Holding (Abu dhabi) address three Sails tower, Suite 902, Corniche Road Postal/ZIP code 4499 PhoNe (+971-2) 621 3936 WebsIte www.rakaa.com descrIPtIoN design and construction of a residential tower comprising three basements, a ground floor, 2 podiums and 25 floors PerIod 2017 status New tender teNder cateGorIes Prestige Buildings teNder Products High-rise towers, Residential Buildings

dubaI metro GreeN lINe exteNsIoN Project

Project Number WPR703-u reGIoN dubai, uAe clIeNt Roads & transport Authority (RtA) – dubai address Marrakech Road

Postal/ZIP code 118899 PhoNe (+971-4) 284 4444 WebsIte www.rta.ae descrIPtIoN Carrying out a 20.6km extension of a metro line with 11 stations status New tender teNder cateGorIes Public transportation Projects teNder Products Metro

INfrastructure Works Project – saadIyat beach vIllas

budGet $5,000,000 Project Number WPR671-u reGIoN Abu dhabi,uAe clIeNt tourism development & Investment Company – tdIC (Abu dhabi)

address Behind Khalifa Park, eastern Ring Road (Salam Street) Postal/ZIP code 126888 PhoNe (+971-2) 406 1400 emaIl info@tdic.ae WebsIte www.tdic.ae descrIPtIoN Carrying out main infrastructure works for a beach villas project PerIod 2016

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

44

MIDDLE EAST

www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

AUGUST 2015

TENDERS

status Current Project teNder cateGorIes Roads, Bridges & Infrastructure, Sewerage & drainage, Water Works, Power & Alternative energy teNder Products Infrastructure

hIltoN hotel Project – dubaI World ceNtral

& entertainment teNder Products Hotel Construction

Qatar al okar resIdeNtIal toWer Project – lusaIl

budGet $60,000,000 Project Number WPR689-Q reGIoN Lusail, Qatar

clIeNt Qatari diar Real estate Investment Company (Qatar) address Qatari diar Visitors Centre Postal/ZIP code 23175 PhoNe (+974) 4497 4444 emaIl info@qataridiar.com WebsIte www.qataridiar.com descrIPtIoN Construction of a residential building comprising a basement level, a ground floor, a mezzanine floor and 30 additional floors status New tender teNder cateGorIes Prestige Buildings teNder Products High-rise towers, Residential Buildings

PrImary INfrastructure – al shamal resIdeNtIal area

budGet $331,000,000 Project Number WPR723-Q reGIoN doha, Qatar clIeNt Public Works Authority – ASHgHAL (Qatar) address Al Faisal tower, Al Corniche Street, dafna

Postal/ZIP code 22188 PhoNe (+974) 4495 0077 emaIl contracts@ashghal.gov.qa WebsIte www.ashghal.gov.qa descrIPtIoN Construction of primary infrastructure for a residential area PerIod 2017 status Current Project teNder cateGorIes Construction & Contracting, Roads, Bridges & Infrastructure, Sewerage & drainage, Water Works teNder Products Infrastructure

bahraIN NeIGhbourhood retaIl ceNtre Project

budGet $30,000,000 Project Number WPR727-B reGIoN Manama, Bahrain clIeNt First Bahrain Real estate development Company (Bahrain) address Suite 2207 & Suite 2231, Almoayyed tower, Al Seef PhoNe (+973) 1756 7900

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

AUGUST 2015

MIDDLE EAST

budGet $100,000,000 Project Number WPR734-u reGIoN dubai, uAe clIeNt Mohammad Omar Bin Haider group (dubai) address Al garhoud PhoNe (+971-4) 282 1191 emaIl info@mobhholding.com WebsIte www.mobhholding.com descrIPtIoN Construction of an upscale hotel comprising seven floors, offering 535 guestrooms, including a large multifunctional ballroom, eight meeting rooms and six boardrooms PerIod 2019 status New tender teNder cateGorIes Construction & Contracting, Hotels, Leisure

45

TENDERS

emaIl bahrain@firstbahrain.net descrIPtIoN Construction of a neighbourhood retail centre comprising 23 units offering 48,500 square feet of lease area, in addition to the supermarket and three anchor restaurants PerIod 2016 status Current Project teNder cateGorIes Construction & Contracting, Leisure & entertainment teNder Products Retail developments

MEconstructionnEws.com

Oman (PdO) address Mina Al Fahal Street Postal/ZIP code 81 PhoNe (+968) 2467 8111 emaIl external-affairs@ pdo.co.om WebsIte www.pdo.co.om descrIPtIoN Construction of a solar enhanced oil recovery (eOR) plant with capacity of 1,021MW PerIod 2017 status Current Project teNder cateGorIes Power & Alternative energy teNder Products Power generation Plants, Solar energy

omaN solar eNhaNced oIl recovery PlaNt Project – amal oIl fIeld

budGet $600,000,000 Project Number MPR1481-O reGIoN Muscat 113, Oman clIeNt Petroleum development

saudI arabIa taIf INterNatIoNal aIrPort Project

Project Number MPP2735-SA reGIoN Jeddah 21165, Saudi Arabia

clIeNt general Authority of Civil Aviation – gACA (Saudi Arabia) address Bin Malek Street, Old Airport Area Postal/ZIP code 887 PhoNe (+966-12) 640 5000 ext: 2337 / 3368 emaIl gaca-info@gaca.gov.sa WebsIte www.gaca.gov.sa descrIPtIoN design, construction and operation of

an international airport status New tender teNder cateGorIes Airport, Construction & Contracting teNder Products Airports development & Management

dahraN sQuare mIxed-use develoPmeNt Project

budGet $120,000,000 Project Number WPR733-SA reGIoN dhahran, Saudi Arabia clIeNt tanami Arabia Company Ltd (Saudi Arabia) PhoNe (+966-13) 331 0000 emaIl info@tanamiholding.com WebsIte www. tanamiholding.com descrIPtIoN development of a mixed-use scheme comprising two residential towers, an 11-storey commercial tower and a shopping mall status New tender teNder cateGorIes Leisure & entertainment, Construction & Contracting teNder Products Commercial Buildings, Residential Buildings, Retail developments

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

46

MIDDLE EAST

www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

AUGUST 2015

23 - 26 NOVEMBER 2015 Dubai World Trade Centre www.thebig5.ae

Participate in the largest and best attended construction exhibition in the Middle East.

MORE STAND SPACE

NEW FEATURES The Big 5 Focus will be a new hall providing more stand space and areas dedicated to technology, recruitment and more...

Capitalise on the $4.3 trillion construction market in MENA Do business with 1000s of key buyers directly Network with 80,000+ engineers, architects, contractors and product specifiers

DEDICATED PRODUCT ZONES

Contact Patrick Gedeon for tailor-made packages to meet your business objectives and budget. +971 4 4380 355 info@thebig5.ae www.thebig5.ae Platinum Sponsor

Free Zone Partner

Bathroom Solutions Partner

Hotel Contracting Partner

Show Daily Sponsor

Adhesives and Sealants Partner

Construction Solutions Partner

Real time updates on:

CONSTRUCTIVE CRITICISM

MEconstructionnEws.CoM

DaviD Kimmerly

The Internet of Everything leads to smart thinking David Kimmerly explains how buildings of the future will respond to individuals’ needs, while secretly making us all more sustainable

48

MIDDLE EAST

Smart iS a term that has taken over the technology industry and has particularly become a hot topic for property and building developers, but how many of us actually understand what it means? in reality, smart really means ‘connected’, allowing devices like our phones and televisions to connect with our vehicles, homes and even the communities and cities in which we live and work. Smart buildings allow tenant, occupant and guest experiences to be personalised for internet connectivity, temperature, lighting, music, shopping, news, access to social media and more.

With devices becoming better connected, we are developing an internet of things that will link everything from our coffee machine and refrigerator to the lock on our front door to a wider network of integrated devices. the internet of things in itself is not inherently smart; it requires some very innovative and forward-thinking hardware and software development.

Our Samsung and apple smart phones are good phones that transform into an extension of our environment when we start integrating them with applications and other devices. this is great for consumers, but only the tip of the iceberg when we start looking at smart

AUGUST 2015

buildings and smart cities. advancing technology in heating and cooling systems, lighting and security mean significant improvements to sustainability initiatives for buildings and cities.

Coupled with renewable energy sources such as wind and solar, buildings will have the ability to efficiently use resources where and when they are needed in a manner that suits the building users. a decrease in air conditioning consumption by a fraction of a percent each day results in massive savings over the lifecycle of a building. and that’s key. Smart systems within buildings aren’t just a luxury addition to keep occupants happy – sustainability is a major driver behind smart buildings.

Further development of analytical software and cloud computing will allow smart technology in buildings to associate individuals with building assets such as elevators, thermostats, dimmable light switches, window shades and security systems. the smart system will learn what people like and don’t like and automatically cater to their needs, for seamless integration between our vehicles, public transportation, homes, offices, leisure destinations and urban environment.

Systems will work in the background to increase sustainability and reduce operating cost.

Sustainable designs are efficient, and efficiency translates into lower operating costs.

While the initial investment in sustainable or smart technologies is currently high, manufacturers will find it risky to promote legacy ‘dumb’ systems, and will begin incorporating smart solutions into their products. and as the cost of sustainable solutions decreases, smart buildings will emerge as the standard. it’s very likely that the buzzword ‘smart’ will disappear. Just as we rarely refer to our mobile phones as smart phones, the internet of things will simply become normal. regionally, we are in a position to be at the forefront of smart tall building innovation and development.

While cities such as London and New York are driving smart buildings and cities, the GCC has some of the most exciting tall building projects anywhere in the world.

Of course, with any innovation comes risk, but the leaders behind cities such as Dubai and Doha are not easily swayed when the benefits are so significant. n David Kimmerly is head of Specialist Services at WSP | Parsons Brinckerhoff in the Middle East. David can be reached at David.

Kimmerly@wspgroup.ae for further questions.

FASTER, FUEL EFFICIENT

F SERIES

10% FUEL ECONOMY

Models 721F, 821F and 921F deliver 10% fuel saving,with reduced exhaust emissions

PERFORMANCE AND RELIABILITY

Four mode power control and new generation five-speed transmission result in faster cycle times and increased productivity

CASE LOADERS DRIVE PRODUCTIVITY

New generation of axles, new chassis, new Hydraulic hoses lay out, Larger buckets and special tires, designed for hostile environments, Waste & Scrap handling BioGas, Compost and Agricultural applications

Country Bahrain UAE Kuwait Qatar KSA Lebanon Jordan Egypt

Dealer

Abdulla Ahmed Nass & Sons Al Shirawi Enterprises Instant Access Co Nasser Bin Khaled & Sons Co Roots Group Arabia Someco The Commercial & Industrial Co (C.I.C) Unimar Egypt

Contact Number

+973 1 770 31 23 +971 4 371 85 85 +965 2 225 99 72 +974 4 458 01 38 +966 2 699 66 28 +96 1 125 36 00 +96 2 550 62 60 +202 3 346 51 80

Web Page

www.nassgroup.com www.alshirawienterprises.com www.instantaccess-co.com www.nbks.com www.arabian-roots.com www.somecointernational.com www.cic.com.jo www.unimaregypt.com

www.casece.com

Scan to know more