Big Project ME August 2016

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

125

AUGUST 2016 meconstructionnews.com

THE BUSINESS OF CONSTRUCTION

higher eDUCATiON

A lesson in overcoming the odds As Alec builds A school in six months

Contents

Issue 125 August 2016 08

16

20

32

38

40

16 ESGI

38 Learning from South Africa

06 ME Construction News.com OnlIne

The biggest stories from Big Project Middle East’s home on the web

08 Mecca crane suspects face trial The bIg pIcTure

Saudi court to decide hearing date for accused involved in deadly incident at Grand Mosque

12 Deyaar to build school in Senegal InTernATIOnAl news

Property developer to build primary school in African country with Dubai Cares

14 Retail and hospitality report MArkeT repOrT

Knight Frank report examines the state of UAE’s retail and hospitality markets at half-year mark

In prOfIle

Gavin Davids interviews the leadership team of Energy Solutions Group International to find out how they’re working to change the mindset of developers and owners

24 A construction education sITe VIsIT

Big Project ME tours the new campus of Jebel Ali School being built by ALEC, ahead of its opening at the end of August 2016

32 The right fit

IndusTry fOcus

Big Project ME speaks to leading fitout contractors in the region to find out why this segment of the industry is gaining in prominence in a rapidly changing construction landscape

cOMMenT

Winston & Strawn experts examine the lessons from South Africa’s REIPP programme

40 Stronger together TechnOlOgy

Henry Jones of Aconex Limited explains why his company decided to buy Conject Holdings

44 Top tenders Tenders

Big Project ME lists the top construction and infrastructure tenders for August 2016

48 The importance of Al Sa’fat lAsT wOrd

Saeed Al Abbar, chairman of EmiratesGBC, explains why the introduction of green rating systems is a positive for Dubai construction August 2016 1

Introduction

Building at pace

T

his month’s cover story isn’t the most impressive project on the face of it, given that there are plenty of schools and educational facilities under construction in the UAE. Many of these structures are larger, more expensive and with more bells and whistles than the Jebel Ali School that is profiled in this month’s pages.

What made me want to cover this particular project was the story behind it. Not only is it a part of Dubai’s rich fabric, having been in operation for nearly 40 years, but the actual construction process is a tale of determination and sheer mind over matter.

As you’ll no doubt read, the original construction schedule was for 12 months, which is perfectly reasonable for a contractor of ALEC’s calibre. However, due to unforeseen events, that 12-month timeframe was shrunk to a scarcely believable six months.

Six months. To build a school for 1,850 students, with an auditorium and sports facilities, from the ground up. Now that is some seriously impressive work, and I think that the entire team involved on that project deserves to be recognised for their remarkable achievement. Well done to them. The new campus is a resounding testament to the skill and abilities of the region’s contractors.

I also had the chance to speak to some of the region’s leading fit-out contractors for this month’s issue, and the consistent theme

eDItORIAL eDItOR gAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480

GROUP PUBLISHING DIRectOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471

ONLINe eDItOR BEN FLANAgAN ben.flanagan@cpimediagroup.com SUB eDItOR AELRED DOYLE aelred.doyle@cpimediagroup.com

eDItORIAL DIRectOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472

cOMMeRcIAL DIRectOR JUDE SLANN

Supported by

cOMMeRcIAL DIRectOR MICHAEL STANSFIELD

ADVeRtISING jude.slann@cpimediagroup.com +971 4 375 5496 michael.stansfield@cpimediagroup.com +971 4 375 5497 SALeS MANAGeR FAAJU ABDULFATAH

M

‫ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ‬

Middle East Solar Industry Association

Empowering Solar across the Middle East

4 August 2016

faaju.abdulfatah@cpimediagroup.com +971 4 375 5495

that emerged from those conversations was that while there’s a lot of talking happening, there’s not a lot of work actually happening.

I fully expect that scenario to change within the next year, however. We’ve already seen a shifting emphasis towards sustainability and longevity in construction projects, and with more and more developers looking to get more bang for their buck, fit-out contractors are going to become quite popular as clients look to refurbish and reinvent existing spaces, rather than tearing things down and starting all over again.

Finally, it’s getting to that time of the year again, when the Big Project ME Awards come around. Our nominations page is finally up and running, so get on over to www.bigprojectmeawards.com and start submitting your nominations!

Gavin Davids editor gavin.davids@cpimediagroup.com @MecN_Gavin

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 WeB DeVeLOPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI SHAHAN NASEEM

PUBLISHeD By

Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com FOUNDeR DOMINIC DE SOUSA (1959-2015) PRINteD By PRINTwELL PRINTINg PRESS LLC © Copyright 2016 CPI. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

®™ Marke von The Dow Chemical Company („Dow“) oder verbundenen Unternehmen

COOL ROOF TECHNOLOGY Sustain able solutions for energy e fficient buildin gs − Materials locally produced, formulated and applied − Excellent flexibility and adhesion − Superior UV, Water and dirt resistance − Prolonged roof life − Energy management properties

DOW CONSTRUCTION CHEMICALS Rechtenachweis: © Dow Deutschland Inc.

www.dowcc.com

Online

MOST POPULAR

fEATURED

READERS’ COMMENTS

CONSTRUCTION

SAUDI ARAbIA’S IMPORTANT

Saudi Arabia’s first ‘Snow City’ set to open in Riyadh

MOvE ON vACANT LAND

This is a very good mandate (‘Saudi Arabia sets rules for tax on undeveloped land’) to start getting some movement on these vast areas of land which are literally left deserted in the hope of a sale or lease when values are high. Many things were stated in Saudi Arabia’s new economic reform plans and I really hope this is executed.

CONSTRUCTION

World’s largest observation wheel takes shape in Dubai

In pictures: Aldar developments in ‘growth market’ of Al Ain

Harrison Fletcher, online comment

CONSTRUCTION

Dubai South awards contracts worth $272m

DUbAI’S LATEST TRAffIC SAfETy DRIvE

CONSTRUCTION

Work begins at Dubai’s Six Flags theme park

CONSTRUCTION

Dubai’s $8.1bn Desert Rose City approved 6 August 2016

video: bIM, RfID technology combined for Hong Kong housing project

We are glad to hear news that the RTA will start a new project to fit telematics in heavy trucks to help minimise the accident rate in Dubai (‘Dubai’s RTA to make telematics mandatory for heavy vehicles’). This is the latest in a string of big projects that have been working towards the goal of zero traffic deaths.

Farhan, online comment

The big picture

Accused to face court Two government officials and several engineers will face trial following the deadly accident.

Mecca crane collapse suspects to face trial Saudi court to decide hearing date for accused involved in deadly incident Several suspects face trial in Saudi Arabia over the crane accident that killed 107 people in Mecca last September, according to reports.

Al-Riyadh newspaper said the authorities had completed an eight-month investigation into the case and had questioned several suspects before charging the accused, who include two officials working for two government bodies in Mecca, as well as several engineers.

However, it is not immediately clear how many people have been charged or what the charges are. “The court is in the process of deciding the [date of the] first hearing in [the] coming days after the judge studies the case,� Al-Riyadh said, according to a Reuters report.

8 August 2016

The incident happened in September 2015, less than two weeks before the annual hajj pilgrimage, when a huge crane being used in the expansion work of the Mecca Grand Mosque fell on worshippers. The Saudi government quickly suspended construction giant Saudi Binladin Group, the main contractor on the mosque expansion, from seeking new government contracts and placed travel bans on its senior executives. The penalties on it were later lifted and the contracting giant was able to resume bidding for state projects.

A senior Binladin executive, who declined to be named, told Reuters that the group had received a royal decree allowing it to bid for state contracts again.

The decision is expected to ease financial pressure on the troubled group and the banks that lend to it. Among the reasons giving for lifting the ban is the strategic importance to the Saudi economy of some of the projects Binladin is involved in.

Saudi-based Al Watan newspaper earlier quoted a spokesman for the civil aviation authority as saying

107

Number of people who died in the crane collapse in September 2015

that Binladin would resume work on the multi-billion-dollar King Abdulaziz International Airport project in Jeddah.

In May 2016, it was announced that the contracting giant had secured a $666.6 million loan to ease its financial pressures.

Reuters reported at the time that the Saudi Binladin Group had secured financing from local lenders, according to unnamed banking sources.

The loan was provided by Arab National Bank and Saudi British Bank, and will be used to cover redundancy payments, back salaries and severance costs, the news agency reported.

Saudi Binladin Group is making as many as 77,000 workers redundant, local press reports say.

The big picture

World’s largest observation wheel takes shape Spindle lifted into place for the 210m Bluewaters Island attraction A major milestone has been reached on what will be the world’s largest observation wheel, which is under construction in Dubai. The hub and wheel spindle have been lifted into place at the Ferris wheel attraction on Bluewaters Island off the Jumeirah Beach Residence coastline, developer Meraas said.

They were manufactured and assembled in the UAE and shipped to Bluewaters Island, since they could not be transported by land. The spindle has a diameter of 6.25 metres and is made of steel similar to that

used for nuclear plants. “Three special machines imported from Singapore undertook the fine-tuning work to produce circularity to meet incredible fine tolerances,” Meraas said.

The assembled hub and spindle is approximately 40m long and 20m high, and weighs a massive 1,805 tonnes – equivalent to four A380 aircraft.

“Delivered with fully-fitted internal and external platforms, cooling pipework, cable trays and access ladders, the hub will later be connected to the rim via 192 spoke cables, with the structure then resembling

a gigantic bicycle wheel,” Dubai-based Meraas added.

“Two of the world’s largest cranes, each comprising a 180m boom and boasting a lifting capacity of over 3,000t each, have soared over the construction site on Bluewaters Island, setting the hub and spindle in place on top of the 126m legs.

“The manoeuvre required intricate coordination between engineers and technicians from different countries, as it involved simultaneous rotation and lifting.The process of welding the spindle A-frames to the four legs will take approximately

four weeks, and the cranes will continue holding the weight of the unit for the first two weeks of this operation.”

The construction milestone marks “an unprecedented undertaking in the engineering world, both in terms of process and scale”, Meraas added.

The attraction, previously known as Dubai-I, will now be called Ain Dubai. Set to be the tallest Ferris wheel in the world at 210m, it will easily surpass the current record holder, the 167.6m High Roller on the Las Vegas Strip, which opened in March 2014.

Heavyweights The assembled hub and spindle weighs about as much as four A380 aircraft.

August 2016 9

The big picture

Dubai draws up 3D-printed building code Dubai Municipality has developed regulatory frameworks for technology Dubai has drawn up a series of codes for the use of 3D printing in construction, amid forecasts that more and more buildings in the emirate will employ the technology.

The Dubai Municipality has developed “a number of regulatory frameworks, including technique, legislations and codes” for 3D-printed buildings, according to the UAE state news agency WAM. The news comes after the launch in April of the Dubai 3D Printing Strategy and the forecast that a quarter of buildings in the emirate will have 3D-printed elements by 2030.

Regulations in place Dubai has drawn up a series of codes that govern the use of 3D printing in construction.

10 August 2016

Engineer Essa Al Maidoor, Deputy Director-General of Dubai Municipality and Chairman of Application System of the Construction of Three-Dimensional Printing Technology, said 3D technology will reduce construction time and

25% Percentage of buildings that will have 3D-printed elements by 2030

wastage of building materials.

He added that the introduction of 3D-printing technology will also reduce the number of construction labourers required, allowing them to be allocated to other projects.

No specifics of the regulations were given in the WAM report.

Dubai has been making headlines with its ambitions in 3D printing for construction. The world’s “first 3D-printed office”, which took 17 days to ‘print’ and was installed within two days, opened in Dubai in May 2016. A 3D printer with an automated robotic arm – measuring 20 feet high, 120 feet long and 40 feet wide –

was used to print the building.

The pod-like structures, on the grounds of the Emirates Towers office block and hotel, will house the temporary offices of the Dubai Future Foundation, it was reported. The 3D-printed space covers up to 250sqm, with offices and areas for exhibitions and workshops as well as other events. It was constructed using a mixture of cement and a set of building materials designed and made in the UAE and the United States.

It is forecast that a quarter of buildings in Dubai will have 3D-printed elements by 2030.

t a h t e r u s a e r t a is g Learnin e r e h w y r e v e r e n w o s will follow it CCS Candy is the world’s leading construction estimating and project control system and we never stop improving. Our products are continually developed and enhanced in line with industry trends, user requirements and the latest technology. Register now and create your own opportunities and maximise your capabilities using the best construction software tool there is.

In reponse to our client’s demands, we are proud to announce the expansion of the CCS Gulf office to include a much larger training centre in Dubai. We train you for success and nothing else.

Win!

6 x 2-day Can d courses to be y won!

To ente r, an swer th e fo llo

Candy CourSe Calendar 2015 - dubai Course

Cost

July

aug

Sep

oct

C201 Construction Estimating & Valuations

US$550

18-19

15-16

19-20

17-18

C202 Construction Planning & Programming

US$550

C301 Integration of Estimating & Planning

US$275

C203 Contract Allowables & Cost Control

US$550

C205 MEP Estimating

US$550

17-18

19-20 24

20-21 21-22

wi ng qu estio n:

Which city in the Midd le Eas t is CC S’s new trai ni ng centre ?

Se nd yo ur an sw er with yo ur na m e an d co nt act deta ils to : info @ cc sg ul f.c om

The big picture

2 1. Deyaar to construct primary school in senegal Property developer Deyaar Development says it has signed an agreement with philanthropic organisation Dubai Cares to build a primary school in rural Senegal. Part of the Dubai Cares ‘Adopt a School’ initiative, the school will be constructed in the Fatik region and will be the second such overseas project supported

by Deyaar, the first being a school in western Nepal that opened in February.

Tariq Al Gurg, CEO of Dubai Cares, said: “We feel privileged that Deyaar Development has renewed its trust in us. Dubai Cares has seen first-hand how education can provide a way out of poverty for people in need, which is why our latest partnership with Deyaar is so crucial to the community in Fatik, Senegal.”

“Together, we will not only bring safe and quality education to 150 local children, but also help to improve adult literacy across the community through a dedicated programme.

By improving access to education among children and adults, we are helping the people of Fatik to help pull themselves out of poverty.”

12 August 2016

$451m The green light has been given for the expansion of London City Airport

2. thyssenkrupp calls for consoliDation ThyssenKrupp, Germany’s biggest steelmaker, has said that it is in talks with India’s Tata Steel about a consolidation of Europe’s steel mills, which are struggling with overcapacity, weak demand and cheap imports.

Tata Steel said that it had suspended the process of selling its troubled UK arm while it held talks with potential partners about alternative and more sustainable solutions for its entire European business.

Tata Steel Europe also owns the former Hoogovens steel

1

plant in the Netherlands.

According to Reuters, Nicola Roettger, a spokeswoman for ThyssenKrupp, said her company has long believed that a consolidation of the European steel industry is necessary due to the difficult economic conditions across the continent.

The big picture

4. uae’s al najibi to builD $296m resort in australia

8

People killed in eastern China when an elevator fell from a building under construction

20%

3

Australia’s CIMIC saw its share price crash after it unveiled its first-half results

3. uae’s lulu group expanDs into malaysia UAE-based Lulu Group has announced the opening of a hypermarket in Kuala Lumpur, the first of 10 planned launches in Malaysia. The 23,225sqm hypermarket consists of three levels and offers customers a variety of products including grocery, fashion, household products and electronics.

The hypermarket was inaugurated by

Malaysian Prime Minister Najib Razak, with other government officials also present at the event.

“We are very pleased to welcome the Lulu brand to Malaysia, as this will pave the way for more international brands to come and invest in Malaysia. I am also hopeful that Lulu will surely open many more hypermarkets and malls, not only in Kuala Lumpur but also in other parts

4

of Malaysia,” said Razak.

Lulu Group plans to invest $300 million in setting up 10 hypermarkets in Malaysia over the next five years.

Yusuff Ali MA, chairman of Lulu Group, commented at the inauguration that the company also plans to open a central logistics and warehousing facility in Malaysia, and that its operations in the country are likely to create over 5,000 job opportunities.

UAE’s Al Najibi Group has announced it will build a $296.7 million hospitalitythemed project in Queensland, Australia. Set to feature a waterpark, an Olympic-standard training centre, a four-star hotel and a conference and exhibition centre, the Sunshine Coast project is expected to be a family-friendly experience, said Talal Y Najibi, executive chairman of the group.

“The Sunshine Coast, Queensland is rife with opportunities, and we are confident that this project will be extremely successful.”

Construction is expected to start in 2017. The project is expected to inject $45 million into the regional economy for each year of construction – totalling $195 million during the entire phase. Once completed, it is expected to add $22.49 million per annum.

“Influenced by major action sports projects, water parks and entertainment hubs in Dubai, it will serve up a memorable, familyfriendly experience,” said Bradley Sutherland, CEO of Sanad Capital, the investment and development company set up by Najibi.

August 2016 13

Market report

UAE HALF-YEAR REVIEW: same period in 2015, resulting in a 13% decline in revenue per available room (RevPar).

In Abu Dhabi, occupancy rates maintained their stability, recording 78% in Q1 2016. Meanwhile, ADR and RevPar dropped 15% to $138 and $108 respectively over the same period.

Given its heavy reliance on corporate demand, the hospitality market in Abu Dhabi suffered on the back of the slowdown in economic growth and subdued corporate activity.

Strong occupancy rates Dubai’s hotel market sustained strong occupancy rates in Q1 2016.

Dubai key performance indicators (average)

Abu Dhabi key performance indicators (average)

ADR

occupancy

RevpAR

Q1 2015

268

86

231

Q1 2016

236

85

200

ADR

occupancy

RevpAR

Q1 2015

162

78

127

Q1 2016

138

78

108

Dubai hotel supply (number of keys) Existing supply

Abu Dhabi hotel supply (number of keys)

Under construction stock

Existing supply

80,000

30,000

60,000

22,500

40,000

15,000

20,000

7,500

2013

2014

Viewpoint Many of the challenges seen in 2015, such as a strong US dollar, lower visitor numbers from Russia and neighbouring CIS countries (which dropped 23% y-o-y in 2015 according to DTCM), and slower economic growth in China and the Eurozone, are expected

14 August 2016

2015

2016F

2017F

to continue throughout 2016, which will invariably affect demand levels – and in turn profitability – in the short term.

However, in the medium to long run, the hospitality sector remains positive for both cities and will be rooted in the delivery of major demand

2013

2014

generators that will help drive tourism demand – particularly from the leisure segment. The expected delivery of theme park complex Bluewaters Island, the Opera District and major retail destinations in Dubai, along with Abu Dhabi’s commitment to developing entertainment

Under construction stock

2015

2016F

2017F

and cultural districts of its own, will stimulate visitation and maintain the competitive positioning of both cities. These demand drivers are underscored by the continued investment in airline infrastructure, which will further increase the accessibility of both emirates.

Sources: STR Global, Knight Frank Research

Hospitality Market Dubai’s hotel market sustained strong occupancy rates in Q1 2016, registering 85%. While down from the rate recorded over the same period in 2015, this was still the highest in the region by a considerable margin.

Facing a more cash constrained guest profile, however, hotels have had to offer more attractive packages in order to maintain market share.

As a result, average daily rates (ADR) in the emirate dropped 12% in Q1 2016 compared to the

Market report

RETAIL & HOSPITALITY Retail Market The retail sector in both Dubai and Abu Dhabi saw no noticeable growth in H1 2016, as demand remained subdued on the back of a strong US dollar (affecting the purchasing power of tourists from Russia) and slow economic growth in China and the Eurozone. In particular, lower consumer spending weighed on the bottom lines of personal luxury brands and high-end retailers, which grew at a slower rate in H1 2016 compared to the same period last year.

Domestically, higher inflation saw residents reprioritise and redistribute their spending on necessity goods. A recent report by the Dubai Chamber of Commerce reveals that 41% of the country’s consumer spending

went to housing in 2014. The next biggest expense was food and beverage (F&B), which accounted for 14% of total expenditure.

In fact, unlike other mall categories, F&B outlets have demonstrated a considerable degree of buoyancy over the past 12 months, as the appetite for out-of-home dining in Dubai has grown. As a result, mall operators have been rigid on lease terms for F&B retailers.

Occupancy rates in wellestablished malls such as The Dubai Mall and MoE in Dubai and Yas Mall in Abu Dhabi remain high, indicating strong demand for retail units in the right location.

Elsewhere, landlords are repositioning their malls to meet changing consumer habits, in order to remain competitive.

Sluggish conditions The retail sector in Dubai and Abu Dhabi saw no noticeable growth in H1 2016.

Dubai retail supply (GLA ’000 sq m) Existing supply

Abu Dhabi retail supply (GLA ‘000 sq m)

Under construction stock

Existing supply

4,000

4,000

3,000

3,000

2,000

2,000

1,000

1,000

2013

2014

Viewpoint The retail market in Dubai and Abu Dhabi is expected to see slower growth levels over the second half of the year, as economic uncertainty and unfavourable currency exchange rates continue to affect both tourist and domestic spending.

2015

2016F

2017F

In Dubai, the delivery of extensions to existing superregional malls is likely to place downward pressure on rents in the short to medium term, while the lack of short-term supply completions will keep Abu Dhabi’s retail market stable.

However, landlords are expected

2013

2014

to become more flexible on lease terms, offering increased rent-free periods and further incentives to attract and retain the right occupiers to meet their tenant mix strategy.

In the long term, as global uncertainties begin to ease and confidence in the market picks

Under construction stock

2015

2016F

2017F

up, we expect to witness another growth cycle for the retail market associated with growth in the hospitality and tourism industry.

However, we believe retailers will have to diversify their offerings and introduce new products, technologies and marketing strategies to remain competitive.

August 2016 15

In profile

“We provide clients With the ability to understand hoW their buildings truly function – Where, When and Why energy is being consumed, and the impact relatively simple changes in energy consumption can have on the bottom line profitability of the business” Big Project ME speaks to the leadership team of Energy Solutions Group International (ESGI), a Dubai firm trying to change the way the UAE looks at building performance and energy efficiency 16 August 2016

In profile

August 2016 17

ith the increase in energy prices now becoming an accepted reality in the GCC states, there has been a steady but undeniable gravitation towards exploring energy efficiency and sustainability in the built environment across the region.

These efforts have only increased following the COP21 summit in Paris last year, particularly in the UAE, whose government has pledged to embrace green building and sustainability across the board.

Dubai has been particularly active in this regard, with the emirate’s government and municipality introducing mandates to encourage developers and building owners to build green, among a host of other efforts.

One initiative recently introduced is the Dubai Municipality green ratings system.

Known as Al Sa’fat, the system is designed to strengthen the sustainable built environment in Dubai, while also supporting the goals of the Dubai Plan 2021, which aims to create a smart and sustainable city. The municipality has also said that it may consider pegging rents to green building ratings, thereby allowing owners with more efficient ratings to charge tenants higher fees.

It’s no surprise that a number of companies, from giant multinationals to SMEs and smaller regional players, are looking quite seriously into the energy efficiency of their buildings. However, one of the key misconceptions about this topic is that it is expensive and complicated to implement 18 August 2016

and maintain. When talking to the uninitiated, it’s clear that a lack of understanding is a major obstacle to the implementation of energy efficiency methods in the region.

This is where Energy Solutions Group International (ESGI) enters the fray. Having only begun operations in Dubai in 2013, the company has come a long way. Now established as an intelligent solutions provider that optimises energy use in commercial and residential buildings, the company is on a mission to educate and inform the market about how its intelligent building management systems are an unobtrusive, uncomplicated and inexpensive way to achieve energy efficiency in their buildings.

“Before this, I had a company installing energy automation systems in villas or smart homes in Dubai and Abu Dhabi. This progressed into looking at wider building management systems [BMS] solutions, from which ESGI was born,” relates Hatem Saeed providing real-time insights Hatem Saeed Al Amoudi says that ESGI can provide its clients with the ability to see the overall energy performance of their assets.

“There are two ways in which the UAE can meet this demand.

From a supply side, it can invest into increased energy production like we have seen with the Mohamad Al Bin Rashid Solar Park, or it can use better demand side management tools”

Al Amoudi, CEO and founder.

“Our cornerstone client back then was Etihad Airways. We were initially approached to help the business develop a global standard for the internal environment (lighting, heating and cooling) within its First and Business Class lounges. Having worked to set the standardised performance criteria, we initially outsourced the application performance monitoring of these standards to a company in the UK. However, we quickly realised that we could replicate that service and made the decision to invest in our own 24/7 command centre at our headquarters in Dubai.”

This command centre is an impressive set-up, with live feeds of ESGI’s clients allowing the team to gather real-time information that allows them to assess the overall energy performance of the assets and relay them to clients.

“These dashboards provide our clients with the ability, in real time, to see at a glance the overall

Photography: Vipin V. Vijay

In profile

MapelasticÂŽ

In profile

energy performance of their assets,” Al Amoudi says. “This is really the heart of our business.

We provide clients with the ability to understand how their buildings truly function – where, when and why energy is being consumed, and the impact relatively simple changes in energy consumption can have on the bottom line profitability of the business.”

Using this visualisation approach towards educating clients is a conscious decision that ESGI has taken, Al Amoudi explains. When the company was first established, he used to guarantee clients that they could reduce energy consumption and lower costs. Now he finds that letting clients see the data for themselves is far more effective than any guarantee.

“At the proof of concept stage, we now simply plot a client’s actual energy consumption in any given month against their business hours and allow them to become their own energy engineer. When you see data this way, clients immediately identify the issues, and we regularly hear comments such as ‘Why is my HVAC running 24/7, but my office works a 40hour week?’ or ‘Why are the car park lights on during the day?’”

Paul Warren, director at ESGI, chimes in at this point to add that the company’s primary objective has shifted from saving energy to educating clients about how their systems are currently functioning and where the problems lie.

“Once they have this data, they can usually identify the steps they need to take, without any further intervention from us. Clients in this region really understand the costs of running their businesses, and as soon as they can see excessive costs, they quickly take action.”

This sort of success only really came about for ESGI when the company was introduced to a fascinating piece of technology 20 August 2016

understanding patterns Andrew Ward says that understanding consumption patterns can help reduce overall demand.

from Dell. The Dell Edge Gateways for IoT is a powerful piece of kit that connects wired and wireless devices and systems, allowing them to talk to each other while it aggregates and analyses the input before sending it on to the command centre.

Warren is adamant that ESGI wouldn’t be where it is today without this piece of kit.

“Due to our existing relationship with Dell, we were given access to an advanced prototype and we immediately saw its potential within the BMS industry. Traditionally, any building such as an office block, school or shopping mall operates an independent BMS or control system for each element of its environmental infrastructure [HVAC, lighting, heating, etc].

These systems generally function in silos and are usually locked to the specific installation vendor.

However, we saw that by using specialist software developed by our team in Dubai, we could

“At the proof of concept stage, we now simply plot a client’s actual energy consumption in any given month against their business hours and allow them to become their own energy engineer”

use the Gateway to sit above the existing BMS and relay data back to us on how the individual systems operate and perform.

Armed with this insight into the building, we could supply some control and optimisation techniques to drive either energy saving or building efficiencies.”

Highlighting just how effective the Gateway is, he says the company recently undertook a proof of concept for a shopping mall in Dubai, which showcased promising results.

“We installed the IoT Gateway and a variety of wireless sensors – the whole installation and visualisation process took about a week. The results were outstanding. Remember, this is a relatively new mall, with a fully commissioned and managed BMS. “There were two siloed control systems, each working on different vendor locked protocols, neither of which were adjusted to the actual environment demands inside the mall or the outside temperature, the lighting system didn’t take into account the time of day, and the chillers weren’t operating correctly – the list went on and on.

“However, because everything worked independently, with its own protocols and servicing teams, management were never really able to capture the overall energy performance of the building or where their energy spend was going. Using the Gateway and our own operating platforms, we were able to do this for them in a week and show estimated annual saving of up to $2.45 million a year.”

Results like this show just how crucial it is for energy management in the UAE to take off. COO Andrew Ward points out that energy management is one of the big strategic issues currently facing the UAE, given the unprecedented population growth and development over the last decade or so.

In profile

educating clients Paul Warren says that ESGI’s focus has shifted away from telling clients that they can save them energy to raising awareness and educating the market.

“Just think about it – in 2006 you probably had a small Nokia phone and, if you were lucky, a laptop that you rarely took away from your desk because it weighed so much. Fast forward to 2016, and you’re likely to have one, maybe two smartphones, a laptop that comes everywhere with you, an iPad, a Kindle, a smart watch or wearable – the list goes on and on. Multiply this by the forecast population growth, the new hotels, housing estates and theme parks, and you can quickly see how we will need 140 terawatts of energy by 2020.

“There are two ways in which the UAE can meet this demand.

From a supply side, it can invest into increased energy production like we have seen with the Mohamad Al Bin Rashid Solar Park; or it can use better demand side management tools. Here in the

UAE, we sit firmly in this demand side box, helping individuals, business and government understand how relatively simple changes in consumption patterns can dramatically reduce overall demand,” Ward explains.

Hatem Al Amoudi adds that over the years he has consistently encountered organisations and companies exhibiting no understanding of where, when or how they’re consuming energy.

Until they realise the economic costs, he says, there’s likely to be little incentive to change. This unsustainable attitude makes it vital that technology like Dell’s Gateway bridge the gap between consumption and understanding.

“Our clients really like the way we visualise their energy consumption for them, but from our perspective, what is really exciting is when we use

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

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.

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

Stand B137, Hall 3

www.balmoraltanks.com August 2016 21

In profile

the platform to control how a building automatically responds to changes in demand,” says Ward.

“Remember, the Gateway is an IoT solution which can receive and send data to any connectable device; by overlaying our platform, we can leverage the level of value that we can provide.”

“Our role is to work with management to understand the environmental protocols within each space [lighting, cooling, hot water, etc]. Then, by using wireless sensor technology or smart tags to collect data, we can use our platform to automatically control the building’s environmental infrastructure to respond to real-time utilisation of the space. As a result, we can optimise energy consumption to meet specific demand.

“All this data can be relayed to our command centre in Dubai, where if there is a fault or alarm, we can either reset the system remotely or guide the on-site team to resolve the problem.”

The applications for the technology are endless, adds Hatem, pointing out that the Gateway can be used to pull data from a hotel room booking system into ESGI’s platform, giving hotel management the ability to

“Comparing a set of 12-month DEWA bills against the previous 12 months isn’t appropriate.

Ignoring the issue of the reliability of the meter, this approach doesn’t account for changes in building use or demand, outside temperature or internal requirements”

allocate guests to rooms in one wing or block where potentially only one chiller unit is required.

“The same process can also be used for a shopping mall. Here we can feed national holidays or events into the HVAC or lighting automation. This way, the building knows when there is going to be a significant increase in demand and can adjust its energy performance automatically,” he explains.

Given the number of green initiatives being established across the UAE, Al Amoudi, Warren and Ward are all keen to stress that the next step has to be enforcement, which will be a key challenge for the government.

“From our perspective, there needs to be an independent body which is responsible for measurement and verification,” says Paul Warren. “The market needs an increased level of sophistication in how it measures and validates energy consumption.”

“To be really effective, though, government has to enforce these standards, and ultimately that has to be through a series of financial incentives,” adds Ward. “If rents or municipality fees were linked to the energy performance of buildings, then we would see real change overnight. Historically

energy has been cheap, and this has been a huge disincentive for either the consumer to conserve energy or for developers to invest into energy efficient design. If energy was to become a significant cost, either through an increase in $/kWh or by limiting income into the business, this would result in an enormous shift in the mentality of the market.”

The final word goes to Hatem Saeed Al Amoudi. Having worked tirelessly to establish ESGI, he says it is now time for the government to provide a benchmark for the market to comply with.

“We are able to assist on this from both perspectives. All the data we visualise is verifiable via the smart meters we install.

It is then all logged and stored within our network. At the end of the verification period, we can plot this data against external factors such as weather or footfall and conclusively prove, even if overall energy consumption has increased, how energy efficiency on a per head or per opening hour basis has actually improved.

“It has been a frantic three years, but we are now really looking forward to expanding across the region and really changing the future of the energy market.” eyes on everything ESGI’s command centre allows its team to keep an eye on energy usage and patterns on all its clients’ properties.

22 August 2016

FARAH yASSINE CONSULTANT – SUSTAINABILITy AND ENERGy

www.wspgroup.com I www.pbworld.com

#iamWSPPB

I AM WSP PARSONS BRINCKERHOFF

I AM PROVIDING SUSTAINABLE SOLUTIONS FOR A BETTER FUTURE

Site visit

Big Project ME tours the new campus of Jebel Ali School, where construction work is in full swing for the end of August deadline. Gavin Davids reports

A ConstruCti 24 August 2016

Site visit

on EduCAtion August 2016 25

Site visit

s

chools are strange things indeed.

Ranging in size from single rooms in far-flung villages, through to grandiose ancient estates on sprawling grounds, they are places for children to develop, learn and play with their peers in a warm and nurturing environment.

These institutions can be bastions of learning and education, and also places of fun and excitement where children have some of their most formative life experiences on sports fields and in classrooms. In fact, it can be argued that schools are actually cultural flag bearers for entire countries, where young minds are provided the guidance to become future leaders of nations and captains of industry.

Clearly then, the building of schools is no trifling matter, especially in a country as diverse and vibrant as the UAE. According to the World Economic Forum’s Global Competitiveness Report, the country ranks in the top

10 in the world in terms of the quality of its education system.

Regarded as the GCC’s most developed education sector, the UAE is characterised by a wide presence of private institutions, high participation of the expat population and an increasing score on various education parameters, the report says.

The UAE’s private sector is particularly well developed, with thousands of national and international students enrolled in schools across Dubai and Abu Dhabi. It is estimated that between 2009 and 2014, Dubai alone saw 24 new private schools open, while student numbers increased at an average annual rate of 7.1% over the same period.

With expatriates accounting for 85% of the UAE’s total population, enrolment rates in the UAE are only expected to rise in the private school sector.

The school-going population is in fact expected to increase at an average annual rate of 3% to about 1.5 million in 2017.

Given the figures being bandied about, it is no surprise that even schools with a long and illustrious history in the UAE are looking to upgrade and develop , to stay relevant in an increasingly competitive

ProJect DetAilS Project Name: Jebel Ali School (New Campus) Project Size: 33,000sqm total Student Population: 1,850 (approx) from 650 (present-day size) Main contractor: ALEC MeP contractor: ALEC (Facilities Management Division) Facades: National Aluminium Facade Wall System: EIFS – installed by NAGI Interiors interior Walls: Ishtar Décor Structural Steel: Perfect Engineering internals and Finishes: Alamis (joinery), Al Rawda (partitions and painting), Al Shamsi (vinyl) and Interspace (carpets and wooden flooring) Specialist fit-out: Manser Saxon elevators: ThyssenKrupp

Expansion plans The Jebel Ali School will grow from 650 to 1,850 students when the move to the new campus is completed.

26 August 2016

market. Therefore, Big Project ME was invited to visit the construction site of the new home of the Jebel Ali School, one of the oldest and best-known British curriculum schools in Dubai.

Situated in a corner of the gigantic Damac Propertiesowned residential development Akoya, the school is scheduled to open on August 28, 2016. Work on the project is in full swing as the contractor, ALEC, looks to meet its construction deadline.

“Jebel Ali School is a nonprofit, British curriculum school.

It was established almost 40 years ago and is one of the oldest schools in the country,” says Glen Harris, project director for Turnkey Project Management, the consultancy tasked with overseeing the delivery of the school in time for the new school term. “This school is unusual in that it doesn’t have a sponsor.

It was established through a royal decree by the ruling family.

Secondly, it’s not-for-profit, which is also unusual, compared to most schools in the country who are set up to make money.

In Jebel Ali School’s case, the fees which are charged and are considerably below the market rate, never leave the school. They are only used to pay the staff and to provide a quality education.”

In the broader context of the development of Dubai, this meant that the school enjoyed rent-free status on the land it was developed on in Jebel Ali. However, as Dubai continued to evolve and grow, this land was eventually transferred to Nakheel, the developer famous for the Palm Jumeirah and other well-known projects. This meant the school’s rent-free status was threatened, posing problems for its plans to develop and expand, Harris explains.

“The school was also under a lot of pressure from parents, first

Site visit

A special kind of contractor Due to the compressed nature of the project, the chosen contractor needed to be able to bring a special set of skills to the table.

of all, to expand. Because there’s a huge waiting list, they wanted a pathway from primary school through to secondary school for their children. That couldn’t happen on the present plot.

“So we started to look for plots close to Jebel Ali which were the right size. Eventually, after an extensive search, we found a spot in Akoya, which is in a good location and at 33,000sqm is also big enough [to expand].”

However, this posed a further challenge – how to finance the project. Because of its status as a non-profit school with no sponsor, the school did not have any collateral to fund the construction of a new campus. Going to a bank and simply getting the funds was also not an option for the same reason, says Harris.

“Eventually, we decided to go for a model where a funder builds a school and then leases it back. After many months of discussions and negotiations, I finally convinced Emirates REIT to take on the project. This project is unusual because it’s based on

“The amount of effort that we’ve put in, as a management team on this project, is the same that we’d put into a 100,000sqm hotel or a 200,000sqm shopping mall.

It’s just numbers and the effort that’s been put in by everybody”

a develop lease back structure.

This was the first time ever that this style of transaction was used for an education project in this country, possibly in the region.

“It’s a simple concept, but it’s also complicated. It’s simple in that the school is in charge of the design within a set budget.

A funder pays for the land and for the construction costs, so ultimately land cost, construction costs and transaction costs form a total project budget which the school’s annual rent is based on.”

Another major hurdle for the project, even before work started, was the appointment of the main contractor to ensure that construction finished on time. Harris explains that in order for things to get underway, the chosen contractor had to buy into the project and give a lump sum estimate, based on a concept design.

This means that there would be no bill of quantities and no detailed specifications, only a concept drawing. Clearly it was a job that required a contractor with

considerable faith in its ability to deliver, especially since it would be working to a fixed deadline and within a fixed budget.

Enter ALEC. The Dubaibased contractor has earned itself a reputation as a deliverer of challenging projects, and the Jebel Ali School promised to test that reputation to the limit.

Carl Wamsley, senior contracts manager at ALEC, freely admits that the project has been neither easy nor conventional. However, he asserts that ALEC’s culture as a business is to test itself in difficult conditions and to come out on top, and the challenge posed by the Jebel Ali School was one it was never going to back down from.

“We focus and pride ourselves on our ability to deliver for all our clients. But this project is a little more special, with it being a school,” he says. “Jebel Ali School is an important client like all of our other clients, and our commitment to them is the same. We want to deliver to the best of our abilities, but when you take on a project that has 1,000-plus children, with 2,000odd parents, all relying on the facility to be finished ‘on time’, regardless of any delays, then that certainly adds a bit of pressure!”

Further complicating matters was the fact that the contractor had originally agreed to a 12-month construction schedule.

However, in a perfect example of Murphy’s Law, when foundation work was finished, the project team found that the affection plan had to be changed. Obviously this meant that the whole project was stopped, because the municipality demanded that everything had to be resubmitted.

“It’s not been easy, it’s not been a conventional project,” says Wamsley. “If there are delays on a project due to design changes, authority approvals and so on, then through the contract, the August 2016 27

Site visit

main contractor is entitled to an extension of time, with costs.

“But on a project like this, with a fixed opening date for when children arrive at the end of August, then you can’t do that.”

Time is certainly not the project team’s friend in this instance. Following the delayed start, Wamsley and his team were faced with the target of completing the school in six months, rather than the agreed 12, while also coping with the impact of reduced hours during Ramadan and the summer months.

Undaunted, the ALEC team threw everything it had at construction, embarking on a programme that involved close to 1,500 workers operating in three shifts, around the clock, seven days a week.

“The amount of effort that we’ve put in, as a management team on this project, is the same that we’d put into a 100,000sqm hotel or a 200,000sqm shopping mall. It’s just numbers and the effort that’s been put in by everybody,” Wamsley says.

“I’ve been in the country for 10 years, and for me, this year has been the toughest Ramadan and summer working year that I’ve ever experienced. There’s a couple of reasons for that – one is that with Ramadan coming in summer, the pressure on the project [was immense], to get things done in this period of time [was very difficult].

“Coincidentally, a lot of our previous projects have been finished in December or January. Therefore, you can go through the summer months with low production and high absentee numbers, but come September, you’ve still got four or five months where you can make up the time lost and get the job over the line,” he says.

“But we’re still here now, we’ve just gotten over with 28 August 2016

the Ramadan and Eid periods, but we’re still in midsummer and we’ve got a lot of work to finish with the externals and all before the end of August.”

With the punishing schedule in mind, ALEC has been mindful of the workload and exertion put on its workforce on-site.

Therefore, the team has been divided into three shifts, with one shift of 800 people running from 6:30am to 6:30pm, a second shift of 250 people working from 2am through to 12:30pm, and a third shift operating from 3:30pm to 2am. In this manner, says Ehab Jamal, the team hopes to cover the 24 hours a day, seven days a week schedule with minimal time lost.

“We keep trying to monitor the progress. If there is a need to shift people from one shift to another, then we keep on top of that. Sometimes it does happen that we have to transfer people between shifts, it depends on the activity,” says Jamal.

“When we were doing concrete, this shift was done at

“The school was also under a lot of pressure from parents, first of all, to expand.

Because there’s a huge waiting list, they wanted a pathway from primary school through to secondary school for their students. That couldn’t happen on the present plot”

design and build ALEC was involved in the design process of the buildings, which allowed them to preempt issues before they arose.

night. If we were doing other finishing work that was inside, then that would be the day shift.

It was difficult to coordinate all of this with our subcontractors as they had their own arrangements, so we all had to work together.

It was difficult, but in the end we’ve managed to make good progress by combining these three shifts together,” he adds, explaining that with the finish line in sight, the numbers onsite are being reduced to 1,200, down from a peak of 1,450.

Coordination and collaboration was clearly an important factor in the success of this project, given the compressed time frame.

Wamsley explains that because the school was a design and build project for ALEC, transparency and communication allowed them to pre-empt problems before they became critical.

“One of the benefits of a design and build project is that you’re involved in the design process of the MEP systems, for example, right from the early stages. So

Site visit

that means our MEP team was involved from the beginning and they could, and have, stepped in at certain points and simplified or value engineered systems to bring them in line with best practice.

“This includes using materials that are available, which helped us speed up construction. There’s been things that we’ve done that have helped us build as quickly as we have. I would say that’s actually helped us massively!”

Ehab Jamal adds that although the project was relatively simple in terms of the design and engineering, the tight schedule made it imperative that the right materials and suppliers be used and delivered on time.

To that end, the team was in constant, early communication with the client, allowing decisions to be made quickly.

“There were some good decisions made at the beginning of the project, with the client.

All the internal walls are solid block and we could thus bring in a new system of partitions which were fit for purpose. These saved a lot of time as they were new materials. I believe that it was one of the biggest decisions to make, and we did it early. Using them allowed us to build very quickly.

“We also used a new system for the facades on all the elevations for the building. Again, that system was fast. We saved time doing the plastering and the normal trade works. These were two items that we used on the project, the rest of the time it was just normal construction methods. It was key to keep our focus and to keep moving.”

An important contributor to the pace of construction was the client itself, says Carl Wamsley.

Not only did it make good, early decisions on the project, but it was also flexible and willing to listen to the ALEC team when it came to sourcing and supplying

Working around the clock For the last three months, construction crews have been working in three shifts, 24 hours a day, seven days a week.

materials for the project.

“I would say that what really helped us to do this project is the relationship we have with the client. On any project, you can’t build if you don’t have the materials. If there was a particular material that had been specified, and it had a long lead time, we could speak to Glen and the school, have a frank discussion with them and then say that ‘This is the product that’s been specified. It’s going to take too long or will cost too much. Can we look at an equivalent instead?’

“The school has been very accommodating in that way. They may not know it, but they’ve made a massive contribution to the speed of the project, in terms of how we can build so quickly. The building is 98% complete, within five months, and that’s not just because of hard work, but also because the materials that have been used on

the project, most of them have come when we needed them.”

As construction manager, handling the logistical challenge of moving these materials and workers through the site was down to Ehab Jamal and his team. He explains that they had to deal with a number of logistical issues, starting with the delay in starting construction, which meant the project team could not work in sequence. To save time, the project team had to work everywhere at the same time.

“To achieve this was very complicated. We had to change our access and egress points to the site many times. We had to shift the site offices three times,” he illustrates. “In the meantime, we had to have full coordination with the developer, and we had to coordinate everything through Dubai Municipality.

“We faced a number of issues, we did have logistic challenges

with our neighbours, but we had to manage and deal with all of them. By facing up, coordinating with the developer and the authorities, we could manage them. It has not happened smoothly and it was tough, but we’ve achieved what we had to do,” he states proudly.

Although work continues around the clock on the project, all three men are confident that the end of August deadline will be met, with Glen Harris in no doubt as to who to thank for that.

“I think the school has been very lucky, extremely lucky in fact, that it’s had a contractor like ALEC on board.

To make these kinds of projects work, you need to take real ownership of the project. A lot of construction companies – and I’ve worked with many over the years – will do what they have to do contractually, but if there’s a problem, they’ll stop and write you a letter.

“ALEC is not like that. They’ve said, ‘We’ve promised that we’re going to deliver a school, and we’ve been promised a contract that would take 12 months, but things have happened. It doesn’t matter. We’ve made a promise and we’ll stick to it.’

“I think the school is very lucky to have a team of people like that to drive the project forwards,” Harris says. “And one last thing. We’ve spoken about this being a six-month project. I’ve been in this country for nearly 20 years and I think, from my recollection, that the record was nearly eight months to deliver a school of this size. So to now do it in six months, with Ramadan and summer work restrictions, it’s almost unbelievable.”

“There’s not many construction companies that I know of who would be able to do that!”

August 2016 29

Industry focus

THE RIGHT FIT

With the fit-out and interior contracting segment of construction growing in 2016, Big Project ME speaks to leading firms in the region to find out what’s in store for the industry. Gavin Davids reports

T

he GCC market for interior contracting and fit-outs, based on the approximate number of projects completed in 2015, is estimated to have been a massive $7.06 billion last year.

And the market is expected to grow 25.62% to $8.87 billion 32 August 2016

by the end of 2016, based on the projects expected to be completed by the end of this year.

These figures from the January 2016 edition of the GCC Building, Construction and Interiors Market Review by Ventures are indicative of the growing importance of fit-out contracting as a market segment in the construction industry.

With budgets belts tightening in the region as oil prices continue to remain in a lull, developers and owners are increasingly looking to get more bang for their buck. There

is a renewed emphasis on refurbishment as owners look to retool existing structures to serve new needs and demands, while the introduction of green building ratings and codes has forced a change in mindsets across the industry.

Nowhere is this more evident than in the fit-out and interiors contracting market. Long considered the step-children of the construction world, fit-out contractors are now asserting their dominance and vitality in a market increasingly in need of their services.

As so often in the Middle East, Dubai is a barometer for this change in perception, with Expo 2020 sparking a surge in development, particularly in the hospitality and retail markets. However, this growth is not limited to Dubai and the UAE, with markets like Saudi Arabia and Qatar also showing significant increases in market share between 2015 and 2016.

In fact, the Kingdom, with its heavy investment and social infrastructure programmes, has the largest market share of the big three in the GCC,

Industry focus

work at hotels in Oman, along with retail packages and wooden panelling and doors for Muscat International Airport. So far, 2016-2017 has been positive.”

He adds that the hospitality market is expected to pick up pace, with three- and fourstar hotels likely to compete with a saturated luxury hotel segment. This will offer increased opportunities to fit-out contractors in the region, given the need for budget and business hotels to have high-quality finishes and interiors, at reasonable prices.

Dimitri Papakonstantinou, managing director of Plafond, a multi-disciplinary firm that specialises in fit-out, adds that while the fit-out industry faced some uncertainty in 2016, this reflected a wider trend in the construction market.

Citing oil prices and the slowdown of the world’s major economies as major contributing factors to this uncertainty, Papakonstantinou says that contractors in the GCC should consider themselves fortunate to be positioned in a region that is still very active compared to

many other parts of the world.

“During the preparation of our budget for the financial year 2016-2017, we did anticipate the effect the global uncertainty would have on growth. Although we did still budget to grow during this financial year, our growth was slightly slower than the two preceding years. To date we have been achieving our budgeted turnover and profit month-on-month, so I am pleased that we are on target to achieve a growth of around 17%,” he says.

“Regionally, we have seen

“Sometimes it’s confusing and clients can be scared of going green, because it’s new and it sounds complicated. This is where we can come in. We can actually say, ‘No, it’s not more expensive. It is not complicated and you’re not the ones who have to do it.

We are the ones who will drive it and deliver it to you’”

followed by the UAE and Qatar.

Kuwait is also slowly catching up with Qatar in terms of interiors and fit-out spend.

“Clearly the growth rate for the interior fit-out market was maintained and even accelerated in 2016,” says Ravikumar KS, executive director – International Operations at S&T Interiors and Contracting. “At S&T, we’re anticipating good opportunities in primary markets like Oman, Dubai, Abu Dhabi and Qatar (in view of 2020 and 2022 respectively). Our projects reflect this trend, as we’re executing August 2016 33

the most activity in the Dubai market, which is where the majority of our works are currently carried out.”

This market outlook is reflected by the likes of Laurent Farge, general manager of ALEC Fit-Out, and Marcos Bish, managing director of Summertown Interiors. They both tell Big Project ME that while conditions in the market are challenging, there is considerable scope for optimism, particularly in Dubai.

“If we look at 2016, it’s very similar to 2015. I think you

can look at it from the point of view of being a cycle. We’re currently at the bottom of the cycle, I feel. I’m expecting, and hoping, that towards the end of 2016 we’ll get out of that dip and things will start to pick up again. This is something we’ve been anticipating over the last two years, in fact,” says Bish.

“This year is not much different to last year, however, in that we see a lot of activity in the market. Our estimation team is very busy all the time.

But the only thing we don’t see is projects being awarded

GCC construction projects completed in 2015 and expected to be completed in 2016, split by sector (US$ million) 30,000 2015

2016

25,000

20,000

15,000

10,000

5,000

Commercial

Hotels

Residential

Retail

Other

Hospitals

Education

GCC interior contracting and fit-out spend by building sector, 2015-2016 (US$ million)

3,000 2015

2016

2,500

2,000

1,500

1,000

500

Commercial

Hotels

34 August 2016

Residential

Retail

Other

Hospitals

Education

quickly. If we go back to two or three years ago, you could price a project and usually within one or two months, you either won it or lost it.”

Bish puts this down to the decision-making process becoming more considered at the client level. Given the emphasis on value for money, decisions are now often made by committee, with sign-off eventually coming from the board or managing director. Quite often, tenders submitted get rejected as they don’t meet the approved budgets, which means the contract goes up for another round of bidding, or contractors are asked to value engineer their bids.

Complicating matters even further is that developers may decide to put projects on hold, or cancel them entirely, until market conditions are more favourable. This creates issues for fit-out contractors, as their estimating teams are very busy but projects are quite slow to drop.

Laurent Farge explains that with the market becoming very price-sensitive, fit-out contractors must be able to differentiate between offering value and being the lowest bidder, if they want to be successful and competitive.

“I believe that they [developers and clients] have found that fit-out contractors can bring alternatives to the table.

At the moment, what we see is that when we price a project as per specification, most of the time we’ll have to reduce the price. Let’s say that we go into a tender and price a job as per specification. Usually we’ll have to go down by about 20% or 25%, meaning that we’d be higher by about 25% of the client’s budget.

“This is what is happening.

A client will give a budget to an interior designer, then the

interior designer will work it out, and then, most of the time, they’ll achieve the look, but not the money that the client wants to pay. So then this is where we start to offer alternatives, such as value engineering and all that.”

Papakonstantinou adds that one of the other major challenges facing fit-out contractors in the current market is a lack of time spent detailing the design and understanding the costs involved. This inevitably leads to delays during the execution of the work, which only serves to exacerbate the problems.

“In general, I believe that contractors are required to take extensive risks during tight estimation timeframes, with sometimes incomplete

Source: Ventures Onsite MENA Projects Database

Industry focus

Industry focus

Growing green One of the fastest-developing segments of the fit-out contracting market is green building.

documentation. Combined with sometimes extensive changes that the client requests during the construction of the project, this can lead to delays in completion, works carried out of sequence and additional costs – often to the contractor.”

In order to combat these issues, Farge says ALEC Fit-Out has made a point of selecting and targeting the right projects, and urges other contractors to follow suit.

“Doing due diligence on clients, as well as understanding the consultant team working on the project, are key considerations for us prior to bidding for work. We believe that we’re one of the best in the market, but we don’t want

“In general, I believe that contractors are required to take extensive risks during tight estimation timeframes, with sometimes incomplete documentation”

to be the cheapest. We want to offer our clients a value-formoney proposition, a fair price that the client is happy with.

“Obviously, we need to be much more aggressive from a procurement point of view, and we all need to make sure that we spend the right amount of resources on a project. What we expect now is that sometimes a project manager will have to do more than what he used to do. We try to put in the right management for a project, and we try to make sure that we’re competitive. Compared to other companies, we’re quite expensive, so we need to make sure that our guys do more than what others do,” he asserts.

This sort of attitude fosters

repeat business; Marcos Bish believes establishing a relationship with repeat customers is crucial to the success of any fit-out contractor in the market today. He estimates that 50% of Summertown Interiors’ business comes from repeat business, which highlights the importance he places on having happy customers.

“We always have business going from our clients,” he says. “The other 50% that we’re looking at is basically business development, where we need to get new projects.

When we combine that with the environmental trends that we see, we also see that 50% of our business is green these days.”

“So for us, a growing market is the green fit-out. I would say that we always have 50% of repeat business, and that we couple that with our growing green market.”

Sustainability is indeed a rapidly growing segment in the GCC’s fit-out contracting market, especially in the wake of the introduction of green building codes and rating systems, such as the one recently introduced

by Dubai Municipality.

“We see two types of green projects. One is the green projects that are designed and executed to be green, but have no certification. And then the other green business is where the client actually wants a certificate. 99% of the time, that is LEED certification.”

Ravikumar KS agrees, pointing out that sustainable solutions are gaining momentum in the market as the understanding around environmentallyresponsible projects grows.

“We have successfully completed a number of projects across the region with the directive to obtain sustainability accreditation through LEED. August 2016 35

Industry focus

Repeat business Marcos Bish says that about 50% of Summertown Interiors’ business comes from existing clients.

Al Alila Jabal Akhdar Hotel, Oman is one of the key projects where we have helped our client achieve LEED. It is constructed according to LEED principles, and is the first hotel in the Sultanate of Oman to gain LEED Silver Certification.”

Bish says he quite often encounters clients who seem almost afraid of embracing sustainability, because they lack a complete understanding of what it entails.

“Sometimes it’s confusing and clients can be scared of going green, because it’s new and it sounds complicated.

This is where we can come in.

We can actually say, ‘No, it’s not more expensive. It is not complicated and you’re not the ones who have to do it. We are the ones who will drive it and deliver it to you,’” he explains.

“That is very important for the client to understand – that it’s the contractor who has to deliver a green project. Maybe in cooperation with other parties around the table, but even if nobody else cooperates, it’s still 36 August 2016

Design build on the rise Laurent Farge says there has been an increase in design build opportunities in recent months.

the contractor’s responsibility.

“I think, first of all, you have to make the client comfortable with that. Secondly, everybody always says that green is more expensive – this is again where we come in and say, ‘No. Not necessarily.’ If you start to put in water desalination systems in your backyard, if you go for solar energy which has a long payback period, then yes, it will cost money. But normal decent fitout, by default – in our opinion – should already be green, without any additional costs.”

Another emerging trend Papakonstantinou has noticed is the increased use of BIM on projects. As a keen advocate of the technology, he hopes it will continue to spread through the region.

“At the moment some major projects are taking BIM on board. However, to fully benefit from the advantages of this, it has to be implemented from the outset of the project design and include all stakeholders, from the client to the designer to the contractor.

Increasing use of BIM Dimitri Papakonstantinou says that he’s noticed an increasing use of BIM on fit-out projects.

“This year is not much different to last year, however, in that we see a lot of activity in the market.

Our estimation team is very busy all the time. But the only thing we don’t see is projects being awarded quickly”

“Considering the complexity and sheer size of the projects carried out in the UAE, this will certainly be the way forward to minimise the impact that changes have on a project as well as highlight conflicts in the design early on,” he says, adding that Plafond is actively using BIM on some of the projects it is currently executing.

Finally, Farge has noticed an increased number of design build opportunities in recent months.

Given the depth of ALEC FitOut’s resources, this is something he’s keen on exploring further.

“We have a collaborative approach to design/fit-out solutions, which has seen our team align with leading local and international consultants.

Their creative flair and space planning capabilities are complemented by our detail development, coordinated finishing and value engineering capabilities, thus ensuring that the client receives the best possible solution, in line with their design brief and project budget,” he concludes.

10 - 12

Oman’s 6th International Exhibition for Infrastructure & Industrial Projects October 2016

Oman Convention & Exhibition Centre

Supported by

INCORPORATING INDUSTRY PAVILIONS Muscat Municipality

Co-located with

INFRASTRUCTURE FORUM

10 - 11 October 2016 Exhibition Profile BUILDING & CONSTRUCTION

Expo Highlights WATER & ENVIRONMENT

HEAVY EQUIPMENT & TECHNOLOGY

TRANSPORTATION & LOGISTICS

INFRASTRUCTURE PROJECTS

INDUSTRY & MANUFACTURING

POWER & RENEWABLE ENERGY

FIRE SAFETY Diamond Sponsors

Platinum Sponsors

Lanyard Sponsor

Gold Sponsors

Supporters

Media Partner

For stand reservations or for details on sponsorship opportunities and other information on Infra Oman, please contact:

Marvin Pinto, Project Director Mobile: +968 9909 6096 | Email: infra@alnimrexpo.com

www.infraoman.com

Organized by

Member of

Comment

Stephen Jurgenson

Learning from south africa

Stephen Jurgenson and Fadil M. Bayyari from the Dubai office of international law firm Winston & Strawn explore lessons from South Africa’s REIPP programme As widely reported, the Kingdom of Saudi Arabia recently issued its Vision 2030 plan, along with the supplementing National Transformation Program 2020.

Together these plans set farreaching goals to transform the Kingdom’s oil-dependent economy to one which is diverse, sustainable and at the crossroads of international trade.

A significant target under Vision 2030 is the addition of 9.5GW of new renewable energy capacity, including 3,450MW by 2020. A comprehensive renewable energy procurement programme similar to South Africa’s Renewable Energy 38 August 2016

Independent Power Producer Procurement programme (REIPPP) could act as a vehicle for the Kingdom to achieve Vision 2030’s renewable energy targets and its broader economic development and diversification goals.

Perhaps coincidentally, Saudi’s renewable goals nearly mirror those of South Africa when it issued the first request for proposal (RFP) under REIPPP. In August 2011, the initial RFP sought 3,725MW of renewable energy projects to be procured from the private sector over five rounds.

At the time, South Africa

had no history of large-scale renewable energy installations and a limited renewables industry. Nevertheless, it procured nearly 4,000MW in the first three bidding rounds alone.

To date REIPPP has generated 92 new renewable IPPs across four bidding rounds – $12.7 billion in investment committed for the construction of over 6,200MW of capacity in onshore wind, solar PV and concentrated solar technologies.

REIPPP was able to deliver megawatts to the grid quickly and the resulting competitive environment bore cost-effective tariffs for South Africa.

A feature which set REIPPP apart from other international examples of competitive bidding was the inclusion of economic development requirements.

The programme mandated that committed projects meet minimum thresholds for black South African ownership and management, job creation, inclusion of local content, capacity development and other commitments for socioeconomic development.

All together, the stringent economic development requirements jump-started the renewables sector, lured foreign investment and bolstered the

greater role Foreign financiers would expect a greater role under a renewables programme in the Kingdom, thanks to the currency peg and PPA tariffs being typically indexed to the US dollar.

Comment

“The Kingdom’s programme would have to take into account its current renewable sector capabilities.

Requirements for local content for renewable equipment and materials may have the effect of increasing tariffs, given the nascent status of Saudi’s renewable sector”

capacity and experience of South African institutions.

Comprehensive approach, design and implementation of a successful programme could start with an analysis of South Africa’s REIPPP in order to adapt and enhance it for the Kingdom. For instance, the means to achieve REIPPP economic development targets could be used in the Kingdom, but the targets themselves would not apply. Vision 2030 has targeted the creation of a vibrant renewable energy sector and local content targets, but otherwise the Kingdom would need to establish its own set of

economic development objectives and measurable criteria.

For example, the Kingdom’s programme would have to take into account its current renewable sector capabilities. Requirements for local content for renewable equipment and materials may have the effect of increasing tariffs, given the nascent status of Saudi’s renewable sector.

Comparatively, gradual increases in local content across successive bid phases could encourage growth in local renewable sector capabilities without encumbering early stage bid competitiveness.

Saudi Vision 2030 also aims

to increase the contribution of small and medium enterprises to the Kingdom’s economy.

South Africa had similar goals and used REIPPP to achieve them by limiting foreign ownership in project companies and by requiring minimum shareholdings by South African enterprises.

The Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC) assisted by providing loans and other forms of financing to South African enterprises to bolster their participation. If Saudi were to institute similar requirements, it

would need to determine whether or not small and medium Saudi enterprises would need financial or other forms of support to participate in the renewables programme. If so, the Kingdom would then have to explore which entity would serve a function similar to that of DBSA and IDC. Under REIPPP, the Randdenominated power purchase agreements (PPAs) made it uncompetitive for foreign commercial lenders to provide long-term funding. Thus a majority of the project debt under the programme was provided by local South African commercial banks.

Given the Kingdom’s currency peg and the fact that PPA tariffs are typically indexed to the US dollar, one would expect foreign financiers to have a greater role under a renewables programme in the Kingdom. Since local and foreign banks have each played a significant role in the Kingdom’s successful conventional IPPs, both are familiar and comfortable with financing the energy sector and would likely contribute to the success of the Kingdom’s renewable programme.

Above all, the South African experience highlights that a well designed, transparent and robust procurement process encourages private developer and lender participation. In the end, a comprehensive renewables programme would enhance Saudi Arabia’s institutional capacity, experience and knowledge in the renewable energy sector as well as spur a local renewables industry – all in addition to the primary goal of increasing renewable generation capacity.

It is undoubtedly an exciting time for the Kingdom and renewable energy industry participants, one which we will continue to monitor with interest.

August 2016 39

Technology focus

stronger together

Big Project ME speaks to Henry Jones of Aconex Limited about his company’s plans for the future following its acquisition of Conject Holdings, and the outlook for construction technology in the region Integration plan Aconex and Conject will integrate their staff and operations over the coming months to better serve their customers.

40 August 2016

On April 1 this year, Australian firm Aconex Limited, provider of a leading cloud and mobile collaboration platform for the global construction industry, announced that it had completed the acquisition of Conject Holding, a German rival whose operations extend across Europe and other regions.

The $72 million deal is the largest seen in the construction Software as a Service (SaaS) market and is expected to have a major impact on Aconex’s operations in Europe and other key markets, particularly the Middle East and GCC region.

The Australian firm believes the deal will be “significantly accretive to Aconex earnings per share (EPS) for the financial year ending June 30, 2017, excluding the amortisation of intangibles related to the acquisition and one-time transaction and restructuring costs”.

On March 17, Aconex raised $91.15 million through the issue of approximately 23,076,924 fully paid ordinary shares at an issue price of AUD 5.20 per share.

In addition to the acquisition of Conject for a total cash consideration of $72 million, the

Technology focus

proceeds of the placement will be used to fund one-time acquisition and integration costs and provide additional working capital for the Aconex group, according to Leigh Jasper, CEO of Aconex.

“We’re pleased to have completed the acquisition of Conject, and we look forward to welcoming their employees, integrating their operations and serving their customers,” he said in a statement released at the time.

“The transaction will significantly expand our market penetration and user network throughout Europe, and further

consolidate our position as a leader in the global market for cloud-based construction collaboration solutions. The acquisition is consistent with our strategy of market consolidation, and Conject provides the primary market consolidation opportunity available today. Conject’s customer base, business and culture are highly complementary to ours.”

Jasper further pointed out that the German firm’s footprint across Europe’s largest construction and infrastructure markets, particularly in Germany and the UK, will strengthen Aconex’s presence in those markets, while also further increasing its global economies of scale by leveraging its existing infrastructure.

“We believe that the transaction will provide opportunities to improve Conject’s operating performance and drive margin expansion and growth over time. We look forward to welcoming their management and employees, integrating their operations and serving their customers.”

To find out more about the impact of the acquisition on operations in the Middle East for both companies, Big Project ME spoke to Henry Jones, senior vice president of EMEA and Global Accounts for Aconex Limited.

“If you look at our global strategy, it actually fundamentally aligns really well with the core aspects of our business,” he says when asked why Aconex decided to buy Conject. “These are to grow our network and footprint – so obviously, by buying Conject, we solidify our place as number one in Europe, and in terms of the Middle East, it consolidates our position there.”

“The other key aspect that we identified was that it really does enhance our capabilities, both through adding product

“I think it is very apparent that this is one of the ways to solve some of the fundamental problems within the industry. That is why the rate of technology adoption has been so high” capabilities and through people [added to the company]. The acquisition gets us some really good additives to our knowledge and skills base, with knowledge of the European markets, knowledge of the collaboration space and so on. It’s definitely added to our capabilities, which is core.

“The final thing is scale –

adding scale to our business provides us with huge opportunities in our ability to invest in products. Also, it allows us to branch our operational efficiencies and profitability. So to us, the acquisition of Conject was aligned with our core strategies,” Jones re-emphasises.

Having previously acquired Worksite – a similar company to Conject – in July 2015, Jones says Aconex recognises the importance of having a collaborative cost element in its product suite.

The idea behind acquiring Conject, he says, is to bring in its capabilities, functionalities and services, as that is something that its customers and market want and will respond to.

“I think that the combined product capabilities in our consolidated products suite will be that much more powerful than if it was just Aconex or Conject on their own. There’s obviously a large crossover, but there’s also value in consolidating those functionalities and capabilities.”

With the two companies now in the midst of integrating into one entity, Jones explains that Aconex has been careful to ensure that its European, Middle Eastern and African leadership teams have a combination of Aconex and Conject people. This is to ensure that they retain and use the knowledge and expertise garnered over the years by the Conject team, especially in Europe and the UK, where they have longstanding dominance in the market.

“If we’re really going to drive the success of this integration, then we want to benefit from the scale. Operationally, we want to run this as one company. It will take time to combine the two, but we’ve started this process with the leadership. Our goal is to get the best out of both.

“One of the things that was

August 2016 41

Technology focus

huge opportunities There is still a huge amount of investment and construction ongoing in the Middle East, Jones says.

very attractive about the deal was that there was little crossover in the combined entity, which is really fantastic. One of the things we’re talking about is potential synergies; there is really no need to take synergies of people across the business. In fact, if anything, we’re going to look at growing the business to maximise the growth.”

These synergies will help Aconex service demand in Asia, where Conject has a number of clients, although it previously didn’t have operations there. Likewise, Aconex’s clients in the Middle East of European origin will be able to benefit from the expertise provided by Conject’s team.

“Integrations are highly complex, and we are investing significant dollars specifically for the integration, to make sure it’s successful. We have set up a specific integration team to do that, and we have 14 or 15 integration work streams that have

42 August 2016

been put in place to make sure that it’s successful,” Jones outlines.

Given the economic conditions in the GCC, this approach seems the most prudent. With low oil prices and regional instability causing budgets and expenditure to shift dramatically over the last few years, clients are now clamouring for more efficiency on projects.

“There’s still huge opportunities in the Middle East, as there’s still a huge amount of construction and investment going on, so the opportunities are still there. But there is a constant demand to be more efficient and technology absolutely plays a part in doing that. I think that the adoption of collaboration software is quite advanced in the GCC, but there’s still an opportunity to continue that advancement.

“I think the opportunity here is to increase the sophistication in the way the product is used and to drive efficiency. I think

“One of the things we’re talking about is potential synergies; there is really no need to take synergies of people across the business. In fact, if anything, we’re going to look at growing the business to maximise the growth”

that this market has adopted collaboration software very well, but there’s obviously significantly more opportunity available – both from the level of adoption and from the market,” Jones says.

This raises an important point, which is that the construction industry – in the GCC region especially – is in desperate need of ‘disruptive technology’ that can drive efficiency, productivity and effectiveness. Given the plethora of issues facing the construction industry at the moment, Jones is adamant that technology is the answer to these problems.

“I think it is very apparent that this is one of the ways to solve some of the fundamental problems within the industry.

That is why the rate of technology adoption has been so high. There has probably been less debate amongst customers as to whether a collaboration tool is needed. It’s more about what is the right tool, and how can we best use it?”

POWERED BY

INTERNATIONAL EXHIBITION FOR HARDWARE, TOOLS & MACHINERY

pate i c ti Par w!

No

Abu Dhabi Hardware Show powered by MITEX 2016 has been set up as an international exhibition focusing on the hardware and tools industry and is an ideal gateway for the local as well as international brands looking to enter or to expand with the UAE / MENA hardware and tools market. Abu Dhabi Hardware Show powered by MITEX 2016, a three day exhibition is poised to be an excellent platform for manufacturers, suppliers and vendors of the elevant industry to gather under one single roof to give latest insights about the Hardware and Tools.

www.adhs.ae INDUSTRY SUPPORT:

SUPPORTED BY:

ORGANISED BY:

Tenders

Top tenders 5-Star Hotel Project – Dar al HijraH Budget $900,000,000 Project Number BPR724-SA territory Riyadh 11177, Saudi Arabia client Ministry of Finance (Saudi Arabia) address Airport Road Phone (+966-1) 405 0000 / 405 0080 / 405 5000 Fax (+966-1) 405 9202 / 403 5422 email info@mof.gov.sa Website www.mof.gov.sa Description Construction of a 5-star hotel Period 2019 Status New Tender tender categories Construction & Contracting, Hotels tender Products Hotel Construction

tender categories Construction & Contracting, Hotels, Leisure & Entertainment tender Products Hotel Construction, Mixed-use Developments, Residential Buildings, Retail Developments

email infoc@nategypt.org Website www.nategypt.org Description Construction of a metro line involving 6.1km of viaduct and five elevated stations Status Current Project tender categories Public Transportation Projects tender Products Metro

el alameiN reSiDeNtial city Project cairo metro Project – liNe 3 – PHaSe 4B Budget $672,000,000 Project Number MPR1500-E territory Cairo 11794, Egypt client National Authority for Tunnels (Egypt) address Ramses Building, Ramses Square Phone (+20-2) 3574 2968 / 3574 3024 Fax (+20-2) 3574 2950

Budget $337,000,000 Project Number WPR1052-E territory Egypt client Ministry of Planning (Egypt) Phone (+20) 2617431 / 2616752 / 4014724 Description Development of a new residential city, including a retail area Status New Tender tender categories Construction & Contracting, Leisure & Entertainment tender Products Community

Development, Residential Buildings, Retail Developments

araimi BoulevarD mall Project Budget $120,000,000 Project Number WPR1034-O territory Muttrah PC 114, Oman client Al Raid Group of Companies (Oman) Phone (+968) 2456 6557 Fax (+968) 2456 7492 email alraid@alraidgroup.com Website www.alraidgroup.com Description Construction of a new shopping mall covering a built-up area of 128,000sqm with a lease area of 55,000sqm, including a car park for more than 2,000 vehicles Period 2019 Status Current Project tender categories Construction & Contracting, Leisure & Entertainment tender Products Retail

jumeiraH Bay raS el-Hekma mixeD-uSe WaterFroNt Project – PHaSe 1 Budget $1,600,000,000 Project Number MPP3052-E territory Giza, Egypt client Sakan Real Estate (Egypt) address 64G First Gate, Khofo, Pyramids Gardens Phone (+20-11) 2821 1112 / 1000 0108 / 1101 6381 email info@sakan-egy.com Website www.sakan-egy.com Description Development of a mixeduse waterfront project comprising seven diverse residential areas Period 2019 Status New Tender

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

44 August 2016

Tenders

Middle East tenders Qatar toWerS coNStructioN Project Project Number WPR1053-Q territory Doha, Qatar client Al Alfia Holding (Qatar) Phone (+974) 4436 1131 Fax (+974) 4436 1141 Website www.alfiaholding.com Description Construction of two towers Period 2020 Status New Tender tender categories Hotels, Prestige Buildings tender Products High-rise Towers, Hotel Construction

aNimal meDiciNe ProDuctioN Factory Project Budget $3,000,000 Project Number WPR982-Q territory Doha, Qatar client Ministry of Energy & Industry (Qatar) Phone (+974) 4484 6444 Fax (+974) 4483 2024 email dae@mei.gov.qa Website www.mei.gov.qa Description Construction of an animal medicine production factory Period 2017 Status Current Project tender categories Industrial & Special Projects tender Products Factories, Pharmaceutical Manufacturing Plants

BarzaN military HoSPital Project Budget $130,000,000 Project Number BPR719-Q territory Doha, Qatar client Ministry of Defence (Qatar) Phone (+974) 461 4111 / 461 2398 Website www.gov.qa Description Construction of a military hospital comprising 40 beds Period 2019 Status New Tender tender categories Construction & Contracting, Medical & Healthcare tender Products Hospital Construction

UAE lulu mall Project – al maqtaa Budget $6,000,000 Project Number WPR1045-U territory Abu Dhabi,

United Arab Emirates client EMKE Group (Abu Dhabi) Phone (+971-2) 642 1800 Fax (+971-2) 642 1716 email headoffice@ae.lulumea.com Website www.emkegroup.com Description Construction of a shopping mall comprising a ground floor and an additional floor Period 2018 Status Current Project tender categories Construction & Contracting, Leisure & Entertainment tender Products Commercial Buildings, Retail Developments

Fax (+971-4) 298 9555 Website www.thumbay.com Description Construction of a hospital with capacity of more than 300 beds, including a dental hospital with 60 chairs and a rehabilitation centre Period 2017 Status Current Project tender categories Construction & Contracting, Medical & Healthcare tender Products Hospital Construction

BorouGe 3 etHyleNe PlaNt exPaNSioN Project GulF meDical uNiverSity HoSPital Project Budget $100,000,000 Project Number WPR1038-U territory Dubai, United Arab Emirates client Thumbay Ltd (Dubai) Phone (+971-4) 298 5555

Budget $100,000,000 Project Number BPR703-U territory Abu Dhabi, United Arab Emirates client Borouge Pte Ltd (Abu Dhabi) address Borouge Tower, Sheikh Khalifa Energy

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

46 August 2016

Tenders

Complex, Corniche Road Phone (+971-2) 607 0300 Fax (+971-2) 607 0999 email info@borouge.com Website www.borouge.com Description Engineering, Procurement and Construction (EPC) contract for the expansion of an ethylene plant Period 2017 Status Current Project tender categories Industrial tender Products Chemical Plants

Bahrain WaterBay toWer Project – BaHraiN Bay Project Number WPR1002-B territory Manama, Bahrain client Bin Faqeeh Real Estate Investment Company (Bahrain) address Business Bay Tower, Bldg. 3232, Road 4654, Block 346, Seef District Phone (+973) 7714 4144 / 1723 4226 Fax (+973) 7715 5155 email info@binfaqeeh.com Website www.altaitoon.net Description Construction of a 10-storey residential tower with associated facilities Period 2018

Status Current Project tender categories Construction & Contracting tender Products Residential Buildings

Kuwait cruDe PiPeliNeS coNStructioN Project Budget $200,000,000 Project Number MPP3047-K territory Ahmadi 61008, Kuwait client Kuwait Oil Company (KOC) Phone (+965) 2398 9111 Fax (+965) 2398 3661 email kocinfo@kockw.com Website www.kockw.com Description Engineering, Procurement and Construction (EPC) contract to build crude pipelines Status New Tender tender categories Gas Processing & Distribution, Oilfields & Refineries tender Products Crude Transportation, Storage & Distribution, Oilfields Development

Saudi Arabia termiNal 6 Project – kiNG kHaliD iNterNatioNal airPort

Project Number MPP3051-SA territory Jeddah 21165,

factory building, a workshop and an administration building

Saudi Arabia client General Authority of Civil Aviation – GACA (Saudi Arabia) address Bin Malek Street, Old Airport Area Phone (+966-12) 640 5000 Fax (+966-12) 640 1477 / 3876 email gaca-info@gaca.gov.sa Website www.gaca.gov.sa Description Construction of new terminal at an international airport, which will have capacity to handle 35 million passengers a year Status New Tender tender categories Airport, Construction & Contracting tender Products Airports Development & Management

Period 2017 Status Current Project tender categories Construction & Contracting, Industrial & Special Projects tender Products Commercial Buildings, Factories

al jomaiH BottliNG PlaNtS Project Budget $5,000,000 Project Number WPR950-SA territory Riyadh 11411, Saudi Arabia client Al Jomaih Bottling Plants (Saudi Arabia) Phone (+966-11) 476 3824 Fax (+966-11) 478 4690 Website www.aljomaihbev.com Description Construction of a

Oman iNteGrateD liGHt iNDuStrieS Park Project Project Number WPR1017-O territory Muscat, Oman client Sandan Development (Oman) Description Construction of an integrated light industries park comprising 2,400 workshops, auto showrooms and building material shops, 450 office spaces and 1,400 residential units Period 2018 Status Current Project tender categories Construction & Contracting, Leisure & Entertainment, Medical & Healthcare tender Products Commercial Buildings, Hospital Construction, Residential Buildings, Retail Developments

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

August 2016 47

Last word

The importance of Al Sa’fat Following the launch of the green building rating system by Dubai Municipality, Big Project ME speaks to Saeed Al Abbar, chairman of EmiratesGBC, about the impact it will have on construction What are your thoughts on the new ratings system and its impact on the construction industry in Dubai?

Al Sa’fat, the new building rating system introduced by the Dubai Municipality, is a significant initiative that will strengthen sustainable built environments in the city and support the goal of Dubai Plan 2021 to create a smart and sustainable city. It builds on the Green Building Regulations and Specifications (GBR&S) for all new buildings in Dubai set by DM in March 2014.

Al Sa’fat is developed based on established green building rating systems in the world, and sets parameters for energy conservation, water efficiency, waste management and indoor air quality, among others. What makes it effective is that it adopts a performance-approach towards achieving building efficiency, and the methodology behind

48 August 2016

its criteria has similarities with successful rating systems that have been voluntarily practised by companies in the region.

By mandating the system, we are optimistic that DM can achieve the desired outcomes in terms of enhanced energy, water and resource use efficiency in the future buildings.

The new rating system thus energises the ongoing initiatives to promote sustainable buildings. It addresses an industry gap and will now inspire more building owners and other stakeholders in the construction supply chain to develop green buildings.

How much of an impact will the new ratings system have on current and future construction projects?

For the construction sector, it serves as a benchmark on sustainable built practices.

In addition to achieving the mandated standards, they will now be inspired to innovate on their

construction approach, including the use of green building materials and systems, to maximise energy and water use efficiency. This in turn will benefit the overall energy supply chain and help manage energy demand and promote alternative energy utilisation.

Both the ongoing and upcoming projects will now explore the provisions – that are already available in the market – to make their buildings greener and efficient. This means adopting environmentfriendly building materials, evaluating their design to incorporate energysaving functions, use energy-efficient lighting solutions and install efficient water fittings.

However, it is early to comment on the extent of its impact because Bronze Sa’fat, which is the mandatory rating that any building must achieve, will not influence the current construction projects as

they are already based on the mandatory Green Building Regulations & Specifications announced

by DM earlier.

But we are optimistic that, by setting the standards, it will inspire the construction sector to push its own benchmarks.

How much input did Emirates Green Building Council have in the formulation of Al Sa’fat, and how will the ratings system affect sustainability and green building in Dubai?

EmiratesGBC has always served as a facilitator and champion of green building systems, and we have a long-standing history of active cooperation with DM. Senior officials of the municipality attend our networking events and seminars, where discussions on existing and new sustainable construction methods are held. DM also sits on the Advisory Board of the EmiratesGBC and we therefore maintain a close dialogue.

We welcome the introduction of Al Sa’fat and will actively work to ensure its progress.

We are an independent entity, and we promote active dialogue, discussion and positive action in this regard. We work with stakeholders from across the industry, and we are delighted that the concerted efforts of all in the past years have now been acknowledged.

What lessons can other countries and cities in the region take from this initiative by Dubai?

Dubai has been at the forefront in promoting a culture of sustainability in the built environments.

In fact, the city continues to actively pursue the retrofitting of older buildings to make them energy- and waterefficient. The green development model that Dubai and the UAE have set can be emulated by all fast-growing cities.

CONSTRUCTION AND SUSTAINABILITY AWARDS OF EXCELLENCE NOVEMBER 22, 2016 JuMeIRAh eMIRAteS toweRS, dubAI www.bigprojectmeawards.com

RecogNISINg exceLLeNce foR

the best contractors IN the RegIoN

FOR AWARD NOMINATION ENQUIRIES gAVIN dAVIdS +97 1 4 375 5480 gAVIN.dAVIdS@cpIMedIAgRoup.coM

GOLD SPONSORS

C AT E G O R Y S P O N S O R S

FOR TABLE BOOKING & SPONSORSHIP OPPORTUNITIES R A Z ISL AM +97 1 4 375 547 1 R A Z.ISL AM@cpIMedIAgRoup.coM

SUPP OR T ING PA R T NERS