Big Project ME December 2014

DECEMBER 2014

105

ALSO INSIDE buzzing for bim civil engineering rebuilding egypt crisis in kuwait thinking modular Julian Pritchard, the new general manager of BASF Construction Chemicals UAE, outlines his vision

leading the way PLUS Big PROJeCt Me awaRds 2014 winneRs Revealed inside

M

CONTENTS

DECEMBER 2014 07 the big picture al maryah central breaks ground Work begins on high-end shopping centre on Abu Dhabi’s Al Maryah island

12 neWs AnAlysis crisis in kuwait gavin Davids investigates the implications of a controversial new law proposing a cap on expatriate residency in the gcc member state

16 in profile incubating innovation big project Me talks to Julian pritchard, the new general manager of bAsf construction chemicals uAe, about his plans for the manufacturer

22 big proJect Me AWArDs 2014 construction excellence celebrating the achievements of the gcc construction industry for 2014

40 profession focus: civil engineering mind the gap neha bhatia investigates how the gcc is coping with the shortage of experienced and qualified civil engineers

46 MArket focus: egypt optimism on the nile Jerusha sequeira looks at how investment in egypt’s construction sector is promoting economic stability in the troubled north African giant

50 sector focus: prefAbricAteD builDing think modular neha bhatia asks the experts if modular construction is the solution to the increased cost of building in the gcc

54 coMMent the right time?

Anoop Menon says that public investment in infrastructure could become a powerful policy tool for governments to counter a weak global recovery

56 tenDers top tenders listing the most important projects that have opened for bidding in october

Big Project ME celebrates the achievements of the GCC construction industry for 2014.

64 constructive criticisM5 saudi capacity building for bim Muhammad tariq shafiq explains why the uAe needs to create greater awareness of and exposure to biM methodologies

DECEMBER 2014

MIDDLE EAST

PAGE 22

1

At the 2014 Construction Machinery Show we sold 70 units and 100 more units are under discussion. We have delivered a positive message to our existing clients, our competitors, and grabbed new clients.

I think gaining such an appreciation from all members in the construction equipment sector is a great honour and will encourage us to work very hard to keep the same level of style, image, and standards.”

This year the CM Show team delivered an exhibition Saudi deserves. For years, we have seen a vision in this Show and this year the vision was achieved. We wanted quality traffic and we saw equipment and company owners; and we were able to offer some promotions to entice sales.

I saw an increase in our sales immediately.

Our principles, Doosan and Everdigm, really enjoyed themselves. We anticipate the upcoming years to be even better.”

The Construction Machinery Show was perfect from an awareness point of view.

We explained Roots Group Arabia’s capability of covering the construction industry with all of its needs and requirements. The attendance was good especially during weekdays and towards the end of the exhibition. See you next year.”

Al-Qahtani & Sons Khaled El Shatoury, Managing Director

Saudi Diesel Equipment Ahmed Alkooheji, Marketing Manager

Roots Group Arabia Abdulaziz Felemban, Brand Manager

Co-located with

Raz Islam Publishing Director raz.islam@cpimediagroup.com Mobile: +971 50 451 8213

Michael Stansfield Commercial Director michael.stansfield@cpimediagroup.com Mobile: +971 55 150 3849

INTRODUCTION

bigprojectMe.COm

Celebrating Excellence For millions of people around the world, the month of December is often a time for reflection and celebration over the year just past and the year just ahead.

That spirit of celebration was certainly on display as the great and good of the industry came together on 18 November, at the Conrad Hotel in Dubai, to celebrate their achievements in GCC construction.

By all accounts, it was a night enjoyed by all who attended, with the Big Project ME team getting some very positive feedback, as well as some constructive insights (pun fully intended) aimed at making next year’s event an even bigger success.

This year’s winners represent an intriguing snapshot of the construction industry. Some of them are familiar, but quite interestingly, there were more than a few new entries to the roll call. It’s heartening to see this, as I believe that it shows that innovation and fresh thinking are alive and well in our industry.

As we look ahead to 2015, there’s plenty to be excited about.

We’re in the midst of conducting an extremely interesting survey, the results of which shall have been released when you read this. What we hope for is that this survey will provide an insight into whether industry salaries are keeping pace with growth, which countries are the most desirable to work in for construction professionals, and what the general mood of the industry is.

The survey will be a precursor to our Construction Intelligence Report, the first one we’ve ever done. With it, we hope to marry insight and analysis from across our stable of magazines and produce a report that will become a reference point for the construction industry.

For the magazine itself, we’ve got a lot planned for the year ahead, and while I can’t reveal too much about it just yet, suffice to say I’m very excited by what we’ve got in store for you all.

As is traditional at this time of the year, I’d like to wish all of our readers a very Happy New Year and on behalf of the entire Big Project ME team, may you all have a fantastic 2015!

Group Chairman and Founder Dominic De SouSa Group Ceo naDeem HooD Group Coo Gina o’HaRa

puBLiShinG direCtor RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5471 editoriaL direCtor ViJaYa cHeRian vijaya.cherian@cpimediagroup.com +971 4 375 5472 eDiToRiaL editor GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 375 5480 aSSiStant editor neHa BHaTia neha.bhatia@cpimediagroup.com SuB editor aeLReD DoYLe aDVeRTiSinG CommerCiaL direCtor micHaeL STanSFieLD michael.stansfield@cpimediagroup.com +971 4 375 5497 Senior SaLeS manaGer YaSin aLVeS yasin.alves@cpimediagroup.com +971 4 375 5496 Senior SaLeS manaGer SanDRa SPenceR sandra.spencer@cpimediagroup.com +971 4 375 5473 maRKeTinG marKetinG manaGer LiSa JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 DeSiGn art direCtor Simon coBon ciRcuLaTion & PRoDucTion dataBaSe and CirCuLation manaGer RaJeeSH m rajeesh.nair@cpimediagroup.com +971 4 440 9147 produCtion manaGer ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DiGiTaL diGitaL ServiCeS manaGer TRiSTan TRoY maaGma PuBLiSHeD BY

Registered at imPZ Po Box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com PRinTeD BY Printwell Printing Press LLc © copyright 2014 cPi all rights reserved

4

MIDDLE EAST

Gavin Davids Editor

DECEMBER 2014

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.

THE BIG PICTURE

hiGh-end luxuRy Work has begun on the Al Maryah Central retail project on Al Maryah Island in Abu Dhabi.

Gulf Related bReaks GRound on $1.4bn al MaRyah CentRal Work Begins on high-end shopping centre, project slated for 2018 completion ConstruCtion work has begun on al Maryah Central, a 213,677sqm shopping centre being developed by Gulf related at the al Maryah island in abu Dhabi. scheduled to open in March 2018, the shopping mall will be part of a 287,999sqm mixed-use development that will include retail space along with a luxury hotel and residential towers. the mall will also be home to the first Macy’s department store outside the us, along with abu Dhabi’s first Bloomingdale’s.

Gulf related, the developer behind the project, is a joint venture between Gulf Capital, an asset management company, and related Companies, a us-based real estate development and investment firm. “al Maryah Central will introduce new and exciting retail offerings, such as Macy’s and Bloomingdale’s, and family entertainment concepts to

STATS n size of al maryah central: 213,677sqm

n size of total mixed-use development: 287,999sqm

n combined size of both the galleria and al maryah central: 269,419sqm

n total size of al maryah island: 114 hectares

abu Dhabi’s Central Business District and surrounding catchment areas. “when combined with the Galleria on al Maryah island, both developments will create a 269,419sqm waterfront retail shopping destination,” said karim El solh, co-managing partner of Gulf related and CEo of Gulf Capital. the al Maryah Central mall will be linked with the existing Galleria shopping centre via a bridge. “al Maryah Central came about because of the enormous success and the demand from the Galleria,” said kenneth a himmel, comanaging partner of Gulf related and president and CEo of related urban, the mixed-use development division of related Companies. “we actually had an unmet demand. we finished leasing the Galleria, we had something like 37,161sqm of retailers we had no place to put,” himmel told Big Project ME at the ground-breaking.

“in order to meet this demand, the developers rezoned the island to take a major shopping centre,” himmel added. “i do a lot of business with Macy’s and Bloomingdale’s in the us, so we together convinced them to do the first Macy’s store outside the united states, which i think is going to be spectacular,” himmel said, commenting on the partnership with the iconic department stores.

“Macy’s is very popular in the us, and it’s got a price point. it’s quality value-driven, very promotional, with lots of great brands.” the al Maryah island is a 114-hectare mixed-use project in abu Dhabi, planned and developed by Mubadala Development Company. the island includes other properties such as the rosewood abu Dhabi, an upcoming Four seasons hotel, office and residential space, as well as the Cleveland Clinic abu Dhabi, which is scheduled to open in early 2015.

DECEMBER 2014

MIDDLE EAST

Big project me talks to the new gm of basf construction chemicals uae – Page 16 7

THE BIG PICTURE

bigprojectMe.Com

saMsunG C&t seeks to attRaCt national talent in GCC pRojeCts human resources a “key challenge” in the gcc region, contractor says saMsunG ConstruCtion anD trading (C&t) is looking to recruit more GCC nationals into its projects in the region, company representatives have told Big Project ME. the company wants to decrease its korean workforce overseas with a view towards attracting more talent among nationals of the countries their projects are in. “we are changing our hiring strategy from the korean base management to global staff. so we are decreasing the korean staff and then increasing hiring global staff,” a samsung senior representative, who did not wish to be named, said. the firm is making active efforts to hire nationals in ksa and the uaE, he added. “this year we recruited in two universities in Jeddah and riyadh. we interviewed some of the students to encourage them to work with samsung. we gave them the opportunity to get work experience in samsung projects,” the spokesperson said at an event

organised by samsung C&t for its partners in the MEna region. “we have currently four projects in saudi arabia... so we will recruit more talented newcomers,” he said. “we won’t [recruit] through offices, we’ll do it through our projects.” samsung C&t has been involved in internship programmes in saudi universities as well as in the higher Colleges of technology in Dubai, the representative said. the company also undertakes training programmes to provide workforce with the necessary skills. these steps are in line with government directives to hire more nationals, he added. the representative pointed out that human resources was a key challenge for the company as the GCC region is a “very hot market at the moment”. the skills shortage in the GCC has increased the competition and demand for professionals with the necessary qualifications. when asked about whether the

STATS n 80% – Percentage of private-sector jobs in the gcc occupied by lowskilled workers

n $80.8 billion – amount of outward remittances from the region in 2012

n 11.8% – unemployment rate in Q2 of 2014 in ksa source: reuters/imf

nitaqat requirements in saudi arabia were creating any issues for the company, samsung C&t said the programme wasn’t currently posing any challenges. “we’re doing okay,” the representative said,though he admitted that it was “going to be a challenge to meet government targets”. “i don’t think we have to complain about it,” he added, however. “it’s more about productivity, where we can find the right saudi staff and employees who can bring that productivity. it’s about how to manage at the project level rather than complaining about the resources.” samsung C&t is also looking to partner and enter into joint ventures with local contractors in GCC countries to benefit from their expertise, company officials said. “it’s going to be a journey,” the representative asserted, adding that the firm was focused on placing the “right people in the right markets,” in the GCC region.

national effoRts Samsung C&T is looking to get more Saudi nationals involved in its projects in the Kingdom.

8

MIDDLE EAST

Big project me celebrates the achievements of the gcc construction industry – Page 22

DECEMBER 2014

THE BIG PICTURE

undeR developMent Dubai Parks and Resorts will include three theme parks and a four-star hotel.

dpR ReCeives $1.15bn in syndiCated finanCe faCilities day afteR ipo offering represents 40% of the company’s post-offer issued share capital DuBai Parks anD resorts PJsC, a subsidiary of Meraas holding, has announced that it has received $1.15 billion of syndicated finance facilities a day after it launched its initial Public offering, on 17 november, 2014. the unit, which is part of the government-owned Meraas holding, had launched an iPo with the intention to list shares on the Dubai Financial Market (DFM). the offering represented 40% of the company’s post-offer issued share capital, comprising 2,528,731,083 ordinary shares, Dubai Parks and resorts said in a statement. the offer price was aED 1.00 per share plus aED 0.01 per share in offer costs, resulting in a total offer size of about $680.6 million. “this is a pivotal transaction for Dubai Parks and resorts. this financing allows us to deliver on our ambition to create the world’s next great leisure destination and reflects the strength of

STATS n 40% – Percentage of the company’s post-offer issued share capital on offer

n 2,528,731,083 – number of ordinary shares offered

n aed1.00/share – offer price

n aed0.01/share – offer costs

n $680.6 million – total offer size

our strategy, our vision and the quality of our people,” said raed al nuaimi, CEo of Dubai Parks and resorts. “with the early stages of development already underway, we are aiming to provide investors with access to a high growth, high return, family entertainment business which will become one of the cornerstones of the Dubai entertainment landscape,” al nuaimi said, when the iPo was launched. “this is an exciting day both for Dubai Parks and resorts and for Meraas holding,” said abdulla al habbai, chairman of Meraas holding. “the listing of Dubai Parks and resorts on DFM will mark an important milestone in the development of the project and brings us one step closer to our vision of becoming a premier yearround global entertainment destination.” according to the statement, Meraas holding’s previous funding of development costs, land contribution and initial capital injection prior to the iPo, together with net proceeds

from the offering, constitute the equity component needed for financing the mega-development. additionally, Dubai Parks and resorts has also obtained debt financing, and potential cost overruns will be funded by Meraas through interest-free shareholder loans.

Goldman sachs structured and led the $1.15 billion financing, which is fully underwritten by Goldman sachs, abu Dhabi Commercial Bank, ahli united Bank., Commercial Bank international, Emirates nBD Bank and noor Bank. the project comprises three theme parks, a four-star resort hotel and a retail, dining and entertainment district connecting the parks and hotel. the leisure and entertainment destination is expected to be complete before the third quarter of 2016, and 6.7 million visitors are anticipated in its first full year of operation. the iPo subscription period ran through until november 30, 2014.

DECEMBER 2014

MIDDLE EAST

Big project me looks at the solutions to the shortage of civil engineers in the gcc – Page 40 9

THE BIG PICTURE

bigprojectMe.Com

asian ConstRuCtion MaRket too CoMpetitive foR ContRaCtoRs yusuf akcayoglu, director for taV construction’s middle east operations, talks to Big project me aBout the continued rise of asian construction markets How is AsiA performing As A growtH mArket in compArison to globAl stAndArds?

faR east MoveMent The global shift in terms of wealth is moving towards China and India, Akcayoglu says.

in my opinion, the global shift in terms of wealth we’re witnessing is east towards China and india, and it has been so since the last five years. rising income levels have added to the number of middle class in these countries, and these people are offering their connection points to a greater part of the world. Geographically, the GCC is the best location for investors from abroad, like Europe for example. will locAl gcc or middle eAstern firms benefit from entering AsiAn construction mArkets?

all foreign companies are having a really tough time penetrating the indian and Chinese markets unless they bring a very competitive advantage on a unique project. in the traditional construction segment, nobody can compete with local asian firms in their own town. that’s my opinion. Maybe they even come to the GCC because it is a less competitive market for them than back home.

How do tHese AsiAn firms fAre in tHe region?

i don’t know of any singaporean firms in the construction market here. there might be a few Malaysian ones and a few Japanese ones in the heavy industrial sectors. i’d say most players have been looking at China and india in their growth forecasts. there are definitely some

well-known indian and Chinese companies in the market which are competitive and provide quality construction services. there are two or three major players from india which are doing well here, and the same also goes for China. their internal [domestic] market is too competitive for foreign contractors, but they themselves obviously see benefit in expanding their operations across the globe.

“in the tRaditional ConstRuCtion seGMent, nobody Can CoMpete with loCal asian fiRMs in theiR own town. that’s My opinion. Maybe they even CoMe to the GCC beCause it is a less CoMpetitive MaRket foR theM than baCk hoMe”

How do AsiAn And otHer globAl construction firms usuAlly collAborAte on projects?

typically, asian firms invite foreign companies to form a joint venture for, say, a high-rise project, for which they might lack the technical know-how. or they invite international firms for specific iconic projects like supertalls, where their local expertise might not be sufficient. wHAt do you predict tHe future Holds for AsiAn construction firms in tHe gcc?

there’s a ripple effect on construction if, for example, a country’s aviation sector grows. tourism will not only mean increased passengers, but also more airports, terminals, metro stations and highways. the demand for these means asian companies will have more opportunities in the GCC.

10

MIDDLE EAST

Big project me examines the constantly changing construction landscaPe in egyPt – Page 46

DECEMBER 2014

ESSENTIAL SERVICES, ESSENTIAL SOFTWARE Water, power and transport are essential to everyday existence. Keep your project’s water running, power on and traffic flowing with CCS as your essential software solution.

For over 35 years, our software solutions have been developed for contractors by contractors.

At the leading edge of industry trends, Candy and BuildSmart put you in the fast lane to project success… no diversions, no stoppages.

CCS proudly partnered with contractors involved in landmark projects including the Al Amerat Water Distribution Network in Oman; UAE Nuclear Power Plant, Interchanges 3, 4, 5, 6, 7 & 8 on Sheik Zayed Road in Dubai and all the associated infrastructure for the hugely successful 2010 FIFA World Cup in South Africa.

“I would recommend the system to any companies who wanted better control of their project.”

Dhana Madhavan, Senior Quantity Surveyor, Khansaheb Civil Engineering, Dubai

Don’t be kept in the dark, contact us today +971 4 346 6456 or info@ccsgulf.com

12

MIDDLE EAST

NEWS ANALYSIS

DECEMBER 2014

bigprojectMe.com

NEWS ANALYSIS

CRISIS IN KUWAIT

Should Kuwait MPs push through a bill limiting the length of time expatriates can stay in the Gulf state, the consequences could be devastating to the Kuwaiti construction industry. Big Project ME investigates pass the bill. If it is passed by the parliamentary panel, it will be taken up by lawmakers, who will debate its merits in parliament. From there, should it be endorsed, it will be referred to the government of Kuwait for final approval.

The decision to clear the bill through the legal and legislative committees comes as Kuwaiti ministers and members of Parliament call for campaigns and reforms to address the “imbalanced demographics of the countries”.

“There is a critical need to find solutions for the demographic situation in Kuwait,” said MP Khalil Abdullah, who called for the deportation of 280,000 expatriates per year for the next five years in February 2014. “We need to have a Kuwaiti population that is at least equal to the number of foreigners who live in the country.

Since we have 2.5 million expatriates, we need

“Some of the big infraStructure projectS laSt for more than five yearS. if you get people in, and then after five yearS, you Start from the beginning, it’S going to be maSSively diSruptive”

to bring the number down to 1.1 million in the next five years, which means we need to reduce their numbers by 280,000 every year.”

Construction professionals in the country have responded with alarm to this announcement, pointing out that such a ruling could have a huge impact on ongoing construction and infrastructure projects, which need foreign labour to be completed. About two-thirds of Kuwait’s total population of 3.369 million is made up of unskilled Asian labourers, the bulk of them employed in the construction sector.

“Would this bill be disruptive to the construction industry? Yes, I believe that it would be. If qualified people are to arrive here and get an understanding of how the construction industry works, and if they’ve got a limited time of five years, then it’s obviously going to be difficult,” said Clive De Villiers, vice president of Contracts and QS Services at KEO International Consultants.

“It certainly will [hamper construction projects],” he warned Big Project ME. “Some of the big infrastructure projects last for more than five years. If you get people in, and then after five years, you start from the beginning, it’s going to be massively disruptive. You lose all the knowledge and everything else on that project. It’s going to have a big impact.”

Faleh Al Ajmi, a Kuwaiti national and the head of Business Support at Ecovert Facilities Management, agreed vehemently with De Villiers. Calling the proposed bill “short-sighted” and “lacking in vision”, Al Ajmi said that should the bill pass, it would be a massive setback to Kuwait’s plans to develop as a nation.

“I feel very sorry that a parliament like this, in a rich country like Kuwait [could do this]. I believe that this plan that they’re thinking about, it’ll be the first time in history that someone would

DECEMBER 2014

MIDDLE EAST

T

his November just past, a controversial bill that called for the imposition of a five-year residency cap on foreigners in Kuwait was cleared by the parliament’s legal and legislative committee. The bill, which also proposes a ban on workers bringing their families into the country, has been met with strong opposition from both locals and expatriates working in Kuwait’s various industries.

Introduced by the MP Abdullah Al Tamimi, the bill aims to limit the size of any expatriate community to less than 10% of the Kuwaiti population, which is now estimated to be 1.25 million. Under the terms of the proposal, no community should be larger than 125,000 people. Applying to unskilled and semi-skilled expatriates, if the bill is passed, it could have a disastrous effect on the relatively stagnant Kuwait construction industry, which has only recently shown signs of coming to life.

The Indian community is the largest in the GCC member states, with approximately 670,000 members. The Egyptian community is the largest among Arab nations, with around 520,000 people. Should the bill be passed by parliament, thousands of foreigners could be forced to leave the country. Others that could be affected include the Bangladeshi, Pakistani, Filipino and Syrian communities.

Although highly qualified and skilled expatriates would not be included in the proposal – and GCC, European Union and US citizens, as well as consultants and doctors, would be exempted – the business community has warned of grave economic consequences should the bill be passed.

Once the legal and legislative committee assesses the bill and judges it in line with the constitution and the laws of the country, the interior and defence committee will have to

13

NEWS ANALYSIS

bigprojectMe.com

Stalled projectS Kuwait has seen a number of major construction and infrastructure projects stall over the years. The introduction of a residency cap could further delay them.

think this way. Without expats, the country will no longer be able to grow,” he asserted strongly.

“In all of the greatest countries of the world, they started off by being immigration countries and then with time, they became great countries.

Without expats, we cannot build the country.

I’m very happy to have expats in the country, they’re doing a good job and without them, we cannot build the country,” he reiterated.

“For a long time, everything in Kuwait stopped.

I believe that it’s not a problem of money. It is available. In other countries, when they want to do a development, when they want to grow, the main problem is money. In Kuwait, we do have the money, but they don’t have the vision, they don’t have a real leadership,” Al Ajmi stressed.

De Villiers pointed out that the decision to push

14

MIDDLE EAST

“We need to have a KuWaiti population that iS at leaSt equal to the number of foreignerS Who live in the country”

DECEMBER 2014

the bill forward could be influenced by a desire to nationalise the Kuwaiti economy. With the Gulf states determined to push through nationalisation, Kuwait could be following suit, he said.

“This could well be a chance for the government to ensure that the ‘Kuwaitisation’ of major projects does happen. It will integrate them more into the business. So yes, in that respect, it could happen.”

However, Al Ajmi said that while this was a possibility, and that he would understand the thinking behind that, he still had reservations about the decision. “The local people, they are not more than 1.1 million. We are not enough to do all the projects. And especially when the local people don’t accept a lot of labour work, whether it’s construction, cleaning or being a driver. Even being a receptionist in a hotel [is considered beneath them]. This is normal here because of the lifestyle here, where the income [for locals] is too high. They will not accept these standard of jobs.”

Despite these concerns, De Villiers remains optimistic that the bill will not pass, citing the many concerns and the inherent difficulties that will come with it. “I’d be very wary of this bill coming to fruition. Personally, I don’t think it will happen. It’s quite controversial, but like most government authorities, they do come up with ideas that are controversial and they put them up so that they can receive feedback and get a general reaction. But personally speaking, I don’t think it’s going to happen.” n

VieTnam on The mind Fahad Al-Jouaan, board member of the Kuwait Chamber of Commerce and Industry (KCCI), has called for the development of trade relations with Vietnam through the recruitment of Vietnamese trained labour.

Speaking during the visit of a delegation from the Vietnamese Ministry of Labour and Social Affairs, Al-Jouaan said that Vietnamese workers in Kuwait didn’t exceed 300, underscoring the necessity of removing obstacles that hinder the bringing in of trained and experienced labour.

Implementing projects as part of development plans requires skilled workers to meet market demand, he said, stressing that these projects are needed in all domains, including construction, energy, transport and infrastructure.

The Vietnamese delegation emphasised the strong economic relations between the two countries, pointing out that Vietnam has trained and skilled workers, notably in the fields of transport and construction. It said the Ministry is doing its best to remove all obstacles and challenges and help with the recruitment of Vietnamese workers in the Gulf region, as they could play a key role in developing social and economic relations between the two countries.

Build it Beautiful.

There are four main elements of design; Texture, Color, Form & Shape and Protection. The Pieri® range of Grace architectural concrete products and systems offer a variety of durable design solutions that create a unique decorative system for any project.

Color Texture

Protection Form & Shape • Form Liners • Release Agents

• • • • • • • • •

Surface Hardeners Varnishes Anti-Graffiti Water Repellents Oil Repellents Anti-Stains Cleansers Curing Membranes Color Brightening

Contact us today for a project consultation!

grace.com/construction/en-ae/architectural-concrete Grace Construction Products Emirates Chemicals LLC, P.O. Box 5006, Dubai, U.A.E. +9714 232 9901 Pieri is a trademark of W.R. Grace and Co-Conn.

• Surface Retarders for precast concrete elements • Surface Retarders for exposed aggregates and paving concrete • Stencils for printed concrete

• Pigments • Mineral Facing Equalizers

In ProfIle Julian Pritchard

bigprojectMe.com

incubating innovation

Julian Pritchard takes over as general manager of BASF Construction Chemicals UAE this December. He sits down with Big Project ME to share his thoughts on his new role and the state of the GCC construction industry

F

16

MIDDLE EAST

or people between the ages of 19 and 23, there is an often unspoken understanding that those years are meant to be for discovery before they get down to the serious business of having a career, a family and all those other terribly important things.

Consequently, a number of them set off on life-defining adventures and travels that allow them to discover the paths they wish to take in life. Some realise that they like what they left behind, others find that the world can be a warm and welcoming place, if you’re prepared to work hard for it.

Back in the early 1990s, Julian Pritchard was one of those young people who decided to set off for pastures new and unexplored. In his own words, he landed in Dubai on a oneway ticket, fresh out of university, with “all his worldly possessions crammed into a rucksack”.

“I didn’t have a job, but I came out to look.

Dubai was new then and no one really knew where it was at the time. I managed to get a job within the first couple of days and it was working on the Bani Yas Underpass, next to the Deira City Centre At that stage, my job was to install all the ceramic tiling on the underpass and to apply carbonation coating,” he recollects.

“In my interview, I said that I had tiled a few bathrooms before. Now I was doing 1,000sqm a day! But honestly, it was actually quite fun and a real eye-opener in terms of starting my career in the Middle East.”

Now more than two decades into that career, Pritchard has been announced as the general manager of BASF Construction Chemicals UAE LLC, taking over this December 2014.

This means he will be overseeing the UAE, Qatar, Oman, Kuwait, Bahrain and Yemen

DECEMBER 2014

from the Dubai-based regional headquarters of the Construction Chemicals division.

Having joined BASF in 1994, Pritchard was, until recently, the construction systems manager – Gulf states. Embarking on this new challenge, he’s keen to get started and implement the lessons he’s learnt over the last twenty years.

“It’ll be a huge challenge. At the end of the day, the business has been running extremely efficiently and profitably thanks to our professional team. Obviously I have to grow the profit, while making sure that the business grows above market growth, because we’re a multi-national company and we have shareholders that need results. A lot of eyes are looking at Dubai because we’ve done so well over the years,” he asserts.

“We’ve got an extremely solid foundation and our people are the foundation of the business.

“There’s some greaT TalenT here and we need To empower people for The fuTure and give Them The opporTuniTy To grow wiTh The business”

There’s some great talent here and we need to empower people for the future and give them the opportunity to grow with the business.

It’s a challenge that I’m looking forward to.”

With the region gearing up for a construction boom as mega-events like Expo 2020 and the 2022 FIFA World Cup drive construction investment, Pritchard will have his hands full as he sets out to guide BASF Construction Chemicals through an increasingly competitive market.

“It’s quite exciting really. I was talking to one of my construction colleagues about the old times in Dubai and how lucky we’ve been, that the ‘village’ that we lived in has now become an international, integrated city that is still developing.

“We’ve gone through the trough of the recession and I think all markets are starting to show signs of recovery, more so than ever before. What we see is two very strong global stakes in the sand. You’ve got Expo 2020 and FIFA 2022 and they have to be delivered upon.

Qatar has now started to move very nicely – they’ve let the majority of the metro packages out (for example). Oman will be investing in a rail network, Abu Dhabi will be investing in a metro. Kuwait has announced their interest in a metro development project. So it’s all very encouraging,” he says cheerfully.

“Just the fact that in Qatar and UAE, we’ve got something to work towards, is encouraging.

I would say as well, that ‘quality is a function of time’. So if we leave it for too long, we’re going to have a big problem,” Pritchard adds, pointing out that it’s imperative that work starts now, rather than when there’s too little time to get things done for the mega-events.

“It’s a challenge, so getting the right people, in the right place, at the right time (is crucial).

DECEMBER 2014

MIDDLE EAST

In ProfIle Julian Pritchard

17

in Profile Julian Pritchard

18

MIDDLE EAST

Changing idenTiTy By bringing together 30 brands under the Master Builders Solutions umbrella, BASF Construction Chemicals will be able to better serve their customers, Pritchard says.

DECEMBER 2014

bigprojectMe.com

In ProfIle Julian Pritchard

research and development teams as “laying the foundations for long-term successes.”

“Through constant work in new technologies and products, and as part of BASF’s global R&D network, they develop solutions for the regional challenges. These include the diverse climate and standards requirements,” the new general manager adds.

“Our strategy is clearly built on our people and our talent within the entity. Dubai is a melting pot of nationalities and we make sure that we have the right culturally-based entities. Not just in front-of-house sales, but also in back-of-house support. It has been a challenge, certainly in the latter years, but we’re seeing a bit more optimism now throughout the region. Most regions are now showing signs of growth and consistency.

“There was the fall-out of 2011/2012 – we had to reduce the operating costs and streamline the business – I think that now we’re very well positioned to take advantage of any foreseeable growth in the region,” he insists.

Steps to do so have already begun, with BASF setting up a production entity in Qatar, and Pritchard reveals that investment in new staff is also underway. Furthermore, he says that the Construction Chemicals division is looking to increase its facilities in Kuwait and Oman, two traditionally smaller construction markets in the GCC. “Kuwait is a rising star within the Middle East. It’s been quiet over the years, but now we’re seeing that we’ve grown the business exponentially over the last few years. We do see Kuwait as a [potentially major market].

Over 50% of our business comes from the UAE now. It used to be 75%,” he adds.

“Look, I think the most important thing is to be positive about the market without being overconfident. You’ve got to be very cautious about what’s going to be physically constructed this year. For us, at the end of the day, if the piling rigs are piling and the concrete pumps are pumping, then there’s

“KuwaiT is a rising sTar wiThin The middle easT. iT’s been quieT over The years, buT now we’re seeing ThaT we’ve grown The business exponenTially over The lasT few years”

THE REGION’S LARGEST HEAVY EQUIPMENT EXHIBITION

EXHIBITION SPACE STILL AVAILABLE: OUTDOOR SPACE

$170 SQM

DEMONSTRATION AREA

$170 SQM $18,000

BILLBOARD BANNER

$350 SQM

INDOOR AREA

For information contact: Raz Islam Publishing Director raz.islam@cpimediagroup.com Mobile: +971 50 451 8213 Michael Stansfield Commercial Director michael.stansfield@cpimediagroup.com Mobile: +971 55 150 3849

DECEMBER 2014

MIDDLE EAST

We need to make sure that we have the right talent to grow the business,” he asserts.

The idea of this collaboration of talent and resources resonates strongly throughout BASF Construction Chemicals. That’s why, almost a year ago, the division launched the Master Builders Solutions brand, which brings together all of BASF’s expertise to create chemical solutions for new construction, maintenance, repair and renovation.

By combining the know-how and experience of a ‘global community of BASF construction experts’, the hope is that the new brand will solve specific construction challenges, Pritchard says.

“We collaborate across areas of expertise and regions and draw on the experience gained from countless construction projects around the world.

“We leverage our global BASF technologies, as well as our in-depth knowledge of local building needs to develop and drive sustainable construction.”

By bringing together some 30 brands under one umbrella, the division will now be able to offer their customers a diverse range of products, including: concrete admixtures, cement additives, sealants, waterproofing, concrete repairs and protection and even performance flooring and tiling solutions, amongst others.”

As comprehensive as the list is, Pritchard is quick to point out that the real strength of the brand is in the expertise it offers.

“We’ve changed our identity over the years, but we’ve been consistent with the people that we’ve employed.

“I’ve been in the business for more than 20 years, people know me in the market and a lot of my colleagues have been with us for a long time. So it’s very much about the people and processes that we have and the way in which we approach them.”

He adds that there is a strong bond between all departments, including the technical specialists and describes the work done by the

19

In ProfIle Julian Pritchard

construction happening.” he points out, taking a rather pragmatic viewpoint to the scenario.

Another crucial factor for Pritchard is sustainability. With the introduction of green building codes in the UAE and a greater awareness of what it takes to build green, it’s now up to the industry to take the lead, and this is where BASF Construction Chemicals can and should play a strong role, as a founding member of the Emirates Green Building Council.

“We need to understand what sustainability is in terms of the construction industry. We see sustainability as a construction chemicals manufacturer – it’s in water and energy savings; it’s in less risk exposure; and it’s in decreasing resource consumption by expanding the lifecycles of structures and improving the health and safety of our employees and the people actually operating and using our technologies.”

“We believe that structures must be built to last. Our products help expand life cycles and reduce resource consumption. We meet green building standards like LEED and Estidama and our portfolio allows for faster construction, while supporting energy efficiency and mitigating carbon emissions,” Pritchard claims.

“Sustainability has no end, it’s a continuous process in the way we conduct our business

bigprojectMe.com

today and for tomorrow,” he emphasises, highlighting the strength of his belief.

That sense of forward thinking is what Julian Pritchard is keen to bring to his new role as general manager, because, as he explains, his approach is to focus on the continuous evolution of both the industry and BASF Construction Chemicals – as evidenced by the Master Builders Solutions brand.

“We’ll never be leaders on cost because we have a product portfolio that needs servicing.

And technically, yes, technically we have advanced products, but so do our competitors.

20

MIDDLE EAST

inCubaTors of innovaTion Julian Pritchard, (at BASF’s stand at The Big 5 show), believes that Dubai’s construction market is dynamic enough to allow BASF Construction Chemicals to flourish throughout the value chain.

DECEMBER 2014

“we’ve gone Through The Trough of The reCession and i ThinK all marKeTs are sTarTing To show signs of reCovery, more so Than ever before”

The USP that we have in our market is the way that we support our people and the way that we technically support our products.

“My sales mantra, if you like, is Sales x Frequency = Results. I want my people in front of the customer as much as possible. Which means that the technical services team has to come through and they will work with the sales entity to carry out mock-ups, technical training seminars – we do a number of ‘deminars’ around the region, which aren’t just about sitting around in a classroom, but actually touching and feeling the products and understanding how they work and what they require.”

“We’re very much involved in all the stages of the value chain. We’re a chemicals supplier, we have distributors around the region and we sell through our direct sales team to the clients, contractors and subcontractors.”

“The industry is extremely dynamic.

In Dubai, you can be working on a Burj Khalifa or an Atlantis type of structure, but equally, you can be working in the outer regions, building smaller projects. “(But), what I love about Dubai, and certainly about the UAE, is that we seem to be the incubator of innovation,” Pritchard sums up neatly.

BPME AWARDS 2014

bigprojectMe.coM

ConstruCtion ExcEllEncE

Big Project ME hosted its annual awards ceremony at the Conrad Hotel in Dubai, celebrating another year of excellence for the regional construction industry

T

22

MIDDLE EAST

he 2014 edition of the Big Project Middle East Construction and Sustainability Awards of Excellence was held at the Grand Ballroom of the Conrad Hotel on November 18, 2014. Celebrating the achievements of the construction industry, more than 350 guests attended the presentation ceremony and dinner, which was hosted by Tom Urquhart.

Proceedings were kicked off by short speeches from CPI chairman Dominic De Sousa and Big Project ME editor Gavin Davids.

The keynote address was delivered by Andrew Body, managing director of Mouchel.

The awards themselves were spread across 12 categories, with the winners

DECEMBER 2014

chosen by an independent panel of judges from a shortlist of nominees complied by the CPI Construction editorial team.

The night was sponsored by Mouchel, the Platinum Sponsors, and FAMCO, the Gold Sponsors. The Dubai Economic Council were Official Government Partners for the event.

Offering further support were the Category Sponsors: Hyder Consulting, Foamglas, Al Rajhi Building Solutions, Autodesk and WSP; and the supporting partners were: The Big 5 Dubai, the Department of Tourism and Commerce Marketing, the Society of Engineers – UAE, the CIOB and the British University of Dubai.

“You don’t do something hoping to be awarded for it, so to be appreciated for our efforts is surprising and feels verY good”

DECEMBER 2014

MIDDLE EAST

BPME AWARDS 2014

23

BPME AWARDS 2014

bigprojectMe.coM

constant qualitY Hercu Viljoen picks up the Contractor of the Year award from Andrew Body.

ALEC wins Big ProjECt ME’s ContrACtor of thE YEAr for 2014 AwArd is A reflection of the strength of contrActor’s business plAn And strAtegy

24

MIDDLE EAST

Al Jaber lEGT Engineering and contracting (AlEc) was named contractor of the Year at the Big Project ME Awards 2014.

AlEc was lauded for its consistent high standards and quality of work.

The other nominees in the category were Al Shafar General contracting and china State construction Engineering corporation.

Hercu Viljoen, managing director, Related Businesses at AlEc, received the award on behalf of the firm. “It’s fantastic to be recognised as a leading contractor. We obviously try and do the right thing all the time and [the award] is evidence of that,” Viljoen said.

Barry lewis, managing director – construction for AlEc, added that the award would provide a boost for the contractor’s business.

“I think that we’ve got a very clear strategy in terms of our business. We don’t chase everything that’s out there. We

DECEMBER 2014

focus on particular sectors and when we target a job, we will commit to the project and follow through and deliver on it.

“We’re also quite selective in who we work with. Our strategy is to work for select clients and be proactive in our approach. Once we commit [to a job], we get 100% backing [from all the AlEc businesses],” lewis explained.

AlEc has $1.16 billion of work in hand for 2014 thanks to successful tenders, along with a forecast turnover of over $952 million for 2015. current projects include the Doha Festival city mall and Meraas’ Bluewaters project in Dubai.

“We’ve got quite a few projects at Dubai Airport that we’re handing over [in 2015].

There’s concourse 4, there’s the terminal upgrade in Abu Dhabi. There’s the A380 dedicated terminal upgrade in Abu Dhabi as well that needs to be handed over. So there’s quite a bit happening in 2015.

We’ve obviously picked up quite a bit of new work, which we’re busy getting going, but we’re in the market for a couple more jobs and we’re busy working on a few tenders at the moment,” lewis added.

“We have got the capacity and we’re looking for one or two more anchor projects to start in Q2 or Q3 of next year.”

“Obviously, after 2008 the industry was a little bit depressed. But now there’s a chance again to start growing. And it’s an exciting time that lies ahead. So we’ve obviously got the same plans to start growing and giving opportunities to our people and making a contribution to His Highness’ vision here,” Viljoen pointed out.

“A lot of projects have been launched, but if one critically analyses the delivery dates required for the various jobs, and the quantity of work that’s associated with delivering what’s being promised, then I think that we’re a little bit out from when it needs to be delivered. I think that a lot of projects are still very much in the planning stage,” adds lewis.

“You’ll find that the consultants and the authorities are quite active, but from a contracting point of view, you’ll see work coming through in the third and fourth quarter of next year, from a UAE perspective. Maybe in Qatar it’ll be from the end of next year.”

CONSTRUCTION AND SUSTAINABILITY AWARDS OF EXCELLENCE AWARDS 2015

NOVEMBER 24, 2015 www.bigprojectme.com/awards/2015

RECOGNISING INDUSTRY EXCELLENCE

FOR AWARD NOMINATION ENQUIRIES

FOR TABLE BOOKING & SPONSORSHIP OPPORTUNITIES

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

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

BPME AWARDS 2014

bigprojectMe.coM

best practice Simon Jewell hands over the Training Initiative of the Year award to Adnan Abdulla of DP World.

In a unanimous vote, the jury of the Big Project ME Awards 2014 declared the IREnA Headquarters project in Abu Dhabi’s Masdar city the Green Project of the Year 2014. The project, for which Brookfield Multiplex was the contractor, is one of the UAE’s most sustainable and energy-efficient buildings and was awarded a four-pearl rating under the emirate’s Estidama Pearl Building Rating System.

Yas Mall in Abu Dhabi and Mohammed Bin Rashid Solar Park in Dubai were the other contenders, but as nick Petricola, project director at Brookfield Multiplex, put it, the IREnA building is a special one for the region.

“This is one of the most remarkable projects the region has seen. I am very proud to be collecting this award tonight.”

DP worLD’s trAining initiAtivEs honourED At thE Big ProjECt ME AwArDs 2014 The Training Initiative of the Year award recognises a training programme which helps ensure the execution of best practices on project sites. DP World’s Human capital Strategy beat similar programmes undertaken

by Dutco Balfour Beatty and SinoGulf to claim honours at the Big Project ME Awards 2014. Since 2009, DP World has trained more than 60,000 individuals at its facilities, as well as third-party workers in locations such as Senegal, Djibouti and the UK. Adnan Abdulla, director for operations support at DP World, said winning the award was an unexpected surprise. “You don’t do something hoping to be awarded for it, so to be appreciated for our efforts is surprising and feels very good.”

When asked about his expectations for next year, Abdulla said he hopes DP World will continue its strong work.

irEnA hEADquArtErs DEvELoPMEnt is Big ProjECt ME’s grEEn ProjECt of thE YEAr

unanimous choice Brookfield Multiplex’s IRENA building was a clear winner with the judges.

ArCADis AwArDED EDitor’s ChoiCE for strAtEgY AnD vision in ConstruCtion

26

MIDDLE EAST

Dutch consultancy firm Arcadis won the Editor’s choice Award for Strategy and Vision in construction at the Big Project ME 2014 awards. The company was selected by the editors of big project Me and Middle east consultant for its acquisition of Hyder consulting and callison this year.

“We’re very proud, of course, because it’s a very prestigious award,” said christopher Seymour, partner at Ec Harris, who collected the award on behalf of Arcadis. “certainly, the Hyder acquisition for us is quite a big event for us in the Middle East and also in the UK. It’s really given us a good platform for the market. If it had just been, for example, two engineering companies, then the overlap would have been significant and the synergy would have been a lot less. But because we had minimal overlap but maximum synergy, that’s really I think what made it the winner.” he said.

DECEMBER 2014

BPME AWARDS 2014

leading the way Faria Latif ‘s work in Doha has helped her understand how to manage a global team on a project.

Faria LatiF wins Big Project Me’s Project Manager oF the Year award For 2014

WSP Global’s Faria Latif, a Senior Project Manager at WSP in the Middle East, was named Project Manager of the Year at the Big Project ME Awards 2014.

Faria is currently working on an energy efficient transportation Project the Middle East in Qatar.

“I came to Doha in February of this year to work on this transportation project. It was a bit of a culture shock when I moved over here and it took a little time to get used to how things are done,” she said of her time in Qatar.

Having started off her career in Toronto, Canada, Faria Latif has been involved with WSP since 2011, with Genivar, which was rebranded as WSP this year. Prior to that, she has worked as a Project Manager for David Premi Architects and as a Team Leader for Scott Associates and Architects.

Her extensive experience has been of benefit to her as she began the

Transportation project in Doha, she said.

“I’m working with a global team. There are lots of different cultures working on this project and even the stakeholders involved are from around the world.

“My perspective has become more global and my exposure to these companies (and people) has enriched my experiences many times over. I’m learning and growing and I’m very appreciative of this opportunity,” Faria asserted.

One of the most important lessons she has learnt in her time in Doha is patience. With so many stakeholders involved in the project, it’s an essential character trait that had to be developed.

“We’re dealing with a lot of stakeholders on this project. I’ve learnt to be patient and hear everyone’s side of the story, and then come to a solution. You cannot satisfy everyone, all the time, but you have to come to a compromise. I think those are the main skills that you need (for a project like this).”

Faria added she hoped that her achievement in winning the award would help attract more women to participate in the local construction industry.

“I am very excited to have won this

award. I hope it encourages and empowers more women to join this sector.”

After beating out Craig Griffen of Alec Contracting and Michael Callianiotis of Faithful + Gould to win the award, Faria said that the local construction sector is an inclusive market and that she was determined to help foster a sense of partnership and global connectivity through the industry.

“There’s an opportunity to develop partnerships or global connectivity, which is something I’m very passionate about. I’d definitely like to be involved in developing global connectivity. Also, as a project manager, I would like to share my experiences and the lessons I’ve learnt, both within my company and beyond. (It’s crucial) to share knowledge with others in the same field, those who are going through the same experiences and challenges. We don’t have to reinvent the wheel, but we can tap into our shared knowledge base,” she pointed out.

Finally, Faria Latif asserted that there was “nothing to be intimidated about” when it came to working in the industry, whether you’re a woman or someone just starting out.

“If I can do it, then anyone can,” Faria emphasised with confidence.

DECEMBER 2014

MIDDLE EAST

Project Manager on PeoPle Mover SySteM Project in education city, doha, becoMeS firSt woMan to win

27

BPME AWARDS 2014

bigprojectMe.coM

DokA wins ExCELLEnCE in tEChnoLogY AwArD forMwork giAnt wins AwArd for its concreMote concrete MAturity sensors

28

MIDDLE EAST

Doka Middle East picked up the award for Excellence in Building Technology at the Big Project Middle East construction and Sustainability Awards of Excellence 2014 on 18 november, 2014.

The award was presented to Doka Middle East for its concremote system, a real-time, in-place concrete maturity sensor system which allows users to ensure quality control and cost-optimal construction site workflow.

The concremote system allows contractors to minimise cycle times and commissioning quantities by helping the onsite team to determine the earliest possible time for formwork removal.

“It saves approximately 20% to 25% of construction time, which is huge. That’s according to what we’ve experienced on various sites till now. In Europe, the system is being utilised by construction companies,” asserts Peter Vogel, director of Doka Group’s Middle East operations.

DECEMBER 2014

“It’s difficult to express how much money it saves, because it depends a lot on the type of project and on the concrete sequences, but it saves in all aspects. [It saves on] contractor costs, subcontractor costs, equipment costs, labour costs and even on fixed costs. It’s all due to the time saved,” he adds. concremote uses two types of sensors: slab sensors, which are inserted into the fresh concrete after it has been struck off, and cable sensors, which are incorporated directly into the formfacing of the wall framework and repositioned together with the formwork.

The wireless transmissions of the non-destructively measured values start automatically, the company explains.

Vogel says that the most common feedback they’ve received from their customers has been that it’s been a boon to their construction operations, with significant reductions found in terms of time and cost. However, he says that positive feedback doesn’t mean that Doka Middle East will be resting on its laurels.

“What we want to improve [is its reach]. We want to use it, not only in

positive feedback The Concremote system has received tremendous feedback from contractors using it on-site.

buildings or residential and non-residential projects, but we also want to use it on infrastructure and civil works projects, things like bridges and highways.”

With that in mind, Vogel says that the next step for the concremote system is to get government bodies and municipal authorities to further understand and acknowledge its benefits.

“Our plans for the system in 2015 include cooperation with consultants and the authorities – the municipalities and so on – just to show them the advantages of the system.

“I think that once all the contractors, consultants and authorities have understood or experienced the advantages of the system, they’ll want to have it because it saves costs, it saves time and whoever the consultant, project owner or contractor is, everyone looks at [those things],” he asserts.

“It feels very good to see our product being recognised for the value it adds to construction operations.

“Time is money in this industry, and we are convinced that the market here is starting to see value in concremote’s features.”

The Formwork Experts.

Real-time measuring of concrete strength Concremote® – Redefine your program. Push progress.

IVE S LU KA C EX DO BY

Process optimisation

Easy to handle

State-of-the-art measurement

Cut down labour and equipment costs by reducing striking time to a maximum of 2-3 days.

Measuring sensors are quick to install and position as they are simply placed on fresh concrete.

Concremote® stands out for its field-proven process reliability and for being very user-friendly.

Technology | Bridges | Tunnel | Highrise | Residential | Energy www.doka-me.com

More Information: www.doka.com/concremote

BPME AWARDS 2014

bigprojectMe.coM

YAs MALL nAMED DEvELoPMEnt of thE YEAr At Big ProjECt ME AwArDs 2014 Yas Mall, Aldar Properties’ sprawling retail facility at Yas Island, raced past the national Museum of Qatar, new York University – Abu Dhabi and Heydar International Airport (Azerbaijan) to be crowned Development of the Year at the Big Project ME Awards 2014 in Dubai last night.

Aldar’s Peter Smith, director of retail development, said he was thrilled to have picked up the award on the same day as the inauguration of Yas Mall by members of Abu Dhabi’s ruling family. “I’m very privileged to be here tonight. His Highness Sheikh Hazza bin Zayed Al nahyan, national Security Adviser and Deputy chairman of Abu Dhabi Executive council, opened the mall this evening [Tuesday, 18 november), and the mall will open its doors to the public at 10am tomorrow. Yas Mall is one of the best projects I have worked on, and I’m proud that the project has been recognised tonight.”

hEALth AnD sAfEtY initiAtivE of thE YEAr AwArD goEs to DutCo BALfour BEAttY

green leader The Al Qusais Landfill is the first in the region to be capable of producing electric power.

contracting firm Dutco Balfour Beatty won the Health and Safety Initiative of the Year at the Big Project Middle East Awards 2014. Dutco Balfour Beatty was selected for its plan that saw all employees subjected to a “rigorous health check that focused on vital health parameters like sugar levels, pulse rate, blood pressure, BMI and cholesterol levels”.

These health checks were conducted by the company doctor and a supporting team of certified nurses across all of the contractor’s project sites and their main office.

Employees were also provided with a monthly medical record to allow continuous monitoring of their health.

“We hope we can pass on some of the knowledge, some of the things we do to the industry,” said Wail Farsakh, general manager at Dutco Balfour Beatty.

grEEn EnErgY soLutions AnD sustAinABiLitY wins grEEn initiAtivE of thE YEAr

30

MIDDLE EAST

health check Dutco Balfour Beatty’s employee health monitoring programme covers all its staff.

DECEMBER 2014

Green Energy Solutions and Sustainability was awarded the Green Initiative of the Year at the Big Project ME Awards 2014. The company bagged the award for building the Al Qusais landfill, the first landfill in the region capable of producing power.

The landfill generates 1MW of electricity, used to power on-site equipment and electrical needs for the site and its offices, drastically reducing the amount of diesel used by the Dubai Municipality.

Anita nouri, business development director at Green Energy Solutions and Sustainability, collected the award on behalf of the firm.

“This award, it justifies and substantiates all the hard work that we put in. I thank the Dubai Municipality for allowing us to even try to do something like this,” she said after collecting the award.

BPME AWARDS 2014

consultant win Greg Kane of WSP picks up the award for Consultant of the Year at the 2014 Big Project ME Awards.

WSP takeS home Big Project me conSultant of the Year aWard for 2014

Beating off stiff competition from reputable consultancies like Buro Happold, Hyder Consulting, Lacasa and Mace, WSP was named Consultant of the Year at the Big Project ME Awards 2014.

Held in Dubai on 18 November 2014 at the Conrad Hotel on Sheikh Zayed Road, the awards saw the judging panel honour WSP for the work it has undertaken this year.

This includes prestigious projects such as Dubai Mall Expansion, Sharjah Expo Centre and Education City People Mover System in Doha.

“We’re delighted to have won this award, especially because we’ve done some really good work over the past year,” Greg Kane, director at WSP Middle East, said on the night. “We’re incredibly proud of the projects we have worked on, and given our line-up

of projects for the future, we look forward to delivering more great projects for our clients.

“I think the business has spent the last few years focusing on the fundamentals of what we do. It’s just about getting the basics right and delivering for our clients, producing quality when we work.

“We’ve found that when we get those things right, our clients are happy with what we do and they come back to us,” he explained.

“We find that a very large volume of our work comes from a small group of clients. I think that about 80% of our work comes from about 18 repeat clients coming back to us again and again.”

With the construction industry picking up pace again and mega-projects beginning to come on line, Kane made some suggestions that he felt would improve the performance of the industry: “All these projects will have funding and finance requirements. We need to make sure that projects come in and that we all embark on projects that have the right funding model in place and that we avoid any challenges such as payment disputes.

“In general, we need better collaboration.

I think that there’s a huge amount of scope within this industry to collaborate better, right down the value chain,” he pointed out.

“We need to make sure that we get the planning right and that these megaprojects come into the market in a phased manner, as much as possible.

“We need to make sure that they don’t all come out at the same time,” he emphasised.

“Planning from client organisations, planning from contractors and planning from consultants such as ourselves, is essential to ensure that we’re geared up to cope with the workload that’s going to be coming through,” Kane stressed.

“I think the industry would benefit greatly by focusing a little bit more on values,” he added. “I think that we tend to be a little too focused on cost.

“At WSP, we try and focus on the value that we bring to clients. Costs are important to us and not to be ignored, of course, but it’s not the most important thing.

“Focusing on value would serve all of us well,” he added, highlighting the foresight and vision that brought his firm the award.

DECEMBER 2014

MIDDLE EAST

Canada-based ConsultanCy wins award on the baCk of prestigious and high-profile projeCts aCross the gCC

31

BPME AWARDS 2014

bigprojectMe.coM

push Yourself Scott Madigan says his success comes from being unafraid to push himself to try new things.

sCott MADigAn wins Young ConstruCtion ProfEssionAL of thE YEAr At Big ProjECt ME AwArDs 2014 rising stAr At brookfield Multiplex sAys thAt success is built on developing relAtionships And working hArd

32

MIDDLE EAST

Touted as a rising star in the construction industry, Scott Madigan, project manager at Brookfield Multiplex, was presented the Young construction Professional of the Year award at the Big Project ME Awards 2014.

He is project manager for Etihad Airways’ largest business class lounge in the world and their largest flight simulator facility. He has earned accolades from both his company and his clients for his work on both projects.

A graduate of the University of Melbourne, Madigan has a Bachelor’s Degree in Planning and Design and a Post-Bachelor Degree in Property and construction with first class honours. He joined Brookfield Multiplex in Melbourne Australia in 2005 while he was completing his university studies.

Madigan’s first project was the Melbourne Show Grounds Development.

DECEMBER 2014

He then worked on the famous Melbourne convention centre, a complex multi-use project in the heart of Melbourne’s cBD. He moved to Dubai in January 2008 as a site manager and since then has gone from strength to strength. He has worked on projects like the Eastern Mangroves Development for TDIc in Abu Dhabi. In 2012, he was appointed as project manager for the Etihad Training Academy. This was followed by a number of projects for the airline, including its Premium lounge and cargo Village.

“It’s great. It’s a really good experience,” Madigan said about winning the award.

“I’ve been with Multiplex now for ten years, and I’m surprised that they put me forward for it. It’s a really positive thing.”

“Good relationships – between contractor, consultant and client – create good results and in turn, a good project.

We had fantastic teams to work with, which allowed us to overcome some tricky and challenging problems,” he asserted.

“Almost anything can be overcome if a team works together, it highlights the importance of a ‘can-do’ attitude. I’ve also

learnt how essential risk identification is and how you need to constantly revisit risks throughout the construction process.”

When asked to give some tips to future nominees for the Young construction Professional of the Year Award, he said that the most important factor in his success was his willingness to work hard.

“Take the initiative to demonstrate what you’re capable of. Work hard and put yourself in positions where you’ll be challenged. Don’t be afraid to push yourself. “look to gain exposure to different parts of the construction process. I’d suggest going to client meetings, participating in the tendering and procurement processes. Be willing to work on projects of different sizes – smaller projects often give you a bigger picture of the overall construction processes.

“But most importantly, apply a ‘can-do’ attitude, this is a place where anything is possible!”

The other shortlisted nominees in this competitive category were Engi Jaber of Dewan Architects and Engineers and Mohammed Imran Shaikh of cKR consulting Engineers.

BPME AWARDS 2014

bigprojectMe.coM

Dubai’s RTa ChaiRman bags OuTsTanDing aChievemenT in COnsTRuCTiOn aT bPme awaRDs 2014 Dubai’s Roads and Transport Authority (RTA) received the Outstanding Achievement in Construction award at the Big Project ME Awards 2014. The award celebrates leaders in the construction industry, honouring them for their life’s work and their contribution to the construction industry in the region.

RTA Chairman Mattar Al Tayer was chosen for the award in recognition of the agency’s work on the development of the city’s transport infrastructure and road networks, with particular attention paid to the completion of the Dubai Tram this November.

Abdulla Yousif Al Ali, CEO of the Rail Agency, RTA, collected the award on behalf of Al Tayer. “It’s my pleasure to receive this award on behalf of our chairman,” Al Ali said. “I would like to thank CPI Media Group for presenting this award. It means a lot to us.”

Th A N kS TO O u R j u D G ES

DaviD CoCkerton Fu N D M ANAGER, SI N O Gu LF

Jeff DeCker D I RECTO R O F BuSIN ESS D EVELO PM ENT, AECOM

professor moha m m eD Dul aim i PRO FESSO R O F PROj EC T M ANAGEM ENT AN D IN N OVATI O N, Bu I D

aDel moha m eD mokhtar SEN I O R ARCh ITEC Tu R AL EN GIN EER, Du BAI Mu N I CI PALIT y

Ch ristoph er seymour PARTN ER, EC hARRIS

Th A N kS TO O u R SP O NSO RS A N D Su PP O RT I N G PA RT N ERS P L AT I N u M S P O N S O R

GOLD SPONSOR

O FFI C I A L G OV E R N M E N T PA R T N E R

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

34

MIDDLE EAST

S u P P O R T I N G PA R T N E RS

DECEMBER 2014

steph en sm ith ENVI RO N M ENTAL AN D SuSTAINABI LIT y M ANAGER, BRO O kFI ELD Mu LTI PLEx

PROFILE BENDING The European standard produced in the Middle-East

Steel, Stainless Steel and Aluminium

Heavy beams up to 1000mm Hollow section up to 500mm

www.kersten.ae

Street F7, Al Hamra Free Zone P.O. Box 86416 Ras Al Khaimah, United Arab Emirates

T +971 (0)72437174 F +971 (0)72432524 E rak@kersten.ae

AdvertoriAl Unibeton

bigprojectMe.com

In the Mix

aWarD Winner Unibeton has been recognised by the industry for its sustainability efforts. Its concrete plant is the only one in the world to have a gold certificate for sustainability from the NRMCA.

Gavin Davids talks to Jean-Francois Dufour and Robin Jones of Unibeton Ready Mix about their plans for the supplier as the construction industry shifts gears in the GCC

A

s the GCC gears up for a massive boom in construction over the next decade or so, the demand for concrete production is predicted to increase to 124.4 million tonnes per year according to a report released earlier this year by Kuwait Finance House Research.

With this increase in supply powered by the predicted surge in demand, there are tremendous opportunities available to readymix concrete suppliers operating in the region.

This is why Big Project ME sits down with Jean-Francois Dufour, general manager of Unibeton Ready Mix, and Robin Jones, director, International Strategic Business Development and marketing for Unibeton, to discuss the state of the market and how their firm is preparing for the challenges facing it.

Having started operations in 1980, Unibeton Ready Mix is one of the oldest ready-mix suppliers to the GCC construction industry. With a track record that includes operations in the UAE, Qatar, KSA and offices in India, Oman and South

36

MIDDLE EAST

“Dubai is picking up anD the WorlD expo is a big part of it. it’s not only the WorlD expo, but also What’s arounD it anD people are using that to kickstart anD Deliver more anD more projects to Dubai”

DECEMBER 2014

Korea, the firm is a ‘nominated supplier’ for several high-profile projects across the GCC, with several world record pours in the GCC. Its portfolio also includes international proposal projects in Panama, Kuwait, Turkmenistan, Peru and Malaysia. It is also the only company in the world to have a gold certificate for a sustainable concrete plant, which it won from the National Ready-Mix Concrete Association in 2013.

At present, the company employs some 2,500 staff across the GCC, with further growth expected as it continues to push forwards with its plans for the region, says Jean-Francois Dufour.

“We see growth,” he says, speaking at Unibeton’s plant in Jebel Ali. “Dubai is picking up and the World Expo is a big part of it. It’s not only the World Expo, but also what’s around it and people are using that to kick-start and deliver more and more projects to Dubai.”

Robin Jones adds that Saudi Arabia is also set to be a major market for the ready-mix supplier, having managed to penetrate the market over the last three or four years.

“Riyadh and Jeddah are especially [important] to us,” he explains. “We’ve had a big push into Mecca and are now planning for Medinah because of the Holy Mosque projects there. It’s not finalised, but we’ve got a very good relationship with Saudi BinLadin and that’s what’s given us a big boost.”

“We’re now looking at negotiations with Riyadh Metro, with some of the big consortiums. That’s based on our work on UAE tunnelling projects such as the Strategic Tunnel Enhancement Programme [STEP]. We were involved in that, which gave us a good grounding,” Jones points out.

“I think growth in KSA will be sustainable,” he predicts confidently.

Qatar is another region where the firm is flourishing, with the New Port Project in Doha the most prominent and high profile of its projects in that market. The $7.4 billion port is possibly the most important project

underway in the Gulf state, given its importance to preparations for the 2022 World Cup. “This is a project of special importance. If that project fails, all the other projects in Qatar would be affected. It’s a leaping-off point.

“When you look at China Harbour Engineering Company [the main contractor for the New Port Project], they knew us from before.

“Of course, we still had to be approved by the client, but it was a big factor [in our being appointed],” Dufour says.

AdvertoriAl Unibeton

Jones adds that when they were first appointed to the New Port project, Unibeton weren’t even in the country at the time, which makes the current success especially heartening.

“We won it on the back of our international relationship with China Harbour,” he says.

“Now we’ve added to the port by picking up more and more packages within the port.”

In addition to the New Port Project, Unibeton is also working on erecting new batch plants to supply the Doha Metro, with

one being built on what will become the Golden Line of the Metro, Jones reveals.

Given the scale of the projects Unibeton is working on and the consistent progress it has shown over the last few years, both Dufour and Jones believe that the company will see its growth figures of between 15% and 20% year-on-year over the next five years.

“That’s our five-year projection, which is strong growth,” says Robin Jones. “I think, as a contribution, approximately 50% of that growth

DECEMBER 2014

MIDDLE EAST

“They took this New Port project with very small margins, they didn’t want to risk delays, and they knew the importance of it to the Qatari government. Luckily, they also had consultants who were very highly educated about concrete – it was AECOM and they were able to understand the risks,” he recollects.

“So all of it came together – China Harbour’s experience with us in the UAE, AECOM’s expertise on these things – all of these came together to get us that project.”

37

AdvertoriAl Unibeton

will come from the UAE, while the remaining 50% will be from our international locations. That’s going to be pretty constant, all the way through.”

He points out that the firm estimates that it has poured nearly 2.3 million cubic metres of ready-mix concrete in the UAE for 2014.

This represents between 18% and 20% of the market share, Jones points out.

Dufour adds that he is confident about what the coming year holds for the UAE’s biggest ready-mix company.

Since 1995, Unibeton has poured more than 40 million cubic metres of concrete ready-mix . Its current capacity stands at 10 million cubic metres. At the height of the construction boom in the UAE, it was pouring in excess of 5 million cubic metres annually.

“We suffered a bit in the beginning of 2014. The volumes that were expected at the time, we had a bit of a shortfall because the projects that were supposed to start saw a lot of delays from the market in releasing projects.

A lot of delays were from the clients’ side.

“However, in the second half of the year, it has been very good. After Ramadan things really started to pick up. This time last year, when they announced Dubai as the winner [of the 2020 World Expo], there was a lot of hype.

“That translated into projects that weren’t really awarded until March or April [this year], so that’s why the first quarter was more difficult for us. But after that, it’s started to pick up quite nicely, especially here in Dubai.”

Keeping this growth in mind, Dufour says that he expects Unibeton’s operations to grow by 20% and 25% from their existing market share Unibeton estimates that it has between 18% and 20% of the UAE market share.

bigprojectMe.com

“i think, as a contribution, approximately 50% of that groWth Will come from the uae, While the remaining 50% Will be from our international locations”

facilities in the UAE, a figure he expects to see replicated internationally as well.

“We have two major facilities to cover the greater Dubai area. If there are projects that are expected, then obviously we need plans to be established for them.

“We’re obviously working on other areas, which will need to be carefully selected so as they’re the middle of the clusters of projects.

We’re looking into that,” he asserts.

“But right now, the plan is to produce concrete from our actual facilities. If there’s a need to push volume further, if there are projects in a certain area, then we’ll see about establishing another batching plant facility,” the general manager explains.

As positive as Dufour is, he’s quick to sound a note of caution about the industry getting ahead of itself, much like it did in previous years.

“It’s not to the extent that it was in 2008, but it’s really getting to a point where everybody can be busy. The problem is that the capacity of supply is quite high right now, when you compare it with the demand.

“In fact, the supply capacity is probably more than twice what the demand is. That’s the problem, the idle capacity. When you have so much idle capacity, what happens is that people are ready to ‘die’ on some projects and the impact of that is that the prices come down.”

“Being a buyers’ market, clients have the leverage to push the prices down, which creates a high level of competition amongst contractors and once the contractors are squeezed, they start squeezing their subcontractors,” Dufour emphasises.

“There are different classifications of readymix suppliers and when price is the leading factor, then they put technical aspects and all of that aside. Because of this, there are many C-level companies out there. Unfortunately, at Unibeton, although we’ve shown what level or calibre of projects we can take on, we’ve seen projects awarded to C-grade suppliers and seen them fail because of that. It’s not a smart move for contractors,” he states emphatically.

Despite the increased competition, Dufour says he continues to insist on one thing: “Repeat business is so important. How do you get repeat business? Through your quality and service. We don’t only deliver concrete, it’s all about the full package, and repeat business with international companies is where we seem to be a lot stronger than our competition,” he points out, with an air of quiet confidence.

Prestigious Projects n RTA Projects: 90% of all RtA Projects

n Palm Jumeirah: nominated supplier

n EMAL: nominated supplier

n NDPP: nominated supplier

n KAFD: nominated

38

MIDDLE EAST

supplier

DECEMBER 2014

onstruction Intelligence eport

An industry in words The Construction Intelligence Report will offer an in-depth analysis of the Middle East construction market, covering a broad range of topics from property development and megaprojects to infrastructure and finance. The report will feature an exclusive survey on regional salaries and industry trends, as well as interviews with key executives, sector updates and country reports. This annual report will serve as a one-stop guide for industry professionals, enabling them to make more informed business decisions.

Sponsor logo

Premium positions DISPLAY

Sponsored by

RATE

Front Cover Sponsorship*

*Your logo on the front cover with associated status, two-page profile interview format and a full page advertisement

$40,000

Country Sponsorship**

**Your logo on the section divider of country with associated status, two-page profile interview format and a full page advertisement

$20,000

Outside Back Cover

$14,400

Inside Front Cover

$12,000

Inside Front Cover DPS

$21,600

First Right Hand Page

$9,600

Bookmark

$11,250

83

Infrastructure Us molenderio te nienihiciae quae sinveni as apel iusanda ndicae sum fuga. Luptas aut acil issus acea possum volorporro iliquibust re occae voluptae. Ut doluptatibus sinvendicte plic totaspide prorrorit, inciis estibus.

82

The right workflow and processes defined, BIM enables organisations to improve the quality of building design

Dolor Sitamet

Run of page advertising PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713 ADVERTISING COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpimediagroup.com +971 4 433 2857

DISPLAY

RATE

Double Page Spread

$14,400

Full page

$8,000

Half page

$5,000

83

Example of section divider

BIM – Business Enabler or Technology Red Herring?

Lorem Systems' Dolor Sitamet explains why it is so important for BIM providers to create systems that will push forward the concepts of simple and effective cooperation between all stakeholders involved in a project Luptas aut acil issus acea polvolorporro iliquibust re occae dimitis dolor?

The UK government’s decision to require that all suppliers involved in public sector construction projects use Building Information Modelling (BIM) tools and techniques by 2016 is to be applauded. The intention is to drive better value from capital investment and realise a 20% reduction in lifetime costs, whilst supporting environmental commitments by facilitating a more integrated approach to design. It is also about changing the culture between the client and the rest of the supply chain, replacing the traditional, rather adversarial business practices with a collaborative approach that should also drive innovation.

However, misinformation is rife. BIM is not just about 3D data but about creating a holistic information resource that also includes 2D data sources, documents, spreadsheets, and more.

I believe the key to realising the government’s BIM vision is to create simple, effective cooperation among the design, construction and operation aspects of the infrastructure lifecycle. Overcoming these traditional silos

provides a chance to reduce duplication, minimise errors, streamline processes and facilitate collaboration.

However, while the majority of new bids now demand some level of BIM compliance, requirements are often opaque at best. Let’s set the record straight: BIM, when done correctly, is about information sharing enabled by information mobility (across engineering disciplines and the infrastructure lifecycle).

It provides contractors and owner operators with access to key design data that can be used to transform effectiveness throughout the construction and operations processes. Yes, it drives better use of 3D across the industry, but not only 3D. 2D data remains important, as does information held in documents, spreadsheets, and other databases, all of which contribute to a holistic BIM approach.

Luptas aut acil issus acea polvolorporro iliquibust re occae dimitis dolor?

BIM is ultimately about creating an asset model from day one that can be used consistently throughout the project to drive efficiencies

and improve collaboration. Indeed, BIM also encompasses information management as much as information modelling. It enables a contractor to feed design information into project planning tools and resolve potential conflicts before arriving on site. It also empowers the sharing of space information with facilities management teams before the building goes live to drive effective up-front planning, as well as the sharing of other crucial design, engineering, and construction information that can later be used to help drive cost-effective operations decision making and renovations work.

Leveraging a collaborative platform and technology to share and integrate information, within an incremental approach that accommodates all of the specialised design simulation and analysis software best suited for each project role, will best enable the industry to achieve the desired widespread adoption of BIM. The government’s stance on BIM is to be commended. Demanding Level 2 compliance by 2016 is pragmatic and achievable and promotes the very real promise of intelligent infrastructure that is better performing in terms

of its energy efficiency, resilience to natural and man-made disasters, safety, and cost-efficiency.

However, while industry adoption and interest are positive, it is essential that organisations take a step back and truly assess information requirements.

Luptas aut acil issus acea polvolorporro iliquibust re occae dimitis dolor?

BIM is a business process not a technology.

With the right workflow and processes defined, BIM enables organisations to improve the quality of building design, reduce costs and achieve the collaborative workflows required to drive true innovation.

However, misinformation is rife. BIM is not just about 3D data but about creating a holistic information resource that also includes 2D data sources, documents, spreadsheets, and more.

I believe the key to realising the government’s BIM vision is to create simple, effective cooperation among the design, construction and operation aspects of the infrastructure lifecycle. Overcoming these traditional silos provides a chance to reduce duplication,

information into project planning tools and resolve potential conflicts before arriving on site. It also empowers the sharing of space information with facilities management teams before the building goes live to drive effective up-front planning, as well as the sharing of other crucial design, engineering, and construction information that can later be used to help drive cost-effective operations decision making and renovations work.

Luptas aut acil issus acea polvolorporro iliquibust re occae dimitis dolor?

Leveraging a collaborative platform and technology to share and integrate information, within an incremental approach that accommodates all of the specialised design simulation and analysis software best suited for each project role, will best enable the industry to achieve the desired widespread adoption of BIM. The government’s stance on BIM is to be commended. Demanding Level 2 compliance by 2016 is pragmatic and achievable and promotes the very real promise of intelligent infrastructure that is better performing.

84

Two page profile

$12,000

85

Example of two-page profile advertisement

Distribution, circulation and readership

50,000

copies will be printed and distributed across the GCC in January 2015 with issues of:

MARKETING MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498

minimise errors, streamline processes and facilitate collaboration.

However, while the majority of new bids now demand some level of BIM compliance, requirements are often opaque at best. Let’s set the record straight: BIM, when done correctly, is about information sharing enabled by information mobility (across engineering disciplines and the infrastructure lifecycle).

It provides contractors and owner operators with access to key design data that can be used to transform effectiveness throughout the construction and operations processes. Yes, it drives better use of 3D across the industry, but not only 3D. 2D data remains important, as does information held in documents, spreadsheets, and other databases, all of which contribute to a holistic BIM approach.

BIM is ultimately about creating an asset model from day one that can be used consistently throughout the project to drive efficiencies and improve collaboration.

Indeed, BIM also encompasses information management as much as information modelling.

It enables a contractor to feed design

Knowledge partners

Analyst partner

SPECIAL FOCUS CIVIL ENGINEERING

40

MIDDLE EAST

adapt to work The international nature of civil engineering means that project teams need to be able to adapt to perform.

DECEMBER 2014

bigprojectMe.Com

SPECIAL FOCUS CIVIL ENGINEERING

Mind The Gap

Are mergers & acquisitions a tool for the local construction industry to cope with the shortage of experienced and qualified civil engineers? Furthermore, what is causing this shortage? Big Project ME investigates

W

hen Greg Kane joined WSP Global in November 2013, the firm’s total manpower was roughly 17,500 people around the world. As of November 2014, WSP has up to 31,500 engineers and construction professionals, following the company’s takeover of Parsons Brinckerhoff in September 2014.

Speaking about the acquisition, Kane says: “In the last six to 12 months, there have been more M&A activities than there have been in the last five years in the industry.

The acquisition of Parsons Brinckerhoff is a wonderful change, but it also brings challenges.

“Broadly, however, our industry is going in a similar direction as the accounting industry did in the last two decades. The major global accounting firms shrank from being the Big 8 to becoming the Big 4 (Deloitte, PwC, EY, KPMG), as we know them today. M&A operations of that kind lead to standardisation of skills and practices, besides transportability of international codes.”

Kane admits the civil engineering industry is a different entity in its own right, but a similar consolidation of services and the move towards fewer but larger firms is definitely taking place globally.

This leads to increasing competitiveness in the industry, thus making for greater service

differentiation and innovation. Firms will have to partake in this evolution “if they are to win and work on prestigious projects which require certain experience qualifications”, Kane believes.

“In that sense, the recent M&A activity is a great opportunity for civil engineers to work on bigger projects in more diverse locations.”

But working in “diverse locations” is not always an easy task for the civil engineering sector, which has to understand and comply with building codes which, more often than not, tend to differ even within the borders of GCC countries, like Dubai, Abu Dhabi and Sharjah in the UAE, Riyadh and Jeddah in the Kingdom of Saudi Arabia, and so on.

“If you talk about the civil engineering industry, one problem plaguing it is the mobility of engineers, not only in terms of their ability to geographically move, but also their ability to understand codes and regulations in the context of dealing with people from different cultures.

“Civil engineering is one of the most diverse industries there is, which means people from different countries and educational backgrounds tend to work together on large projects. This requires adaptability,” explains Dr Alaa Ashmawy, professor of Civil Engineering and dean of the School of Engineering, American University in Dubai (AUD).

DECEMBER 2014

MIDDLE EAST

“the global construction industry is going in a similar direction as the accounting industry did in the last two decades, when ma jor global accounting firms shrank from being the big 8 to becoming the big 4”

41

SPECIAL FOCUS CIVIL ENGINEERING

The hurdle is not restricted to new or younger civil engineers; engineers who have been in the industry for even three to four decades now have to contend with the growing presence of sustainability across the construction sector. This could very well mean a veteran engineer has to go back to school and update his or her knowledge of local codes, such as the Estidama Pearl Rating and Dubai Green Building Code in the UAE. “A lot of senior engineers manage some fairly large megaprojects in the region, so it is critical that they are up to date with the contemporary market trends. Even engineers in top positions today need to be keep up with the changes so they can incorporate them in their decisionmaking operations,” says Dr Ashmawy.

The planning undertaken by a typical civil engineering firm is undergoing a transformation around the globe, owing largely to the shortage of civil engineers around the globe. In April 2014, a report commissioned by Dubai International Academic City, based on findings by the Workforce Planning Study, found that Dubai’s construction and real estate sectors face a combined manpower shortfall of up to 500,000 heading into 2015. 54% of the respondent companies stated mid-level professionals lack design engineering and civil engineering skills, while entry-level employees were found to lack health and safety skills.

More recently, an August 2014 report by UK daily the Guardian found local construction firms are paying “inflation-busting salary increases to architects and other professional staff because of competition for their services”.

“They are paying a bit more to bring on an architect or to keep a quantity surveyor, because we are seeing counter-offers. If people are confident enough to change jobs, then employers are confident enough to pay more to keep them,” Alistair Cox, chief executive of Hays Recruitment, said at the time.

Mark Jamieson, the UAE representative for the UK-based Institution of Civil Engineers (ICE) and a project director at Turner Construction International, says authorities in the UAE

engineering shortage The global shortage of civil engineers is creating a situation where GCC-based firms are paying massive salaries to attract employees.

recognise this shortage. He claims up to 1,000 civil engineers from all grades are registered with ICE in the UAE but admits there is no immediate solution to plug the gap in the employment market – both HE Essa Al Maidoor, president of the UAE’s Society of Engineers, and Richard Coakley, past president of the ICE, share his concerns about the low numbers of graduating engineers. The challenge is not just about getting students to acquire an engineering degree from university, but also encouraging them to pursue

MIDDLE EAST

“if you talk about the civil engineering industry, one problem plaguing it is the mobility of engineers, not only in terms of their ability to geographically move, but also to understand different local codes”

42

DECEMBER 2014

bigprojectMe.Com

an engineering career while still at school.

“You also need to retain them [engineers] in the industry because many other professionals value civil engineering degrees for the qualifications and skills they enable a student with. So someone with a civil engineering qualification is likely to be hired in management roles by accounting or consulting firms, because they value the degree so much,” Jamieson explains.

It is equally important to cover the other side of the education spectrum, which involves the provision of appropriate master’s degree options to civil engineers who have either a bachelor’s degree in civil engineering or relevant work experience in the field – ideally, both.

According to Jamieson, “One of the things ICE is trying to do in the UAE is increase the value of professionalism, and that marks the need for postgraduate qualifications rather than people rushing into MBA courses. We’ve seen a change in the markets in the last few years; for instance, increasingly senior positions on Qatari

SPECIAL FOCUS CIVIL ENGINEERING

n Master of Science in Civil Engineering – American University of Sharjah

n Master of Science in Civil Engineering – Abu Dhabi University [available concentrations: Civil Engineering; Structural Engineering; Construction Engineering Management]

n Master in Structural Engineering (StrE) – The British University in dubai

n Master of Science in Civil Engineering – United Arab Emirates University

n Master Of Science in Construction Management – American University in dubai

building and infrastructure projects can only be filled by an individual with chartered engineer status or equivalent. So there’s evidence that the recognition of quality civil engineers is increasing, but more needs to be done and that requires all stakeholders to work together. We cannot rely on the change occurring just through the efforts of an individual firm or government body.”

Kane echoes the belief that finding the right people for the job will continue to be one of the industry’s biggest obstacles. The situation is further compounded by the fact that the local economic climate, be it recession or strong market conditions, has a substantial impact on the civil engineering industry.

These economic movements lead to a fluctuation in the demand and supply of available resources, which can make it more difficult to find the right people, especially in a strong market where quality people with the right skills and experience are in high demand. A climate of recession, on the

other hand, means there are more resources available than there is work for them to do.

“It’s a people-driven industry; it is people – and not machines – who produce the reports and drawings that a client uses,” Kane says.

“Finding quality people with the right skills and international experience is an ongoing challenge for the industry. With a recession in many markets, fewer people have taken up engineering as a primary degree at university level, so many believe there’s likely to be an acute shortage of the right number of people over the coming years in the civil engineering field.”

Stunted engineer mobility means fewer engineers can partake in labour-sharing programmes.

While countries like Saudi Arabia and Egypt have previously worked together to eliminate their shortages of construction workers, few labour-sharing programmes on the management level have been heard of.

Even if engineers were to consider migrating within the region on their own terms, the lack of appropriate education regarding local codes could be a significant deterrent to their plans.

In such a scenario, will a unified building code ease the situation? Unlikely, as Dr Ashmawy explains. “A unified building code is a good thing, but in terms of the GCC, the unified code would either have to be generic enough to accommodate different local environmental conditions, or be specific enough to spell out the details pertaining to each level in the local setup.

“So in theory it’s a great thing to aspire to, as it would certainly help with engineer mobility, but in practicality, it would require coordination from different governments and engineering professional societies and bodies to agree on a unified code, which I don’t view as an easy thing to do.”

Jamieson, agreeing with Dr Ashmawy, admits the creation of a unified building code could add to the ever-expanding to-do list of authorities across the region, largely due to the existence of international building codes in the region.

“Very few codes are now developed in isolation and for just the country they have been published in. So, for example, British codes are being adapted as a base for some European codes and, increasingly, ISO codes are being used as the standard for engineering and building projects. The problem in generating local codes, however, is that local research and development [R&D] in the industry is still somewhat limited, so promotion of codes by the relatively young engineering societies in this region is a challenge.”

“For instance, the UAE’s Society of Engineers is 35 years old and is doing a tremendous job in developing engineers across the UAE, besides working closely with fellow organisations like those in Qatar and the UK. But the ICE turns 200 years old in 2018, which means it has acquired and created one of the largest technical libraries in the world. So it’s difficult to see how any engineering body could quickly bring together a unified code specific to the GCC. “[However], investment in research and development will ultimately lead to better engineered projects and higher use of local standards,” he points out.

Buildings not Civil engineering?

“It is sometimes debated whether buildings can be considered a part of the civil engineering field, based on the question of whether buildings are something the public benefits from,” Dubai-based director at WSP Global Greg Kane says. “A civic building, such as a hospital, is something the public does or could benefit from, but areas like wastewater treatment, roads, bridges, highways and so on are definitely a civil engineer’s job. The debate doesn’t have any impactful ramifications; it’s more a topic that preoccupies the profession, and it’s something on the side that people engage in.”

Mark Jamieson, the UAE representative of the institution of Civil Engineers, agrees with Kane.

“The discussion whether building projects fall under civil engineering is inevitably one which will continue for a number of years. Civil engineers design and build bridges, roads, railways and tunnels, and civil engineering very much includes tall structures and large buildings as part of its remit in terms of the urban environment, whether it’s a villa or a tall tower such as the Burj Khalifa.

“All work associated with building structures, which could be anything from stadiums to hospitals or schools, is a part of the scope of activities undertaken by civil engineers. The level of involvement may differ; a civil engineer might work on the foundations or superstructure of the building, the utilities, the finishes or the façade, but they most definitely impact how a building looks and operates. Take the arch that dominates the Midfield Terminal at Abu dhabi Airport. There’s an architect who designed how it looks, but behind there’s a civil [structural] engineer involved in delivering the design of the structure, how it will be fabricated, installed and function.”

DECEMBER 2014

MIDDLE EAST

ConstruCtion engineering postgraduate programmes – uae

43

Al Garawi Group

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

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

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

Medco

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

M ARKET FOCUS EGYPT

bigprojectMe.com

Optimism on the nile

UAE, GCC investment in Egypt’s construction sector can promote stability, analysts tell Jerusha Sequeira

E

46

MIDDLE EAST

gypt faces a bumpy road towards economic recovery but is still a viable option for UAE and GCC investment in its construction sector, which can promote stability, the experts have insisted.

The numbers don’t lie. Per the United Nations, Egypt, the Middle East’s most populous country, has 82.5 million inhabitants, and could have 100 million by 2025. According to a report

by Arqaam Capital, the country has a young population base, with 50% under the age of 24.

This creates scope for mid-range and affordable housing developments, which will drive demand for residential space in Egypt and account for about 90% of overall property demand.

“The initial developments were more around the high end, but there’s certainly scope for

DECEMBER 2014

“Egypt’s Economy sEEms to bE moving in a positivE dirEction. part of that is thanks to gcc support for thE Economy of Egypt”

affordable housing, and I would suggest that affordable housing is actually a need there,” says Chris Seymour, partner at EC Harris.

A key driver of investment in Egypt’s property sector is the growing population.

“The demographic argument is extremely strong,” Seymour says. Egypt has “very, very strong domestic demand and that’s what makes it one of the attractive locations.”

Others agree that Egypt needs more affordable housing.

“There’s going to have to be housing for various levels of income,” says Dr Theodore Karasik, a senior adviser at Risk Insurance Management. “There has to be also housing programmes or housing constructed and built for low-income

M ARKET FOCUS EGYPT

OrascOm cOnstructiOn subsidiary tO list On uaE bOursE Orascom Construction Ltd, the engineering and construction division of Orascom Construction Industries NV (OCI), will obtain an initial public offering in February of 2015, its CEO, Nassef Sawiris, has said. the division will pursue a dual listing in egypt and the UAe, egyptian media reports have said. it added that “preparations for the separation of the engineering and Construction Group from oCi nV are underway”. listed in Amsterdam, oCi said that its fertiliser and chemicals division will continue to constitute oCi’s core business. it will remain listed in the netherlands. the company will include all of oCi nV’s construction assets and subsidiaries, the reports added. Furthermore, it will also own a 50% stake in the Besix Group, which is a group of industrial companies operating in construction, road works, infrastructure and property development, amongst others. the announcement comes in the wake of news that the company has won a two-year dispute with egypt’s tax authority. Sawiris, one of egypt’s richest men, called the victory “one for the rule of law”. he added that he would make “huge” investments in the egyptian economy following the ruling.

in infrastructure, including the Suez Canal expansion and a large-scale road development project, is a significant part of President Abdel Fattah el-Sisi’s plan for recovery. issues

There are multiple challenges facing development in Egypt, however, understandably giving foreign investors the jitters. Security is one of the key concerns.

“Egypt seems to be stabilising under el-Sisi, despite the fact that you have terror attacks in the Sinai against Egyptian soldiers and the violence that’s occurring in and around the Egyptian-Libyan border,” Karasik says.

Apart from the security issues, another major challenge for Egypt is upgrading its infrastructure – the country has been grappling with an energy crisis and frequent power shortages. Analysts agree that this needs to be addressed.

“Egypt is facing severe issues in terms of power shortages, and there is no immediate solution in sight. [But] this crisis presents a number of opportunities, especially in alternate sources of energy that can lead to a reduction in the import bill and wasteful subsidies,” says Abhay Bhargava, associate director and regional head – Energy and Environment Practice, MENA at Frost & Sullivan. “The crisis also presents opportunities

DECEMBER 2014

MIDDLE EAST

families so that everyone has an ability to have useful and healthy living conditions.”

UAE and GCC investors can play a key role in revitalising Egypt’s economy by developing housing projects in the country.

“Egypt’s economy seems to be moving in a positive direction. Part of that is thanks to GCC support for the economy of Egypt. The UAE particularly is in the lead in investments in Cairo and in Egypt in general,” Karasik says.

The UAE has already demonstrated interest in Egypt’s housing market.

Some of the upcoming projects include Arabtec’s $40 billion housing scheme to provide affordable accommodation in the country, with a view to building a million homes within the next five years.

UAE developer Emaar’s Egyptian subsidiary Emaar Misr is also working on projects in the country, such as its Marassi and Mivida developments. Moreover, Majid Al Futtaim, the Dubai-based retail group, plans to open malls in Egypt in coming months, The National reports.

Other countries seem to be following suit: “There have been substantial aid and FDI commitments from key GCC states towards Egypt, which in our view are highly supportive of macroeconomic recovery,” says Mohammad Kamal, executive director at Arqaam Capital.

Egypt itself has also been actively trying to boost the economy. Investment

47

M ARKET FOCUS EGYPT

for private sector participation in the forecasted rapid increase generation capacity.”

Kamal echoes Bhargava’s comments about the scope for infrastructure investment in the troubled country.

“From an opportunity standpoint, consumption and infrastructure spending are coming off a particularly low base in 2013. This suggests a massive growth opportunity across most sectors, rendering most projects highly viable from a commercial standpoint,” he says.

“Clearly the country needs to be in a sense rebuilt and restructured. So capitalising on the infrastructure that is required in, for example, electrical generation, transportation and tourism, is an important aspect of this renewal.”

“Egypt’s power shortages directly impact energy-intensive industries such as steel and cement,” Kamal adds.

“The knock-on effect of a rise in energy costs will ultimately be reflected in end product prices. Housing projects may experience a degree of cost inflation which may be passed on to the end buyer.”

bigprojectMe.com

“thE gcc has a vEstEd intErEst in making surE that Egypt is stablE. it’s a kEy to stability in thE corE of thE middlE East”

the rOad tO stability

However, there may still be light at the end of the tunnel. Investment in the country’s construction sector could boost stability via job creation. This would be beneficial for the Middle East, Karasik says. A content population not struggling with unemployment could be the key.

“With the unemployment issue... this of course is going to take time to fix. What is happening is that, with the advent of projects in the construction sector, there’s more opportunity to employ people, and over time this will eat away at some of the unemployment problems,” he says.

Solving Egypt’s unemployment issues would then naturally lead to more stability in the MENA

region, particularly in North Africa. This would obviously be beneficial to the GCC states.

“The GCC has a vested interest in making sure that Egypt is stable. It’s a key to stability in the core of the Middle East, and it also signals the desire to make sure that all of North Africa ultimately remains stable,” Karasik adds.

He seems positive that Egypt’s economy will regain momentum after the period of turmoil.

“In five years, I think Egypt will be on its way to greater economic growth. It might be slow in the midterm. But it seems that with El-Sisi as president and with potential political reform and continued investment in infrastructure projects, I think we should be optimistic,” he concludes.

48

MIDDLE EAST

light at thE End of thE tunnEl Investment in Egypt’s construction sector could lead to increased stability through job creation, ultimately benefiting the entire MENA region.

DECEMBER 2014

Solutions for your formwork needs International innovation meets local expertise The company is a major manufacturer of formwork and scaffolding. The quality of its products has ensured that the company has maintained its position among other global suppliers.

Acrow Formwork Technology vision centers on delivering uncompromising formwork and scaffolding solutions through its people, products and service. At every level within Acrow Formwork Technology, you will encounter experienced, skilled and passionate people. The specialized Product Development teams and Technical Support teams provide a wealth of experience.

At Acrow Formwork Technology, service is more than a courteous follow-up call. It is more than a well worded proposal or a half-hearted promise of delivery. Service is an all encompassing ethos that drives the Company. It is a total commitment to customer service that embraces both product and people.

Qatar Address: Salwa Road, Doha , Qatar , PO Box : 15104 Tel.: (+974) 44582357 Fax.: (+974) 44582376 E-mail: acrowqatar@acrow.co, website: www.acrow.co

Main Office: Wady Houf, Helwan, Egypt.

Tel.: (+202) 23690616 Fax: (+202) 23695290

Qatar . Kuwait . Oman . Saudi Arabia . UAE . Algeria . Morocco . Libya

SECTOR FOCUS MODULAR CONSTRUCTION

bigprojectMe.COM

50

MIDDLE EAST

container life Smart Box converts shipping containers into inhabitable spaces.

DECEMBER 2014

SECTOR FOCUS MODULAR CONSTRUCTION

Think Modular

Is modular construction the answer to rising construction costs and real estate prices?

Neha Bhatia asks the questions for Big Project ME Understanding modular construction’s benefits was key to motivating Menon towards the futuristic construction ideology long before it became commonplace in the Middle East. Tom Hardiman, executive director of US-based nonprofit trade association Modular Building Institute (MBI), explains the advantages of modular construction methods.

“Modular construction is simply a different and more efficient manner to assemble the materials and components of a building,” he says. “Construction occurs in a controlled factory setting where the use of materials can be better managed and put to more efficient use, reducing waste as well as the redundant procurement of components.

“Site development and the construction of the building foundation are able to occur at the same time as the module construction occurs at the plant, which means a total 30% to 50% saving in time after the building is installed. This allows faster occupancy, which is especially important for families needing immediate shelter, retail space, rental units and hospitals, all of which can be accommodated with modular construction.”

Hardiman concedes modular construction techniques are not without flaws, but says the value they offer outweighs their

“Modular construction is siMply a different and More efficient Manner to asseMble the Materials and coMponents of a building”

shortcomings. They may frequently also be more expensive than traditional construction methods, owing largely to labour costs and the finishes ordered for the building.

“However, many international developers have pointed to modular as saving both time and money,” MBI’s chief adds. “For instance, multifamily apartment project developers of the Modules apartments in Philadelphia and the Stack project in Brooklyn have pointed to modular construction as the reason they saved both time and money on their projects.”

The Middle East market is also waking up to the benefits of prefabricated construction units and practices. Pre-engineered modules, such as concrete slabs and steel structures, are quickly taking centre stage where timesensitive projects have to be undertaken. Dubai has gone so far as to commission a modular designed cargo terminal project with a total annual capacity of up to 1.6 million tonnes.

Furthermore, industry experts suggest modular construction is an ideal tool to combat soaring real estate prices in Dubai. Simon Millman, operations director for Dubai at Faithful+Gould, believes modular housing can provide quality housing options at lower prices.

“Modular housing should not be considered to be cheaper and less imaginative, or to offer less flexibility in terms of special planning. On the contrary, it should offer the potential for better and more consistent quality, with far faster construction times,” Millman writes in an essay on Faithful+Gould’s website. “Increasingly sophisticated technology can now produce modular buildings that look convincingly like their traditionally built counterparts.”

Menon agrees with Millman, further stating that nuanced design elements can also be incorporated in modularly constructed spaces which can rub shoulders with Dubai’s lavishly designed tall towers. “Smart Box has prospects requiring up to seven-storey structures using modular construction. One such multi-storey project in the pipeline is to

DECEMBER 2014

MIDDLE EAST

F

or countless years, Danish toy manufacturer Lego’s products have littered the homes of parents around the world. Known for bright and colourful bricks which entice both children and adults to create entire cities replete with buildings of all kinds, Lego’s newest collection also includes monochromatic items, to encourage architects and designers too.

It is from those colourful bricks that Arjun Menon, managing director of Smart Box Industries in Dubai, takes inspiration to explain his firm’s service offering to the construction industry. Smart Box converts containers typically used by the cargo shipping sector into inhabitable spaces. While the technique is yet to catch on with the Middle East’s construction industry, the international building sector recognises it as ‘cargotecture’, a technique which incorporates the best of cargo containers and the discipline of architecture.

“Containers are like Lego blocks; the only difference is that they are 20 or 40 feet long,” Menon says. “These blocks can be stacked together vertically or horizontally, and joined together to create the required space. The blocks are insulated with rockwool, and the walls finished with a selection of wall cladding to produce a finished space on par with international construction standards.”

As of 1997, Smart Box was called PCTRS and relied heavily on the use of cargo containers due to the nature of its operations.

Menon says Dubai’s construction boom brought with it developers requesting that containers be converted into habitation solutions, “from offices and accommodation to engineering solutions such as diving decompression rooms and control rooms”.

“This demand started our container conversion business, and PCTRS became known as a regional container conversion specialist. We rebranded to Smart Box Industries in 2008, focusing purely on the growing application of shipping containers as a modular construction solution,” Menon adds.

51

SECTOR FOCUS MODULAR CONSTRUCTION

bigprojectMe.COM

begin at design For a firm looking to build modular, if the project is to be successful, the process has to begin at the design phase.

Modular 101

“if designed to optiMise the users’ interaction with space, a 46.4sqM space can also be iMMensely functional. once we perfect these designs, we can churn out a building every six Months”

52

MIDDLE EAST

build contemporary one-bedroom apartment buildings. If designed to optimise the users’ interaction of space, a 46.4sqm space can also be immensely functional,” he argues.

“Once we perfect these designs, we can churn out a building every six months. The first building is intended to be in the affordable luxury segment as proof of product, with a rooftop garden, swimming pool and gym.

The ensuing buildings will be downsized and flexible for tenants, in order to ensure that people can live on cost-effective budgets without sacrificing on quality and standards.”

Menon has also worked in the commercial sector, on a project completed in November 2013 for Geo-Chem Middle East in Technopark, Dubai.

The 1,249sqm office building was constructed with 42 cube containers joined together, each 40 feet high. All units were manufactured in a factory and installed in four days.

It is a stark contrast from traditional methods in terms of time completion, but the basic premises of construction hold true even when a building is created out of modules, and as Hardiman explains, the modular

DECEMBER 2014

construction provider should be involved at every stage of the building process.

“It is of key importance to bring the modular contractor or manufacturer into the building process as early as possible, as a part of the team. In many cases, a modular manufacturer is a subcontractor to a traditional general contractor on a project. However, in some cases a modular manufacturer may also be the general contractor, working directly with the end user.”

Modular construction has been accepted globally for its contribution to competitive real estate pricing, but its future, Hardiman says, depends on how intensely the traditional construction industry is educated about the intricacies and benefits of modular building.

“Education is definitely a hindrance to accepting modular construction, since it is uncharted territory for many architects and builders. For instance, choosing modular is often the greener answer for your construction project. Building in a factory promotes efficient use and reuse of tools and materials, as well as minimal disturbance to the job-site before and after module installation.”

“For firms already looking to build modular, it is important to note that if a project is to be successful, the process begins at the design phase,” says Tom hardiman, executive director of Modular Building institute. “There are some characteristics to modular construction that should be considered when designing a project:

n Typical three-dimensional modules have widths that are around nominal eight-, 10-, 12-, 14- and 16-feet, with 12- and 14-feet the most common. Framing dimensions are typically two inches less than nominal size.

n Common module lengths are up to 70 feet, usually in two-foot increments.

n Module heights vary from approximately 11 feet 6 inches to 13 feet, not including the height of the unit’s transport trailer or frame.

n Wood frame construction is the most common type of construction; however, manufacturers also build with steel and concrete and can meet the requirements for Type i, Type ii and Type iii construction.

n Multi-storey modular buildings can be built up to the maximum number of storeys allowed by local code. The majority of modular buildings are one to three storeys high, but a rapidly growing trend is towards four- to eight-storey facilities. A handful of projects in the UK and US have exceeded 15 storeys.

n Multiple roof framing styles are available.

Some can be completed in the factory, and some may require site-installed trusses.

n Modular buildings can be configured using modules of various lengths and widths.”

C

M

Y

CM

MY

CY

CMY

K

Standard panel measures 3m x 0.61m Wall thicknesses (mm): 75, 100, 120 , 150, 200 2 hour Certified Fire Rating

COMMENT anoop menon

bigprojectMe.com

anoop menon

The right time?

Public investment in infrastructure could become a powerful policy tool for governments to counter a weak global recovery

T

he International Monetary Fund (IMF) has made a strong pitch for higher public investment in infrastructure to counter the weakness in global economic recovery.

Its recently released World Economic Outlook (WEO) features a study which examines the macroeconomic effects of public investment in a large number of countries.

Due to weaker than expected global activity in the first half of 2014, the IMF has revised downward the growth forecast for the world economy to 3.3% for this year, 0.4 of a percentage point lower than in the April 2014 WEO. The global growth projection for 2015 was lowered to 3.8%.

In a speech made at Georgetown University last month, Christine Lagarde, managing director, IMF, said that public investment in infrastructure, together with growth-friendly fiscal policies and structural reforms, can “accelerate growth, increase employment and achieve a new momentum” instead of muddling along to a “new mediocre”.

She warned that a weak global recovery, if not addressed squarely, could lead to “low growth for a long time”, as people cut back on investment and consumption today in fear of tomorrow’s lower growth potential. Other clouds on the horizon include asynchronous monetary policy normalisation; migration of new market and liquidity risk to the less-regulated, non-bank sector; and a build-up of financial sector excesses in advanced economies.

According to the WEO study, in advanced economies an increase in infrastructure investment could provide a much-needed fillip to demand, and is one of the few remaining

54

MIDDLE EAST

“a key priority in many economies, particularly in those with relatively inefficient public investment, should be to raise the quality of infrastructure investment by improving the public investment process”

DECEMBER 2014

policy levers available to support growth, given already accommodative monetary policy.

“The crisis has inflicted a heavy toll on both growth and investment, which remain well below their long-term trends,” said Lagarde.

“As of last year, we have estimated that for the G-20 countries, GDP is 8% lower than it could otherwise have been. The shortfall in investment is even higher – nearly 20% below trend.”

The study notes that the stock of public capital, which reflects to a large extent the availability of infrastructure, has declined significantly as a share of output over the past three decades across advanced, emerging market and developing economies.

In advanced economies, this reflects primarily a trend decline in public investment from about 4% of GDP in the 1980s to 3% of GDP at present.

This has led to deficiencies in the quality of existing infrastructure stock in these countries. For example, the American Society of Civil Engineers noted in 2013 that 32% of major roads in the US are now in poor or mediocre condition, and the US Federal Highway Administration estimates that between $124bn and $146bn annually in capital investment will be needed for substantial improvement in conditions and performance.

However, emerging economies still have only a fraction of the public capital available in advanced economies, due to lower efficiency of public investment. Power generation capacity per person in emerging market economies is one-fifth the level in advanced economies, and in low-income countries it is only one-eighth the level in emerging markets. The discrepancy in road kilometres per person is similarly large.

Key considerations

The WEO study bases its recommendation of higher public investment in infrastructure on two key factors. One, real interest rates are expected to remain lower than pre-crisis levels for the foreseeable future; and two, higher public investment raises output, both in the short term because of demand effects and in

COMMENT anoop menon

good for growth Efficient investment can be good for economic growth, good for jobs and good for the environment.

in some countries with already-high debt-toGDP ratios or where returns on infrastructure investment are uncertain – could raise financing costs and further increase debt pressure.

For those emerging market and developing economies where infrastructure bottlenecks are constraining growth, the gains from alleviating these bottlenecks could be large; but increasing public investment may lead to limited output gains, if efficiency in the investment process is not improved. Thus, a key priority in many economies, particularly in those with relatively inefficient public investment, should be to raise the quality of infrastructure investment by improving the public investment process.

This could involve, among other reforms, better project appraisal and selection that identifies and targets infrastructure bottlenecks, including centralised independent reviews, rigorous costbenefit analysis, risk costing, zero-based budgeting principles and improved project execution.

The report also quotes an April 2014 Fiscal Monitor article which found that only half of the increase in government investment in emerging

market and developing economies from 19802012 translated into productive capital. The same article noted that reducing all inefficiencies in public investment by 2030 would provide the same boost to the capital stock as increasing government investment by five percentage points of GDP in emerging market economies, or by 14 percentage points of GDP in low-income countries.

To conclude, while the scope for investment differs across countries, depending on infrastructure gaps and fiscal space, ensuring efficient infrastructure spending is crucial for all countries.

The IMF chief cited the Global Commission on the Economy and Climate’s finding that integrating lower emission standards into infrastructure investment would cost only a tiny fraction (about 4.5%) of total projected spending.

Efficient investment can be good for growth, good for jobs and good for the environment. n Anoop K Menon is the editor of Infrastructure Middle East, a sister publication of Big Project Middle East

DECEMBER 2014

MIDDLE EAST

the long term as a result of supply effects, as the productive capacity of the economy increases with a higher infrastructure capital stock.

In a sample of advanced economies, an increase of one percentage point of GDP in investment spending raises the level of output by about 0.4% in the same year and by 1.5% four years after the increase. In addition, the boost to GDP a country gets from increasing public infrastructure investment offsets the rise in debt, so that the public debt-to-GDP ratio does not rise. Thus, if done correctly, public infrastructure investment pays for itself.

The study also presents evidence from advanced economies that suggests that an increase in public investment that is debtfinanced can have larger output effects than one that is budget neutral (by raising taxes or cutting other spending), with both options delivering similar declines in the public-debt-to-GDP ratio. But it also cautions that this should not be interpreted as a blanket recommendation for debt-financed public investment, as adverse market reactions – which might occur

55

TENDERS

bigprojectMe.com

tOP teNdeRS stAtus New tender

Project oBHuR CReek CRossinG PRojeCt Budget $1,000,000,000 Project Number MPP2947-SA reGIoN Jeddah 21481, Saudi Arabia clIeNt Jeddah development & urban

Project Royal GReens Golf CouRse PRojeCt - al MuRooj Budget $23,000,000 Project Number BPR647-SA reGIoN Jeddah, Saudi Arabia clIeNt King Abdullah economic City Address Red Sea WebsIte www.kaec.net descrIPtIoN Construction of an 18-hole championship golf course encompassing an area of 800,000 square metres, with a length of play of 6,295 metres stAtus Current Project

Regeneration Company (Saudi Arabia) Address Al Maadey Street PostAl/ZIP code 3630 PhoNe (+966-12) 614 2166 FAx (+966-12) 614 0642 emAIl info@jdurc.com WebsIte www.jdurc.com descrIPtIoN design and construction of a concrete arch bridge spanning 380 metres long and 75 metres wide comprising 8 lanes for road traffic, a single railway line and two sidewalks stAtus New tender

Project CanCeR tReatMent CentRe kinG HaMad univeRsity HosPital

Project Ras al Hadd touRisM PRojeCt develoPMent

Project Number WPR414-B reGIoN Bahrain clIeNt King Hamad university Hospital Address Bldg. 2435, Road 2835, Block 228, Busaiteen, Al Muharraq PostAl/ZIP code 24343 PhoNe (+973) 1744 4444 FAx (+973) 1744 4449 WebsIte www.khuh.org.bh descrIPtIoN Construction of a Cancer treatment Centre at a hospital comprising 120 beds stAtus Current Project

Project natuRal Gas PiPeline PRojeCt - BadRa oil field Budget $190,000,000 Project Number MPP2914-IQ reGIoN Baghdad, Iraq clIeNt Oil exploration Company - OeC (Iraq) PostAl/ZIP code 476 PhoNe (+964-1) 727 0710 FAx (+964-1) 727 0565 emAIl oec@iraqioec.com WebsIte www.iraqioec.com descrIPtIoN engineering, Procurement and Construction (ePC) contract to build a 24-inch, 100-kilometre-long natural gas pipeline to transport up to 4.4 million cubic metres per day of gas stAtus Current Project

Budget $85,000,000

Budget $650,000,000 Project Number BPR649-O reGIoN Lusail, Qatar clIeNt Qatari diar Real estate Investment Co. Address Qatari diar Visitors Center PostAl/ZIP code 23175 PhoNe (+974) 4497 4444 FAx (+974) 4497 4333 emAIl info@qataridiar.com WebsIte www.qataridiar.com descrIPtIoN development of an eco-theme project covering an area of approximately 1.848 million square metres

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

56

MIDDLE EAST

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

DECEMBER 2014

TENDERS

bigprojectMe.com

Middle east teNdeRS sPoNsored by

ProvIded by

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

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

PerIod 2016 stAtus New tender desIGN coNsultANt Conin Incorporated Consultants (dubai) teNder cAteGorIes Construction & Contracting, Hotels teNder Products Hotel Construction

sPArkle toWers Project dubAI mArINA

uAe hIGh-rIse toWer Project - dubAI World trAde ceNtre AreA Project Number MPP2950-u reGIoN dubai, uAe clIeNt Investment Corporation of dubai (ICd) Address dubai International Financial Centre, dIFC - gate Village 7, 6th Floor PostAl/ZIP code 333888 PhoNe (+971-4) 707 1333 FAx (+971-4) 707 1444 emAIl info@icd.gov.ae WebsIte www.icd.gov.ae descrIPtIoN Construction of a highrise tower stAtus New tender mAIN ArchItect Nikken Sekkei Ltd.

(Japan) structurAl coNsultANt WSP Middle east (dubai) Project mANAGer Mace International Ltd (dubai) teNder cAteGorIes Prestige Buildings teNder Products High-rise towers

byblos hotel Project PAlm jumeIrAh

budGet $245,000,000 Project Number BPR639-u reGIoN dubai, uAe clIeNt tebyan Real estate development (dubai) PostAl/ZIP code 83034 PhoNe (+971-4) 269 2989 FAx (+971-4) 269 2988 emAIl admin@altebyan.ae WebsIte www.altebyan.ae descrIPtIoN Construction of three residential towers comprising 29

floors, 14 floors and four floors consisting a total of 288 luxury apartments and retail space, as well as several swimming pools and a fitness club PerIod 2016 stAtus Current Project mAIN coNsultANt Architectural design Consultant Architect & engineering (AdC) - dubai desIGN coNsultANt Mimar emirates engineering Consultants (dubai) desIGN coNsultANt-2 Adnan Saffarini engineering Consultants (dubai) INterIor desIGN coNsultANt Swarovski Middle east FZe (dubai) mAIN coNtrActor Sun engineering & Contracting Company L.L.C (dubai) FouNdAtIoNs, eNAblING & PIlING coNtrActor Middle east Foundations group L.L.C (dubai) teNder cAteGorIes Prestige

budGet $50,000,000 Project Number WPR477-u reGIoN dubai, uAe clIeNt Byblos Hospitality (dubai) PhoNe (+971-4) 346 0111 FAx (+971-4) 346 0333 emAIl info@bybloshospitality.com WebsIte www.bybloshospitality.com descrIPtIoN Construction of a fourstar hotel comprising 144 rooms

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS

58

MIDDLE EAST

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

DECEMBER 2014

TENDERS

sAudI ArAbIA butAdIeNe extrActIoN PlANt exPANsIoN Project Project Number BPR650-SA reGIoN 31961 Jubail Industrial City, Saudi Arabia clIeNt Arabian Petrochemical Company - Petrokemya PostAl/ZIP code 10002 PhoNe (+966-3) 3587000 FAx (+966-3) 3584480 descrIPtIoN engineering, Procurement and Construction (ePC) contract for the expansion of a Butadiene extraction Plant stAtus New tender Feed coNsultANt Kellogg Brown & Root (Saudi Arabia) teNder cAteGorIes Industrial & Special Projects teNder Products Chemical Plants

omAN coIl coAtING PlANt Project budGet $32,000,000 Project Number WPR246-O

reGIoN Muscat PC 133, Oman clIeNt Oman Aluminium Rolling Company Address Al Fardan Building, Meydan Al Azaiba PostAl/ZIP code 1865 PhoNe (+968) 2462 1900 FAx (+968) 2452 3050 emAIl info@oman-arc.com WebsIte www.oman-arc.com descrIPtIoN engineering, Procurement and Construction (ePC) contract to build a state-of-the-art Coil Coating Plant with production capacity of 25,000 tonnes per annum PerIod 2015 stAtus Current Project mAIN coNtrActor Leighton Middle east LLC (Oman) teNder cAteGorIes Industrial & Special Projects teNder Products Steel Mills

eGyPt GAs to PolyProPyleNe PlANt Project Project Number ZPR1378-e terrItory Cairo, egypt clIeNt egyptian Petrochemicals Holding Company (eCHeM) Address eCHeM Bldg., Complex 5 Street, New Cairo

PostAl/ZIP code 2130 PhoNe (+20-2) 2759 8300 FAx (+20-2) 2759 8303 emAIl info@echem-eg.com WebsIte www.echem-eg.com descrIPtIoN engineering, Procurement and Construction (ePC) contract to build a gas to polypropylene (gtP) plant with capacity of 300,000 tonnes a year PerIod 2017 stAtus New tender sPecIAlIst coNsultANt uOP Middle east (dubai) sPecIAlIst coNsultANt 2 technip (Abu dhabi) techNIcAl coNsultANt uhde engineering (egypt) techNIcAl coNsultANt 2 CB&I (dubai) techNoloGy ProvIder Linde engineering Middle east (Abu dhabi) teNder cAteGorIes Industrial & Special Projects teNder Products Chemical Plants, Olefin & Aromatics Plants

kuWAIt oleFINs 3 PetrochemIcAls PlANt Project budGet $10,000,000,000 Project Number MPP2945-K terrItory Safat 13011, Kuwait clIeNt Petrochemical Industries Company - PIC (Kuwait) Address Building 1084, PostAl/ZIP code 1084 PhoNe (+965) 321 1000 / 321 1752

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

DECEMBER 2014

MIDDLE EAST

Buildings teNder Products High-rise towers, Residential Buildings

FAx (+965) 321 1171 / 321 1754 emAIl media@pic.com.kw WebsIte www.pic.com.kw descrIPtIoN engineering, Procurement and Construction (ePC) contract for the development of a Petrochemicals plant stAtus New tender sPecIAlIst coNsultANt KBC Advanced technologies (uK) teNder cAteGorIes Industrial & Special Projects teNder Products Olefin & Aromatics Plants

59

INDUSTRY EVENT THE BIG 5

60

MIDDLE EAST

Big numBers Last year, The Big 5 had 74,000 industry visitors.

That number is expected to increase for the 2014 edition.

DECEMBER 2014

bigprojectMe.com

INDUSTRY EVENT THE BIG 5 increased numBers Despite a relatively quiet first day, visitor numbers picked up on days two and three.

INDUSTRY eVenT

The Big 5 goes Bigger Than ever in 2014

Big Project Me was at the Big 5 DuBai to rePort on the return of the region’s Biggest construction traDe show. jerusha sequeira rePorts held at the Dubai international Convention and exhibition Centre from November 17-20. exhibitors from the world over set up shop at Big 5, keen to capitalise on the growth expected in the country’s construction and infrastructure sectors.

“This is our sixth time exhibiting here at Big 5. We had an absence of four years,” andrew archbold, export manager at Catnic, a Tata steel enterprise, told Big Project ME. “i thought it was the right time

to come back and make the statement that Catnic is here as a product from the UK.” Business and networking were not the sole focus at the event, which featured several workshops, technical seminars and panel discussions on topics ranging from green building regulations and dispute resolution to project management and PPP financing. a two-day sustainable Design & Construction Conference was held on the second and third day of the show.

“The conTinued deVelopmenT of The regional consTrucTion indusTry, along wiTh goVernmenT focus on infrasTrucTure deVelopmenT, Bodes well for The secTor”

DECEMBER 2014

MIDDLE EAST

This year’s Big 5, co-located with Middle east Concrete and PMV Live, played host to over 2,700 exhibitors from 60 countries, a 25% increase on last year, the show’s organisers said. Last year, it attracted more than 74,000 industry professionals from 124 countries, with numbers expected to be higher this year, according to andy White, group event director for the exhibition.

The Big 5’s success reflects the renewed optimism in the construction industry in the gCC. according to a report by Ventures Onsite, gCC countries will award construction contracts worth $195.67 billion this year, an increase of $35 billion from 2013.

The Uae is set to see its gDP increase by 4% to over $400 billion, with growth largely fuelled by the construction sector.

While the first day of the show seemed relatively quiet, the exhibition picked up pace over the next three days as industry visitors flocked to the stands at the event,

61

INDUSTRY EVENT THE BIG 5

The keynote speaker at the opening of the conference was hussain Nasser Lootah, director general of Dubai Municipality. Lootah revealed details of an emirate-wide move for all buildings to be built using ‘green concrete’ by early 2015. “sustainability has quickly picked up in the region, especially in the Uae, and we continue to see major advances in green buildings,” said Mario seneviratne, managing director of green Technologies. another hot topic at the educational sessions was inevitably the expo, with experts analysing its impact on the country’s construction and infrastructure sectors. Craig Plumb, director of research at JLL, spoke about the legacy of the expo in the years following 2020, and told Big Project Me that he thought audience feedback at his session was “very positive”.

Commenting on the exhibition, he added that construction companies regionally seem to be once again setting their sights on Dubai, after a period of increased interest in Qatar and saudi arabia. “i think a lot of the construction and contracting companies are now moving back, looking at Dubai again.”

The Big 5 2014 was also a big hub for innovation, with international brands and

62

MIDDLE EAST

firsT-Time exhiBiTors A number of companies decided to exhibit at The Big 5 for the first time, a clear sign of the return of the Dubai construction market.

DECEMBER 2014

bigprojectMe.com

“susTainaBiliTy has quickly picked up in The region, especially in The uae, and we conTinue To see ma jor adVances in green Buildings”

local companies alike showcasing cutting-edge products via live demonstrations at the event. a first for the show this year was the innovation Trail, a new feature that took visitors on a journey through the show with stops at preselected stands featuring innovative products. atelier sedap was one of the 39 companies on the Trail, presenting its Mini Blade 35, a product used by architects and interior

designers to create a seamless ready-made plaster profile for recessing linear LeD lighting.

“This is our first time at The Big 5, as we are strongly entering the Middle east market, having worked on projects in the region before. The Big 5 is one of the best shows to attend in order to meet industry professionals,” said amira Testouri, business development manager at atelier sedap.

Co-located with The Big 5 was the PMV Live exhibition held outdoors, which gave exhibitors the opportunity to showcase machinery and commercial vehicles to prospective buyers. german manufacturer MaN Truck & Bus was one of many companies exhibiting. “it’s a pleasure to be back once again at The Big 5 to demonstrate our innovative product portfolio and support services which deliver great advantages for our clients in the construction sector,” said Markus geyer, head of sales region Middle east & africa, MaN Truck & Bus ag.

“The continued development of the regional construction industry, along with government focus on infrastructure development, bodes well for the sector and is a positive sign for MaN Truck & Bus.”

CMME Heavyweights has all you need to know about the top players in the region’s construction machinery and heavy equipment market. The CMME Heavyweights coffee table book is a valuable resource for not only business entities but also customers looking for a ready reckoner of key industry players.

Published: Januar y 2015 adline: Advertising de r 30th Decembe 2014

Print run 10,000 copies of Iveco, CNH’s gical innovation among the vania, of technolo who are today born in Pennsyl brands and FPT, ew Holland was ve industries. in their respecti New Holland global leaders proven USA in 1895. the resources, today a global, By bringing together Construction is expertise of technological ction Equipment experience and al has full line Constru ies CNH Industri ction equipment and innovation.” the three compan taking New Brand the constru , use capable of together the heritage created a powerho to new heights. brand that brings coverage of its sister brands de and worldwi Holland is built of this experience and of equipment ivity, shaped the history Its full offering brands that have l, global rs’ needs for product of CNH industria around the custome industry. It is part performance and , that bring environmental goods platform ed safety, capital specialis four top Powertrain and includes CNH and Fiat fuel efficiency, as together Iveco, sectors, such to create an ial (FPT Industrial) lines for key industry Technologies se with a cture, or resident de commercial enterpri demolition, infrastru industrial and hip with its worldwi l solidity and rs focus, financia building. In partners the clear strategic it supports custome necessary to realise network of dealers, ent. the independence vehicles, cycle of their equipm its commercial for the full life Construction full potential of equipment, and years, New Holland ction the y Over constru agricultural and ive record of reliabilit ain businesses. marine powertr has built an impress heritage industrial and rich the is building on CNH Industrial

N

NEW HOLLAND

42

Best known for: Volvo Construction Equipment, Volvo Trucks, Linde, Yanmar, Himoinsa, SDLG, Ingersoll Rand & Merlo

F

Famco

Four page company profile

27 FAMCO

FAMCO

nd New Holla

E-version

Second edition

Look out for: Wheeled excavators Best known for: rs, Skid steer loade Wheel loaders, TLB

26

NEW HOLLAND

43

C DRAGAN KRZNARI BUSINESS MIDDLE EAST CE DIRECTOR, CNH New Holland “Over the years, built an Construction has of reliabilit y impressive record

amco is one of the most progressive dealers to emerge out of the UAE market and is expanding across the region.

Since 2010 it has ramped up its rental business and consolidated its presence in the UAE market as the exclusive dealer for a number of big name, small niche companies such as Yanmar, the Japan-based power generator company, Linde, the German materials handling equipment provider, and Spanish genset maker Himoinsa.

Meanwhile, its relationship with the Volvo brand, through cars, trucks and particularly heavy equipment, remains a powerful offering to the market. The partnership arguably grew closer with the acquisition of the Swedish manufacturer’s Saudi dealer Al-Rehab in 2011.

Famco wants to flex its muscles in the Kingdom taking what it has learned elsewhere in the UAE and Oman about providing joined up sales and service to new customers.

Paul Floyd, managing director of FAMCO (Al-Futtaim Auto & Machinery Co), says that ‘aspirational development’ in the Kingdom of Saudi Arabia has helped the company go from strength to strength since it acquired Al-Rehab.

Floyd said that the company is now in a position to grow the operation on the back of continuing infrastructure investment in the Kingdom.

“The company’s performance has grown from strength to strength across the country and in line with the region’s sustained economic growth,” he said. “Saudi Arabia’s aspirational development plans across many

STRONG PARTNERSHIP Famco’s relationship with the Volvo brand, through cars, trucks and particularly heavy equipment, remains a powerful offering to the market.

For advertising opportunities: Michael Stansfield Commercial Director Direct: +971 4 375 5497 michael.stansfield@cpimediagroup.com

CONSTRUCTIVE CRITICISM cRITIcISm

bigprojectMe.com bigprojectMe.CoM

MuhaMMad Tariq Shafiq

Capacity Building for BIM Muhammad Tariq Shafiq explains why the uae needs to create greater awareness and exposure to BiM methodologies

64

MIDDLE EAST

The previous arTicle highlighted that client organisations and building owners need to play a leading role in integrating Building information Modeling (BiM) into the construction industry. construction industry clients are strictly valuedriven and therefore can only create demand for BiM and lead the process if they understand it in terms of tangible benefits. This requires proper BiM education, with the aim of raising awareness of recent developments in BiM at an executive level, away from technical jargon.

The ‘BiM Buzz’ in the local construction industry has pushed construction professionals to quickly learn new software skills with very little understanding of the process and information required to maximise return on investment, which means the industry is focused on the technology rather than the collaborative working that is the backbone of BiM. This becomes critical to client organisations, as they are the party that should specify BiM requirements which the supply chain (consultants and contractors) has to respond to and comply with. recent BiM events in the uae have generally increased the overall maturity of the local industry in terms of the bigger picture of BiM. however, training and education in the region still relies on basic technology (software) training and

DECEMBER 2014

software functionalities, which only represents the technological aspects of BiM and does not contribute to developing the knowledge and skills required to push BiM adoption.

This software-led BiM education has created vendor silos in the industry, limiting client options to consultants and contractors working on the same software platform, and thus reducing client leverage power if they want to keep up with BiM in their projects.

This situation was recognised in the uK, leading to the construction of BiM academic Form (BaF) and BiM learning outcomes Framework by the uK BiM Task Group. The aim of these initiatives was to join industry and academia to deliver BiM education and training, supporting the up-skilling of workforces and organisations to achieve the uK’s BiM adoption targets by 2016. as a result, the majority of uK universities have incorporated BiM into their construction curriculums, and are currently working towards creating partnerships with industry to understand market requirements and provide relevant training and educational materials. also, a number of successful academiaindustry knowledge exchange forms have emerged, and professional institutes in the uK now offer BiM training programmes and certificates,

which are recognised internationally and empower the uK construction industry and clients towards achieving the BiM adoption objectives. similar initiatives are needed in the uae, to create greater awareness of and exposure to BiM methodologies with the client as the focus, articulating the necessary changes in work practices, people and legal frameworks for BiM implementation and adoption to succeed. executive BiM programmes should focus on making sure ceos and senior managers are acquainted with the overall understanding of BiM and effective ways to manage its implementation within organisations and throughout the life cycle of projects. Technical BiM programes should address the relationship between BiM and work practices, technology and the principles of collaborative working. a critical factor is greater collaboration between industry and academia to achieve this, as recognised in the uK, sharing knowledge and practice to drive BiM training and education in the region. it is up to policy-makers in the uae to encourage and initiate such ventures, by working with academic peers and industry leaders in the field. This is the key to unlocking the potential of BiM, for a better construction industry.

Dr Muhammad Tariq Shafiq is a BIM manager at Imirati Engineering & Consultants (IEC), Abu Dhabi.

OPEN FOR ONE EXTRA DAY TO DO BUSINESS