Big Project ME July 2016

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124

JULY 2016 meconstructionnews.com

THE BUSINESS OF CONSTRUCTION

“It’s lIke waking the giant up. We’Ve done Very Well and there’s an opportunIty here to keep that goIng” Colin timmons, the new Ceo of al naboodah ConstruCtion group, speaKs exClusively to big project me

Contents

Issue 124 July 2016 08

16

20

28

40

46

06 ME Construction News.com

16 Cost of construction disputes

36 Going to waste

08 Aurecon wins The Tower

20 Colin Timmons

40 More than the cup

12 India’s L&T for Qatar stadium

28 The quick fix

OnlIne

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

Building consultancy will be architect of record for record-breaking Emaar project InTernaTIOnal news

Indian contractor wins contract for $135m World Cup 2022 Al Rayyan stadium in Qatar

14 Palm Jumeirah overview MarkeT repOrT

Savills’ report looks at market response to apartments and villas on Dubai’s Palm Jumeirah

analysIs

Simon Lofthouse details the costs incurred when engaging in construction disputes In prOfIle

Big Project ME speaks exclusively to the new CEO of Al Naboodah Construction Group prOJecT prOfIle

Big Project ME profiles KEF Holdings’ hospital project in Calicut, India, built entirely using off-site construction technology

34 Printing out a 3D strategy TechnOlOgy

Jeppe Frandsen of Canon outlines how he intends to tap into the 3D printing market

cOnsTrucTIOn wasTe

Dr Khaled Hassan of TRL explains how to reshape Qatar’s construction waste problem InfrasTrucTure

Big Project ME talks to Siemens Middle East CEO Dietmar Siersdorfer about the potential in Qatar

50 Top tenders Tenders

Listing the top construction and infrastructure tenders for July 2016

52 The impact of Brexit on UAE lasT wOrd

Amit Shukla analyses the UK referendum and its impact on the UAE construction market July 2016 1

Introduction

Building on past success

T

his month, I was delighted to get an exclusive interview with Colin Timmons, the new CEO of Al Naboodah Construction Group, who had some very interesting things to say about where this venerable company is headed.

Although ANCG has a long heritage in Dubai, as a company they’ve always been keen to continue doing their work quietly and efficiently, without really drawing attention to themselves in the media.

That’s why I was so excited to finally get a chance to hear what this company is all about, and I was not disappointed.

During the interview, one of the things that Colin Timmons was keen to stress was that he’s coming in to build on the work of his predecessor, Steve Lever. The groundwork for ANCG’s future has been laid, he says, and his job is now to build upon it, with the help of the owners, the Al Naboodah family.

What’s heartening to see is the longterm, steady commitment to the growth of the company. Given the uncertain economic environment we find ourselves in, being patient and steadfast is the best way to go about ensuring that your company’s future is secured.

Given the decisions already being made at Al Naboodah Construction Group, I think it’s safe to say that

eDItorIAL eDItor gAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480

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

oNLINe eDItor BEN FLANAgAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE

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aelred.doyle@cpimediagroup.com ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496

Supported by

coMMercIAL DIrector MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 SALeS MANAGer FAAJU ABDULFATAH

M

‫ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ‬

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Colin Timmons and the rest of the leadership team are on the right track.

Of course, I couldn’t end without mentioning the event that has rocked global markets and taken every expert by surprise.

The UK’s exit from the European Union is going to have serious repercussions for both it and Europe, and sadly there’s going to be a lot of pain and anguish coming from this short-sighted decision.

I have to wonder, though, what kind of impact it will have on the GCC construction and real estate market.

The British diaspora is one of the largest and wealthiest in the region, and there are a number of British construction firms working here. Surely they’re likely to see some impact from Brexit.

Hopefully things won’t be too bad, but I can’t feel too optimistic about it.

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

MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DeSIGN Art DIrector SIMON COBON cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIPIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI SHAHAN NASEEM

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CONSTRUCTION

NEw DIMENSIONS ON

L&T wins Qatar World Cup stadium contract

3D-PRINTED bUILDINgS

CONSTRUCTION

Dubai tower to soar 100m taller than Burj Khalifa

In pictures: works progressing at Abu Dhabi airport Midfield Terminal

The new “3D printed” building next to Emirates Towers (‘World’s ‘first 3D-printed office’ opens in Dubai’) is certainly the shape of things to come.

If this structure took just 17 days to ‘print’, then it’s not difficult to imagine how such technologies will start to transform our industry.

It will be interesting to see what kind of regulation and issues around building standards this throws up.

James Scott, online comment

CONSTRUCTION

Nakheel completes ground works for $545m mall

TIME TO bLACkLIST PROvIDERS OF POOR CLADDINg

The poor quality of cladding used

PROPERTY

in some buildings

Dubai rent declines accelerating – report

means that fire can reach the top within a matter of seconds.

It’s very dangerous and officials should blacklist companies supplying such panels and make a safer

INFRASTRUCTURE

Kuwait awards $4.3bn airport contract 6 July 2016

environment for all. video: The Future of building Things Panel Discussion

KamS, online comment

Bringing the latest

construction news from across the GCC

www.meconstructionnews.com

The big picture

Dubai’s new landmark The Tower will be 100 metres taller than the Burj Khalifa, Mohamed Alabbar has said.

Aurecon appointed to Emaar Properties’ record-breaking ‘The Tower’ project Building consultancy will be engineer and architect of record for project Aurecon has been appointed engineer and architect of record of The Tower in Dubai, which is set to soar 100 metres above the Burj Khalifa, currently the world’s tallest skyscraper. The building consultancy, which is headquartered in Australia and South Africa, said that it has been appointed to the $1 billion project being developed by DFM-listed Emaar Properties.

Work has started on the “iconic” structure, which is “set to become one of the world’s most recognisable buildings”, Aurecon said. The skyscraper, being built at Dubai Creek Harbour, was designed by architect and engineer Santiago Calatrava, who chose Aurecon for the work.

“The Calatrava team were looking to work directly with our experts who have had 8 July 2016

hands-on project experience on other supertall and similar mega projects. Not only were they assured of such a working arrangement, they were further impressed by our open, flexible and collaborative approach,” said Adrian Jones, Aurecon’s project director for The Tower.

“The Tower will test the craftsmanship of Aurecon as we play our part in making a mark on the built fabric of mankind…

It is an absolute privilege to be entrusted by Santiago Calatrava and Emaar Properties to work on this project, and we have assembled a stellar team to bring this idea to life.”

The Tower will include an oval-shaped bud that will house ten observation decks, including The Pinnacle Room, which will offer 360-degree views of the

Project details the tower will be 100m taller than the Burj Khalifa the project is estimated to cost $1 billion, according to emaar the Pinnacle room will offer 360-degree views of the city the ViP observation Garden decks will be reminiscent of the Hanging Gardens of Babylon

city and beyond. It will also have a boutique hotel, a few floors of gardens, restaurants and function halls, Mohamed Alabbar, Emaar Properties chairman, said.

The VIP Observation Garden Decks will be reminiscent of the Hanging Gardens of Babylon, Emaar said in a press release. “It will also serve as a beacon of light at night, with a lighting system that will evoke the features of a flower bud, as it seemingly hovers atop the structure,” Aurecon said.

Alabbar added that the new tower will have cables supporting the building, which he said had been designed by Calatrava to look like jewellery. Design work for the project is already underway, with the timeframe for the work set at approximately four years, he added.

The big picture

Saudi land tax to spur development – JLL tax likely to see project plans brought forward and a drop in land values An upcoming tax on vacant land in urban areas of Saudi Arabia will spur development in the kingdom, consultancy JLL has said.

Saudi Arabia’s cabinet this week approved details of the tax, which is being introduced as a way to address the kingdom’s housing shortage.

The new law is likely to see some landowners bring forward building plans to avoid the tax burden, JLL predicts, according to a report by Arab News.

Other landowners are likely to seek to sell plots to other developers, which should help reduce land values, further stimulating activity.

Revenues from the tax will also allow the government to undertake additional housing projects, the report added.

“The new law will result in a fundamental change in Saudi Arabia’s real estate market and help stimulate further development to address the severe shortage of middle income housing,” Jamil Ghaznawi, head of JLL in Saudi Arabia, is reported as saying.

Fees on undeveloped land will be introduced in stages, according to an earlier statement by the state news agency SPA. The law will first be applied to undeveloped land with an area of 10,000sqm and up, and later to plots of more than 5,000sqm.

“The Ministry of Housing shall collect the applied fees in this regard as well as the fines imposed for violation of the rules or regulations, and take the necessary measures to prevent evasion of the payment of these fees and fines,” SPA reported.

The Saudi housing ministry in May outlined the rules of the upcoming annual tax, saying that the rate has been set at 2.5% of the value of land held by individuals or non-government entities.

Analysts estimate that 4050% of land inside major cities

remains vacant, which has caused a lack of affordable housing, especially for young Saudis. Large swathes of urban land in cities like Riyadh and Jeddah remain undeveloped. The new law is intended to resolve the issue, given the current shortage of

40-50%

Estimated vacant land inside major KSA cities

affordable housing in the kingdom.

The tax was passed by the kingdom’s cabinet in November 2015 and seeks to stop the common practice of landowners keeping their plots vacant while waiting for land values to rise, or trading the plots for speculative profits.

The new tax comes in the wake of the government announcing a series of steps last year to boost home ownership, including plans to provide housing to 100,000 low-income families and a mortgage scheme.

Fundamental change Real estate experts predict that the new law will result in a fundamental change in the KSA real estate market and will stimulate further development.

July 2016 9

The big picture

Ministry of Human Resources and Emiratisation to enforce midday break 60,000 inspections to monitor summer ban on work during hottest hours A total of 18 teams will monitor for violations of the UAE summer midday break, which prohibits most work under direct sunlight during the hottest hours of the day, officials said. The three-month rule came into force on June 15 and will last until September 15, and will apply to work between 12.30pm and 3pm.

Maher Al Obed, Assistant Undersecretary for Inspectional Affairs, said 18 teams from the Ministry of Human Resources and Emiratisation will monitor the level of compliance. “Three teams are formed in Abu Dhabi, two in Al Ain, four teams in Dubai, two in Sharjah, two in Ajman, two teams in Ras Al Khaimah, two in Fujairah and one team in Umm Al Quwain,” he said.

Around 20,000 awareness visits will be made, starting from May 26, along with 60,000 inspections, taking the

total number up to 80,000.

“Ministry inspectors will for the first time deal with the smart inspections system, a new mechanism that would make it easier in terms of monitoring and documenting such violations,” Al Obed said.

It is the 12th consecutive year that the midday break rule has been in force. Working hours must be divided into morning and evening shifts, each of eight hours daily. If labourers face overtime, then they must be compensated according to the law, WAM said.

Employers violating the rule

will be fined $1,361 per person found working during the break hours, up to a maximum of $13,613 where a large number of workers is involved. Companies also face being downgraded or having their operations suspended.

For exceptional cases that require the continuation of work for technical reasons, Humaid bin Deemas, Labour Affairs Assistant Undersecretary, launched a decree stating that employers must supply workers with salt and lemon, which is approved for use by health authorities in the country. Employers must

$13,613

Maximum fine for violating the midday break

also provide all facilities that cater to the health of workers, including first aid, air conditioners, sunshades and cold water.

Works excluded from the ban include work on mix asphalt poured concretes if it is impossible to implement or supplement the necessary work in one day, or doing work to prevent expected danger, reparation, damage, malfunction or loss; also emergency work, including cutting lines, water supply, sewerage, electricity and cutting off traffic or blocking public roads, in addition to cut gas pipelines or petroleum flow.

Last year, nearly 10,000 surprise inspections were carried out by authorities in Deira and Bur Dubai between June 16 and July 23.

No Dubai-based establishments were found to be in violation of the midday break rule.

Country-wide focus 18 teams from the Ministry of Human Resources and Emiratisation will monitor the level of compliance across the country: three teams in Abu Dhabi, two in Al Ain, four in Dubai, two each in Sharjah, Ajman, Ras Al Khaimah and Fujariah, and one in Umm Al Quwain.

10 July 2016

The big picture

1 1. Car assembly unit to be set up in egypt Egyptian Trade Minister

$2.7bn

Tarek Qabil has announced that a French automaker is planning to set up a car assembly unit in Egypt

Bidding to start on East London cultural quarter

which will operate using a high proportion of locally manufactured components, Egyptian newspaper Amwal Al Ghad reported.

Following a meeting with the vice president of a French automotive firm, reported to be one of the biggest in France, the minister said that Egyptian auto component firms will be contracted to cover the needs of the unnamed French automaker’s parent company and its branches.

According to Qabil, the government plans to develop the automotive industry in Egypt in an attempt to attract other international firms to the country. He added that at present, there are over 15 firms working in the car assembly field in Egypt.

The vice president of the French firm added that the company dispatched two delegations to Egypt in February and April to review available opportunities in the automobile industry in Egypt.

12 July 2016

2. india’s l&t ‘wins Qatar world Cup stadium ContraCt’ Indian construction giant Larsen & Toubro (L&T) has won a contract to build a $135 million stadium in Qatar for the 2022 World Cup, according to press reports. “As part of a joint venture, L&T will

serve as a contractor building the 40,000-seat Al Rayyan stadium,” a Qatari government official, who declined to be named, told Reuters.

L&T also holds other contracts in the Gulf region, including a deal to build a metro line in Doha. The company did not comment

when contacted by Reuters.

It emerged in January that the Indian conglomerate’s Oman subsidiary had been awarded a $93.1 million contract to construct the terminal building and associated facilities for a regional airport in the Gulf state.

The big picture

45

Number of days it took a Chinese construction company to 3D print a two-storey house

3 2

2.62%

4

CAGR for the expansion of the construction industry in South Africa from 2016 to 2020

3. egypt sees 69% rise in building material exports in april The export of Egyptian building materials was worth a record 3.49 billion Egyptian pounds ($392.7 million) in April, a 69% increase on the same month last year, reported Amwal Al Ghad. According to Walid Gamal Eldin, chairman of the Egyptian Export Council

for Building Materials, the increase was due to the procedures adopted by the trade ministry to enhance exports.

Eldin also added that the council has a plan in place to increase building exports further within the coming months; however, this depends on collaboration with the Lebanese business council in Africa, he said.

The council is set to participate in promotional campaigns later this month in Côte d’Ivoire and Congo, in cooperation with the Lebanese side.

Eldin also said that the council plans to activate relations with Gulf states undertaking large real estate projects, thus creating more opportunities for Egyptian building manufacturers.

4. Qatar investment authority buys $2.45bn singapore tower Singapore’s Asia Square Tower 1, in the Marina Bay business district, has been sold by a BlackRockadvised fund to the Qatar Investment Authority for $2.45 billion. CBRE and Jones Lang LaSalle were the joint advisors for the transaction.

The 1.25 million square foot tower currently has the largest floor plate in the Marina Bay area and has been awarded Green Mark Platinum status. Its anchor tenant is Citi, while other tenants include Google Asia Pacific, Swiss National Bank and Vodafone.

“The sale of Asia Square Tower 1 to the Qatar Investment Authority underlines the strong demand for prime core assets around the world, and the ongoing appeal of real estate as a prized asset class,” said Rob Blain, executive chairman at CBRE Asia Pacific.

“This transaction is a great result for the BlackRockadvised fund, the QIA and for Singapore itself, as the city cements its position as one of the most important commercial real estate markets in the world.”

July 2016 13

Market report

palm jumeirah dub a

14 July 2016

Palm Jumeirah villa price trends Annual rent

Dubai villa average rent

an estimated 150-200 villas are currently available for sale on Palm Jumeirah. More units are anticipated to be held by investors as many are not pressed financially to sell in this bottoming market, while few others look towards commanding premiums by

refurbishing existing units and attracting buyers looking for contemporary products.

A strong recovery in prices is thus not anticipated in the near term as we expect this underlying stock to keep the sales prices static even if the demand revives in the coming quarters.

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

20

Q3 2014

500

Q2 2014

40

Q1 2014

1000

Q4 2013

60

Q3 2013

1500

Q2 2013

80

Q1 2013

2000

Q4 2012

100

Q3 2012

2500

Q2 2012

120

Q1 2012

3000

However, our mid to long term outlook is cautiously steady as we expect continued demand for prime Palm villas from international occupiers seeking an unmatched address and lifestyle, along with very low levels of new supply, to keep the prices stable.

Rental price (AED/sq.ft/annum)

Dubai villa average sale

Source: REIDIN, Core - UAE Associate of Savills Research

Sales

Sale price (AED/sq.ft)

Palm Jumeirah villas The current sluggish market has considerably weighed down upon this micro-market as overall villa transactional activity levels dipped approximately 25% while the prime villas (sale price above AED 10 million) saw activity levels plunge 44% year-on-year.

Surprisingly, sales prices per sq. ft. remain relatively steady with only a 4% year-on-year drop as landlords continue to command prices for well-maintained or refurbished properties.

However, the Palm Jumeirah villa rental market saw a 7% year-on-year drop, resulting in a marginal drop in yield levels, as tenants slowly move towards value for money products with similar locational advantages, such as apartments on Palm Jumeirah and Dubai Marina.

With a total stock of approximately 1,700 villas,

Market report

ai market overview Palm Jumeirah apartment price trends Dubai apartment average sale

Annual rent

Dubai apartment average rent

probable oversupply concerns, only partial stock is anticipated to be prime. As rental differentials for properties in prime locations are somewhat marginal, we expect tenants to favour Grade-A prime apartments and foresee a flight to quality manifesting. Although we don’t forecast a turnaround

in prices in the near-term, the strong underlying rental demand resulting in stable yields should keep investors engaged in this prime apartment submarket in the mid to long-term. We also foresee a continued demand for leisure or holiday homes in both apartment and villa segments as the Palm’s

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

20

Q3 2014

500

Q2 2014

40

Q1 2014

1000

Q4 2013

60

Q3 2013

1500

Q2 2013

80

Q1 2013

2000

Q4 2012

100

Q3 2012

2500

Q2 2012

120

Q1 2012

3000

Rental price (AED/sq.ft/annum)

Sales

Sale price (AED/sq.ft)

Palm Jumeirah apartments Featuring similar locational advantages, Palm Jumeirah apartments enjoy an active rental market in the price segment of AED150,000 to 300,000 annual rent. Relatively steady rentals and headline occupancies at 87% in prime towers are keeping average yield levels at around 6% - almost 60% higher than Palm villas, making them a preferred product.

However, per sq. ft. sale prices in Palm apartments dropped 7% year-on-year, mirroring the downward trend of the overall Dubai residential market as total transaction activity levels dropped approximately 27%, while prime apartment transaction volumes dipped 34% year-on-year.

Approximately 6,500 - 7,500 units are currently available for sale on the Palm, while an additional 2,500 units are slated to be delivered by 2020. Despite

location, coupled with hospitality, social infrastructure and upcoming retail in the immediate vicinity should hold value for UHNWI investors who are largely resilient to the macroeconomic context although exerting only marginal upward pressure on overall prices in the short to mid-term.

active rental market Palm Jumeirah apartments enjoy an active rental market in the price segment of AED 150,000 to AED 300,000 per annum.

July 2016 15

Analysis

The CosT of ConsTruCTion DispuTes in The MiDDle easT Simon Lofthouse QC from Atkins Chambers outlines the costs incurred by construction firms when they engage in dispute resolution in the region Earlier this year, global design consultancy firm Arcadis issued its Global Construction Disputes Report. The report has generated discussion in the region, noting that the Middle East now heads the list for the average value of disputes ($82m), swapping places with Asia ($67m). While in this article I offer some observations on the figures, I had no involvement in their collation.

It is to the credit of those who conduct dispute resolution in the Middle East that, on these figures, they do not head the list so far as the average length of dispute is concerned. In that regard, the average period taken between the formalisation of a dispute under the contract and the time of settlement or conclusion of the hearing, the Middle East ranks third of the five regions identified, the balance of which are North 16 July 2016

heading the list The Middle East now heads the list for the average value of disputes at $82 million, swapping places with Asia at $67 million.

Analysis

America, the UK and Continental Europe. With an average of 15.2 months, the resolution of disputes is significantly faster than in Asia (19.5 months) and beats the stated global average of 15.5 months.

Allied with discussion about the increase in value of disputes, it has been suggested that the cost of resolving those disputes is similarly increasing. This article considers those issues and offers suggestions as to why this might be the case.

The Increased Value of Disputes

There are many factors which contribute to determining the size of a dispute. The most obvious are the size and nature of the project. All things being equal, parties are less likely to generate a $50m dispute on a $10m project than on a $1bn project.

When one is considering major projects, the Middle East is rightly admired for the engineering and architectural prowess evident in so many of the projects with which readers will be familiar.

While larger value projects are more likely to generate disputes of a significant value, this is of course only one of the driving factors.

Given that a dispute, at its most basic level, is a failure to agree, this highlights the importance of the relationship between the parties.

When considering construction and engineering disputes, it must be recognised that any large project has a number of stakeholders.

Beyond the employer and the contractor, there are subcontractors for work and materials and supply chains. In addition to those charged with building the project, there are those responsible for its design and supervision. Standing behind all of this are those providing the finance needed to turn aspirations into concrete reality.

While attempts are frequently made to combine the various contributing elements into fewer responsible parties, whether

“The vision and foresight of those charged with delivering worldrecognised architectural engineering and infrastructure projects carry with them the seeds of significant value disputes� by design and build contracts, PFI schemes or EPC contracts or otherwise, the nature of the individual disciplines and their necessity to satisfactory completion of the project remains.

The global survey identified failure to properly administer the contract as the most common cause of disputes in the areas surveyed.

This ranking was unchanged from the previous year. Those who conduct dispute resolution in the Middle East will not be surprised to see contract administration looming large as a cause of dispute.

There are a number of reasons for this. However, one aspect of the region is the relationship which often exists between those administering a contract and the employer who pays their fees. It is frequently argued in arbitrations concerning projects in the Middle East that the consultant team administering the contract did not act fairly and independently as between the employer and others, usually the contractor.

In other regions, particularly those where common law has an influence, arbitrators and courts tend to consider such allegations at best tangential to the central issue and at worst little more than an attempt to stir sympathy in the minds of those hearing the dispute. The reason for such an approach is that the ultimate question for the tribunal is one of resolving the proper rights and entitlements of the parties before it.

That decision has been placed by the parties in the hands of their chosen tribunal and, to a large extent, the independence or otherwise of those administering the contract is very much a secondary condition to deciding the issue of entitlement.

In the Middle East, parties frequently have recourse to criticisms of those administering the contract, not just for any perceived tactical benefit in arousing sympathy in the tribunal as to how they were treated, but also with a view to specific relief.

The concepts of good faith and mutuality of obligations, which are of such importance in the codified legal structure in the region, frequently provide a contractor with an avenue of recovery that in other legal systems might be denied.

While figures are not provided for the comparative average cost of disputes, there is clearly a relationship between cost and the length a dispute takes to be July 2016 17

Analysis

resolved. On analysis and in my experience, people should be slow to criticise those charged with resolving disputes in the Middle East for the costs of such resolution. Again, there are a number of reasons for that view.

Most obviously, if it is accepted that, all other things being equal, large value disputes on average take longer to resolve than small value disputes, the Middle East has a very good story to tell.

It has the largest disputes but, as noted above, facilitates the resolution of those disputes in a shorter period than other regions, indeed even better than the average length of all regions considered by the report.

However, one must be careful about drawing too much comfort from headline figures which are, by their nature, a combination of many inputs.

First, the fact that a dispute is related to a major project in the Middle East does not necessarily mean that the resolution of that dispute will take place there or, if so, that regional law or procedure will invariably apply.

As has been said on many occasions, the contract is the law of the parties and it is for them to specify applicable substantive and procedural law as well as the seat

of any dispute resolution process.

In those circumstances, it is perhaps more helpful to look at things which contribute to the cost of resolving disputes in the region, in addition to the inevitable cost consequence of high value disputes with the numerous stakeholders to which I have already referred.

It is again to the region’s credit that it recognises the concerns parties have – that prosecuting a dispute resolution process may well impose particular procedural requirements which, if not met, could render a hard-won award a nullity. This article is not the place to discuss this issue in detail or to highlight the work of the DIFC Court and similar institutions in addressing such concerns. However, there remains a perceived need for everyone involved in the formal resolution process to make sure material steps, in particular evidence gathering, are undertaken with all parties on the ground in the region, which has the very real potential to add to costs.

Another area which experience suggests is a particular cause of concern in construction and engineering disputes is the inability to resolve issues by sample. The attraction of taking sample items to reflect a far

greater number of similar disputes on a large project is obvious.

However, doing so runs the risk of challenge on the basis that any resolution of the totality based on sample is unenforceable.

Again, while perceptions differ, as do views on the merits of such an argument, what cannot be denied is that it remains a real concern. In turn this, naturally, leads to a disinclination in any dispute resolution tribunal to adopt a course that might ultimately prove a wellintentioned but fruitless shortcut.

Further, given the nature and extent of disputes in the Middle East, it has a clear attraction to those providing dispute resolution services. As with other dispute resolution centres, those service providers come from all over the world. Nevertheless, too often a tribunal has insufficient experience or lacks proper assistance as to the operation of the applicable legal codes. It remains common for disputing parties to be directed to provide specific expert evidence on applicable law.

Such directions, by their nature, invite cross-examination and re-examination. Given the numerous issues of law which any significant dispute entails, this has the potential to add significantly

to the length of any formal dispute resolution hearing and to costs due to the requirement for additional experts. Thankfully, the market quickly identifies those with the necessary experience required to prosecute and determine significant construction disputes, in contrast to those who merely profess such expertise.

In conclusion, the resolution of engineering and construction disputes in the Middle East faces many of the same challenges as in all major regions. The vision and foresight of those charged with delivering world-recognised architectural engineering and infrastructure projects carry with them the seeds of significant value disputes.

Further, the adoption of often innovative and ground-breaking techniques has the potential for vigorous expert debate. It is to the credit of those responsible for providing dispute resolution services that the biggest disputes do not result in the longest dispute resolution process.

The region, like every international arbitration centre, has its supporters and detractors.

However, what the Middle East can be particularly proud of is that it will continue to attract the brightest and best worldwide.

The contract is the law of the parties It is up to the parties involved in the dispute to specify applicable substantive and procedural law, as well as the seat of any dispute resolution process.

18 July 2016

In profile

20 July 2016

In profile

“Anyone cAn come to A meeting And sell the UsP thAt they cAn deliver on time And on bUdget. thAt’s A given. yoU hAve to be Able to give something else”

Gavin Davids sits down for an exclusive chat with the new CEO of Al Naboodah Construction Group, Colin Timmons, to find out how he intends to wake this sleeping giant July 2016 21

In profile

A

fter nearly 30 years of service with Al Naboodah Construction Group (ANCG), it was announced in June this year that Steve Lever, the long-serving CEO of the Dubai-based construction giant, would finally step down from his post. Lever’s three-decade contribution to ANCG has seen the company become one of the most influential and successful construction firms in Dubai. He has overseen the expansion of the company into new markets, grown the workforce to more than 13,000 employees and encouraged the development of in-house facilities.

These achievements under Lever’s watch have significantly increased ANCG’s ability to deliver on key projects, allowing it to establish a reputation for delivering prestigious, high-profile and complex projects. These include the construction and expansion of Dubai International Airport and Dubai World Central, along with many other vital transport infrastructure projects.

Having successfully delivered so many projects, the company is now poised to move forward in its evolution, with Lever moving into a transitional role within ANCG where he will oversee work in Qatar, while also continuing to manage key clients in the UAE. While the news of Steve Lever’s retirement may have come as a surprise to some in the industry, canny observers knew that the company had been preparing for this announcement for quite some time. This is perhaps best illustrated by the ANCG statement 22 July 2016

confirming that Colin Timmons, the group’s current chief operating officer, will be stepping into Lever’s shoes as CEO. “Colin’s transition to the CEO role comes after joining Al Naboodah Construction as COO earlier this year in terms of our proactive succession planning.

He has held a number of senior roles with major UK-based construction companies, and for the last five years has been general manager in Abu Dhabi for Al Faraa General Contracting Co,” says Paul O’Flaherty, group CEO at Al Naboodah Group Enterprises, the holding company of ANCG. This is clearly an exciting time for Al Naboodah Construction, and in order to gain a clear idea of the plans afoot for this local giant, Big Project ME was granted an exclusive interview with Colin Timmons ahead of his taking over the reins on July 1.

“There was always an underlying plan to take over as

ThE Al NAbOODAh CONsTruCTiON GrOup Al Naboodah Contracting Al Naboodah National Contracting Group Trans Gulf Electromechanical National Plant and Equipment Al Naboodah Specialist Services Al Naboodah Ready Mix Concrete (ARCON) Al Naboodah Engineering Al Naboodah Contracting (Oman) Al Naboodah International Construction Company (KSA) Al Naboodah Contracting (Qatar) Trans Gulf International Electromechanical (Qatar)

moving forward With Timmons’ appointment, Al Naboodah Construction Group intends to integrate all its different business verticals so as to provide a complete solution to clients and customers.

CEO from Steve Lever, who really has been the inspiration and leader at Al Naboodah for the best part of 30 years. He’s taken the business through from the very start to where we are now,” says Timmons, speaking at the company’s new headquarters in Al Awir.

“His plan was to retire at an appropriate time and that I be bedded into the business. So when I was planning to join, the period of how long it would take for me to transition [from COO to CEO] wasn’t defined, because it was all about how well I settled into the business and how well the synergies came together,” he explains.

Although he only joined in March 2016, Timmons wasted little time in getting to grips with the business. He says that one of his first priorities was to get involved and acquainted with the company’s ongoing projects and live construction jobs, so that he could really understand

In profile

hands-on involvement Colin Timmons says that he intends to continue Steve Lever’s approach of being hands-on and involved on Al Naboodah Construction Group’s projects.

what the business was about.

“To be honest, I think the shareholders were happy that I took this view towards understanding it, rather than having some sort of presidential view that had to do with strategy and planning, but not getting involved. They quickly understood that I’m a builder at heart and that I’m the right choice for this position.”

Despite having come in to take over from Steve Lever, Timmons is adamant that he isn’t going to come in and shake things up. In fact, he’s quick to pay tribute to the work Lever has done over the last three decades, and says that it’s his responsibility to make sure things continue along the same upward trajectory.

“Steve’s had a major impact.

He built this business from the beginning to what it is today.

He’s driven the business forward with a very hands-on approach,

“Traditionally, the businesses work in silos, with each business being a financial centre with a general manager, a PNL and so on. But what I want to do is bring them together and integrate them”

and that’s my style as well. I think that’s possibly something they liked about me as well.

“At the end of the day, we build things. That’s how we make our living, and the minute you take your eye off the ball in construction, you lose money.

Steve has been very hands-on, he’s developed the company and put the staff, systems and processes in place. For me, it’s a case of consolidating what he’s done and making sure that it is business as usual, and then looking to make some slight adjustments and improvements as we go along.”

“People tell me, ‘Oh, you’re taking over from him,’ but it’s not that way for me. He’s done his part and it’s up to me to take the baton from him. It’s like a relay race. I’m not here to fill his boots. Steve’s done things the way he’s done them and it’s worked out very well, but what I need to do is keep that

momentum, keep that direction and focus on moving the business forwards,’ Timmons asserts.

In order to move the business forward he must first understand it, and as part of the process Timmons says that he has been spending three days of every month with his project teams, and will continue to. For 12 hours each day, he sits with teams from various sections of the business to go over their projects in minute detail, so that he can gain a better appreciation of the challenges on-site.

“The way you learn and the way you improve is by looking at the jobs. One of the things I’ve instigated is a project review for each project, each month.

So for three days a month, I’m locked in a conference room for 12 hours with the building teams, then the civil engineering teams and finally the MEP teams, and we review each job.

July 2016 23

In profile

“I bring in the project and commercial manager on the job and they give you a report – Are you on programme? Are you making money? Where are the problems? And so on. That’s where you learn where the issues are, what you need to resolve,” he outlines, pointing out that by taking a closer look at everything associated with a job allows him and his team to get a much clearer picture of what needs to be improved or changed.

To date, the group consists of Al Naboodah Contracting, Al Naboodah National Contracting Group, Trans Gulf Electromechanical, National Plant and Equipment, Al Naboodah Specialist Services, Al Naboodah Ready Mix Concrete (ARCON) and Al Naboodah Engineering; and that’s just in the UAE. The company also has operations in Oman (Al Naboodah Contracting), Saudi Arabia (Al Naboodah International Construction Company) and Qatar (Al Naboodah Contracting and Trans Gulf International Electromechanical).

Keeping on top of all these different divisions is a crucial part of Timmons’ day-to-day business, and he’s keen to look at ways to integrate the various facets of the business, so as to offer more to clients.

“Traditionally, the businesses work in silos, with each business being a financial centre with a general manager, a PNL and so on. But what I want to do is bring them together and integrate them. Think of each business as a circle. I want to make them like the Olympic rings – bring them together and integrate them, and look at where they overlap.

“That’s where we’ll become stronger in the market and better than our competitors. It’ll take a bit of doing because they’re separate businesses and everyone’s 24 July 2016

growing in tough times Timmons says that ANCG can flourish despite tough economic conditions as its integrated businesses can make it attractive to clients.

got their own PNL at heart.”

Despite acknowledging the challenges this integration will face, Timmons is adamant that this is the way forward for Al Naboodah Contracting Group, explaining that both he and the owners agree that integrating the various businesses will strengthen the group’s position in an increasingly competitive market.

“We’ve got to shape and change the way businesses are here. The halcyon days are over, they are gone, and it’s doubtful they’ll come back.

“So now we’re working on slimmer margins and we have to become more efficient and better at our job. We have to offer something different, because everybody [in the market] can build. Anyone can come to a meeting and sell the USP that they can deliver on time and on budget. That’s a given. You have to be able to give something else.

“This is really what I want to embrace, to bring the businesses together and integrate the strengths of the business. We’ve got building, we’ve got civil engineering, we’ve got MEP,

“Steve’s had a major impact.

He built this business from the beginning to what it is today. He’s driven the business forward with a very hands-on approach, and that’s my style as well. I think that’s possibly something they liked about me as well”

we’ve got a ductwork factor, we’ve got concrete and asphalt plants. Not all contractors can offer the sort of service offering that we can,” he insists.

Looking at the wider economic situation in the UAE and the Gulf, Timmons says he scents an opportunity for ANCG to flourish in conditions in which its competitors struggle, precisely because of the many services it offers.

“I think that there’s a lot of business out there and our competitors may not be in the right financial place at the moment. When you look at the competition in the market and you narrow down the contractors in the UAE that you’d want to tender for a significantly sized project, then we’re one of the first names that goes on the list.

It’s competitive and we have to offer something different. There are still a lot of problems in the market with liquidity, and on some of these larger projects, clients are really thinking hard about who they want to partner with.

“That’s another side of our business, offering more of a partnership approach, more of a negotiated offering. We’re still pricing in a competitive market, but I think what a lot of people like about us is our ability to perform, that we’re financially sound and that we can be relied upon.”

By offering clients integrated services in this economy, Timmons believes that Al Naboodah Construction will stand out because it can offer contracting and subcontracting services from the same group, while also being able to provide some suppliers.

“When times are hard, you bring the business together and get the commercial benefit,” he says. “That commercial benefit will be passed onto the client because we’re not adding mark-up upon mark-up like you would

In profile

do in a traditional situation. If you go out and get a domestic subcontractor to quote you for an MEP job, he’ll have a mark-up.

Then you’ll have a mark-up and the supplier will have a markup. So if we cut all of that out, it should make us more competitive.”

“Now, clients may not want that at all. They may be sensitive about it and say that they want their own fit-out or MEP contractor. So it’s a fine balance between a hard sell of our own companies and making them understand that it’s commercially viable,” he concedes.

“Ultimately, I think it’s about getting closer to your client and understanding what they want, and then matching it up with what you can offer. That is key.”

While the heart of the business will remain in the UAE, Timmons says the company is keeping an eye out for international opportunities, with the likes of Qatar, eastern Africa and other neighbouring countries of particular interest.

“The UAE is where the majority of our turnover comes from, but we need to be flexible and open. We’re looking at some opportunities on the eastern seaboard of Africa. We’ve looked at pricing a few jobs there and now we’re looking at recruiting some new staff to set up an international business there.

“There is funding for these projects from the World Bank, and indeed, coming from the UAE, we know that there might be projects there that might suit us. There’s a guarantee of funding and it’s lowrisk. We’re looking at breaking into new markets that way.

“It’s not like we go and establish an office somewhere for the sake of it. It’s about pricing a project that we think we can win, and where we can mobilise our own resources – our concrete trucks, our asphalt plants and so on, where we can use local labour and then build on that

prOJECT lisT Al Naboodah Construction Group current and recently completed project list: Palm Jumeirah Business Bay Yas Island Dubai Water Canal Project Dubai International Airport Dubai World Central Expo 2020 Mankhool Building Audi Showroom NAS Arena Saadiyat Island Parallel Roads project Dubai Creek development with Emaar

project. It’s a learning game and bids will improve with time.

“The shareholders’ view is that they’d like to establish an international business moving forwards, in future years. It’s not going to be this year, it’s not going be next year, but there’s a plan and a budget in place, and there are resources being allocated to it.”

For now though, the focus remains firmly on the UAE and the GCC, and Timmons points out that things are changing rapidly in terms of the construction landscape, with public-private partnerships (PPP) becoming increasingly popular.

“PPP has been a means for the delivery of projects in the East for some time, and I think that it’s coming here as well,” he says. “A few years ago, people talked about projects being delivered under a PPP mechanism and there was the view that GCC countries didn’t really like the idea of delivering

projects where a contractor or a consortium are putting finance into the project. It wasn’t the way we did business here.”

“But in the last year, it’s changed significantly. You’re going to see a lot of PPP projects coming out. We hear that two banks are likely to merge – NBAD and First Gulf – and form one of the largest banks in the Gulf region. How are they going to make money? By offering their services to the market.”

“I think we’ve got to understand that the halcyon days are over. It’s a changing market and the contractors that are lean, efficient, organised and reliable are the ones that will get work, and that’s the model I’m trying to develop.”

Looking towards the near future, Timmons says that Expo 2020 and the World Cup in Qatar will continue to influence the construction market,

Aviation experts ANCG has gained a reputation of being able to deliver on high-end, challenging projects, like the Dubai World Central airport (pictured).

July 2016 25

In profile

with key projects associated with these events likely to offer the best opportunities for contractors. However, he stresses that construction firms have to exercise caution and discretion when chasing projects and contracts.

“There’s still a lot of work being tendered, but what’s happening is that the conversion rate is relatively low. That harks back to the price of oil being low and budgets being under pressure. There are key projects that will go ahead for sure.

“I keep saying to our guys, don’t go chasing rainbows. Let’s look at the clients that we know have money to spend and that’s where we want to be pricing.

The market is probably flat at the moment, but Expo 2020 is coming and we’re starting to see enquiries come in. The work is around, prices for sure are a bit tighter, and we’re going to have to work harder to convert potential jobs into successful ones for the business.

“But ultimately, I’m not seeing a downturn as such. I think it’s flat at the moment, but it’s going to climb up slowly towards 2020.”

Despite his optimism, he does offer a note of caution, which also explains why he’s

“The UAE is where the majority of our turnover comes from, but we need to be flexible and open. We’re looking at some opportunities on the eastern seaboard of Africa. We’ve looked at pricing a few jobs there, and now we’re looking at recruiting new staff to set up an international business there”

expo adventure Despite challenging economic conditions, events like Expo 2020 will provide the market with enough impetus to keep contractors busy.

26 July 2016

keen to make sure that Al Naboodah Construction Group is one of the most highlyregarded firms in the region.

“We’ve had the committee from Expo 2020 come and visit our offices and our labour accommodation, doing inspections. They’re setting out the credentials now and the requirements for contractors that they want building on this project. They’re setting very high standards and not every contractor will be able to adhere to these requirements,” he warns.

Bringing the interview back full circle, Timmons explains that steering Al Naboodah Construction Group through choppy economic waters will be his biggest challenge. However, he insists that he couldn’t have picked a better company with which to undertake this journey.

“If I can mirror the growth and success of the business that Steve Lever achieved, then I’d be very happy. But at the moment we have a five-year business plan, a strategic plan. My focus is on delivering this plan with the team. It’s fairly well laid out, and we’re only in year one of five, so as you can imagine, it picks up the turnover for the

business moving forwards and it picks up international growth.

“What I’ve found over the years is that where any business plan fails is in implementation.

Anyone can say that business today is $1 billion, it’ll be $5 billion in five years. But how do you achieve that?

“That comes back to having a hands-on approach to delivering our objectives in a sensible way.

I’ve got it laid out in my mind and on paper, how and where we want to improve. We just have to pick these targets off bit by bit, in a strategic way, to make the business leaner and fitter. I’m confident, I think we’ve got a fantastic base to work from and I couldn’t have come into a better company,” he says, adding that he is now working closely with the third generation of the Al Naboodah family, guiding and mentoring them as they learn the business.

“It’s a bit like ‘waking the giant up’. It’s such a powerful business and it’s done very well over the years. There’s an opportunity here to keep that going. If there’s one thing I could do, it would be to make it the clients’ first choice, so that when you want a contractor, only one comes to mind.”

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Project profile

28 July 2016

Project profile

The Quick Fix Big Project ME speaks to Sumesh Sachar, CEO of KEF Infrastructure, to find out how work is progressing on KEF Holdings’ flagship hospital project in Calicut, India, which is being built entirely off-site

July 2016 29

Project profile

T

wo years ago, KEF Holdings, a UAE-based multinational holding company that specialises in off-site construction technology, announced the launch of its Indian operations with investments worth more than $245 million.

These investments would be channelled through two business verticals – KEF Health and KEF Infra – the company said at the time. These two subsidiaries would also be the launch pad for a project close to the heart of KEF Holdings founderchairman Faizal E Kottikollon.

The PMHP (Premium Medical Healthcare Providers) Hospital is a 500-bed, $8.1 million facility being built in two phases in Calicut, Kerela, Kottikollon’s hometown.

Designed as a pilot project for KEF Health, the tertiary care hospital will provide cardiology, orthopaedics and neuroscience facilities to the population of Calicut.

Built in a joint venture with the PeeKay Group and Dr Ali Faizal, one of India’s leading cardiologists, the MEITRA hospital also includes input and collaboration from specialist doctors from Cleveland Clinic and TAHPI, an Australian international specialist in health facility planning and design.

Scheduled to open its doors to the public by December 1, the project is rapidly moving to completion thanks to the planning and technology of KEF Holdings and its subsidiaries.

Constructed entirely using offsite construction technology, the hospital infrastructure has been built in a record time of 18 months, almost 50% faster 30 July 2016

than if built using conventional construction methods, KEF says.

Speaking in June 2016, Faizal Kottikollan says healthcare infrastructure is a key focus area for KEF Holdings and that the MEITRA hospital is the result of a combination of the company’s expertise in off-site construction and the local experience and expertise of the Peekay Group.

“Healthcare infrastructure is a key focus area for us, because one of our core philosophies as an organisation is that every individual – including the underserved and especially vulnerable in our society – has the right to access quality, affordable healthcare.

Built off-site Almost all the elements around the site were manufactured off-site at KEF Infra’s facility in Krishnagiri and then transported to the hospital site.

PrOjECt dEtaIlS Project name: MEITRA Hospital Project location: Calicut, Kerala, India total project area: 27,870sqm Project budget: $8.1 million Hospital size: 500 beds (205 to be delivered in Phase I) Scheduled completion: December 1, 2016

“We believe that combining modular construction methodologies with cutting-edge disruptive healthcare technologies can revolutionise the healthcare industry. MEITRA will bring a paradigm shift to healthcare by significantly improving clinical outcomes and enhancing the patient experience,” he says.

In order to gain a better understanding of what delivering a healthcare facility of this type entails, Big Project ME spoke to Sumesh Sachar, CEO of KEF Infrastructure and the man tasked with overseeing the delivery of this flagship project.

“For us, the hospital represents the best value proposition for the solutions we provide at KEF Infrastructure. At our 42-acre manufacturing site in Krishnagiri, Tamil Nadu, we have a worldclass high-end technology precast facility. We have world-class joinery, we have modular MEP units and a pod manufacturing facility as well, which produces bathroom and prefabricated rooms. In addition, we also have an aluminium glazing facility.”

Covering a total area of 27,870sqm, the hospital is equipped with modular MEP, ready-to-use plug-and-play bathroom pods, medical headboards and best-inclass medical technologies. Every building element in the hospital, from rooms to operating theatres, was built off-site at the KEF Infra One Industrial Park, then transported and assembled on-site.

“We’re scheduled to open later this year [December 1] and I would say that the state of the project is that the entire structure is complete, we finished it in just under four months,” says Sachar. “It was delivered from our factory, with some project specifics, such as the super-high columns, precast at our factory. Our entire external façade was also done in precast, with graphic concrete panels that really

Project profile

Saving time and cost By using off-site construction technology, the project was able to be completed 50% quicker than it would have been using traditional construction methods.

showcase the beauty of concrete.

“We’ve completed up to the fourth floor, it’s G+7, so we have a total of four floors completed, including a beautiful mock-up room. I would like to say that 80% to 85% of it is all from the KEF manufacturing plant. Some of the products that have come from our manufacturing facility so far – other than the structure, of course – is our modular MEP, we did a bathroom pod here as well, so there’s a total of 89 bathroom pods that we delivered. These pods are double bathroom pods, so it’s two pods in one, so to speak.

“We’ve been able to do the mockup of the pod here in the facility, get it tested and also done the modular testing here. All of it is tested in our facility and shipped to site.”

Given India’s reputation for lackadaisical time-keeping and organisation, we wonder whether Sumesh Sachar’s team faced any logistical challenges when delivering the units to site. However, he insists that perceptions are flawed, at least in KEF Infra’s case, as they’ve worked out a

“Logistics from our manufacturing plant to within a 700km radius poses no real logistical problems. Once we start going beyond that radius, we have to start looking at the cost benefit analysis for most of our customers”

system to ensure that delivery and installation continue on schedule.

“Logistics from our manufacturing plant to within a 700km radius poses no real logistical problems. Once we start going beyond that radius, we have to start looking at the cost benefit analysis for most of our customers.

“So PMHP doesn’t really pose any significant challenges, we’ve been able to deliver most, if not all elements with any issues because the design and planning we’ve done allows for that. We’ve also got tower cranes on-site to help with installation. All the other items are shipped in on flatbed trailers.”

With the first phase of the project scheduled to deliver 205 beds by the end of the year, MEITRA is looking to tap into Kerala’s growing medical tourism market. It says it will offer “first-class healthcare services, complemented by a hospitality ambience and elevated patient care”, which will ultimately make a positive contribution to the state’s economy.

Sachar says the project team is

very conscious of the high standards that need to be maintained, explaining that building off-site ensured that they were able to control the quality and consistency of the elements installed.

“We were very particular in making sure that we had a very strong design team to predict whatever the needs of the hospital were. TAPHI brought a lot of value to the table in terms of specifications, and we worked in accordance with those specifications.

“The beauty of it was that we were able to control the production of a pre-fabricated bathroom, for instance, in a factory setting. Once it’s produced and the mock-up is signed off by the customer, it’s a standardised process and that offers us the advantage of consistency in terms of quality and time,” he asserts.

“One of the challenges here in India is that the consistency and quality is varied. You can walk into one prefabricated bathroom and you’ll see mirrors, for example, placed differently compared to other bathrooms. It’s a myopic example, but you know, there are all these different complications.

For us, we take it down to millimetres in terms of variation.”

Finally, Sachar points out that the construction of the hospital has had some additional benefits, not just to KEF Holdings, but to the wider community as well.

“We’ve been blessed that what we’re doing here is something very exciting, so we’ve been able to attract talent from all over the world, particularly from the UAE. We’ve got a team of installers that have experience in installing hospital structures in the UAE, so we’ve got a lot of skilled people.

“What we do then is that we train our Indian talent, and part of the beauty of this solution is that we invigorate young talent in our country,” he concludes.

July 2016 31

...coming soon

Technology

Printing out a 3D Strategy

Big Project ME speaks to Jeppe Frandsen of Canon Europe at Drupa 2016 to find out how the imaging solutions provider plans to target the 3D printing construction market With 3D printing continuing to be an area of interest for the global construction, architecture and engineering fields, manufacturers and suppliers of the technology have been investing significant amounts of capital into the research and development of new methods and systems for the industry to use.

According to a PwC report, advances in 3D printing technology are set to “seamlessly link the physical and digital worlds”.

With most construction projects able to be divided into three categories – finance, materials and labour – 3D printing could be a potential game-changer for the construction industry, significantly reducing the amount of money, resources and time spent to bring projects to fruition.

Given the potential size of the market for the technology, it’s no surprise to find that giant multinational corporations are stepping up their interest in 3D printing. Just a few short years ago, the technology was the domain of start-ups and smaller innovators.

Now, however, larger multinationals are getting into the act as new opportunities continue to open up.

As a global imaging solutions

34 July 2016

provider, Canon has extensive experience in meeting the demands and expectations of its international customer base. Having started life as a company that looked to make high-quality cameras available to the mass market, it has expanded its product range through to fields as diverse as X-ray machines and multi- function production printers.

Now the company is turning its eye towards the nascent 3D printing industry, with early forays being made into smallscale printing projects intended to facilitate its long-term plan to enter the manufacturing and construction industries.

“We see a growing number of customers who are very keen about adapting to this new technology, and of course getting the benefits out of it. We can also see that the present supply in the market, at least in Europe, doesn’t have the same strength that we have in services and support,” says Jeppe Frandsen, executive vice-president, Industrial and Production Solutions for Canon Europe.

Speaking to Big Project ME at Drupa 2016, Frandsen explains that Canon has noticed the growing trend towards 3D printing as its

growing trend There is increasing interest in 3D printing as construction and architectural firms look to explore new avenues of the technology.

Technology

“ If we come with something, we have to come with something different.

We cannot come with a mediocre product. So we really have to spend the time and do proper research and development to make sure that when we come with something, we can say with certainty that it’s disruptive compared to what’s in the market today”

traditional business with architects, engineers and the construction industry has begun to decline.

“If you look at our traditional business for architects or [for the construction industry] – printing out drawings and so on – that business is declining.

Many of the architects now use tablets, screens or projectors to showcase their drawings. So we’ve been looking at different opportunities to bring new technologies to these customers.

“Here, 3D printing is the most obvious opportunity, that’s the reason we’ve started [looking into it]. It was really to leverage things on our existing go-to-market structure and bring more value into the cooporation with these customers from the architect, engineering, construction and manufacturing sectors, which are key customer groups.

“That also means that when we look at 3D printing, it’s in a different context to our Canon core business. Because there we look at being number one, but in this market, we go more in terms of increasing our engagement with selected customer groups – the architects, engineers, construction and manufacturing industries.”

With all predictions pointing towards the major growth in 3D printing coming from the high-end spectrum of off-site production and manufacturing, Frandsen says that Canon is taking a cautious and studied approach towards entering a market that requires specific skills and competencies.

“First, we have to build up our skills and credibility in what we call the professional 3D printing market, and that is mainly in prototyping, modelling and also for small production series. If you need to do 300 pieces of a component, which has electronics in it or something like that, then we can do it. That’s

the market we’re currently in.

“Later on, we expect to also go into the high-end manufacturing market. But we won’t be doing that, I think, before we have Canon technology. We’re not in that market yet, but our ambition is to come into that market in the future,” he asserts.

Although he’s reluctant to put a time frame on when this will happen, Frandsen says Canon has already started showcasing samples of its 3D printing technology to customers. “[At Canon Expo 2015] we showed technology for the next five years. We had print samples of our Canon 3D printing technology. It’s difficult to say exactly when it will come, but you see today that in 3D printing there’s a lot of suppliers and a lot of different technologies.

“So if we come with something, we have to come with something different. We cannot come with a mediocre product. So we really have to spend the time and do proper research and development to make sure that when we come with something, we can say with certainty that it’s disruptive compared to what’s in the market today.”

For now the focus remains on perfecting what Canon can offer to the market, and Frandsen insists that this slow and steady approach will bring long-term benefits.

“In our experience so far, in the market we’re in today, the architects, construction professionals and also those manufacturing companies that we work with, they don’t care too much if it’s a Canon 3D printing system or a starter system.

“What they’re keen on is having a partner that can help them develop the applications and develop the methodology to fit this technology into their processes.

[Our job is] to make sure that they get their returns, and that we give them a very good service and support,” he concludes.

July 2016 35

Construction Waste

Pilot project The three-year Innovative Use of Recycled Materials in Construction project is a pilot project to see if recycled materials can be transformed into building materials.

going to waste With Qatar relying heavily on imported materials to meet the needs of ongoing construction activities, Dr Khaled Hassan, country head – Qatar for TRL, shares insights on transforming construction waste into building materials 36 July 2016

A number of large-scale infrastructure projects underway in Qatar are facing a shortage of locally-manufactured materials of high quality, thus relying on imported aggregates for use in asphalt and concrete applications. At the same time, large quantities of construction and solid wastes are generated and sent to landfill sites.

To help overcome this problem, in 2011 the Innovative Use of Recycled Materials in Construction project was awarded to a group of stakeholders including TRL, with its collaborative partners of Qatar Standards (part of Qatar’s

Ministry of Environment), Public Works Authority (Ashghal) and Qatar University.

The three-year project, focused on transforming waste materials into building materials, was funded by the National Priorities Research Programme (NPRP), which is administered by the Qatar National Research Fund (QNRF) at Qatar Foundation.

The project is in line with the Qatar government’s policy on sustainable development and protection of the environment, as mentioned in the country’s National Vision. Aimed at overcoming the shortage of

Construction Waste

locally available aggregates and promoting green construction in Qatar, the programme resulted in the identification of recycled aggregates from excavation waste (EW), and recycled concrete aggregate (RCA) being sourced from a landfill site at Rawdat Rashid.

Considerable quantities of recycled aggregate that could make a significant contribution to the demand for aggregates in various construction applications were also identified in Qatar.

Comprehensive laboratory testing was carried out to identify the optimum use of EW and RCA as unbound pavement materials and coarse aggregate in structural concrete, non-structural concrete and concrete blocks. The selected optimised mixtures were then used in the construction of fullscale site trials (buildings and roads) to demonstrate how to apply the new recycled materials and mixtures in practice.

The trials were monitored in service for a minimum of one year under normal exposure conditions such as heat, humidity, aggressive ground conditions and heavy traffic, and the results were used to update the Qatar Construction Specifications (QCS 2014) and promote green construction of buildings and roads.

Consequently, the latest edition of the QCS, published in 2014, permits the use of recycled aggregates from EW and RCA as coarse aggregate in concrete at up to 20% replacement of imported gabbro for structural concrete and up to 50% for non-structural concrete.

Recycled aggregates are also permitted up to 100% in sub-base applications. Similarly, excavated limestone waste is permitted as aggregate in asphalt in the lower layers of the pavement, but not in the surface course.

The recycled aggregate materials are supplied by Qatar Quarry Company – Lafarge; the building trials are constructed by the Qatari Arabian Construction Company (QACC); and the trial road is constructed by Boom Construction Company. In fact, a key success of the project has been the collaboration between government, industry, research and academia, all supporting sustainable construction.

The use of recycled aggregate is expected to yield major economic and environmental advantages, compared to the use of imported aggregate. A comparison of the likely costs of local recycled aggregates in Qatar indicated a significant reduction of 60% compared to imported aggregates.

In addition, the use of local recycled aggregate reduced the carbon footprint by at least 50%, mainly due to the energy saving in transport that can be avoided in shipping the primary aggregates to Qatar. Limitations on port capacity and concerns about the quality of imported aggregate also support greater uptake of the recycled materials in construction.

The implementation of recycling in construction on a large scale will require significant changes to existing construction practices in Qatar. Codes of practice have been developed for sorting out wastes at source before sending to landfill and certifying recycled aggregate by Qatar Standards.

These will significantly improve the quality of recycled materials, provide confidence in use and change the perception of inferior quality of recycled materials. Guidance documents have also been prepared to provide experience on the use of recycled aggregate in different construction applications.

To help further encourage the use of recycled aggregates, TRL

“It is expected that the use of recycled aggregate will yield major economic and environmental advantages compared to the use of imported aggregate. A comparison of the likely costs of local recycled aggregates in Qatar indicated a significant reduction of 60% compared to imported aggregates”

and Qatar Standards recently released a guidebook, Recycled Aggregate in Construction – Qatar Experience. The guidebook aims to raise awareness and help Qatari construction companies comply with the new standards set.

The 225-page book includes comprehensive data on the construction industry in Qatar and the potential of recycling initiatives, supported by statistical tables and charts, photographs and case studies. It also showcases a range of studies conducted in Doha and the UK between 2010 and 2015, focusing on the development of codes of practice and supporting mechanisms to convert vast quantities of construction waste into highvalue construction products.

In line with the findings of the research, Qatar Standards has already updated the Qatar Construction Specification to permit the use of recycled aggregates in a range of applications, including structural concrete, non-structural concrete, concrete blocks, asphalt pavements, road sub-base materials and fill applications.

However, it does not force clients and contractors to use recycled aggregates, so uptake will be determined largely by cost.

Recently, another project has been awarded in Qatar for the implementation of recycled aggregate in real construction projects. The new project will look at the performance of recycled aggregate in a range of construction applications, and monitor performance in practice.

The project team will work with a wider group from the government and construction industry to provide sustainable aggregate.

The results will be publicised, to ensure that stakeholders are aware of recycled aggregates and have confidence in their use.

July 2016 37

Supplier Focus

positioned to succeed Big Project ME meets Andre Winogradsky, managing director – Gulf region for Geberit, to find how the Swiss sanitary giant has flourished in the Middle East despite the fluctuations in the market

Reading the market Andre Winogradsky says that Geberit has noticed the shift towards value engineering in the GCC market and has positioned itself and its products accordingly.

38 July 2016

The Middle East was one of only two regions that Geberit operates in to post growth figures in your recent quarterly report (March 2016). What is the secret to your success in this region?

Geberit has had a long relationship with all the major market players over the last three decades. We are an organisation that the industry has learnt to trust. Our products have proven themselves with use across all sectors of the industry, and they are easy to install and maintain. With our technical support team on the ground, our expertise, know-

how and training, the advantage to our customers is obvious.

As a group, we made a successful start to the 2016 financial year. Overall, our net sales increased by 12.9% to $749.4 million in the first quarter of 2016. Adjusted for acquisitions and currency effects, the increase came to 3.1%. Our adjusted operating profit increased by 13% to $191.5 million, while the adjusted net income rose by 17.5% to $165.3 million.

In the Middle East, our outlook remains positive even though we expect a weak construction industry

Supplier Focus

in some of the Gulf states due to the low oil prices.

What trends do you see in the region that make you optimistic?

How are you positioning Geberit to take advantage of the opportunities that may arise?

We saw the lean towards value engineering and have positioned ourselves with the right selection of products for all types of construction. For example, we’ve launched a new range of concealed cisterns and plates that are geared towards the competitive residential market. Our Alpha 8cm cistern

is European-made and is now available in our region with a new range of flush activation plates that answer specifically to that market demand.

Furthermore, with the shortage of skilled labour in the industry, we do see some opportunities in the modular options, which will save time on-site and help improve construction schedules.

With the global trend to minimise costs and time in construction projects, there is also a growing interest in Building Information Modelling (BIM). BIM helps to manage all types of construction issues in any project, and Geberit already has BIM data available for some products in Autodesk Revit.

What sectors and markets have you seen the biggest growth in? How are you positioning Geberit to meet the demand from these sectors or markets?

Each country brings its own contribution in terms of growth.

We are locally present on the ground in the region for the last 25 years. We’ve seen volume growth in the UAE, specifically in the three- and four-star hotel segment. There is a need to develop specific products that respond to the market requirements. Our position in five-star hotel projects has always been one of our strong points.

As such, our new range of products now answer to market demand, meeting the needs of residential and three- and four-star hotel projects and helping us maintain our position.

We have the right team in the right place to help us grow.

Geberit recently acquired Sanitec. Has that acquisition had an impact on the Middle East operations of the group?

“We saw the lean towards value engineering and have positioned ourselves with the right selection of products for all types of construction.

For example, we’ve launched a new range of concealed cisterns and plates that are geared towards the competitive residential market” Geberit never considered Sanitec as a competitor. The brands complement each other.

Geberit was predominantly behind the wall and the Sanitec brands in front of the wall.

Now, after the integration, we have one sales team and see the benefits of Geberit being able to offer complete solutions.

Of course, like Geberit as a whole, a lot of energy and

resources were invested in the integration and now on a local level we are more efficient.

We now offer alongside Geberit the Keramag, Keramag Design, Twyford and Kolo brands as a single company.

The region’s success is shaped by the challenging environment, and again there are certain factors to take into consideration.

To offer a smooth operation to our partners in the region, we deal in USD. Therefore we absorb the variation of the Swiss franc.

Sustainability and green building have been big drivers in changing the mindset of the construction industry. What impact have the green building mandates had on the industry, and how can Geberit help clients achieve the LEED and Estidama ratings they want?

There has been a strong and widespread demand for green building products, even in the bathroom sector, which is developing new solutions and products geared to maximum optimisation of water and electricity consumption.

We’re leading the way in providing water solutions with reduced consumption, energysaving, low-noise and durable products, which enable flexible construction and correspond to sustainable building standards, reducing our carbon footprint in manufacturing, while never sacrificing design quality.

We apply competence and expertise at every stage – from development through to delivery.

We make every effort to use natural resources carefully, thus making a contribution towards protecting the environment.

This begins with the development of our products and extends to their manufacture and use, through to responsible recycling.

July 2016 39

In profile

More than the Cup Dietmar Siersdorfer, CEO of Siemens Middle East, tells Big Project ME there’s a lot more to the Qatari market than the 2022 World Cup. Gavin Davids reports

w

hile the attention of the world’s media has rightly been focused on Qatar’s efforts to get the country ready for the 2022 World Cup, there is a tremendous amount of work going in the tiny Gulf state to make sure that there is a lasting legacy beyond the tournament.

The key aspect of this work is the infrastructure development around the country, with billions of dollars being spent to deliver highways, roads, railways and ports, along with power and water infrastructure facilities, among many other vital projects. The government of Qatar has tapped into its long-standing relationships with a number of international service and utilities providers, looking to use their expertise to deliver high-quality projects that will stand the test of time.

40 July 2016

One such company is Siemens, a German global technical powerhouse with a long and successful history in the Middle East. Earlier this year, it was awarded a 25-year service agreement for the planned Umm Al Houl combined cycle power plant in Qatar, signifying the value placed on its services by the country.

As part of the service agreement, Siemens will be responsible for the plant’s six SGT5-4000F gas turbines, four SST5-4000 steam turbines and 10 SGen5-1200A generators, including instrumentation and controls service for the next 25 years. The company will also provide an on-site electrical and resident engineer.

“Qatar is experiencing rapid industrial, economic and population growth,” says Tim Holt, CEO of Siemens Power Generation Services, Power and Gas. “Supported by our highly experienced technical experts, our strong presence in the region and in close collaboration with our customer, our advanced services

and maintenance solutions will help ensure this important new power plant will operate reliably for many years to come.”

Clearly then, there is a considerable commitment from both sides. Revealing more about the relationship between the country and the company, Dietmar Siersdorfer, CEO of Siemens Middle East, spoke to Big Project ME to explain why the German giant sees such potential in Qatar.

“We see Qatar evolving in two ways. One is around infrastructure investments towards World Cup 2022. These are going full steam ahead. They have to go at full steam because they have deadlines – and a final deadline, which is December 2022. That’s why all the infrastructure investments and supporting sub-elements of infrastructure investments are ongoing, like the stadiums, the metro and trams. Then there is also the power network, which is going to support these plans,” Siersdorfer explains.

Siemens will focus on these sectors, he says. Already heavily involved in many infrastructure

In profile

July 2016 41

In profile

aspects, there aren’t any plans to slow down anytime soon.

“We’ve got this huge Umm Al Houl power plant. Then we have this new distribution network and transmission network for Kahramaa that we’re building up. We’re also working on the tram project in Qatar Education City, and we’re progressing on that, with plans to open in one and a half years. All the other stadiums are just kicking in, and we’re entering that field with our Smart Building Technologies and efficient power network solutions.”

Despite this focus on the infrastructure development of Qatar, Siemens continues to pay attention to other equally important sectors – such as oil & gas – despite the impact falling oil prices have had on

spending and investment.

“Oil & gas was affected due to the price fluctuations, but now the market is recovering. Yes, we have seen large projects shifting, but we’ve also seen that some projects that are crucial for the operational efficiency of the whole network in oil & gas – also in terms of productivity measures – were and are being implemented.

“In the oil & gas field, we see some projects that must be completed right now, and some projects that have been shifted. But analysts forecast a recovery by 2017.”

Although Siersdorfer concedes that the market has become a little bit more cost-conscious, making things a little more difficult, he also points out the positives of this new frugality.

“There are clear expectations

“In the oil & gas field, we see some projects that must be completed right now, and some projects that have been shifted.

But analysts forecast a recovery by 2017”

from customers about the quality, deadlines and deliverables are being assessed properly, and it’s not just about cost. The first half of 2016, for us it was in fact positive. Because we are involved in infrastructure projects, in power projects, we haven’t been directly affected by the existing oil & gas pricing situation, which has resulted in budget challenges.”

One of the benefits of working on these major infrastructure projects is that it gives Siemens unprecedented access to the decision-makers and authorities in Qatar. The customer for the Umm Al Houl project, for example, is Umm Al Houl Power QSC, a company established through a partnership between Qatar Electricity and Water Company (QWEC), Qatar Petroleum, Qatar Foundation Special delivery Siemens has handed over its 1,000th gas turbine to the Umm Al Houl plant in Qatar.

42 July 2016

In profile

Many other opportunities There are many opportunities in Qatar beyond the World Cup in 2022, especially in regards to the country’s transport infrastructure.

and K1 Energy (a joint venture

by Mitsubishi Corporation and TEPCO Fuel & Power).

In addition, the company is working with Kahramaa on a huge project which will see 15,000 locations across selected parts of Doha have smart metering implemented.

This project not only aims to enhance the user experience for water and electricity, but also looks to bring about better control and understanding – to both the authority and the users – about the consumption of water and electricity, two scarce resources in the country.

“Qatar is currently in the phase of electrification and automation.

Those are more or less the basic infrastructure needs that you need to have. Qatar has made very good investments in these two things, and now it is starting to invest in digitalisation. In fact, there’s a general consensus in the market to move in that general direction.

Of course, there are timelines in regards to this – [there are more pressing] infrastructure 44 July 2016

“Qatar is currently in the phase of electrification and automation.

Those are more or less the basic infrastructure needs that you need to have.

Qatar has made very good investments in these two things, and now it is starting to invest in digitalisation”

investment needs for the World Cup which have a higher priority, at this moment in time.

“But at the same time, we are discussing further steps for digitisation with the Ministry of Energy, with Kahramaa and with different institutions in the country,” says Siersdorfer.

“We also have our research and development centre in Qatar, and this centre is in close collaboration with universities and with most companies [the large-scale Qatari companies and some state institutions] to help define the way forward with regards to select fields, such as how to make the solutions provided in Qatar more digitised and futuristic, with state-of-the-art technologies.”

Qatar’s National Vision 2030 will play a big part in this advancement of technology across the country’s infrastructure and key sectors, he believes.

Hospitality, ports, airports and transportation networks will all come in for significant investment over the years, as

Qatar looks to become a hub for those fields in the Middle East.

“From an education perspective, the country is investing heavily in human development and knowledge.

Qatar is also spending heavily on the transport infrastructure side. I believe these things will carry Qatar beyond the 2022 World Cup. It will become a centre of attraction when it comes to tourism, financial services, healthcare and education-related services.

“We’re working together with different public institutions, on both the power side and the infrastructure side, to have some market-efficient and productive networks for Qatar.

We’re partnering in many discussions and we’re submitting white papers where we share our experiences from Europe, the US, the Asia-Pacific region and so on, while working to develop the city of Doha and the rest of the country.”

Although he remains positive on the outlook for the country in the years ahead, Siersdorfer does acknowledge that there are challenges that the country must tackle during its journey forwards.

“The major challenge is that Qatar is growing so quickly.

Finding resources in the country is going to be difficult. That’s why we’re importing resources, we’re looking for resources from all around the world, in the region and outside the region.

“This is one of the most important topics we’re discussing – how we can have a greater inflow of qualified resources to the country. That has been the major challenge, if I may say so.

This is more or less where we are at the moment. Because we’re growing as well, so we’re in a continuous search for human resources,” he concludes.

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Event review

in deep discussion The panel discussion featured leading experts from the regional construction industry and BIM evangelists.

Future oF Building things 2016 Big Project ME reports from Future of Building Things 2016, an Autodeskhosted event exploring the impact of disruptive technology on construction With interest in 3D printing, virtual and augmented reality, connectivity and the Internet of Things (IoT) continuing to grow in the Middle East, the implications for regional construction are massive, as the technology will have an impact on how the industry designs, constructs and manages buildings and infrastructure across the region.

Therefore, it is crucial that the industry understands just how this disruptive technology will shape the future of how nations are designed and built, and how governments, engineers and contractors can and must work together to plan ahead for these changes.

46 July 2016

That is why, on May 26, Autodesk held a prestige event at The Annex at Burj Khalifa. The event, attended by more than 250 of the region’s leading consultants, engineers and major stakeholders, focused on key discussions explaining how technology has played a vital role in disrupting the way buildings and infrastructure are designed, built and used.

Opening with a keynote address

by Naji Atallah, head of AEC and Manufacturing at Autodesk Middle East and Turkey, the conference was particularly timely, coming after the recent announcement

by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister

of the UAE and Ruler of Dubai, that 25% of Dubai’s buildings should be 3D printed by 2030.

Speaking to media on the sidelines of the event, Atallah said that technology was changing at a quicker rate than expected.

“Some of the things that are changing are around how we make things. The 3D printing has been around for more than 30 years, but it is gaining critical mass now as computers and hardware are much stronger,” he told Gulf News. “The technologies which were futuristic are real now. In the future, we will see a connection between what is real and what is virtual, while adding more intelligence from the virtual world,” he explained.

The conference aimed to show how the emergence of newer technologies in designing not only plays an integral role in the creation and construction of new buildings but also in the efforts to help stakeholders to derive notable cost and time saving.

The technologies on display included Building Information Modelling (BIM) solutions, which are now helping transform these industries, particularly the $7 trillion global construction segment. Aside from BIM, the presence of 3D printing, virtual and augmented reality, connectivity and the IoT will surely have key impacts on how we design, construct and manage today’s

Event review

buildings and infrastructure.

Industry analysts lauded the Autodesk-hosted event as both timely and strategic, as it aimed to shed light on disruptive technology trends that will shape the future of the GCC nations and how stakeholders can plan ahead for these changes. The conference and speakers also showcased present-day projects that are already leveraging best-in-class technologies to deliver higher quality, on-time and lower-cost projects.

The one-day event was highlighted by talks and presentations from some of the region’s foremost industry experts, such as Matt Wheelis, Construction Industry manager, Autodesk (The Future of Building Things); Neil Brooker, head of Technical, Autodesk (Disruptive Technologies Defining the Future of Building Things); and Ghassan

“Some of the things that are changing are around how we make things. The 3D printing has been around for more than 30 years, but it is gaining critical mass now”

Zein, BIM Unit leader at Dar Al-Handasah (BIM Topic).

A special panel discussion which included Suhail Arfath, head of Autodesk Consulting, was also held to talk about ‘How do industries tend to respond to The Future of Building Things?’

Moderated by Gavin Davids, editor of Big Project ME, this panel discussion also included some of the UAE’s leading construction experts – Geoffrey Batzel, chief Strategy and Implementation officer at KEO International Consultants; Sean McQue, projects director for UAE at ALEC; Andy Shaw, associate director at RMJM International in Dubai; and Sean Dewhurst, Change and IT director at SSH. “I do personally think that you shouldn’t be using digital technology to create crazy shapes,” said Andy Shaw during the discussion. “You should be

looking at the realistic bits of building and occupying space, but also, we are now going to see it affecting fabrication. I also think that if you’re looking at printing whole buildings, then the way innovation normally works is that you start small, you experiment and you find what’s successful. Then you scale up.”

He pointed out that the recent announcement by HH Sheikh Mohammed Bin Rashid Al Maktoum was a good launching pad for early innovators to start exploring how 3D printing technology could be used on small housing projects and individual buildings.

“Having a plan isn’t always the best way. When you innovate, you have to experiment and you may not always know where you’re going to end up. And then you learn and you find out that you’re somewhere new,” he concluded.

industry in attendance More than 250 guests from across the construction industry were in attendance to hear insights from BIM experts.

July 2016 47

Show review

Products in Focus

Big Project ME showcases the products that will make a difference to the construction, sustainability and infrastructure industries

FILAPW10 Pre-fixing efflorescenceblocking protector Surface care specialist FILA offers an efflorescence-blocking sealant that stops contaminants from rising up from the substrate to the material surface, thus preventing the formation of streaks or stains from salts, tannin, oxides and more. FILAPW10 can be applied on the back surface of natural stones such as granite, marble, polished marble, terracotta and other absorbent materials.

MobiPark Mobile Automated Parking System, the latest innovation

by GreenParking A hand-held mobile terminal combined with a mobile ticket/ receipt printer represent a simple and fast solution for small parking areas. The MobiPark comes with customised software for Car Park Management and Valet Parking Services. With an integrated ANPR it prints receipts and tickets on demand and on the go. Each visitor gets an individual barcode ticket, entry and exit time are recorded automatically.

The barcode reader is used to call for the car at 48 July 2016

It does not form a surface film and allows treated materials to breathe. FILAPW10 is a water-based product and does not emit any VOCs. A permanent, pre-fixing protector, it is ideal for floors and all surfaces.

the valet. There is also an option to take pictures of the car with the integrated camera. Furthermore, it can inform about the availability of parking spaces by automatic parking space assignment. With its integrated Boom Barrier Controller, it can also be used for opening the barrier.

1-EV Charging Intelligent Recharging Systems for Electric Vehicles Smart recharging for zero-emission electric cars is part of Dubai’s Smart City & Sustainable Development Initiative.

The first installations of EV chargers from GreenParking were already launched by DEWA across Dubai last year.

The idea is to promote the use of sustainable vehicles and create the infrastructure for users in the UAE. GreenParking offers a variety of different solutions with regard to EV recharging systems adapted to each kind of

car park, whether in one-family homes, communal residence car parks, public and shopping centre car parks, hotels, etc.

There are three types of GreenParking EV chargers: Wall Box, Street Post and Rapid Chargers.

FILAMP90 Eco Plus Eco-friendly stainproofing protector without hydrocarbon solvents Surface care specialist FILA offers reliable, environmentally-friendly stain protection for porcelain tiles, natural stone, marble and granite with polished, brushed and matt honed finishes: FILAMP90 Eco Plus.

Part of the FILA green line, FILAMP90 Eco Plus does not contain hydrocarbon solvents, and contributes to the LEED credits of the construction. A natural finish stain-proofing sealant, it reduces absorption without affecting the material’s look.

As a certified food-safe product, it is ideally suited for protecting kitchen and bathroom tops. FILAMP90 does not form a surface film; it impregnates and protects the surface, making cleaning easier.

Efficient with grout joints, ceramic and crackle effect surfaces.

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Tenders

Top tenders Vida Jeddah Gate hotel & Residences PRoJect Budget $100,000,000 Project number WPR1023-SA territory Jeddah 21482, Saudi Arabia client Emaar Middle East (Saudi Arabia) Phone (+966-12) 699 9555 Fax (+966-12) 699 9988 Website www.emaar.com description Construction of a 14-storey hotel tower offering 202 rooms and a 25-storey residential tower comprising 162 serviced residences consisting of one, two, three and four bedrooms Period 2018 status New Tender tender categories Construction & Contracting, Hotels, Prestige Buildings tender Products Hotel Construction, Residential Buildings

construction and commissioning of an industrial waste treatment plant capable of handling waste from refineries Period 2019 status Current Project tender categories Industrial & Special Projects tender Products Waste Water Network & Treatment Plants

caiRo metRo PRoJect – line 3 – Phase 4B Budget $672,000,000 Project number MPR1500-E territory Cairo 11794, Egypt client National Authority for Tunnels (Egypt) address Ramses Building, Ramses Square Phone (+20-2) 3574 2968 / 3574 3024 Fax (+20-2) 3574 2950 email infoc@nategypt.org

Website www.nategypt.org description Construction of a metro line involving 6.1km of viaduct and five elevated stations status Current Project tender categories Public Transportation Projects tender Products Metro

concouRse c systems uPGRade PRoJect – duBai inteRnational aiRPoRt Budget $381,000,000 Project number MPP3006-U territory Dubai, United Arab Emirates client Dubai Aviation Engineering Projects (DAEP) Phone (+971-4) 216 6222 Fax (+971-4) 284 4535 email info@daep.ae Website www.daep.ae description Carrying out overhaul/ upgrading of systems serving a concourse at an international airport status New Tender tender categories Airport tender Products Airports Development & Management

industRial Waste tReatment Plant PRoJect

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Budget $263,000,000 Project number WPR1011-U territory Abu Dhabi, United Arab Emirates client Abu Dhabi Oil Refining Company (TAKREER) address Sheikh Khalifa Energy Complex, Khalifa Street Phone (+971-2) 602 7000 Fax (+971-2) 602 7001 email publicrelations@takreer.com Website www.takreer.com description Design, procurement,

Budget $120,000,000 Project number WPR1034-O territory Muttrah PC 114, Oman client Al Raid Group of Companies (Oman) Phone (+968) 2456 6557 / 2456 4477 / 2456 7493 Fax (+968) 2456 7492 email alraid@alraidgroup.com Website www.alraidgroup.com description Construction of a new shopping mall covering a built-up

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50 July 2016

Tenders

PRoJect – neW caPital city Budget $783,000,000 Project number MPR1498-E territory Cairo, Egypt client Ministry of Housing, Utilities & Urban Development (Egypt) address 1, Ismail Abaza, El Kasr El Aini Street Phone (+20-2) 2792 1441 Fax (+20-2) 2792 1423 email pppw-ww@mhousing.gov.eg Website www.moh.gov.eg description Execution of major infrastructure works and roads, including construction of a hotel and conference hall Period 2017 status Current Project tender categories Construction & Contracting, Hotels, Power & Alternative Energy, Roads, Bridges & Infrastructure, Water Works tender Products Hotel Construction, Infrastructure, Roads Construction

millennium Place hotel PRoJect – JumeiRah VillaGe tRianGle

client The First Group (Dubai) address 22nd Floor, Tameem House, TECOM Phone (+971-4) 455 0100 email info@thefirstgroup.com Website www.thefirstgroup.com description Construction of a contemporary four-star deluxe hotel comprising 34 floors offering 599 guestrooms status New Tender tender categories Hotels, Prestige Buildings tender Products High-rise Towers, Hotel Construction

Budget $120,000,000 Project number WPR1016-U territory Dubai, United Arab Emirates

inFRastRuctuRe, Roads, hotel & conFeRence hall

area of 128,000sqm with a lease area of 55,000sqm, including a car park to accommodate more than 2,000 vehicles Period 2019 status Current Project tender categories Construction & Contracting, Leisure & Entertainment tender Products Retail Developments

masic Residential toWeR PRoJect – Jeddah coRniche Budget $187,000,000 Project number WPR1006-SA territory Riyadh 11411, Saudi Arabia client Mohammed Alsubeaei & Sons Investments Company (MASIC) – Saudi Arabia address MASIC Bldg, 203, Maathar District, Makkah Road Phone (+966-11) 488 3388 Fax (+966-11) 488 6262 email info@masic.com.sa Website www.masic.com.sa description Construction of a residential tower comprising a ground floor and 60 additional floors consisting of more than 180 luxury apartments

status New Tender tender categories Prestige Buildings tender Products High-rise Towers, Residential Buildings

Jenan Residence PRoJect – lusail city Budget $40,000,000 Project number WPR972-Q territory Doha, Qatar client Just Real Estate (Qatar) address Al Gassar Tower, 14th Floor, West Bay Phone (+974) 4491 3303 Fax (+974) 4491 3299 email info@jre.com.qa Website www.jre.com.qa description Construction of a residential building comprising 26 floors Period 2019 status New Tender tender categories Prestige Buildings tender Products High-rise Towers, Residential Buildings

FloW-lines & souRce Well constRuction PRoJect – minaGish oil Field Budget $31,000,000 Project number MPR1470-K territory Ahmadi 61008, Kuwait client Kuwait Oil Company (KOC) Phone (+965) 2398 9111 Fax (+965) 2398 3661 email kocinfo@kockw.com Website www.kockw.com description Construction of flowlines and a source well in an oil field status Current Project tender categories Gas Processing & Distribution, Oilfields & Refineries tender Products Oilfields Exploration & Development

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

July 2016 51

Last word

Impact of Brexit on the UAE real estate market Amit Shukla, senior associate, Development Advisory and Real Estate Research at Cavendish Maxwell, reacts to the UK referendum and outlines the possible impact on the UAE real estate market The outcome of the UK referendum to leave the European Union has certainly been a shock to the global economy.

Even though for some time this was a very close vote, it’s fair to say that most analysts did not predict that the Leave campaign would win.

Given the unprecedented nature of the situation, it is difficult to state with certainty how this will play out and the impact it will have on the real estate market in the UK, let alone the UAE. However, it is clear that the ramifications of this decision will be felt on a global scale. The financial markets have had a lot to process, with David Cameron announcing his resignation, the pound dipping to its lowest level versus the dollar since 1985 and Nicola Sturgeon indicating another Scottish independence referendum.

Rumours also abound of banks already in the process

52 July 2016

of shifting thousands of jobs away from the UK and the UK credit rating being on negative watch. All of this has been witnessed in just one day, which has led to trillions being lost in value across global stock markets. With the negative sentiment set to continue, it is difficult to see short-term stabilisation.

UAE markets have already reacted to the UK vote, with the benchmark index closing nearly 3% down by early afternoon on Sunday. The potential flow of monies may provide further insight into the effect on the UAE real estate market.

With the pound falling against the dollar and the dirham pegged to the latter, some UAE investors could face a once-ina-lifetime opportunity to buy real estate in the UK on the cheap.

One also worries about what will happen to interest rates alongside the currency situation

for the euro and pound, which is likely to lead to a ‘wait and see’ approach from UK and continental European investors putting money into the UAE market, especially the Dubai residential sector.

There may be a drain of money from expats taking advantage of sterling’s weakness, combined with lower purchasing power for expats who are not able to leverage their home-based savings more effectively.

Any UAE capital already tied up in UK real estate may lead to a general outward flow of capital from the UAE and an unforeseen drop in demand for UAE real estate.

The current turmoil, coming at a time when the region is grappling with oil price instability, could mean more people preferring to hold on to their capital and see how things shape up, waiting for a longer term market reaction. This would result in investment

“With the pound falling against the dollar and the dirham pegged to the latter, some UAE investors could face a once-ina-lifetime opportunity to buy real estate in the UK on the cheap”

decisions taking longer, and as demand reduces, so may prices in the UAE market. Given the reluctance of UAE owners and sellers to lower prices further to ensure sales, this could lead to fewer transactions in the market.

The most damaging factor is the uncertainty the political situation is creating, especially from a once stable country.

Investors detest these kinds of situations; calming statements from Mark Carney, Governor of the Bank of England, on measures to ensure stability do help, but the uncertainty on when or if Article 50 of the Lisbon Treaty will be enacted, and what form the next government will take, overrides the Governor’s good intentions.

The following weeks will be critical in providing a clearer picture of the real impact, and the UK needs to provide a measured way forward to help calm world markets.

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